Professional Documents
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Jochem Harteveld
Senior Managing Consultant
March 13th, 2013
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Agents
Employees
Customers Suppliers
Portfolio Assessment
Identify applications in Review business and Review and assess Identify a prioritised set
scope application strategies compiled application of application
Gather materials Gather application data information opportunities that
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inventory issues and opportunities
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M
S
Low High
Implementation Feasibility
Application Profile
Application
Inventory
Projects
Project n
Project 2
Entry point Project 1
2013 IBM Corporation
Application Portfolio Measurement Framework
Establishes a baseline for cost reduction, application improvement
initiatives and investment decisions
Operations & Support costs
Development foundation
Maintenance & Development costs
Integration profile Action
Accessibility of functionality Licensing costs
Scalability Retire
Availability Training costs
Maintainability Reduce
Usability Accounting treatment
Reusability Replace
Breadth and utility of function Security Restructure
Existing Reprioritize
Portfolio View Relocate
Retain
Bus
Va l i n e s s Fun Tec TC
ue ct i o Da Arc OC
Alignment to new business strategy nal ta h nic hite os t
a l c ture s
Alignment to operational business
objectives and needs
Impact on business value
Efficiency Accuracy and Quality
Revenue Accessibility to data Architecture
Customer Flexibility Technology platforms
Leverage points in the organization Maintainability Alignment with technology
standards
Technology maturity
2013 IBM Corporation
APA Example work products:
Application inventory and analysis results
Rating (1 to 5) - 1 implies poor, 5 implies excellent
From Business Assessment Sheet From Technical Assessment Sheet From 'Discovery Work'
Value Function Technical Data Cost
App Name Description Q5 Q9 Q10Q11 Q12Avg Q1 Q2 Q3 Q4 Q7 Q8 Avg Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Avg Q10 Q11 Q12 Avg Maint. Hrs. Dollars Key Issues
Strategy
2. Flexibility / Responsiveness
organisation
to Change
4. Functional Coverage
8. Architecture
1. Reliability
3. Useability
7. Data Quality
1. Stability
Quality
3 to 5 yrs; 5 - 5+ yrs
5. Technical Life Expectancy
9. Scalability
5. Dependence
Processes
2. Code Quality
7. Adherence to
4. Openness/Accessibility
Standards/Policies
Rating Scale: 1 - > 1 yr; 2 -
9. Alignment to Business
8. Alignment to Business
3. Technical Documentation
10. Business Value and Impact
Develop, Generate and Produce Energy Acquire and Manage Customers Enable the Business IBM Global Business Services
Generation Asset Generation Asset Generation Asset Customer Meter Data Billing & Strategy, Finance, HR, &
Construction Maintenance Operations
Energy Trading Marketing Sales
Service Management Collections Regulation Administration
Org As applications individually are of reasonable quality; cost and complexity arises
Maintenance
Operations Portfolio Marketing
Billing Strategy
Business
Corporate
from numerous systems, technologies, databases and the way Org A exchanges data
Growth Strategy Strategy Strategy Sales Strategy Strategy
Strategy
Financial
Management
Product
Customer
Regulatory Strat
Governance with external parties
Service Meter Data Strategy and
Price & Load
Direct Production StrategyPlanning Development Standards, Policies and Operational
Strat. &Performance Org As core applications, from both technical
Asset Strategy forecasting Customer Policies, and Standards Billing Policies 5.0
Capital Program Plng Policies and
Asset Strategy Pricing Relationship Procedures and Standards
Management Emergency Deal Planning Media and Public Procedures 4.5
and functional quality perspective, are perceived
Management Technically Good CELS
DDS
to be between average and good, indicating no
Construction Maintenance Operational Service Delivery Billing exception CRS
VHC
MAVIS
Customer Accounting
Card Issue
FLS
Functionally Good
Growth Maintenance Construction Deal Service 2.5
CADET DMRS
Financing Planning Planning performance Performance Substitution and Dunning & DVATS
Procurement Management Emissions & Monitoring and Management Customer legacy application architecture complex
Management Management Exception Credit
connection point
Renewables
management
Management Management Risk
Facilities Hotspur
DOLARS
PIPS SI VIEW
Org A exchanges a large amount of customer
Contractor Contractor Contractor Planning and Management
DVA-Clink
Maintenance Cost
Management Management Management Trading Management Risk
and Maintenance and treatment data with other parties. Org A does
Management TAS CADET
DPS
not have a consistent, standard way of dealing
Customer DRS
Super Inc RAPTOR
DOGMA
Marketing Response
Commissioning Demand-side Enrolment and Unmetered
Execution Payment
Outage management Transfers Customer Field Supplies Workforce Business Value
1) Business Value
Tangible Benefits
- IT Related Cost
Savings
Benefit
- Business Related Calculations
Cost Savings
- Revenue Increase
Less Tangible
(Intangible) Project Cost
Benefits Calculations
- Indirect Cost
Savings
- Revenue
Enhancement
* Financial
Calculations
Financial
Calculations may be
difficult, depending
on availability of
baseline
Action plan
L
PLEE
M
SAAMP
S
Benefits Realisation
Application Leverage existing assets to new language or
Conversion environments such as cloud and improve
flexibility
Application Consolidate applications and data to enable
Rationalisation
business transformation and optimisation
Application Improve code quality and architecture to remove
Renovation constraints, issues and complexity and reduce IT
costs of support and change
Application Execute full decommissioning including
Retirement requirements for data retention and archival to
release all IT costs for unused applications
Roadmap and Business Case
Application Portfolio Application portfolio level diagnostic - Identify and
Assessment & Management prioritise cost and value improvement options
Applications with low business value, potentially high maintenance - move useful
Retire functionality, rules and data migrated to other portions of the application portfolio
Applications which could benefit from different sourcing methods - evaluate and
Relocate select alternate sourcing for application hosting, maintenance and/or development
2013 IBM Corporation
Structure and components relevant for the transformation
Roadmap
Life-cycle guidance to optimize the application portfolio (APA result)
Wanted position - Functional mapping & Target solution
Initial high level architecture for the transformation - Technical & Physical
architecture
Service transformation roadmap - Switch service focus and spending to
core and strategic applications
Governance structure (decision mechanism)
Project plan for the transformation phases - Activities are prioritized
based on business drivers
Competence development plan
Business case
Risk analysis
2013 IBM Corporation
Transformation may be done in two dimensions
System A
Function
System B
Functional Dimension
subset 1
Function
subset 2
Function
subset n Electronic Enterprise Business Processes Enterprise New Data store
Channels Services Integration Services
Architecture Dimensions
2013 IBM Corporation
Right prioritization is important
1 Roadmap
2 Governance
System A
Function
3 subset 1 System B
Client Enterprise
Data
Integration Integration
Transformation
Transformation Transformation
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