IT
Por,olio
Management
Week
9
1
10/25/12
2
10/25/12
TransacSonal
5,
6,
7
,
9,
11
Infrastructure
1,
2,
3
,
4,
8
3
10/25/12
50
eProcurement
Employee
CRM
Methodology
Intranet
ERP
Supply
Chain
Design
Systems
Outsource
30
0
Ability
to
Succeed
100
4
10/25/12
Implement
Implement with caution due to risk
Review for feasibility
5
10/25/12
What
is
an
IT
project
por,olio
and
why
would
you
want
one?
Portfolio Categories
New
Business
Innovation Models or
Competitive
Capability
Discretionary
Incr
Revenue
Growth Incr Cust
Intimacy
Cost-Out
Efficiency Productivity
Engine
Run The
Sustain
Run the Engine Operations
6
10/25/12
Targets
2%
We
can
change
Innovation $0.5MM 1
Yr
the
por-olio
3
Yr
targets
to
shi1
Discretionary
investment
to
business
Growth
30%
1
Yr
$12MM
opportuni6es.
3
Yr
38% 1
Yr
Efficiency $15MM
3
Yr
1
Yr
30%
3
Yr
Engine
Run The
$12MM
Run the
Run the Engine
Engine
Strategic Themes
Business Need
Business Need
Business Need
Strategy 1
The IT
Business Need
Strategy
filter `
Business
Value Creation
IT
Opera6ng
&
Principles
IT Investment
Portfolio"
Strategy
Enabling
IT
Alignment
Capabili6es,
Talent,
and
Enterprise
IT
Infrastructure
Portfolio
7
10/25/12
Phase
2
Talent
$4-5MM
$15MM
Strategic
Med
+
60+ %
of the
APO
Investment
Business
21C
More
Tangible
$6-8MM
$23MM
Med
-
High
Portfolio
Eciency
Logis6cs
Financials
invests in
Business
OR
Value
Sales
+
Market
Content
Mix
of
Tangible
$2-3MM
$26MM
Med
+
Creation
Excellence
PC
+
Intangible
R+D
ELN
$1-2MM
$28MM
Strategic
High
Innova6on
IT Investment Portfolio
Portfolio View
Portfolio View ( Pipeline + Approved Projects ) * Size of circles = Cost
8
10/25/12
Project List
Wow!
Pipeline
Projects
9
10/25/12
Exercise
Pick out the projects from the pipeline that are the best candidates
for investment, given the budget target of $25MM
10
10/25/12
SAMPLE ANSWERS
TALENT
A INNOVATION
EFFICIENCY
B GROWTH
C EFFICIENCY
11
10/25/12
Initiate Process
Input
Collect and Organize Ideas
Who
Understand Goals and Objectives Project
Manager
Leaders
Consider Alternative Solutions
Sponsors
Create Project Business Case Stakeholders
Value
Cost
Risk
Return on Investment ROI, Payback period
Output
Project Proposal Ready for Consideration by Decision Makers
(Governance)
Execu6ve Summary
Objec6ves
Scope
Deliverables
SUPPORTING
DETAILS
Value
Cost
Risk
Assump6ons
12
10/25/12
Business Management
Business financial values
ce
Return on assets
Revenue per employee
viden
IT Management
Fewer handoffs of
rs Business process values
Ability to cross-sell ato
e IT Tr
ic
nd
Supplier integration
(I
(Project Layer)
Implementation time of new IT application business value
n of th
application IT investments
Implementation cost of new
application
IT infrastructure business value
Dilutio
(Infrastructure Layer)
Infrastructure IT investments
availability
Cost per transaction
Cost per workstation Time for business impact
Source: The New CIO Leader, Broadbent and Kitzis
13