Presentazione 04 iiba_bawi_2012_mega_michele ferrara

© International Institute of Business Analysis

UNA Hotel Scandinavia – 15 Ottobre 2012

BA e Application Portfolio Management, strumenti per l’ Operational Excellence Michele Ferrara MEGA International Italia


MEGA International

Company Founded in 1991

Headquarters in Paris, France

8 subsidiaries

More than 2,400 customers worldwide

Named « Leader » by Gartner and

Forrester (2011)

Key figures

300 people incl.130 consultants

30 M€ revenue in 2011

More than 600 consulting projects /

20,000 days per year

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Leader in Business Process Analysis, Application Portfolio Management, Enterprise Architecture and Governance, Risk and Compliance


Agenda

APM Practice

MEGA Approach

Inventory

Evaluation

Trasformation

Implementation

Conclusion

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APM Practice

What is APM?

Why is it critical?

What is the added-value?

What are the key concepts?


Application Portfolio Management

Understand the application landscape to optimize costs, quality, risks, and value

creation

Manage the significant part (40% to 80% ) of IT budgets devoted to application

maintenance and evolutions

Collect and analyze information on applications deployed in operations

Provide tools to help decision-making regarding application evolutions (remove,

adapt, etc.)

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Application portfolio optimization is required

Increasing complexity of the application landscape applications developed to support new projects / new technologies

applications resulting from multiple mergers and acquisitions

heterogeneous standard software packages and “homemade” applications

complex geographically and organizationally distributed applications

Increasing regulatory requirements

Increasing needs for IT agility

Operating within tight budget constraints

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APM Key Principles

Only IT assets (application, technology, etc.) that have acceptable business value, cost, and associated risks are to be maintained

What applications are… Not used? redundant? Requiring excessive maintenance costs? Running on obsolete technologies? Not supported in line with business requirements? ...

What are the impacts of maintenance/suppression of these applications?

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APM Benefits

Reducing costs and complexity of application portfolio

Risk and compliance management

Better investments that are better qualified

Alignment of IT assets with business challenges

Easier implementation of a complete and effective business

continuity plan

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The MEGA Approach

Inventory

Evaluation

Transformation


The MEGA Approach

A long-term process

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Inventory

Essential information

Maintain up-to-date inventory


The APM cornerstone: the application

Application ID Card: Key Criteria

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General Information

(ID, Age, Type …)

Functional & Data

(Supported processes,

capabilities …)

Technologies & Components

(Editor, versions …)

Environments & Hosting

Interfaces

Responsible Stakeholders

(Business owners, support, users ...)

Costs

Critical Information / Risks / BCP

History

(Incidents, decisions, recommendations

…)


The MEGA Information Model

Strenghts: addresses the

complexity of deployment

o SAP HR has been used in Italy since

2010 for 3 functions: Payroll /

Recruitment/ Evaluation

o Germany will deploy Payroll in 2013

and Recruitment in 2014

o Payroll will be deployed in France in

2012, but will be adapted locally

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Evaluation

Tools for decision-making:

From assess to transform


Tools for decision-making

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Analysis of

collected

information

allows to

qualify

applications


Best practice : Assessing business value

Example of a capability model

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A high level business architecture view allows you to

describe what is needed (process/capabilities/organization)

to fulfill corporate the mission and implement its strategy.


Best practice : Assessing business value

This simple model provides the ability to depict a reference

framework for application knowledge and evaluations: Enriching application landscape qualification and characterizing functional

coverage of applications (identifying redundancies or automation

requirements)

Aligning existing applications with business challenges

Providing information for evolution, investment and sourcing decisions (Cloud)

Others can be used (processes,...)

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Best practice : Assessing costs

The economic dimension is critical

Cost categories (permanent and periodic) Annual costs for maintenance of software and hardware

Potential costs of renting and insurance

Installations and migrations

IT asset procurement

Costs associated with hardware retirement

Etc.

TCO : Total Cost of Ownership, common cost model

Evaluation can be based on simplier models such as the

Relative Cost of Ownership (reduced to the costs that are

affected by application evolution

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Best practice : Assessing technical efficiency

Rationalization and simplification of the application portfolio

requires the optimization of technical components that

support these applications (ex for MEGA APM : IIS, MEGA,

ORACLE)

Do existing technologies facilitate the implementation of simplifying

operations and reducing costs while adhering to infrastructure

standards?

What are the risks associated with an obsolete technology?

What are the risks associated with the end of support by one supplier?

Are the technologies that are used compliant with the group

recommendations as it relates to the technical framework?

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Transformation

Applications lifecycle

Transformation scenarios


Transformation

Portfolio applications, as well as their technical components,

evolve depending on certain needs in the context of: Business projects

Technological opportunities

Maintenance requirements

Each application, or even each version of an application, has

its own lifecycle: from implementation to operation to

retirement

Evaluation also needs to integrate planned maintenance and

transformation projects

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Transformation

In order to decide which actions to take, the CIO must:

Have a clear vision of the lifecycle of each application and

its components

Develop scenarios based on changes to lifecycles related

to the decisions made regarding applications (retirement,

maintenance, etc.)

Have the ability to sort through requested projects and

decide which are most important based on specific criteria

(risks, costs, business value, etc.) among different

transformation scenarios

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Analyze transformation scenarios

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Réponse aux attentes (axes stratégiques)

Retour sur investissement

Risque humain (1-16)

Risque budgétaire (1-16)

Coûts de fonctionnement (KEuros)

Impact sur la culture et l'organisation (1-16)

Couverture du SI

Risque juridique (1-16)

Coûts d'investissement (KEuros)

Scénario 1

Scénario 2

Scénario 3

Scenario : plan transformation initiatives

Compare the different scenarios to make decisions


Implementation


MEGA APM : an application portfolio concept

to organize transformation

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Conclusion


The MEGA APM Solution in a nutshell

Web / Independent / Pre-packaged (models, workflow, reports)

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THANK YOU!

QUESTIONS?

WWW.MEGA.COM

Presentazione 04 iiba_bawi_2012_mega_michele ferrara

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