The Applications Handbook.pdf - Nexus Technologies Inc.

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PLAN: Building the Right Applications in the Right Way ■ 21 Real-world results: An energy supplier, formed by the merger of two regional energy companies, wanted to rapidly lower IT costs and demonstrate the value of IT to executives. Using a portfolio-management solution, this customer was able to respond to the mandate quickly, and saved $8 million by identifying atrisk or low-value projects. The company also improved the number of healthy projects by 70 percent — all within eight months of implementation. Keeping It Real: Portfolio Optimization All of this information about portfolio management suggests a framework for determining how the portfolio is plotted, and how the business and IT remain aligned as requests move from idea to active project. But, of course, portfolio planning is not a once or twice yearly event; it’s a continuous activity of synchronizing new requests, active projects, and the business performance of live and longstanding applications. Consider a representative list of the questions that CxOs might ask to optimize the portfolio: • Are we funding the right projects? • Is our staff working on the highest priority tasks? • Do we have the right resources in place to meet next year’s goals? • Are we getting maximum value from our IT investment? The answers are rarely simple. Above all else, effective portfolio optimization requires a company to be able to answer “what if” questions. • What if we borrow resources from this project for that one? • What if we terminate this early-stage project and merge its budget with another?
22 ■ The Applications Handbook • What if we delay the start of this project by two months? These questions are particularly thorny because they pit operational risks against business value. We need the ability to model various scenarios based on reliable data and current metrics. Figure 6: Demands and projects vs. budget and resources by quarter (source: HP Project and Portfolio Management Center) These charts look at scenarios of different candidate proposals and current active projects. By changing the number or timeframe of certain proposals, planners can see in an instant the
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