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Conrad Langhammer Global Director: Portfolio Management
IT Transformation Make IT the Engine of Innovation for
Enterprise Transformation
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Change is Fundamental to any Business
• Change is constant and it is
nothing new
• Embracing change is key to
business success
• IT transformation is elemental
to business change
Source : Forrester Research, Inc., October 2013 “Competitive Strategy In The Age Of The Customer”
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Digital Engagement is driving current IT Transformation Intuitive, Anytime, Anywhere
C U S TO M E R S E M P L O Y E E S P A R T N E R S
Systems of Record
Mobile Social Big Data Cloud
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IT Transformation Challenges - IT Complexity
• EA, PPM and other IT teams are
working in silos. This causes expensive
errors and conflict.
• Data on the IT portfolio is poor and is
not integrated. An unreliable basis for
decision making.
• Overlaps and redundancy in IT support
are not recognized. This leads to
higher costs.
IT projects fail. Business is frustrated
and has no confidence in IT.
Demands Capabilities Strategies
Applications
Technologies
Budgets
Regulations
Roadmaps Projects
Risks
Devices
Skills
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IT Transformation Challenges - Aligning to Business Strategy
• Business strategy is unknown and lacks
detail.
• Strategy is siloed resulting in conflicts.
• Business and IT are speaking different
languages - or just not speaking.
• Lack of transparent governance leads to
pet projects trumping projects that are
strategic or mandated.
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IT Transformation Challenges - Getting the Budget To
tal IT
Budget
Transform the business
Time
Keep the lights on
The available budget for IT
transformation has been squeezed
from above and from below
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Capabilities to meet IT Transformation Challenges
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• Roadmaps
• Business strategies • Tactical demands
Highly Interconnected and Volatile IT Portfolios need
Synchronization
IT change
port fo l ios
Bus iness
s t rategy
port fo l ios
IT asset
port fo l ios
• Metrics on performance of IT support
• Business assessments of IT support
• Del ivery roadmaps • Costs & r isks
• Portfol io strategies • Tactical demands
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Portfolio Management enables IT Transformation
C U S TO M E R S E M P L O Y E E S P A R T N E R S
Systems of Record
TRANSFORMATION Through Portfolio Management
Manage IT assets through an
integrated environment
Understand and manage
impact of change
Flexibility allows for
IT transformation
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COLLABORATIVE
PROCESS ANALYSIS
PORTFOLIO
MANAGEMENT
PROCESS
AUTOMATION
AND INTEGRATION
INTELLIGENT
BUSINESS OPERATIONS
AND BIG DATA
ALFABET
IT Planning and
Portfolio Management
ALFABET
Enterprise
Architecture
Management
Portfolios Live
WEBMETHODS
Integration
WEBMETHODS
Business Process
Management
AgileApps Live
Integration Live*
APAMA
Intelligent Business
Operations
TERRACOTTA
In-Memory Data
Management
ARIS
Business Process
Analysis
ARIS
Governance, Risk
and Compliance
Management
Process Live
* General Availability of Integration Live is planned for second half of 2014
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Establish an Integrated IT Portfolio Practice involving Business
Demands Capabilities
Applications
Technologies
Roadmaps Projects
Devices
Skills
Business
Architecture
Projects
Strategies
Budgets
Regulations
Risks
Finance & Risk
Transparency across applications, devices and technologies
Create the application portfolio
Understand ongoing transformation through running and future projects
Link to the existing program portfolio
Understand how existing application portfolio supports the business
Identify gaps
Map business context to the application portfolio
Add risk, regulatory and financial view to the integrated IT portfolio
Integrate finance & risk perspectives
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Communicate using Business Structures
• Use strategies, operating models
and business capabilities.
• Associate them to demands,
projects and IT architecture.
• Use heat maps to take the
politics out of discussions.
• Prioritize using portfolio metrics.
• Implement transparent IT
governance workflows.
E.g., use business capabilities to align
project investments to business priorities
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Optimize the IT Portfolio
• Establish and empower IT
portfolio management roles.
• Use natural (given) business
structures for the portfolio
breakdown.
• Set clear goals and monitor
them.
• Use dashboards to provide
stakeholder-specific overviews.
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The Advantages of IT Portfolio Management
• Teams collaborating with a single view of IT
• Reliable data and informed decision making
• Successful transformation
• IT delivering real business value
$13M savings in
first year through
strategic
standardization!
$1.1M yearly
savings from
improved
productivity &
reduced scope!
Data accuracy up
to 95% with an
integrated
repository! $11M yearly
savings by
avoiding
development
projects!
Reduced
compliance effort
and better
governance!
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through IT Portfolio Management
ALFABET - Delivering customer value
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Payback in
6 MONTHS
SEVERAL MILLION DOLLARS SAVED
O P P O R T U N I T Y :
• Free up IT budget to directly support
‐ Aggressive international growth in the
private banking sector
‐ Higher cross-selling across divisions
R E S U L T S :
• Avoided development projects: Credit
Suisse saves $6 million annually
• Eliminated software costs: the
organization is saving $5 million
annually
Transforming Financial Services
R E S U L T:
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ALFABET - Delivering customer value
They identif ied that
7% $13 million
of
appl ications
in the f irst year
could be
ret i red
and
they
saved
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ALFABET - Proven Leadership
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the entire documents. The Gartner documents are available upon request from Software AG.
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