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Portfolio Management

Project management Project portfolio management

An increasing number of organizations are using, what is referred to as, project portfolio management (PPM) as a means of selecting the right projects and then using project management techniques as the means for delivering the outcomes in the form of benefits to the performing private or not-for-profit organization.

HP Software Division – Service and portfolio management

HP Service and Portfolio Management software is designed to help IT manage a portfolio of services and includes project and portfolio management, IT service management (ITSM), asset management, and configuration management systems.

HP Software Division – Service and portfolio management

HP Project and Portfolio Management (PPM) is web-based software that provides visibility into strategic and operational demand, resource productivity and utilization, and associated financial information across a portfolio.

HP Software Division – Service and portfolio management

HP IT service management software integrates and automates service management across hybrid environments and provides quality control for IT services.

HP Software Division – Service and portfolio management

HP IT service management aligns with the IT Service Lifecycle described by Information Technology Infrastructure Library version 3 (ITIL v3), supporting ITIL change management, using a lifecycle approach.

HP Software Division – Service and portfolio management

Related capabilities include a configuration management system (CMDB) for configuration data and relationship mapping and a “universal discovery” tool for automated hardware and software discovery.

IT portfolio management

IT portfolio management is the application of systematic management to large classes of items managed by enterprise Information Technology (IT) capabilities. Examples of IT portfolios would be planned initiatives, projects, and ongoing IT services (such as application support). The promise of IT portfolio management is the quantification of previously informal IT efforts, enabling measurement and objective evaluation of investment scenarios.

IT portfolio management – Overview

Debates exist on the best way to measure value of IT investment. As pointed out by Jeffery and Leliveld, companies have spent billions of dollars on IT investments and yet the headlines of mis-spent money are not uncommon. Nicholas Carr (2003) has caused significant controversy in IT industry and academia by positioning IT as an expense similar to utilities such as electricity.

IT portfolio management – Overview

IT portfolio management started with a project-centric bias, but is evolving to include steady-state portfolio entries such as infrastructure and application maintenance. IT budgets tend not to track these efforts at a sufficient level of granularity for effective financial tracking.

IT portfolio management – Overview

The concept is analogous to financial portfolio management, but there are significant differences

IT portfolio management – Overview

IT portfolio management is distinct from IT financial management in that it has an explicitly directive, strategic goal in determining what to continue investing in versus what to divest from.

IT portfolio management – Overview

At its most mature, IT portfolio management is accomplished through the creation of three portfolios:

IT portfolio management – Overview

Application Portfolio – Management of this portfolio focuses on comparing spending on established systems based upon their relative value to the organization

IT portfolio management – Overview

Infrastructure Portfolio – For an organization’s information technology, infrastructure management (IM) is the management of essential operation components, such as policies, processes, equipment, data, human resources, and external contacts, for overall effectiveness

IT portfolio management – Overview

The management issues with project-oriented portfolio management can be judged by criteria such as ROI, strategic alignment, data cleanliness, maintenance savings, suitability of resulting solution and the relative value of new investments to replace these projects.

IT portfolio management – Benefits of using IT portfolio management

Jeffery and Leliveld (2004) have listed several benefits of applying IT portfolio management approach for IT investments. They argue that agility of portfolio management is its biggest advantage over investment approaches and methods. Other benefits include central oversight of budget, risk management, strategic alignment of IT investments, demand and investment management along with standardization of investment procedure, rules and plans.

IT portfolio management – Implementing IT portfolio management

Jeffery and Leliveld (2004) have pointed out a number of hurdles and success factors that CIOs might face while attempting to implement IT portfolio management approach. To overcome these hurdles, simple methods such as proposed by Pisello (2001) can be used.

IT portfolio management – Implementing IT portfolio management

Other implementation methods include (1) risk profile analysis (figure out what needs to be measured and what risks are associated with it), (2) Decide on the Diversification of projects, infrastructure and technologies (it is an important tool that IT portfolio management provides to judge the level of investments on the basis of how investments should be made in various elements of the portfolio), (3) Continuous Alignment with business goals (highest levels of organizations should have a buy-in in the portfolio) and (4) Continuous Improvement (lessons learned and investment adjustments).

IT portfolio management – Implementing IT portfolio management

Assessing IT portfolio management process execution

IT portfolio management – Implementing IT portfolio management

There is no single best way to implement IT portfolio approach and therefore variety of approaches can applied. Obviously the methods are not set in stone and will need altering depending upon the individual circumstances of different organizations.

IT portfolio management – IT portfolio management vs. balanced scorecard

The biggest advantage of IT portfolio management is the agility of the investment adjustments. While balanced scorecards also emphasize the use of vision and strategy in any investment decision, oversight and control of operation budgets is not the goal. IT portfolio management allows organizations to adjust the investments based upon the feedback mechanism built into the IT portfolio management.

IT portfolio management – History

The first mention of the portfolio concept as related to IT was from Richard Nolan in 1973: “investments in developing computer applications can be thought of as a portfolio of computer applications.”

IT portfolio management – History

Further mention is found in Gibson and Nolan’s Managing the Four Stages of EDP Growth in 1973. Gibson and Nolan proposed that IT advances in observable stages driven by four “growth processes” of which the Applications Portfolio was key. Their concepts were operationalized at Nolan, Norton & Co. with measures of application coverage of business functions, applications functional and technical qualities, applications age and spending.

IT portfolio management – History

McFarlan proposed a different portfolio management approach to IT assets and investments. Further contributions have been made by Weill and Broadbent, Aitken, Kaplan, and Benson, Bugnitz, and Walton. The ITIL version 2 Business Perspective and Application Management volumes and the ITIL v3 Service Strategy volume also cover it in depth.

IT portfolio management – History

Various vendors have offerings explicitly branded as “IT Portfolio Management” solutions.

IT portfolio management – History

In peer-reviewed research, Christopher Verhoef has found that IT portfolios statistically behave more akin to biological populations than financial portfolios. Verhoef was general chair of the first convening of the new IEEE conference, “IEEE Equity,” March 2007, which focuses on “quantitative methods for measuring, predicting, and understanding the relationship between IT and value.”

IT portfolio management – McFarlan’s IT portfolio matrix

|strategic | Turnaround |

IT portfolio management – McFarlan’s IT portfolio matrix

applications |future business strategy. |achieving future |

IT portfolio management – McFarlan’s IT portfolio matrix

|Critical to existing business |Valuable but not critical |

IT portfolio management – McFarlan’s IT portfolio matrix

|operations |to success |

IT portfolio management – McFarlan’s IT portfolio matrix

Value to the business of existing applications.

IT portfolio management – Freeware and open source tools

MappIT is a free tool used to map and analyze IT Portfolio assets (systems, business processes, infrastructure, people, skills, roles, organization, spending…) and their lifecycle. It was launched in its first version in February 2012.

IT portfolio management – Relationship to other IT disciplines

IT portfolio management is an enabling technique for the objectives of IT Governance. It is related to both IT Service Management and Enterprise Architecture, and might even be seen as a bridge between the two. ITIL v3 calls for Service Portfolio Management which appears to be functionally equivalent.

IT portfolio management – Difference between projects, programs and portfolios

A project is managed with a clear end date in mind, and according to a set scope and budget

IT portfolio management – Difference between projects, programs and portfolios

A program is a collection of two or more projects sharing a common goal

IT portfolio management – Difference between projects, programs and portfolios

A portfolio is a group of related initiatives, projects and/or programs that attain wide reaching benefits and impact. MoP definition: “An organization’s portfolio is the totality of its investment (or segment therof) in the changes required to achieve its strategic objectives. …focus is on the change initiatives that are delivered via formalized project and programme management methodologies.”

Val IT – Portfolio Management

PM2: Determine the availability and sources of funds.

Val IT – Portfolio Management

PM3: Manage the availability of human resources.

Project portfolio management

Project Portfolio Management (PPM) is the centralized management of processes, methods, and technologies used by project managers and project management offices (PMOs) to analyze and collectively manage a group of current or proposed projects based on numerous key characteristics

Project portfolio management

Different open source and commercial technology software can provide a critical, enabling platform for PPM.

Project portfolio management – The PPM market

Organizations can find PPM relevant if they have multiple projects and resources that require a formalized framework for tracking, allocating, and managing them effectively. When deployed, these capabilities can serve two distinct audience sub-segments:

Project portfolio management – The PPM market

execution-focused PPM users, who manage the tactical details of project execution, with the reporting tools to communicate progress and expenditures back to business sponsors and to executive management.

Project portfolio management – The PPM market

project portfolio-level PPM users, who create project-related decision frameworks, selecting specific projects based on those frameworks, planning the delivery of those projects or investments, tracking those investments at a high level, and reporting on those activities

Project portfolio management – Capability Definition

A PPM solution should support a majority of the following five knowledge areas

Project portfolio management – Capability Definition

Portfolio Communication Management

Project portfolio management – Capability Definition

This definition has been widely adopted and has led to the commoditization of the PPM software industry. The PPM software market has significantly matured, strengthened by the introduction of software-as-a-service PPM as a viable deployment option alongside traditional and hosted options.

Project portfolio management – Key Capabilities

PPM provides Project Managers in large, project-driven organizations with the capabilities needed to manage the time, resources, skills, and budgets necessary to accomplish all interrelated tasks. It provides a framework for issue resolution and risk mitigation, as well as the centralized visibility to help planning and scheduling teams to identify the fastest, cheapest, or most suitable approach to deliver projects and programs.

Project portfolio management – Pipeline Management

The determination of whether (and how) a set of projects in the portfolio can be executed by a company with finite development resources in a specified time. Fundamental to pipeline management is the ability to align the decision-making process for estimating and selecting new capital investment projects with the strategic plan.

Project portfolio management – Resource Management

The focus on efficient and effective deployment of an organization’s resources where and when they are needed. These can include financial resources, inventory, human resources, technical skills, production and design. In addition to project-level resource allocation, users can also model ‘what-if’ resource scenarios, and extend this view across the portfolio.

Project portfolio management – Change Control

The capture and prioritization of change requests that can include new requirements, features, functions, operational constraints, regulatory demands, and technical enhancements. PPM provides a central repository for these change requests and the ability to match available resources to evolving demand within the financial and operational constraints of individual projects.

Project portfolio management – Financial Management

With PPM, the Office of Finance can improve their accuracy for estimating and managing the financial resources of a project or group of projects. In addition, the value of projects can be demonstrated in relation to the strategic objectives and priorities of the organization through financial controls and to assess progress through earned value and other project financial techniques.

Project portfolio management – Risk Management

An analysis of the risk sensitivities residing within each project, as the basis for determining confidence levels across the portfolio. The integration of cost and schedule risk management with techniques for determining contingency and risk response plans, enable organizations to gain an objective view of project uncertainties

Project portfolio management – Enterprise Project Portfolio Management

Enterprise Project Portfolio Management (EPPM) is the practice of taking a more integrated and top-down approach to managing all project-intensive work and resources across the enterprise. This contrasts with the traditional approach of combining manual processes, desktop project tools, and ‘best-in-breed’ PPM applications for each project portfolio environment.

Project portfolio management – Evolution of PPM

In the early 2000s, many PPM vendors realized that project portfolio reporting services only addressed part of a wider need for PPM in the marketplace

Project portfolio management – Business Drivers for EPPM

The PPM landscape is evolving rapidly as a result of the growing preference for managing multiple capital investment initiatives from a single, enterprise-wide system. This more centralized approach, and resulting ‘single version of the truth’ for project and project portfolio information, provides the essential transparency of performance needed by senior management to monitor progress versus the strategic plan.

Project portfolio management – Business Drivers for EPPM

The key aims of EPPM can be summarized as follows:

Project portfolio management – Business Drivers for EPPM

Prioritize the right projects and programs: EPPM can guide decision-makers to strategically prioritize, plan, and control enterprise portfolios. It also ensures the organization continues to increase productivity and on-time delivery – adding value, strengthening performance, and ultimately improving bottom-line results.

Project portfolio management – Business Drivers for EPPM

Eliminate surprises: formal portfolio project oversight provides managers and executives with a process to identify potential problems earlier in the project lifecycle, and the visibility to take corrective action before they impact financial results.

Project portfolio management – Business Drivers for EPPM

Build contingencies into the overall portfolio: flexibility often exists within individual projects but, by integrating contingency planning across the entire portfolio of investments, organizations can have greater flexibility around how, where, and when they need to allocate resources, alongside the flexibility to adjust those resources in response to a crisis.

Project portfolio management – Business Drivers for EPPM

Maintain response flexibility: with in-depth visibility into resource allocation, organizations can quickly respond to escalating emergencies by manoeuvring resources from other activities, while calculating the impact this will have on the wider business.

Project portfolio management – Business Drivers for EPPM

Do more with less: For organisations to systematically review project management processes while cutting out inefficiencies and automating those workflows and to ensure a consistent approach to all projects, programs, and portfolios while reducing costs.

Project portfolio management – Business Drivers for EPPM

Ensure informed decisions and governance: by bringing together all project collaborators, data points, and processes in a single, integrated solution, a unified view of project, program, and portfolio status can be achieved within a framework of rigorous control and governance to ensure all projects consistently adhere to business objectives.

Project portfolio management – Business Drivers for EPPM

Extend best practice enterprise-wide: organizations can continuously vet project management processes and capture best practices, providing exponential degrees of efficiency as a result.

Project portfolio management – Business Drivers for EPPM

Understand future resource needs: by aligning the right resources to the right projects at the right time, organizations can ensure individual resources are fully leveraged and requirements are clearly understood. EPPM software also allows an organization to establish complete project capacity at any point in time.

Project portfolio management – Project Portfolio Optimization

A key result of PPM is to decide which projects to fund in as near an optimal manner as possible. Project Portfolio Optimization (PPO) is the effort to formally make the best decisions possible under these conditions.

Project portfolio management – Further reading

Cooper, Robert G.; Scott J. Edgett, and Elko J. Kleinschmidt (1998). Portfolio Management for New Products. Reading, Mass.: Addison-Wesley. ISBN 0-201-32814-3.

Project portfolio management – Further reading

Denney, Richard (2005). Succeeding with Use Cases: Working Smart to Deliver Quality. Boston, Mass.: Addison-Wesley. ISBN 0-321-31643-6.

Project portfolio management – Further reading

Rajegopal, Shan; Philip McGuin, and James Waller (2007). Project Portfolio Management: Leading the Corporate Vision. Basingstoke: Palgrave Macmillan. ISBN 978-0-230-50716-6.

Project portfolio management – Further reading

Fister Gale, Sarah (2011), Prepare for the Unexpected: Investment Planning in Asset-Intensive Industries, Economist Intelligence Unit.

Project portfolio management – Further reading

EPMC, Inc.; Michael J. Stratton, Mark Wybraniec, Sarma Tekumalla, Mark Stabler, San Retna, Diane D. Miller, Michael Gosnear, Stephen Jenner, Michael Mee, and Michael M. Menke (2009). Project Portfolio Management: A View from the Management Trenches. Wiley. ISBN 978-0470505366.

Service portfolio management

‘IT portfolio management’ is the application of systematic management to large classes of items managed by enterprise Information Technology (IT) capabilities. Examples of IT portfolios would be planned initiatives, projects, and ongoing IT services (such as application support). The promise of IT portfolio management is the quantification of previously informal IT efforts, enabling measurement and objective evaluation of investment scenarios.

Service portfolio management – Overview

Best Practices in IT Portfolio Management

Service portfolio management – Overview

IT portfolio management started with a project-centric bias, but is evolving to include steady-state portfolio entries such as infrastructure and application maintenance

Service portfolio management – Overview

The concept is analogous to financial Investment management|portfolio management, but there are significant differences

Service portfolio management – Overview

* Application Portfolio Management|Application Portfolio – Management of this portfolio focuses on comparing spending on established systems based upon their relative value to the organization

Service portfolio management – Overview

* Infrastructure Portfolio Management|Infrastructure Portfolio – For an organization’s information technology, infrastructure management (IM) is the management of essential operation components, such as policies, processes, equipment, data, human resources, and external contacts, for overall effectiveness

Service portfolio management – Overview

The management issues with project-oriented portfolio management can be judged by criteria such as ROI, strategic alignment, data cleanliness, maintenance savings, suitability of resulting solution and the relative value of new investments to replace these projects.

Service portfolio management – Implementing IT portfolio management

Other implementation methods include ‘(1) risk profile analysis’ (figure out what needs to be measured and what risks are associated with it), ‘(2) Decide on the Diversification of projects’, infrastructure and technologies (it is an important tool that IT portfolio management provides to judge the level of investments on the basis of how investments should be made in various elements of the portfolio), ‘(3) Continuous Alignment with business goals’ (highest levels of organizations should have a buy-in in the portfolio) and ‘(4) Continuous Improvement’ (lessons learned and investment adjustments).

Service portfolio management – Implementing IT portfolio management

# Assessing IT portfolio management process execution

Service portfolio management – History

The first mention of the portfolio concept as related to IT was from Richard L. Nolan|Richard Nolan in 1973: “investments in developing computer applications can be thought of as a portfolio of computer applications.” Nolan, Richard (1973). Plight of the EDP Manager. Harvard Business Review, May–June 1973.

Service portfolio management – History

Further mention is found in Gibson and Nolan’s Managing the Four Stages of EDP Growth in 1973.Managing the Four Stages of EDP Growth Publication date: Jan 01, 1974

Service portfolio management – History

Strategic IT portfolio management : governing enterprise transformation

Service portfolio management – History

Verhoef was general chair of the first convening of the new IEEE conference, IEEE Equity, March 2007, which focuses on quantitative methods for measuring, predicting, and understanding the relationship between IT and value.[ www.cs.vu.nl/equity2007/index.php?id=1%5D

Service portfolio management – McFarlan’s IT portfolio matrix

|strategic | Turnaround |

Service portfolio management – McFarlan’s IT portfolio matrix

applications |future business strategy. |achieving future |

Service portfolio management – McFarlan’s IT portfolio matrix

|Critical to existing business |Valuable but not critical |

Service portfolio management – McFarlan’s IT portfolio matrix

|operations |to success |

Service portfolio management – McFarlan’s IT portfolio matrix

Value to the business of existing applications.

Service portfolio management – Freeware and open source tools

[http://frankitecture.wordpress.com/ MappIT] is a free tool used to map and analyze IT Portfolio assets (systems, business processes, infrastructure, people, skills, roles, organization, spending…) and their lifecycle. It was launched in its first version in February 2012.

Service portfolio management – Difference between projects, programs and portfolios

A program is a collection of two or more projects sharing a common goal

Service portfolio management – Difference between projects, programs and portfolios

A portfolio is a group of related initiatives, projects and/or programs that attain wide reaching benefits and impact. MoP definition: An organization’s portfolio is the totality of its investment (or segment therof) in the changes required to achieve its strategic objectives. …focus is on the change initiatives that are delivered via formalized project and programme management methodologies.

Application Portfolio Management

IT ‘Application Portfolio Management’ (‘APM’) is a practice that has emerged in mid to large size Information Technology (IT) organizations since the mid-1990s. Application Portfolio Management attempts to use the lessons of financial portfolio management to justify and measure the financial benefits of each application in comparison to the costs of the application’s maintenance and operations.

Application Portfolio Management – Evolution of the Practice

Likely the earliest mention of the Applications Portfolio was in Cyrus Gibson and Richard Nolan’s HBR article Managing the Four Stages of EDP Growth in 1974.HBR Prod. #: 74104-PDF-ENG

Application Portfolio Management – Evolution of the Practice

Gibson and Nolan posited that businesses’ understanding and successful use of IT grows in predictable stages and a given business’ progress through the stages can be measured by observing the Applications Portfolio, User Awareness, IT Management Practices, and IT Resources within the context of an analysis of overall IT spending.

Application Portfolio Management – Evolution of the Practice

Nolan, Norton Co

Application Portfolio Management – Evolution of the Practice

APM was widely adopted in the late 1980s and through the 1990s as organizations began to address the threat of application failure when the date changed to the year 2000 (a threat that became known as Year 2000 or Y2K). During this time, tens of thousands of IT organizations around the world developed a comprehensive list of their applications, with information about each application.

Application Portfolio Management – Evolution of the Practice

In many organizations, the value of developing this list was challenged by business leaders concerned about the cost of addressing the Y2K risk. In some organizations, the notion of managing the portfolio was presented to the business people in charge of the Information Technology budget as a benefit of performing the work, above and beyond managing the risk of ‘application failure’.

Application Portfolio Management – Evolution of the Practice

There are two main categories of Application Portfolio Management solutions, generally referred to as ‘Top Down’ and ‘Bottom Up’ approaches

Application Portfolio Management – Evolution of the Practice

Hundreds of tools are available to support the ‘Top Down’ approach

Application Portfolio Management – Business case for APM

According to Forrester Research, For IT operating budgets, enterprises spend two-thirds or more on ongoing operations and maintenance..The State Of Global Enterprise IT Budgets: 2009 To 2010, Forrester Research, [ www.forrester.com/rb/Research/state_of_global_enterprise_it_budgets_2009/q/id/53332/t/2%5D

Application Portfolio Management – Business case for APM

It is common to find organizations that have multiple systems that perform the same function. Many reasons may exist for this duplication, including the former prominence of departmental computing, the application silos of the 1970s and 1980s, the proliferation of corporate mergers and acquisitions, and abortive attempts to adopt new tools. Regardless of the duplication, each application is separately maintained and periodically upgraded, and the redundancy increases complexity and cost.

Application Portfolio Management – Business case for APM

With a large majority of expenses going to manage the existing IT applications, the transparency of the current inventory of applications and resource consumption is a primary goal of Application Portfolio Management

Application Portfolio Management – Business case for APM

Transparency also aids strategic planning efforts and diffuses business / IT conflict, because when business leaders understand how applications support their key business functions, and the impact of outages and poor quality, conversations turn away from blaming IT for excessive costs and toward how to best spend precious resources to support corporate priorities.

Application Portfolio Management – Portfolio

Taking ideas from investment portfolio management, APM practitioners gather information about each application in use in a business or organization, including the cost to build and maintain the application, the business value produced, the quality of the application, and the expected lifespan. Using this information, the portfolio manager is able to provide detailed reports on the performance of the IT infrastructure in relation to the cost to own and the business value delivered.

Application Portfolio Management – The requirements of a definition for an application

* It must be simple for business team members to explain, understand, and apply.

Application Portfolio Management – The requirements of a definition for an application

* It must make sense to development, operations, and project management in the IT groups.

Application Portfolio Management – The requirements of a definition for an application

* It must be useful as an input to a complex function whose output is the overall cost of the portfolio. In other words, there are many factors that lead to the overall cost of an IT portfolio. The sheer number of applications is one of those factors. Therefore, the definition of an application must be useful in that calculation.

Application Portfolio Management – The requirements of a definition for an application

* It must be useful for the members of the Enterprise Architecture team who are attempting to judge a project with respect to their objectives for portfolio optimization and simplification.

Application Portfolio Management – The requirements of a definition for an application

* It must clearly define the boundaries of an application so that a person working on a measurable ‘portfolio simplification’ activity cannot simply redefine the boundaries of two existing applications in such a way as to call them a single application.

Application Portfolio Management – The requirements of a definition for an application

Many organizations will readdress the definition of an application within the context of their IT portfolio management and governance practices. For that reason, this definition should be considered as a working start.

Application Portfolio Management – Examples

The definition of an application can be difficult to convey clearly. In an IT organization, there might be subtle differences in the definition among teams and even within one IT team. It helps to illustrate the definition by providing examples. The section below offers some examples of things that are applications, things that are not applications, and things that comprise two or more applications.

Application Portfolio Management – Inclusions

* A service oriented business application (SOBA) that presents a user interface for creating invoices, and that turns around and calls the InvoiceCreate service. (note that the service itself is a different application).

Application Portfolio Management – Inclusions

* A Mobile Application that is published to an enterprise application store and thus deployed to employee-owned or operated portable devices enabling authenticated access to data and services.

Application Portfolio Management – Inclusions

* A legacy system composed of a rich client, a server-based middle tier, and a database, all of which are tightly coupled. (e.g. changes in one are very likely to trigger changes in another).

Application Portfolio Management – Inclusions

* A website publishing system that pulls data from a database and publishes it to an HTML format as a sub-site on a public URL.

Application Portfolio Management – Inclusions

* A database that presents data to an Microsoft Excel workbook that queries the information for layout and calculations. This is interesting in that the database itself is an application unless the database is already included in another application (like a legacy system).

Application Portfolio Management – Inclusions

* An Excel spreadsheet that contains a coherent set of reusable macros that deliver business value. The spreadsheet itself constitutes a deployment container for the application (like a tar (file format)|TAR or Cabinet (file format)|CAB file).

Application Portfolio Management – Inclusions

* A set of Active Server Pages|ASP or PHP web pages that work in conjunction with one another to deliver the experience and logic of a web application. It is entirely possible that a sub-site would qualify as a separate application under this definition if the coupling is loose.

Application Portfolio Management – Inclusions

* A web service end point that no one uses, but which can be rationally understood to represent one or more useful steps in a business process.

Application Portfolio Management – Exclusions

* A database that contains data but is not part of any series of steps to deliver business value using that data.

Application Portfolio Management – Exclusions

* A web service that is structurally incapable of being part of a set of steps that provides value. For example, a web service that only accepts data breaks the schema.

Application Portfolio Management – Exclusions

* A standalone batch script that compares the contents of two databases by making calls to each and then sends e-mail to a monitoring alias if data anomalies are noticed. In this case, the batch script is very likely to be tightly coupled with at least one of the two databases, and therefore should be included in the application boundary that contains the database that it is most tightly coupled with.

Application Portfolio Management – Composites

* A composite Service-oriented architecture|SOA application composed of a set of reusable services and a user interface that leverages those services. There are at least two applications here (the user interface and one or more service components). Each service is not counted as an application.

Application Portfolio Management – Composites

* A legacy client-server app that writes to a database to store data and an Excel spreadsheet that uses macros to read data from the database to present a report. There are TWO apps in this example. The database clearly belongs to the legacy app because it was developed with it, delivered with it, and is tightly coupled to it. This is true even if the legacy system uses the same stored procedures as the Excel spreadsheet.

Application Portfolio Management – Methods and Measures for Evaluating Applications

There are many popular financial measures, and even more metrics of different (non-financial or complex) types that are used for evaluating applications or information systems.

Application Portfolio Management – Return on Investment (ROI) [http://www.ijikm.org/Volume6/IJIKMv6p245-269Botchkarev566.pdf Alexei Botchkarev, Peter Andru A Return on Investment as a Metric for Evaluating Information Systems: Taxonomy and Application Interdisciplinary Journal of Information, Knowledge, and Management, 2011, V. 6, pp. 245 – 269.]

Return on Investment is one of the most popular performance measurement and evaluation metrics used in business analysis

Application Portfolio Management – Total Cost of Ownership (TCO)

Total Cost of Ownership is a way to calculate what the application will cost over a defined period of time. In a TCO model, costs for hardware, software, and labor are captured and organized into the various application life cycle stages. An in depth TCO model helps management understand the true cost of the application as it attempts to measure build, run/support, and indirect costs. Many large consulting firms have defined strategies for building a complete TCO model.

Application Portfolio Management – Total Economic Impact (TEI)

TEI was developed by Forrester Research Inc. Forrester claims TEI systematically looks at the potential effects of technology investments across four dimensions: cost — impact on IT; benefits — impact on business; flexibility — future options created by the investment; risk — uncertainty.

Application Portfolio Management – Business Value of IT (ITBV)

ITBV program was developed by Intel Corporation in 2002.Sward, D. (2006). Measuring the business value of information technology. Practical strategies for IT and business managers (IT Best Practices). Intel Press.

Application Portfolio Management – Business Value of IT (ITBV)

The program uses a set of financial measurements of business value that are called Business Value Dials (Indicators). It is a multidimensional program, including a business component, and is relatively easy to implement.

Application Portfolio Management – Applied Information Economics (AIE)

AIE is a decision analysis method developed by Hubbard Decision Research. AIE claims to be “the first truly scientific and theoretically sound method” that builds on several methods from decision theory and risk analysis including the use of Monte Carlo methods. AIE is not used often because of its complexity.

HP Software & Solutions – Service and portfolio management

HP IT service management software integrates and automates service management across hybrid environments and provides quality control for IT services. HP IT service management aligns with the IT Service Lifecycle described by Information Technology Infrastructure Library version 3 (ITIL v3), supporting ITIL change management, using a lifecycle approach. www.resultspositive.com/it-service-management

HP Software & Solutions – Service and portfolio management

HP asset management software manages the lifecycle of IT assets. Related capabilities include a configuration management system (CMDB) for configuration data and relationship mapping and a “universal discovery” tool for automated hardware and software discovery. www.itassetmanagement.net/2013/07/31/review-hp-asset-manager-sam/

Chartered Financial Analyst – Portfolio management

This section increases in importance with each of the three levels—it integrates and draws from the other topics, including ethics

Mathematical finance – Risk and portfolio management: the P world

Risk and portfolio management aims at modelling the probability distribution of the market prices of all the securities at a given future investment horizon.

Mathematical finance – Risk and portfolio management: the P world

This real probability distribution of the market prices is typically denoted by the blackboard font letter \mathbb, as opposed to the risk-neutral probability \mathbb used in derivatives pricing.

Mathematical finance – Risk and portfolio management: the P world

Based on the P distribution, the buy-side community takes decisions on which securities to purchase in order to improve the prospective profit-and-loss profile of their positions considered as a portfolio.

Mathematical finance – Risk and portfolio management: the P world

The quantitative theory of risk and portfolio management started with the Modern portfolio theory|mean-variance framework of Harry Markowitz (1952), who caused a shift away from the concept of trying to identify the best individual stock for investment

Mathematical finance – Risk and portfolio management: the P world

The portfolio-selection work of Markowitz and Sharpe introduced mathematics to investment management

Mathematical finance – Risk and portfolio management: the P world

Much effort has gone into the study of financial markets and how prices vary with time

Project development – Project portfolio management

An increasing number of organizations are using, what is referred to as, project portfolio management (PPM) as a means of selecting the right projects and then using project management techniquesAlbert Hamilton (2004). Handbook of Project Management Procedures. TTL Publishing, Ltd. ISBN 0-7277-3258-7 as the means for delivering the outcomes in the form of benefits to the performing private or not-for-profit organization.

Product portfolio management

‘Product management’ is an organizational lifecycle function within a company dealing with the planning, forecasting, or marketing of a product or products at all stages of the Product lifecycle (marketing)|product lifecycle.

Product portfolio management

The role may consist of New product development|product development and product marketing, which are different (yet complementary) efforts, with the objective of maximizing sales revenues, market share, and profit margins

Product portfolio management

While involved with the entire Product lifecycle (marketing)|product lifecycle, the product management’s main focus is on driving new product development

Product portfolio management

Depending on the company size and history, product management has a variety of functions and roles

Product portfolio management

Product management often serves an inter-disciplinary role, bridging gaps within the company between teams of different expertise, most notably between engineering-oriented teams and commercially oriented teams

Product portfolio management – Product Marketing

* Product Life Cycle Management|Product Life Cycle considerations

Product portfolio management – Product Marketing

* Product differentiation

Product portfolio management – Product Marketing

* Product positioning and outbound messaging

Product portfolio management – Product Marketing

* Promoting the product externally with press, customers and partners

Product portfolio management – Product Marketing

* Conducting customer feedback and enabling (pre-production, beta software)

Product portfolio management – Product Marketing

* Launching new products to market

Product portfolio management – Product Development

* Identifying new product candidates

Product portfolio management – Product Development

* Gathering the voice of customers

Product portfolio management – Product Development

* Scoping and defining new products at high level

Product portfolio management – Product Development

* Evangelizing new products within the company

Product portfolio management – Product Development

* Building product roadmaps, particularly technology roadmaps

Product portfolio management – Product Development

* Developing all products on schedule, working to a critical path

Product portfolio management – Product Development

* Ensuring products are within optimal price margins and up to specifications

Product portfolio management – Inbound and Outbound Product Management

Many refer to inbound (product development) and outbound (product marketing) functions.By Robert, Michael on Product Management and Marketing. [http://michael.hightechproductmanagement.com/2006/04/product_management_product_marketing.html Product Management Product Marketing – A Definition]. April 7, 2006. Retrieved March 1, 2012

Product portfolio management – Inbound and Outbound Product Management

Inbound product management (aka inbound marketing) is the radar of the organization and involves absorbing information like customer research, competitive intelligence, industry analysis, trends, economic signals and competitive activityBy Steven Hanes

Product portfolio management – Inbound and Outbound Product Management

In comparison, outbound activities are focused on distributing or pushing messages, training sales people, go to market strategies and communicating messages through channels like advertising, PR and events.

Product portfolio management – Inbound and Outbound Product Management

In many organizations the inbound and outbound functions are performed by the same person.By Tarquin Clark, Toolbox. [http://it.toolbox.com/blogs/tarquin/which-is-more-important-inbound-or-outbound-product-management-48362 Which is more important, inbound or outbound product management?] September 12, 2011. Retrieved March 1, 2012.

John Molson School of Business – Kenneth Woods Portfolio Management Program

A selected group of undergraduate students manage a $1.9 million endowment portfolio every year as part of the Kenneth Woods Portfolio Management Program (KWPMP). The portfolio was donated by Ken Woods in 2000 for the primary purpose of training undergraduate students in investment management.

Oracle Applications – Oracle Project Portfolio Management Applications

* Oracle Daily Business Intelligence

Trading room – Portfolio management

With order executions coming back, the mutual fund’s manager as well the investment bank’s trader must update their positions

Trading room – Portfolio management

Another software family, that of asset management, meets such kind of requirements.

Trading room – Portfolio management

Bloomberg, Decalog, Apollo, Triple A, Sophis Value, SimCorp, are the main actors of this market.

Business-agile enterprise – Agile Companies exhibit superior Business Value relative to their industry groups.IT Portfolio Management and IT Savvy – Rethinking IT Investments as a Portfolio, MIT Sloan School of Management, Center for Information Systems Research, Summer Session, Peter Weill, June 14, 2007. Research was conducted by MIT via the SeeIT/CISR survey of 629 firms – 329 of these firms are listed on US stock exchanges. The work was financed by the National Science Foundation grant number IIS- 0085725. Copyright © Massachusetts Institute of Technology, 2007. This work was created by MIT’s Sloan Center for Systems Research (CISR)

Agile companies are IT Savvy

Business-agile enterprise – Agile Companies exhibit superior Business Value relative to their industry groups.IT Portfolio Management and IT Savvy – Rethinking IT Investments as a Portfolio, MIT Sloan School of Management, Center for Information Systems Research, Summer Session, Peter Weill, June 14, 2007. Research was conducted by MIT via the SeeIT/CISR survey of 629 firms – 329 of these firms are listed on US stock exchanges. The work was financed by the National Science Foundation grant number IIS- 0085725. Copyright © Massachusetts Institute of Technology, 2007. This work was created by MIT’s Sloan Center for Systems Research (CISR)

* Business Value – firms with above average IT spending IT Savvy had net margins 20% above their industry’s median

Business-agile enterprise – Agile Companies exhibit superior Business Value relative to their industry groups.IT Portfolio Management and IT Savvy – Rethinking IT Investments as a Portfolio, MIT Sloan School of Management, Center for Information Systems Research, Summer Session, Peter Weill, June 14, 2007. Research was conducted by MIT via the SeeIT/CISR survey of 629 firms – 329 of these firms are listed on US stock exchanges. The work was financed by the National Science Foundation grant number IIS- 0085725. Copyright © Massachusetts Institute of Technology, 2007. This work was created by MIT’s Sloan Center for Systems Research (CISR)

* Profitability via sharing – firms with above average percentage of shared applications it savvy have return on assets 30% above their industry’s median

Business-agile enterprise – Agile Companies exhibit superior Business Value relative to their industry groups.IT Portfolio Management and IT Savvy – Rethinking IT Investments as a Portfolio, MIT Sloan School of Management, Center for Information Systems Research, Summer Session, Peter Weill, June 14, 2007. Research was conducted by MIT via the SeeIT/CISR survey of 629 firms – 329 of these firms are listed on US stock exchanges. The work was financed by the National Science Foundation grant number IIS- 0085725. Copyright © Massachusetts Institute of Technology, 2007. This work was created by MIT’s Sloan Center for Systems Research (CISR)

* Time to market – firms with above average IT infrastructure spending IT savvy grew 3 percentage points higher than their industry’s average

Business-agile enterprise – Agile Companies exhibit superior Business Value relative to their industry groups.IT Portfolio Management and IT Savvy – Rethinking IT Investments as a Portfolio, MIT Sloan School of Management, Center for Information Systems Research, Summer Session, Peter Weill, June 14, 2007. Research was conducted by MIT via the SeeIT/CISR survey of 629 firms – 329 of these firms are listed on US stock exchanges. The work was financed by the National Science Foundation grant number IIS- 0085725. Copyright © Massachusetts Institute of Technology, 2007. This work was created by MIT’s Sloan Center for Systems Research (CISR)

* IT-enabled business investments – top-performing companies (IT savvy) can get up to 40% more value

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