Project Portfolio Management and Productization at CSC

1. Project Portfolio Management and Productization at CSC Saara Värttö, DevelopmentManager, Head of PMO saara.vartto@csc.fi, 27.9.2012

2. Content • CSC and PMO at glance • Project Portfolio Management (PPM) at CSC • Productization tools in use • Benefits management as a bridge between projects and productization

3. CSC at a Glance • Founded in 1971 • Connected Finland to the Internet in 1988 • Reorganized as a company, CSC – Scientific Computing Ltd. in 1993 • All shares to the Ministry of Education and Culture of Finland in 1997 • Operates on a non-profit principle • Staff 230 • Turnover 2011 27,3 million euros

4. CSC’s Services Universities Polytechnics Ministries Public sector Research centers Companies • Funet Services • Computing Services • Application Services • Data Services for Science and Culture • Information Management Services

5. CSC’s Project Management Office • About 60 on-going projects • About 30% of overall workload in projects • PMO established in autumn 2011 to improve CSC’s project work • A team of 8 project management specialists

6. Supporting project processes PMO services for the project lifecycle • Idea portfolio • Project portfolio management Idea Planning Initiation Closing Execution &control Utilization of results • Supporting productization of the developed solutions into services • Scanning funding opportunities • Preparation of project proposals • Project management procedures and tools • Strengthening project management competences

7. Project portfolio management

8. Project portfolio management as part of CSC Strategy Aim: “We develop the right things in the right way” • Project portfolio used as a strategic tool by CSC management • Overview of all our projects and their status • More efficient and effective use of resources in projects • Benefits management applied

9. Benefits of successful PPM

10. CSC approach for PPM • Top-down approach chosen • First, a global view of all projects and their status for management decision making purposes • Then, focus on strengthening and unifying project management practices • Conditions determining solution for a non profit company • Owner requirements for reporting, eg. reports on projects’ benefits, achievements and resources invested • Follow-up of use of HR is the most important function • Reduce need for new recruitments • HR usually the biggest cost item in specialist organization’s projects • Avoid lost opportunities and funding in externally funded projects

11. Management knows what is the real business value of the project portfolio • Projects’ success rate is continuously improving 5. Program and project oriented organization 4. Transparent decision making based on priorities and resource information Target level for 2013 • Strategy is implemented faster and more efficiently Five levels of PPM maturity and main benefits • No over allocation of resources • Less stressed personnel • Project lead-times are shortened essentially • Better quality project outputs 3. Resource management across all projects and other work Achieved 08/2012 2. Awareness of the status and balance of project portfolio • A clear view on how to manage the portfolio • Better planning of project’s scope and schedule improves success rate 1. Awareness of on-going projects • Overlapping development work is reduced • Possible to see which projects are supporting strategies 0. Independent projects

12. Project Card Governance model Project Manager Resource Excel Whoprovidesinformation PMO Whocollectsittogether Project Portfolio Product mgt board Current project portfolio solution: 1. Set of tools and a process with existing solutions (Ms Excel, MS Sharepoint) 2. No procurement of a new system forseen for 2012 3. To be done: a) launch of tools b) launch of governance model c) testing both Who monitors progress and resolves conflicts Portfolio status report CSC mgt board Who decides about starting new projects

13. Next steps • Implementing PPM is a change project affecting the way people work • Internal communication campaign launched • From PMO driven to CSC shared vision – and independent of organizational structure • Project managers the key to success • CSC aims to reach maturity level 3 ”Resource management across all projects and other work” in 2013 • CSC information architecture and interoperability • HR processes and resource allocation • Common project management model for all CSC • A software system needed (eg. Clarity, DovreCamako, Thinking Portfolio)

14. Productization & Benefits management

15. Productization support in building new services • Drafting service descriptions • Helping with the cost accounting and align the pricing with CSC’s pricing policies • Aligning the delivery of the service with CSC’s internal processes • Drafting contracts in selected services • Responding to ad hoc queries for support

16. CSC’s business service catalogue • Unified service offering maintained and used in external communications and in service descriptions • Each service built of standardized service components • When planning of producing a new service its fit for existing business service catalogue reviewed • Changes in the catalogue approved by CSC Board of Directors once a year

17. Business service catalogue • Four levels: business service catalogue (1 & 2), technical service catalogue & configuration items Service Catalogue Technical Service Catalogue Details of services develiered to the customer with relationships to supporting services necessary to support the provision of the service to the business Business Service Catalogue Details of services delivered to the customer with relationship to business What services can I buy? What does this include? When will I get it? What services do I offer? What service levels are available? What are my key metrics? End user Service manager

18. CSC Data Center Services INFRASTRUCTURE SERVICES • SUPPORT SERVICES • Technical support, • Service Desk • DATA CENTER SERVICES • Planning the location of servers and installation services • Disaster recovery, certified power supply and cooling • Monitoring, alerts, guarding, extinction systems • Energy efficient systems • Data security and scalability • NETWORK SOLUTIONS • Funet backbone network • Specialized connection, Funet lightpath • Service network • STORAGE SERVICES • Disk solutions • Backup services • Long Term Preservation • SERVER SOLUTIONS • Virtual servers • Customer specific solutions • SPECIALIST SERVICES • specification, planning ja implementation • Database and software maintenance • Requirements management and planning services • Security, installation, optimization

19. Business model canvas • On-going work to produce business model for cloud services • Defining the business cases, three scenarios • Compiling the business model canvas • Customer segments, value propositions, key partners, key activities and resources, cost structure and revenue streams • Determining simple rules • Opportunity, How-to, Boundary, Priority, Timing, Exit • Business model transformation: Steps needed from current BM to target BM in 2014

20. Business model canvas Key partners Key activities Value propositions Customer relationships Customer segments What key activities do our value proposition require? Our distribution channels? Our customer relationships? What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? Which customer needs are we satisfying? What bundles of products and services are we offering to each Customer Segment? Who are our key partners? Who are our key suppliers? Which key resources are we acquiring from partners? Which key activities do partners perform? For whom are we creating value? Who are our most important customer? What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Channels Key resources What key resources do our value proposition require? Our distribution channels? Through which channels do our Customer Segments want to be reached? How are our channels integrated Cost structure Revenue streams For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? What are the most important costs inherent in our business model? Which key resources and activities are most expensive? P.O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www.oulubusinessschool.fi

21. Benefits management • A part of project portfolio management • “Clearly identifying and managing the benefits being realized from the portfolio, so the contribution to operational performance and strategic objectives is maximized” • Expected benefits are determined already in the project idea phase and their realization is being followed during the whole project life cycle.

22. CSC approach for benefits management • Expected benefits recorded in the project idea card • Ensuring that each project produces a final report including lessons learnt and best practices • PMO facilitates a closing workshop / meeting of a project: focus on identifying potential results for productization that are steering in the productization process

23. In conclusion • PPM used as a strategic tool for management • Benefits management – a bridge between projects and productization • Practical tools for productization: Business Service Catalogue and Business Model Canvas

24. Thankyou!