Managing the Application Portfolio

Prof. Rushen Chahal

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Agenda
Key questions on application portfolio management IS/IT management methods IS/IT environments & application portfolios Key issues in application portfolio Generic strategies Portfolio management principals
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Key Questions on application Portfolio Management - I

High potential
Why: not clear What: not certain How: not yet known

Strategic
Why: do we want to do it in strategic terms? What: does the system need to do to gain the advantage? How: best to do?

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Key Questions on application Portfolio Management - II

Key operational
Why: to improve performance and avoid disadvantage What: how much improvement? How: best to do it

Support
Why: to reduce costs by improving efficiency What: of existing necessary tasks How: best to do it?

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IS/IT Management Methods - I

Demand management
Opportunity seeking CSFs High potential & strategic IS

Supply Management
Opportunity taking Current problem solving Key operational & support IS

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IS/IT Management Methods - II

High potential (beware)
Local Competitive focus (proactive) Technology driven Federation business led, decentralized, entrepreneurial

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IS/IT Management Methods - III

Strategic (attack)
Corporate Competitive/effectiveness focus Business issue driven Complex Organizational planning, ideal multiple methods based on goal seeking Coalition

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IS/IT Management Methods - IV

Key operational (explore)
Backbone: integrated (top down) planning & centralized control Reactive: current & effectiveness focus Business issues driven

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IS/IT Management Methods - V

Support (safe)
Traditional: stage of growth, isolated applications, & decentralized control Reactive: efficiency focus IT issue driven

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IS/IT Environments & Application Portfolios

Traditional: support Backbone: key operational, support, & little strategic Opportunistic: High potential, support, little key operational, & little strategic Complex: high potential, strategic, key operational, & support

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 High potential

Key Issues in Application Portfolio - I

Driving forces: new business idea or technological opportunity Requirements: rapid prototyping, identify potential, & the best method

Strategic
Driving forces: Market requirements or competitive pressures Requirements: rapid development
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Key Issues in Application Portfolio - II

Key operational
Driving forces: improving performance, data integration, & avoiding disadvantages Requirements: data management, & cost/benefit analysis

Support
Driving forces: legal requirements, & improving productivity/efficiency, Requirements: packaged software, & cost control

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Generic Strategies
Centrally planned Leading edge Free market Monopoly Scarce recource

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Centrally Planned
Management: central Organization: knowledgeable senior management, & integration of IS/IT and business planning process IT: services matching business demands Line management: identifying IS/IT to meet business needs IS: strategic
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Leading Edge
Management: technology creating business advantages Organization: sufficient funding, innovative IS/IT management, & strong IT IT: IT push Line management: using & identifying IT advantages IS: high potential
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Free Market
Management: end users Organization: knowledgeable end users, duplication,& no budget control IT: competitive & profit centric Line management: identifying source & control IS/IT development IS: high potential, & support

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Monopoly
Management: corporate integration Organization: users acceptance of centralized policies, & good usage of resources IT: satisfying users needs Line management: understanding needs and get resources from central IS: key operational
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Scarce Resource
Management: justifying development Organization: tight budgetary IT: making and justifying the best use of limited resource Line management: identifying and justifying business needs IS: support

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 High potential (wild cat - entrepreneur): process R & D, minimal integration, & cost control Strategic (stars developer or empire builder): continuous innovation, vertical integration, & high value added Key operational (cash cows - controller): defensive innovation, effective resource utilization, high quality Support (dogs - caretaker): disinvest/rationalize, efficiency, & sustained quality
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Portfolio Management Principals

Points to Remember
Key questions on application portfolio management IS/IT management methods IS/IT environments & application portfolios Key issues in application portfolio Generic strategies Portfolio management principals
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Question
How do you apply these application portfolio management methods or principle to an e-business?

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