MDCM

10/25/12
IT Por,olio Management
Week 9
You have $100,000 to invest.

What would you invest in and why?
10/25/12
MDCM, Inc. Case

What were MDCMs business objecSves?
1. Consolidate Where Possible

2. Increase Overall Scale
Eciencies
3. Single Global Company
4. Focus on Core Competencies
5. Mend Customer RelaSonships
MDCM, Inc. Case
What were the proposed IT projects?

1. Unify Methodology &
Technical Standards
2. Consolidate Data
Centers
3. Outsource Non-
Strategic IT
4. Standardize Hardware
5. Implement ERP
6. Create Employee
Portal
7. Manage Supply Chain

8. Streamline Design
Systems
9. Improve CollaboraSon
Systems
10.CRM/Data Warehouse
11.E-Procurement
12.Customer Self-Service
Portal
10/25/12
MDCM, Inc. Case
What model would you use to determine

balance?
InformaSonal
Strategic
10
12
TransacSonal
5, 6, 7 , 9, 11

Infrastructure
1, 2, 3 , 4, 8

MDMC Inc. Case
How would you rank the projects?

Unify Methodology & Technical
Standards
Consolidate Data Centers
Outsource Non-Strategic IT
Standardize Hardware
Implement ERP
Create Employee Portal
Manage Supply Chain
Streamline Design Systems
Improve Collaboration
Systems
CRM/Data Warehouse
E-Procurement
Customer Self-Service
Portal
BO1
(2X)
BO2 BO3
(1.5X) (1X)
BO4
(1X)
BO5
(.5X)
Business
Value
Ability to
Succeed
10/25/12
MDMC Inc. Case
How would you rank the projects?

Unify Methodology & Technical
Standards
Implement ERP
Manage Supply Chain
Improve Collaboration
Systems
CRM/Data Warehouse
E-Procurement
Customer Self-Service
Portal
BO1
(2X)
BO2 BO3
(1.5X) (1X)
BO4
(1X)
BO5
(.5X)
Business
Value
Ability to
Succeed
10
10
2
10
6
6
6
2
2
10
8
10
6
10
6
8
0
0
0
0
4
0
2
4
10
10
10
10
8
8
8
8
10
2
10
2
8
8
8
8
38
46
31
46
37
39
35
32
90
50
70
40
30
60
20
80
10
8
6
2
2
10
6
10
2
8
6
8
10
6
8
42
38
41
60
20
70
10
46
50
MDCM, Inc. Case

Balancing Value and Ability to Succeed
50
Cust Self Service
Value
Hardware
Data Centers
CollaboraSon
eProcurement
CRM
ERP
Employee
Intranet
Methodology
Supply Chain
Design Systems
Outsource
30
0
Ability to Succeed
100
10/25/12
MDMC Inc. Case
How would you schedule the projects?

Year 1
Q1
Unify Methodology & Technical Standards

Q2
Year 2
Q3
Q4
Q1
Implement ERP
Manage Supply Chain
CRM/Data Warehouse
E-Procurement
Customer Self-Service Portal
Implement
Implement with caution due to risk
Review for feasibility
Year 3
Q3
Q4

Improve Collaboration Systems
Q2
Using COBIT 5 - APO05, Manage Por,olio how

would you rate MDCMs eorts? Why?
1. Establishing the target mix
2. Determining funding
3. EvaluaSng & selecSng programs
4. Monitoring investment performance
5. Maintaining their por,olios
6. Managing the acheivment of benets
10/25/12
What is an IT project
por,olio and why would you
want one?
Portfolio Categories
Efficiency
Cost-Out
Productivity
Run the Engine
Sustain
Operations
Run The
Engine
Growth
Incr
Revenue
Incr Cust
Intimacy
Discretionary
Innovation
New
Business
Models or
Competitive
Capability
10/25/12
Discretionary Budget in Portfolio Perspective

2%
$0.5MM
Innovation
Targets
1 Yr
3 Yr
30%
$12MM
Growth
1 Yr
3 Yr
38%
$15MM
Efficiency
1 Yr
3 Yr
1 Yr
3 Yr
Run the
the Engine
Engine
Run
Run The
Engine
30%
$12MM
Discretionary
We can change
the por-olio
targets to shi1
investment to
business
opportuni6es.
Strategic Themes
Business Need
Enabling IT
Capabili6es,
Talent,
and
Enterprise
Infrastructure
Business Need
IT
Strategy
Business Need
IT Opera6ng
Principles
Business
Value Creation
&
Investment
Portfolio"
Business Need
Strategy
1
The IT
Strategy
filter `
Alignment
IT
Portfolio
10/25/12
Our 2007 Investment Plan: Align Investment to

Strategy
Business Change
2007 Invest
Must Do
Value
Risk
BDC
EOL, Networks
$7MM
$7MM
Must Do
Sustain
Ac6ves
LDR
$3MM
$10MM
More
Intangible
Low - Med
Talent
Phase 2

$4-5MM $15MM
Strategic
Med +
Business
Eciency
APO
21C
Logis6cs
$6-8MM $23MM
More Tangible
Financials
Med - High
Sales + Market
Excellence
OR
Content
PC
$2-3MM $26MM
Mix of Tangible
+ Intangible
Med +
ELN
$1-2MM $28MM
Strategic
High
R+D
Innova6on
We strive to
minimize
this investment
category.
However,
significant
architecture
renewal is
ahead of us
SAP,
Collaboration,
Office
60+ %
of the
Investment
Portfolio
invests in
Business
Value
Creation
IT Investment Portfolio
Portfolio View
Portfolio View ( Pipeline + Approved Projects )
Shop floor
Integration
High
Energy
Dashboard
Value Index
Learning
Program
S+M 2
Talent / SAP
HR Upgrade
Elec Lab
Notebooks
Talent
Price
Nrg SmartOps

Inv Optim
Learn
Agro
* Size of circles = Cost
Must-Do Projects
HO E Upgrade
EOL
Middleware
Price
Execution
Inv
LM
ECMR
D
Shop
ELN
Agrofresh
L
APO
Rollout SR DR/
Sales
I
Reporting
SBS
FMP
SMK
S+M
CPA M
SAP APO /
Logistics
ECMR
Knowledge
S
Manu replace
Sec
Duty Mgmt
ERP
Lead
Formulation
Logistics
Security
Managemt Mgmt Powder
S+M Fixit Digital
Rights Dashboard
Design
Mgmt
Low
Service
Business
High
Low
CRM Portal Risk
Support
Agrofresh
10/25/12
Portfolio Project Ranking
Project List
2
1
Wow!
Pipeline Projects
IT PORTFOLIO: Learning Objectives

What is Balance ?
What is Alignment ?
How to Look at Portfolio ?
How to Support Governance
Discussions ?
Achieve Balance

Align to Strategy

Perspec6ves

Decisions and Tradeos
10/25/12
Exercise
Read the business context

Read the portfolio pipeline
Pick out the projects from the pipeline that are the best candidates
for investment, given the budget target of $25MM
Then number (rank) your projects 1 through x
(Where1 indicates the top candidate, etc.)
Sample Portfolio in a Value, Risk Quadrant Analysis
10
10/25/12
SAMPLE ANSWERS
TALENT
INNOVATION
EFFICIENCY
GROWTH
EFFICIENCY
Business Case: Learning Objectives

At the end of this Session, you will be able to explain:
Who Does Biz Case ?
Roles
When to Do Biz Case ? Context

What is Biz Case ?
Elements of Good Case
11
10/25/12
Initiate Process
Input
Collect and Organize Ideas
Understand Goals and Objectives
Consider Alternative Solutions
Create Project Business Case
Value
Cost
Risk
Return on Investment ROI, Payback period
Who
Project Manager
Leaders
Sponsors
Stakeholders
Output
Project Proposal Ready for Consideration by Decision Makers
(Governance)
What Makes Up a Good Business Case?

Execu6ve Summary
Objec6ves
Scope
Deliverables
Value
SUPPORTING
DETAILS
Cost
Risk
Assump6ons
12
10/25/12
Hierarchy of Business Value Measures

Value Delivery
Revenue growth
Return on assets
Revenue per employee
Business financial values
Time to bring a new product

to market
)
Sales from new products
ss
Product or service quality
ce
uc
of
Fewer handoffs
rs
Ability to cross-sell ato
ic
Supplier integration
nd
Business operational values
Business process values
(I
(Project Layer)
Implementation time of new
application
Implementation cost of new
application
(Infrastructure Layer)
Infrastructure
availability
Cost per transaction
Cost per workstation
IT application business value

IT investments
IT Management
Dilutio
n of th
e IT Tr
ail of E
viden
Sample Value Measure Responsibilities

Business Management
ce
Impact Sought
IT infrastructure business value

IT investments
Time for business impact

Source: The New CIO Leader, Broadbent and Kitzis
Cash Flow Analysis
13

MDCM

Uploaded by

Copyright:

Available Formats

MDCM

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MDCM

Uploaded by

Copyright:

Available Formats

10/25/12

You have $100,000 to invest.

MDCM, Inc. Case

What were MDCMs business objecSves?

1. Consolidate Where Possible

MDCM, Inc. Case

What were the proposed IT projects?

7. Manage Supply Chain

MDCM, Inc. Case

What model would you use to determine

MDMC Inc. Case

How would you rank the projects?

MDMC Inc. Case

How would you rank the projects?

MDCM, Inc. Case

MDMC Inc. Case

How would you schedule the projects?

Unify Methodology & Technical Standards

Manage Supply Chain

Streamline Design Systems

Using COBIT 5 - APO05, Manage Por,olio how

Run the Engine

Discretionary Budget in Portfolio Perspective

Our 2007 Investment Plan: Align Investment to

* Size of circles = Cost

Portfolio Project Ranking

IT PORTFOLIO: Learning Objectives

Read the business context

Sample Portfolio in a Value, Risk Quadrant Analysis

Business Case: Learning Objectives

When to Do Biz Case ? Context

Elements of Good Case

What Makes Up a Good Business Case?

Hierarchy of Business Value Measures

Business financial values

Time to bring a new product

Business operational values

Business process values

IT application business value

Sample Value Measure Responsibilities

IT infrastructure business value

Time for business impact

Cash Flow Analysis

You might also like