MicrosoftMicrosoft®® Office Office Project Portfolio Server 2007Project Portfolio Server 2007

Introduction to Project Portfolio Server 2007

Microsoft Office Project Portfolio Server 2007 is a top-down portfolio management solution that helps organizations realize their potential by identifying, selecting, and delivering investments that best align with their business strategy

Microsoft Office Project Portfolio Server 2007 Is a Key Component in the EPM Solution

Project Portfolio Server 2007 integrates with Project Server 2007 to provide organizations with an end-to-end project portfolio management (PPM) solution

ExecutivesPortfolio AnalystsProject Managers

Application Managers

Line of Business Systems

Line of Business Systems

Project Managers

Executives Resource Managers

Team Members

Project Project Server Server

GatewayGateway

Portfolio Management Is a Growing Market

Portfolio management helps organizations improve decision-making and identify the investments that will deliver maximum business value

Portfolio management is not just about projects

Successful organizations must gain visibility, insight, and control across varied investment portfolios (projects, programs, applications, products)

To maximize the return from IT investments, you must analyze and manage the interrelationships between application, asset, business process, and project portfolios

An action taken in one portfolio may trigger changes in other portfolios

Projects are vehicles for change

Application Valuation

ApplicationTransformation

Decisions

ApplicationInventoryUpdate

ApplicationRedundancyAssessment

Application Portfolio

Management

PortfolioSelection

PortfolioPlanning

PortfolioExecution

ProjectCapture &Valuation

Project Portfolio

Management

New Project Requests

New / Enhanced ApplicationsNew / Enhanced Applications

Project Portfolio Server 2007 includes best-practice portfolio analytical techniques to help organizations manage project, program, and application portfolios

Business StrategyBusiness Strategy

IT StrategyIT Strategy

Manage the Synergies Between PPM and APM

Project Portfolio Server 2007 Positioning and messaging

Gain visibility and controlObjectively prioritize and

evaluate competing investments

Tightly integrate with Project Server 2007

Optimize budget and aligninvestments with

business strategy

Top 10 Benefits of Project Portfolio Server 2007

1.New! Automate and enforce governance processes

2.Improved! Use best-practice PPM and APM methodologies

3.New! Capture all investments in a central repository

4.New! Objectively prioritize business strategy

5.Improved! Effectively prioritize and evaluate competing investments

6.Improved! Optimize budget and align with the business strategy

7.New! Reach the Efficient Frontier

8.New! Measure and track portfolio performance

9.New! Benefit from tight integration with Project Server 2007

10. Improved! Consolidate projects from federated Office Project Servers

Project Portfolio ManagementMicrosoft Office Project Portfolio Server 2007

Ab

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Ability to Realize Business-Value Potential(Project Server 2007)

75% 100%

66%

100%

0%

Portfolio Management

Project Management

50%Value Realized

50% Value Lost

Project Management helps ensure organizations successfully deliver the selected investments and realize the business value

Select and Deliver the Right InvestmentsPortfolio Management enables organizations to identify and select the investments that will maximize business value

Portfolio ReportingBenefits Realization

Successful Organizations Use Both Disciplines

Project ManagementProject PlanningCost ManagementResource ManagementTime ReportingChange ManagementIssue ManagementProject ReportingCollaboration

Portfolio ManagementPortfolio GovernanceBusiness Case DevBenefits ForecastingPrioritization / ValuationPortfolio OptimizationAdv Portfolio AnalyticsCapacity Planning

Project Portfolio Management answers the following questions:

Have I selected the right investments?Do the investments align with the strategic objectives?Do I have sufficient resources to deliver the selected investments?Will the investments be delivered on time and within budget?Are my investments delivering the forecast benefits?

Create Select Plan Manage

PPMLife Cycle Steps

Gov Phases

EPM Solution PPM Process and Architecture

Final Approval Baseline

Microsoft EPM Solution

Portfolio DashboardPortfolio OptimizerPortfolio Builder

CompleteProject Request

Form

1st Review

2nd Review

Resource RequirementsBusiness Case Development

Cost Estimates

Risk Assessment

Phase & Milestone Planning

Strategic Alignment Assessment

2

1

4

5

6

Benefit Forecasts3

Portfolio PrioritizationStrategic Value

Financial Value

Risk Value

Portfolio Optimization

Charting Analysis

Constraint Analysis

Adv Portfolio Analytics

1

2

3

1

2

3

Portfolio Selection

Detailed Planning

Develop Project Plan

Assign Named Resources

Define Interdependencies

1

2

3

Project TrackingProject Tracking

Time Reporting

1

3Issues & Risk Mgmt

Document Mgmt 4

5Team Collaboration 6

Resource Mgmt2

Portfolio TrackingChange Request Mgmt

Status Reporting

Portfolio Reoptimization

1

2

3

Completed

Predefined workflows help ensure the projects are subject to the appropriate governance controls throughout their life cycle (from proposal to postimplementation)

Capture all project requests within a central repository, and define business-case templates to standardize the data collection across the organization

Capture Project Requests/Ideas

1

2

Portfolio BuilderCreate: Capture project requests in an enterprise repository

Governance Workflow

Build a detailed business case for each project request in accordance with the governance workflow

General Information

3a

Cost Estimates Resource Estimates

Benefit Estimates Strategic Impact Assessment Risk Assessment

3b 3c

3d 3e 3f

Portfolio BuilderCreate: Business case development

Use proven techniques to define and prioritize business drivers

Derive a priority score to evaluate each project request (that is, strategic value, financial value, risk)

Prioritize Business Drivers

Prioritize Projects

4

Assess the impact of each project request against the prioritized business drivers

Business Drivers

Pro

ject

s

5

6

Analyze the project portfolio before attempting to make funding decisions

7

Investment Maps

Impact Assessment

Portfolio OptimizerSelect: Portfolio prioritization

8

10

9Use sophisticated optimization algorithms to maximize the portfolio’s strategic value under varying budget constraints (that is, cost and resources)

‘What If’ Analysis

Efficient Frontier Modeling

Business Alignment Analysis

Benchmark the selected portfolio against the Efficient Frontier

Calculate and communicate the selected portfolio’s alignment with the organization’s strategic priorities

Portfolio OptimizerSelect: Portfolio optimization and advanced analytics

12

13

Create real-time project and portfolio performance scorecards to help ensure executives and PMOs gain visibility, insight, and control across project portfolios within the organization. Automatically drill down to the project to view periodic status reports.

Project Status ReportPortfolio Scorecard

11

Portfolio DashboardManage: Track and measure the portfolio performance

Portfolio Reporting

Use intuitive generators to define and publish report templates to standardize and streamline the reporting process across the organization.

# PortfolioStrategic

ValueTotal EBIT

Original Selection 51% $389 M

Optimal Selection 82% $564 M

Final Selection (includes mandated projects) 75% $526 M

2

3

1

Strategic Value Gain = 24%

EBIT Increase = $137 MM

3

1

2

Gaining ControlPortfolio optimization led to gains of $137mm EBIT, 24% strategic value for same budget

Application Portfolio ManagementMicrosoft Office Project Portfolio Server 2007

Application Valuation

ApplicationTransformation

Decisions

ApplicationInventoryUpdate

ApplicationRedundancyAssessment

Application Portfolio

Management

PortfolioSelection

PortfolioPlanning

PortfolioExecution

ProjectCapture &Valuation

Project Portfolio

Management

New Project Requests

New / Enhanced ApplicationsNew / Enhanced Applications

Business StrategyBusiness Strategy

IT StrategyIT Strategy

Rationalize and Manage Your Application PortfolioProject Portfolio Server 2007 includes best-practice portfolio analytical techniques to help organizations rationalize and manage application portfolios

APMLife Cycle Steps

Gov Phases

Application Rationalization: Process and Architecture

Microsoft EPM Solution

Portfolio DashboardPortfolio OptimizerPortfolio Builder

General InformationData Collection

TCO Estimates

Risk AssessmentOperational Performance Assessment

Business Process Assessment

2

1

4

5

6

Architectural Fit Assessment3

Derive Assessment Attributes

Business Importance

Architectural Fit

Risk

1

2

3

Manage ApplicationStatus Reporting

Document Management

1

3Enhancement Requests4

Cost Management2

Portfolio TrackingTransformation Road Map

Cost Management

1

2

Operational Performance4

Portfolio Analysis Redundancy Assessment

Charting Analysis2

1

Finalize Transformation Decisions

Create Analyze Manage

Manage Transformation Projects via PPM Governance Processes

Create Application Inventory

Portfolio BuilderCreate: Build an application inventory

General Information

TCO Estimates

Architectural Fit Assessment Business Process ImpactRisk and Operational Performance Surveys

Consolidate all applications in an enterprise repository, and standardize and streamline the collection of key metrics across the organization

Use proven techniques to define and prioritize architectural strategy/drivers

Understand the extent each application affects/supports the architectural strategy, and use this assessment to automatically derive an architectural fit score for each application

Architecture Driver Pair-wise Matrix

Architectural Fit Impact Assessment

Architecture Driver Priorities

L -

Pri

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ty -

H

Application Architectural Fit Scores

Portfolio OptimizerTwo-step prioritization: Architectural fit scoreStep 1

Step 2

Ap

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Architecture Drivers

Business Process Priorities

Use proven techniques to objectively prioritize the organization’s business strategy

Business Process Impact Assessment

L -

Pri

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ty -

H

Business Driver Pair-wise Matrix Business Driver Priorities

Derive a strategic value score for each business process by assessing its contribution to the success of each business driver

Bu

sin

ess

Pro

cess

es

Business Drivers

Portfolio OptimizerThree-step prioritization: Business importance score

Step 1

Step 2

Application Impact Assessment Application Business Importance Score

Business Processes

Ap

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ns

Derive a business importance score for each application by assessing the extent each application supports/automates each business process

L -

Pri

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H

Portfolio OptimizerThree-step prioritization: Business importance score (Cont’d)

Step 3

This report allows analysts to compare the importance of the business processes with the annual cost of ownership of the applications that support and affect those processes. In the chart above, you can see that the accounting business process has a disproportionate cost relative to its business importance. Therefore, it is important to understand why the annual cost of ownership for this accounting process is so high. For example, are there redundant applications supporting this process?

Highlight possible redundancies in the portfolio by identifying applications that support/affect the same business processes. The report above shows that the accounting business process is supported by seven different applications. Is there any functional overlap between these seven applications?

Identify Redundancies in the PortfolioBusiness Process Value vs. Cost Comparison

Portfolio ReportingIdentify redundancies across the application portfolio

Create charts to visually evaluate the competing investments from multiple dimensions using the derived assessment scores and metrics (for example, business importance, risk, architectural fit, TCO, and operational performance)

Portfolio OptimizerEvaluate the application portfolio and finalize transformation decisions

Create real-time application and portfolio performance scorecards to help ensure executives gain visibility, insight, and control across application portfolios within the organization. Automatically drill down to the application to view periodic status reports.

Portfolio Scorecard

Portfolio Reporting

Use intuitive generators to define and publish report templates to standardize and streamline the reporting process across the organization.

Application Status Report

Portfolio DashboardManage: Track and measure the portfolio performance

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