Www.regouniversity.com Clarity Educational Community How Companies Are Using CA PPM for Application...

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How Companies Are Using CA PPM for Application Portfolio Management

Presented by: Mark Feher | Date prepared: April, 2015

2 Clarity Educational Community

Agenda• Overview• Definitions• Business Value• Key Requirements• Best Practices


Overview• What is Application Portfolio Management (APM)?

• How does it fit with Portfolio and Project Management (PPM)?

• What is the Business Value Proposition for APM?

• What are the key elements of APM?

• What might an APM Implementation roadmap look like?


What is Application Portfolio Management (APM)?

• A continuous process of managing the life of a portfolio of applications from acquisition through to retirement

• This includes:– Optimize the suite of applications required to support internal

and external consumers of associated services– Optimize the cost and effort associated with maintaining,

modifying, deploying and retiring applications– Actively Manage Business Risk associated

with Applications THIS IS NEW AND BASED ON CLIENT EXPERIENCES


What is APM…• Two separate activities required to Optimize the Portfolio

1. Collection of information about individual Applications2. Analysis and Operational Plans for the collection(s)/Portfolios of

Applications

• This presentation is focused on the first activity– Too many enterprises want to start with Portfolio’s without

getting the input data understood– “Stay Tuned” for a future Portfolio Analysis presentation


A Simplified ViewHow Does It Fit with PPM?

IT Portfolio

IT OperationsApplications

SupportHelpdesk and response tiers

Applications Maintenance

Provision of Services supported by Applications to user communities

(infrastructure, security, …)

IT Service Enhancement and Development

Projects ProgramsProjectsProjects ProgramsPrograms

Department Overhead

Projects to support IT Operations

Projects to support Other Operations

IT Standards, Security, Procurement, Supply Chain, …


CA PPM’s Hierarchy of Investments Support “Total Cost of Service”

Projects

Service

Applications

Business Goals and Objectives

Projects

Applications

Projects

Applications

Programs

Service

Projects

Projects

Applications


What is the Business Value Proposition for Application Portfolio Management?

• Improve Selection of New Applications– Aids in assessment and selection of new applications to

determine how they fit in the Portfolio– Identifies if there are any pre-existing issues that will cause

operational issues and increase operating costs unacceptably– Stops the cycle of application proliferation


What is the Business Value Proposition for APM? …

• Reduce the Cost of Operations Associated with Applications– Makes the suite of Applications within an organization more transparent

and provides an assessment of health and importance to the enterprise– Avoided Effort and Consequences of Application Conflicts and Problems– Reduces the number of instances of the same application

• Reducing the number of duplicated application support and maintenance costs

• Optimizing the Suite of Applications and Total Cost of Services• Fewer Tickets – Reduced Effort/More Time for Value Add Work• Lower Procurement Costs• Reduced Projects Costs• Reduced Maintenance Fees• Better support for business critical and high value apps



• Reduce/Manage Business Risk Associated with Applications– Can alert the business to real or potential issues/risks related to

• The interrelationships of applications• Supporting infrastructure• Supporting SW and source product states

– This results in proactive response before issues affect the business

– Ensures disaster recovery and basic risk responses are planned for all high value and critical applications

– Improves event management by providing association of applications and infrastructure in the event of failures



• Ensures business, portfolio and operational decisions are based on high quality and accurate information

– Information is assigned a System of Record (SOR) and the System of record is the only source of this information throughout the information systems used by the enterprise.

– The SOR and the analysis itself helps ensure consistent use of naming and terminology for a common understanding across the enterprise



• Conservative estimates of savings from the use of Application Portfolio Management is 10-15% of an IT budget

• We believe that the savings can be as high as 20-25% if the approach is institutionalized throughout the IT organization and is supported by Advanced APM toolsets in the context of other business systems in an enterprise


What are the Key Requirements for Effective APM Implementations?

Application Portfolio

Management

APM.7Support Clarity System

Administration

APM.2Maintain/Manage Underlying

Product Roadmaps in Support of Health Monitoring

and Planned Operational States

APM.3Scenario’s capability to test/tune weights, criteria, etc…

for any of the Lifecycle methodologies in the system

APM.4Support the Detection of

important APM events or the need for input via visual

indicators in CA PPM, email notifications, and workflows

APM.5Support for Financial

Planning and Processes


What information do we need to collect and assess for Applications?• The key areas of assessment are

– Context and Importance to the Enterprise– Current Performance and Health– Past Performance and Health– Predicted Future Performance and Health– Relationships to enterprise infrastructure, systems, and

applications


(Metrics are Enterprise Specific)What is Best Practice for Assessing Applications

Assess Application Business

Value


Risk

Risk Probability

Business Risk Impact

Business Operational Impact

Speed of Impact

Speed of RecoveryEstimated Ops Plan to

Repair

Assess Application Technical

Risk

Application Operational

Cost

Current Application

HealthTechnical

Risk Impact

Technical Operational Impact

Speed of Impact

Speed of Recovery/Estimated Ops Plan

to Repair

Gartner Application

“Time” Assessment

Risk Probability

Application Change Projects

SW Licences

SW Maintenace


Support

System Administration

and Maintenace

Combined Application Assessment

Input for the Portfolio

Operational Plan

Output

Decisions on Individual Applications can only be

made in the context of the Portfolio of Applications!

Application Value and Fit

to Mission or Process

Operation Risk

Technical Risk

Survey Questions to determine Recommended TIME Assessment

Cost

TIME Survey Questions to support portfolio analysis

Business Criticality Revenue

Supported by this Application

% Number of Users Supported

Regulatory Compliance

Aging IT· Stale Version History (no

change for extended periods)

· ...

Product Roadmap Health

· Current Alignment· Is the version in Use supported

by the Vendor· Previous Alignment

· Was the previous assessed Version supported by the Vendor

· Future Predicted Alignment· Is End-of-life expected within the

next assessment timeframe?

Application Dependency Health· # of Applications this Application

Depends on· Health of each Application this

Application depends on· Average Health of all Applications

this Application Depends on

Application Operational Performance· # Open Tickets· Aver Duration of Open Tickets in

the Past Quarters (1 through 4· Variance in $=# of Tickets Open

Year over year and quarter over quarter

· SLA performance

Application Volatility· # of Significant changes

in the past 12 months· # Significant changes

between months 12 and 24


Value


Risk

Risk Probability

Business Risk Impact

Assess Application Technical

Risk


Cost

Current Application

HealthTechnical

Risk Impact

Gartner Application

“Time” Assessment

Risk Probability

Combined Application Assessment

Output


Some Examples of Key Application Relationships

Dependent Applications

Associated Vendor Product

Relationships

Business Capabilities

Lines of Business

Used by which Organizational

Units

Information Security Category

Information Security

Management

Protected Personal

Information

Application This

Application Depends On

Applications That Depend

On This Application

Association of Applications to key Business

Structures

Business Strategic Objectives Supported

Classifications and Sub-

Classifications

Identify Current Application

Revision and related information

Regulatory/Standards

Compliance

Application


• CA PPM will provide a lot of support and guidance for Application Assessment and rationalization

BUT• It will take a concerted effort and buy-in by all of your

staff to institutionalize the thinking and values of Application Portfolio Management.

• Efforts around Business Transformation and Education will be required to achieve and sustain an optimized cost of operation that should be significantly lower than it is today and with higher quality of output.

• An Operational Roll-out/Roadmap that takes this into account is essential.

A Lesson We have learned several times over:

Technology is not enough!


Questions

Phone888.813.0444

[email protected] or Empowered at [email protected]

Websitewww.regouniversity.comwww.empowered.ca

We hope that you found this session informative and worthwhile. Our primary goal was to increase your understanding of the topic and CA PPM in general.

There were many concepts covered during the session, if you would like to contact any presenter with questions, please reach out to us.

Thank you for attending regoUniversity 2015!

mailto:[email protected]

mailto:[email protected]

http://www.regouniversity.com/

http://www.empowered.ca/

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