A Portfolio Management Process & Structure for UCLA

1. A Portfolio Management Process & Structure for UCLA Committee on IT Infrastructure (CITI) May 27, 2008 CITI Portfolio Management Process

2. CITI Agenda and Objectives • Agreement on the basic framework for a UCLA IT portfolio management structure and process • Use Disney model • Major elements and objectives • Set long range vision • Portfolio management is a phased, iterative, on-going process • Agreement on initial steps and schedule • More detailed plan in June meeting • Kinds of resources and commitments CITI Portfolio Management Process

3. Important Distinctions -- Governance, Project Management and Institutional Portfolio Mgmt • Governance • Strategic Direction • Prioritization • Institutional Investment Portfolio • Project Management, Development & Maintenance • Project Control • Schedules & Deliverables • Costs & Accountability • Successful implementation • Institutional Portfolio Management • Balancing and diversifying investment decisions among academic, research and administrative • Alignment with campus strategic plan and long-term requirements CITI Portfolio Management Process

4. CITI’s Agreement to Portfolio Management Option to fast track a project then circle back to governance 1 5 Projects are identified through the Annual Strategic Planning Process and as they arise (Ad hoc). Project moves along its specific path through the IT Governance Process. 3 Project Classes 2-5 are added to the Campus IT Portfolio. • Governance entities participate according to their role in the process. 2 OIT creates a “Project Bio” for every project and each project is classified. • Class 2 Projects are logged in the IT portfolio but just “stay on the radar” • Human Interaction (OIT, ITMG) is the first filter: • Does project need outside funding? • How is project aligned with strategic direction? • What is the project motivation (is there a legal mandate?) • What is the end user impact of the project? • Is there a reason to fast track? • Will the project be controversial? 6 4 Depending on the governance process “triggers”, a full or light PCD is created. • Class 1 Projects go ahead – no additional IT Governance required. The specific governance path for each project is determined by a classificationreview. IT Governance Graphical Overview v23-P1133-03-09-06 UCLA IT Project Governance Overview CITI Portfolio Management Process

5. Preliminary Data on Campus Applications An initial cut of a consolidated list of campus applications was recently developed from the following sources: 2003 Data Center Data Gathering Study 2007 PII Interviews 2005 Disaster Recovery Study List of ISIS Supported System The data compiled is incomplete and requires formal validation and further refinement This initial effort resulted in some preliminary data that when validated can become useful information to form the basis of an institutional view of IT applications, systems and services 31 Dean and Vice Chancellor Areas 525 distinct campus applications (excluding medical enterprise) … and counting CITI Portfolio Management Process

6. List of Campus Applications from Preliminary (Unvalidated) Data N=525 CITI Portfolio Management Process

7. Sample Information from Preliminary Data Some examples of system summary: Reporting/documentation - 13 systems Data and directories - 25 systems Email/Calendaring - 32 systems Web/Portal services - 35 systems Time keeping - 8 systems Other noticeably repeated applications / systems Financial accounting Registration Course Management Systems Project or Initiative Management systems Inventory "The purpose is not to just centralize but to have the information to ask the right questions" CITI Portfolio Management Process

8. Disney’s IT Strategy and Governance Model MT Strategy IT Needs IT Strategy Media Techonology and IT Governance in Harmony at Disney…and it seems to be working well! Media Technology Board Alignment Team CIO Board Media Asset Management Media Security/DRM Product Requirements Media Strategy Business Processes Production Operations Media Transport Applications Infrastructure High Definition Video Media Technology “Product Facing” Information Technology “Internal Facing” Product Development & Creative Source: Presentation by Jeff Mirich, Enterprise Architect & CIO at Disney Studios

9. UCLA’s Programmatic IT and IT Infrastructure(Modified from Disney Studios’ model) FCET, IDRE CSG/CAOs ITPB OIT CITI CSG / CAOs Research & Educ. Strategy IT Needs Business Processes Instructional Campus Applications Common Infrastructure Research Support & Infra. IT Enabled Research Support & Infrastructure Strategies Integrated Student Scholarly Interaction Campus Data Resources IT Strategy Information Technology “Program Facing” Information Technology “Internal Facing” Research, Education, Decision-Making

10. Business Processes EXTEND & LINK Enterprise Architecture cannot succeed without a governance structure to promote and fund the “common interest” Platforms ERP Network Collaboration … … Core Services Publishing CRM Infrastructure Management Suppliers Employees Customers Enterprise Architecture is the Glue that holds Applications and Infrastructure to a common destiny ARCHITECT & INTEGRATE simplify, standardize, modularize, integrate GOVERN & MANAGE IT INVESTMENT rationalize, leverage, maximize, aggregate Disney’s Institutional Approach to Portfolio Management Application Portfolio Infrastructure CITI Portfolio Management Process

11. Create & manage products, services, media Market products & services Sell products & services Perform order manage-ment Manage supply chain ops Manage & support cust. Plan & manage perform-ance Manage finances & accntg. Manage human resources Manage Inform-ation resources Manage physical assets Manage support services WDW DLR TP&R WDI DLP Total ABC Network Governance of IT investment can be aligned around business process owners. ESPN ABC Cable Media Networks ABC Radio ABC TV stations BVTV WDTVI Total BVG DCP DCP – Int’l DCP DDM Disney Pub. Merch. Lic. Disney Store This analysis reveals costs by business process and informs where the IT investment is focused, business unit cross reference reveals leverage opportunities Total BVI BVHE – Int’l Studio Corporate Corp BVHE – NA Tomorrowland Filmed Ent. Total Total Grand Total Disney’s Cross Reference Across Business UnitsIdentify Leverage Opportunities and Cost CITI Portfolio Management Process

12. Create & manage products, services, media Market products & services Sell products & services Perform order management Manage supply chain ops Manage & support cust. Plan & manage performance Manage finances & accounting Manage human resources Manage Information resources Manage physical assets Manage support services Level 0processes Establish & administer HR policies & employee data Develop sales plan & quotas Capture orders Plan Establish & manage customer relationships Perform research & design Perform market analysis Monitor external environ-ment Process financial trans-actions Create & manage enterprise architecture Acquire physical assets Provide legal services Level 1processes Manage employee recruiting & training Source Manage customer interface infra-structure Prototype products Develop marketing plan Perform sales Manage orders Create & manage business plan Plan & manage budgets Create & manage infrastructure & operations Maintain physical assets Provide security & safety Manage compensation & benefits Create/manage product/ service /media information Make Provide information & training Evaluate business results Manage cash & liquidity Provide & manage software solutions Implement marketing plan Dispose of physical assets Perform admin. functions Non Differentiating Administer health, safety & security programs Deliver Manage customer inquiries Maintain facilities operations Manage product/ service/media lifecycle Initiate & manage improvements Analyze & report results Provide user support & training Perform project management • Operational Data Store • Forecasting & Planning • Operational Reporting • Financial Transactions • Budgeting • Labor Forecasting, Scheduling, & Deployment • TimeTracking and Compensation • General HR • Recruiting • Document Mgmt. • Authentication • Reporting Tools • Asset Mgmt • Costume Mgmt • Project Mgmt. • Legal • Risk Mgmt • Media Asset Mgmt. • Broadcast/ Traffic • News Room • BxB Marketing • Marketing Automation • Campaign Mgmt. • Point of Sale • Online Sales • Merchandise Licensing • Reservations • Ticketing • Credit Card Processing • Contract Mgmt. • Catalog Order Mgmt. • Advertising/ Billing Mgmt. • Licensing Order Mgmt. • Supply Chain Planning • Warehouse Mgmt. • Supply Chain Mgmt. • Food & Beverage Supply Chain • Customer Relationship Mgmt./ Call Center/ Customer Service • Guest Data • Guest Claims Unique / Differentiating Manage labor operations Plan & manage taxes Return Manage service & support delivery Manage share-holders Manage employee communic-ations Perform risk management Procure goods & services Manage employee & community relations Manage 3rd party obligations Applicationexamples Front of House Back of House Disney’s Cross Reference Across Business UnitsIdentify Leverage Opportunities and Cost CITI Portfolio Management Process 12

13. UCLA Business Processes-- Level 1.0 for UCLA’s Four Core Processes -- Educate Students Conduct & Manage Research Participate in/ Develop Community/ Public Service Provide Patient Care 1.2 1.1 1.3 1.4 Document & Maintain Federal Compliance Present / Publish Research Results Set Degree / Certification Requirements Identify Opportunities Perform Community Needs Assessment Deliver Surgical / Invasive Care Manage Industry Partnerships (33) (23) 1.2.9 1.2.17 1.1.1 1.2.1 1.3.8 1.3.1 1.4.1 Document & Maintain Non-Federal Compliance Manage Intellectual Property/ Patents/Licensing/ Technology Transfer Develop Curriculum Prepare Internal Forma & Protocols Define & Develop Continuum of Care Deliver Emergency Care Manage University-School Partnerships (29) 1.1.2 1.2.2 1.2.10 1.3.9 1.3.2 (1) 1.4.2 Devise and Monitor Remedial Education Programs Prepare Proposals Conduct Research & Incur Costs Perform Care Management Deliver Ambulatory Care Manage Community Development (38) 1.2.18 1.2.18 (16) 1.1.3 1.2.3 1.2.11 1.3.10 (1) 1.3.3 1.4.3 Coordinate Research Parks/ Joint Ventures Deliver Education Prepare & Submit Goldenrod Perform Clinical Trials Evaluate Effectiveness of Care (Plan & Provided) Deliver Home Care (13) 1.1.4 1.2.4 1.2.12 1.3.11 1.3.4 (3) 1.2.19 Devise & Monitor Continuing Education Programs Review, Sign, & Submit to Funding Agency Invoice Funding Sponsors Manage Population-Based Risk Manage Affiliation Agreements Management of Data 1.1.5 1.2.5 1.2.13 1.3.12 1.3.5 (13) 1.2.20 Administer Student Eval. of Course / Instructor Negotiate Award Prepare & Submit Financial Reports Deliver Inpatient Care Manage Patient Care Network Institute Quality Control Measures (13) 1.1.6 1.2.6 1.2.14. (1) 1.3.13 1.3.6 1.2.27 (7) Manage Outreach Activities Close Out Awards Set-Up Award Deliver Diagnostic & Therapeutic Care (1) 1.1.7 1.2.7 1.2.15 1.3.7 Ensure Ethics (Policies, Procedures, Subject Testing) Collect Accounts Receivable 1.2.16 (14) 1.2.8 Level O Processes Level 1 Processes CITI Portfolio Management Process 13

14. Cross Reference Across Business UnitsIdentify Leverage Opportunities and Cost CITI Portfolio Management Process

15. Value of Disney’s Portfolio Management Process Outcome of As-Is Analysis Revealed costs by business process Informed the governance structure where the IT investments are focused Revealed leveraging opportunities for IT services that cross business units Created a basis for developing the technology decision framework Identifying emerging, core and declining technologies for non-differentiated services / applications Identifying specialized technologies as defined, justified, and unique business case for differentiated services CITI Portfolio Management Process

16. Overview of Proposed Process Understand the Existing Environment “As Is” Validate & Refine Summary of Findings Define new IT Portfolio Management Model Conduct Gap and Capacity Analysis Define Objectives, Priorities and Process Metrics • Define information and analysis needs • Collect information and data using normalized data / industry process classifications and models • Interviews • Baseline research • Benchmarking • Surveys • Focus groups • Develop an understanding of the problems and issues • Level set on the definition, upper and lower limits, and parameters regarding value, cost and risk • Summarize key findings • Present initial findings to executive management • Obtain concurrence on priorities and direction • Seek additional data and information • Develop the guiding principles and key objectives of a new IT portfolio management process • Identify specific gaps that exist between the results of the assessment and the desired state as defined in the IT PM Model • Assess capacity / capabilities to determine if adequate resources are currently available to address the gaps • Identify options / resource requirements if current resources are lacking • Develop a list of priorities and focus areas to allocate resources • Evaluate importance and urgency of each key element • Assure that defined objectives are traceable to business strategy • Develop a plan that identifies the IT PM charter and communications plan CITI Portfolio Management Process -- WORKING DRAFT-- 16

17. Step One Understand the Existing Environment “As Is” Validate & Refine Summary of Findings Define new IT Portfolio Management Model Conduct Gap and Capacity Analysis Define Objectives, Priorities and Process Metrics • Define information and analysis needs • Collect information and data using normalized data / industry process classifications and models • Interviews • Baseline research • Benchmarking • Surveys • Focus groups • Develop an understanding of the problems and issues • Level set on the definition, upper and lower limits, and parameters regarding value, cost and risk Summer 2008 CITI Portfolio Management Process -- WORKING DRAFT-- 17

18. Information is Available to Begin Existing and available resources / documentation for the three building blocks Business Processes Documentation of UCLA’s core mission processes (4) and major supporting processes (15) by Coopers & Lybrand Study Application Portfolio Preliminary list of applications, systems and servers (with 847 line items) Infrastructure UTIPP / UTIPP 2 Reports 2001 / 2005 – OIT White Papers on “Developing a Campus IT Strategy and Architecture” CITI Portfolio Management Process 18

19. CITI Endorsement Agreement with the basic framework & objectives for IT portfolio management Agreement to do “as-is” analysis Define information needs Categories/thresholds for collecting applications information What information will be collected in first iteration Define Level 1 processes Facilitated session Subgroup of CAO Agreement to review and approve a detailed plan at CITI’s June meeting Consult CITI subgroup Summer start Integrate with IT planning and cost review CITI Portfolio Management Process 19 19