MEMO

To: CEO Max McMullen and CIO Shawn Atkins

From: IT Portfolio Management (ITPM) Executive Committee
Date: September 25, 2016
Subject: MDCM Project Funding Proposals

Introduction
Our goal for this meeting is project prioritization. Project prioritization is extremely
important for a company. Therefore, we need to focus on the projects which
demonstrates business value and have an ability to succeed. In order to accomplish
this, we created a process shown in the sections below.
1. Strategic Criteria
Based on the companys strategic goals, we created strategic criteria to help ease the
project prioritization process. Appendix A shows the companys goals given to us by Mr.
Atkins while Appendix B shows other goals to consider.

Strategy

Scale of
Importance
(0 - 100)

Increasing operational efficiency

80

Reducing operating costs

60

Improving information flow

40

Improving employee productivity

20

Improving customer service

10

Importance Level

Description of
Importance

100

Very Important

75

Important

50

Neutral

25

Unimportant

Very Unimportant

2. Projects Value of Business based on Criteria

Each project has a score to represent its relevance and ability to accomplish the
strategic goal. A single project cannot have more than 100%. Each project is weighted
and is added together to get the total weighted score for each project.

Score (rounded to the five percentages)

Excellent

Good
100%

3. DICE Assessment

Satisfactory
75%

50%

Mediocre

Poor
25%

0%

4. Portfolio Application Model Matrix

5. Project Funding and Benefits Prioritization

Based on the information presented to us by the Executives, we have a three-year
implementation cycle with roughly a $175 million budget. In order to prioritize the
funding order of the projects, we had to use the strategic criteria (shown in Section 1) to
determine which projects align with the companys strategy. Also the DICE Assessment
narrowed down the difference between the most likely to successfully perform projects
in consideration and the lesser projects. Overall project cost and time to implement
acted as tie-breaker for the DICE Assessment ranking. The only project with a
dependency on another project ended taking the last place ranking.
Project

Ranking

Depends on

Unify Methodology and Technical Standards

NA

Consolidate Data Center and Networks

NA

12

NA

Standardize Server Hardware and Platform

NA

Implement Enterprise Resource Planning

NA

Outsource Non-Strategic IT Services

10

NA

Manage Supply Chain

NA

Streamline Design System

NA

Improve Collaboration System

NA

Begin CRM/Create Data Warehouse

NA

Implement E-Procurement System

NA

Customer Self-Service Portal

11

Consolidate Data Center

and Networks

Create Employee Intranet Portal

Appendices
Appendix A
Strategy Goals of Company
Increasing operational efficiency
Reducing operating costs
Improving information flow
Improving employee productivity
Improving customer service

Appendix B
Other Goals of Company
Optimizes risk portfolio
Balances risk and return
Aligns with overall corporate strategy
Maintains overall customer
satisfaction
Lowers internal cost
Creates profit internally
Decreases communication problem

Appendix C

Appendix D

Appendix E

***This table considers all factors including strategic goals, benefits of project, realization of project, costs of
implementation, time for implementation and portfolio synergies.