Sesi06 Managing The Application Portfolio
Managing The Applica.on
Por2olio
Chapter 7
Magister of Informa.on Technology
Faculty of Computer Science, University of
Indonesia
External Business Environment
Internal Business Environment
Internal IS/IT environment
Current Applications Portfolio
Strategic IS/IT
Planning Process
External IS/IT Environment
Planning Approaches, Tools and Techniques
We are here …
IS/IT Management Strategy
Business IS Strategies
Applications Portfolio
IT Strategy
Model & Matrices
Session Objec.ves
• Able to discuss deliverables of PSIS
• Understand how to manage applica.ons
por2olio
• Understand how to manage IS/IT resources
• Understand how to manage IS/IT investment
Session Agenda
• Managing the applica.on por2olio (chapter 7)
• Strategic Management of IS/IT (chapter 8)
• Managing IS/IT Investment (chapter 9)
Defini&on…..Applica&on Por2olio
• Applica.on por2olio is a means of bringing together
exis.ng, planned, and poten.al informa.on systems and
assessing their business contribu.on
• Applica.on por2olio depicted by using Mc Farlan Grid
(2x2 Matrix)
• The main purpose in classifying applica.on is to ensure
that they are managed successfully and expected
contribu.on is delivered
• Applica.on por2olio will evolve over .me, and has to be
managed successfully
Other Matrices for IS/IT Management
• Sullivan matrix (consider IS/IT management from
infusion and diffusion of IS/IT in an organiza.on
• The informa.on technology assessment and
adop.on (ITAA) matrix (adop.ng IS/IT as a
compe..ve weapon)
• Ives and Learmonth matrix (value adding poten.al of
IS/IT)
• E‐business value matrix (address e‐business)
Matrices for Decision Making
• Sullivan matrix: infusion and diffusion of IS/IT
– Infusion is the degree to which IS/IT has
penetrated a company in terms of importance,
impact, or significance (demand driven)
– Diffusion is the degree to which IS/IT has been
disseminated or scaVered through out the
company (decentraliza.on)
• Matrix by Munro and Huff: The IT Assessment and
Adop.on (ITAA)
– How organiza.on have adopted IS/IT as a compe..ve
weapon
– Driven by technology (technology advantage) or issues
(business opportuni.es)
• Matrix by Ives and Learmonth and Galliers
– How the value adding poten.al of IS/IT in the business
– IS/IT as an offensive weapon
• Matrix by Hartman and Sifonis
– X and Y axes: business cri.cality vs. prac.ce
innova.on
– LL: new fundamental (support)
– HL: Opera.onal excellence
– LH: ra.onal experimental (high poten.al)
– HH: Strategic
Composite Matrix
Applica&on por2olios in different IS/IT environments
Advantages of Matrix Analysis
• Reduce “infinite” alterna.ves
• Demonstrate rela.onship
• Simple
SWOT analysis of exis.ng por2olio
EXPLOIT STRENGTHS:
•
•
•
•
•
•
•
•
•
high future poten.al, currently underexploited;
can be extended, enhanced to be of more value;
could be more valuable if integrated more effec.vely or used more
extensively;
cri.cal to the business, but data quality is poor;
needs to be developed to meet current and future business needs;
must be enhanced to meet changed business requirements for future;
system required, but needs to be reimplemented to absorb less resources or
overcome technology obsolescence;
system will be less important in future—needs to be simplified/reduced to
real needs;
system is no longer of value—should be discon.nued.
OVERCOME WEAKNESSES
• Merely classifying current and future applica.ons into a 2
×2 matrix is of no great value, unless it causes each
applica.on and the overall por2olio to be managed more
effec.vely
• Each organiza.on will have slightly different
interpreta.ons of the terms used for each segment
• If agreement cannot be reached, it ofen means that the
‘system’ needs
• to be considered at a lower level, in terms of the main
func.ons it
• performs.
Classifying the applica.ons in the
por2olio
Ques.ons
If the development* succeeds, will it:
•
(a) Result in a clear compe..ve advantage for the business? Yes/No
•
(b) Enable the achievement of specific business objec.ves and/or cri.cal success
factors? Yes/No
•
•
(c) Overcome known business disadvantages in rela.on to compe.tors? Yes/No
(d) Avoid foreseeable business risks becoming major problems in the near future? Yes/
No
(e) Improve the produc.vity of the business and, hence, reduce long‐term costs? Yes/
No
(f) Enable the organiza.on to meet statutory requirements? Yes/No
(g) Provide benefits not yet known, but may result in (a) or (b) above? Yes/No
•
•
•
* For exis.ng applica.ons the ques.on is, is the applica.on delivering benefits that . . .’
Interpreta.on
SWOT Analysis in 2x2 McFarlan Matrix
Some key issues in the segments of the por2olio
Questions to Choose Implementation Strategy
The Three Key Par&es Involved In Enabling
Successful Implementa&on
• Execu.ve management;
• Line management: func.onal or process managers and users
of the systems;
• IS/IT specialists: whether or not they are internal to the
organiza.on (centrally located or in business areas) or
external.
Ra&onale and requirements for generic
strategies (source: aKer Parsons)
Evolution of IS Strategic Management
Portfolio Management Principles to Applications
Portfolio
Ques.on & Answer
Por2olio
Chapter 7
Magister of Informa.on Technology
Faculty of Computer Science, University of
Indonesia
External Business Environment
Internal Business Environment
Internal IS/IT environment
Current Applications Portfolio
Strategic IS/IT
Planning Process
External IS/IT Environment
Planning Approaches, Tools and Techniques
We are here …
IS/IT Management Strategy
Business IS Strategies
Applications Portfolio
IT Strategy
Model & Matrices
Session Objec.ves
• Able to discuss deliverables of PSIS
• Understand how to manage applica.ons
por2olio
• Understand how to manage IS/IT resources
• Understand how to manage IS/IT investment
Session Agenda
• Managing the applica.on por2olio (chapter 7)
• Strategic Management of IS/IT (chapter 8)
• Managing IS/IT Investment (chapter 9)
Defini&on…..Applica&on Por2olio
• Applica.on por2olio is a means of bringing together
exis.ng, planned, and poten.al informa.on systems and
assessing their business contribu.on
• Applica.on por2olio depicted by using Mc Farlan Grid
(2x2 Matrix)
• The main purpose in classifying applica.on is to ensure
that they are managed successfully and expected
contribu.on is delivered
• Applica.on por2olio will evolve over .me, and has to be
managed successfully
Other Matrices for IS/IT Management
• Sullivan matrix (consider IS/IT management from
infusion and diffusion of IS/IT in an organiza.on
• The informa.on technology assessment and
adop.on (ITAA) matrix (adop.ng IS/IT as a
compe..ve weapon)
• Ives and Learmonth matrix (value adding poten.al of
IS/IT)
• E‐business value matrix (address e‐business)
Matrices for Decision Making
• Sullivan matrix: infusion and diffusion of IS/IT
– Infusion is the degree to which IS/IT has
penetrated a company in terms of importance,
impact, or significance (demand driven)
– Diffusion is the degree to which IS/IT has been
disseminated or scaVered through out the
company (decentraliza.on)
• Matrix by Munro and Huff: The IT Assessment and
Adop.on (ITAA)
– How organiza.on have adopted IS/IT as a compe..ve
weapon
– Driven by technology (technology advantage) or issues
(business opportuni.es)
• Matrix by Ives and Learmonth and Galliers
– How the value adding poten.al of IS/IT in the business
– IS/IT as an offensive weapon
• Matrix by Hartman and Sifonis
– X and Y axes: business cri.cality vs. prac.ce
innova.on
– LL: new fundamental (support)
– HL: Opera.onal excellence
– LH: ra.onal experimental (high poten.al)
– HH: Strategic
Composite Matrix
Applica&on por2olios in different IS/IT environments
Advantages of Matrix Analysis
• Reduce “infinite” alterna.ves
• Demonstrate rela.onship
• Simple
SWOT analysis of exis.ng por2olio
EXPLOIT STRENGTHS:
•
•
•
•
•
•
•
•
•
high future poten.al, currently underexploited;
can be extended, enhanced to be of more value;
could be more valuable if integrated more effec.vely or used more
extensively;
cri.cal to the business, but data quality is poor;
needs to be developed to meet current and future business needs;
must be enhanced to meet changed business requirements for future;
system required, but needs to be reimplemented to absorb less resources or
overcome technology obsolescence;
system will be less important in future—needs to be simplified/reduced to
real needs;
system is no longer of value—should be discon.nued.
OVERCOME WEAKNESSES
• Merely classifying current and future applica.ons into a 2
×2 matrix is of no great value, unless it causes each
applica.on and the overall por2olio to be managed more
effec.vely
• Each organiza.on will have slightly different
interpreta.ons of the terms used for each segment
• If agreement cannot be reached, it ofen means that the
‘system’ needs
• to be considered at a lower level, in terms of the main
func.ons it
• performs.
Classifying the applica.ons in the
por2olio
Ques.ons
If the development* succeeds, will it:
•
(a) Result in a clear compe..ve advantage for the business? Yes/No
•
(b) Enable the achievement of specific business objec.ves and/or cri.cal success
factors? Yes/No
•
•
(c) Overcome known business disadvantages in rela.on to compe.tors? Yes/No
(d) Avoid foreseeable business risks becoming major problems in the near future? Yes/
No
(e) Improve the produc.vity of the business and, hence, reduce long‐term costs? Yes/
No
(f) Enable the organiza.on to meet statutory requirements? Yes/No
(g) Provide benefits not yet known, but may result in (a) or (b) above? Yes/No
•
•
•
* For exis.ng applica.ons the ques.on is, is the applica.on delivering benefits that . . .’
Interpreta.on
SWOT Analysis in 2x2 McFarlan Matrix
Some key issues in the segments of the por2olio
Questions to Choose Implementation Strategy
The Three Key Par&es Involved In Enabling
Successful Implementa&on
• Execu.ve management;
• Line management: func.onal or process managers and users
of the systems;
• IS/IT specialists: whether or not they are internal to the
organiza.on (centrally located or in business areas) or
external.
Ra&onale and requirements for generic
strategies (source: aKer Parsons)
Evolution of IS Strategic Management
Portfolio Management Principles to Applications
Portfolio
Ques.on & Answer