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Chapter 7

Chapter 7. Managing the Application Portfolio. Agenda. Key questions on application portfolio management IS/IT management methods IS/IT environments & application portfolios Key issues in application portfolio Generic strategies Portfolio management principals.

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Chapter 7

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  1. Chapter 7 Managing the Application Portfolio

  2. Agenda • Key questions on application portfolio management • IS/IT management methods • IS/IT environments & application portfolios • Key issues in application portfolio • Generic strategies • Portfolio management principals

  3. Key Questions on application Portfolio Management - I • High potential • Why: not clear • What: not certain • How: not yet known • Strategic • Why: do we want to do it in strategic terms? • What: does the system need to do to gain the advantage? • How: best to do?

  4. Key Questions on application Portfolio Management - II • Key operational • Why: to improve performance and avoid disadvantage • What: how much improvement? • How: best to do it • Support • Why: to reduce costs by improving efficiency • What: of existing necessary tasks • How: best to do it?

  5. IS/IT Management Methods - I • Demand management • Opportunity seeking • CSFs • High potential & strategic IS • Supply Management • Opportunity taking • Current problem solving • Key operational & support IS

  6. IS/IT Management Methods - II • High potential (beware) • Local • Competitive focus (proactive) • Technology driven • Federation – business led, decentralized, entrepreneurial

  7. IS/IT Management Methods - III • Strategic (attack) • Corporate • Competitive/effectiveness focus • Business issue driven • Complex – Organizational planning, ideal multiple methods based on goal seeking • Coalition

  8. IS/IT Management Methods - IV • Key operational (explore) • Backbone: integrated (top down) planning & centralized control • Reactive: current & effectiveness focus • Business issues driven

  9. IS/IT Management Methods - V • Support (safe) • Traditional: stage of growth, isolated applications, & decentralized control • Reactive: efficiency focus • IT issue driven

  10. IS/IT Environments & Application Portfolios • Traditional: support • Backbone: key operational, support, & little strategic • Opportunistic: High potential, support, little key operational, & little strategic • Complex: high potential, strategic, key operational, & support

  11. Key Issues in Application Portfolio - I • High potential • Driving forces: new business idea or technological opportunity • Requirements: rapid prototyping, identify potential, & the best method • Strategic • Driving forces: Market requirements or competitive pressures • Requirements: rapid development

  12. Key Issues in Application Portfolio - II • Key operational • Driving forces: improving performance, data integration, & avoiding disadvantages • Requirements: data management, & cost/benefit analysis • Support • Driving forces: legal requirements, & improving productivity/efficiency, • Requirements: packaged software, & cost control

  13. Generic Strategies • Centrally planned • Leading edge • Free market • Monopoly • Scarce recource

  14. Centrally Planned • Management: central • Organization: knowledgeable senior management, & integration of IS/IT and business planning process • IT: services matching business demands • Line management: identifying IS/IT to meet business needs • IS: strategic

  15. Leading Edge • Management: technology creating business advantages • Organization: sufficient funding, innovative IS/IT management, & strong IT • IT: IT push • Line management: using & identifying IT advantages • IS: high potential

  16. Free Market • Management: end users • Organization: knowledgeable end users, duplication,& no budget control • IT: competitive & profit centric • Line management: identifying source & control IS/IT development • IS: high potential, & support

  17. Monopoly • Management: corporate integration • Organization: users acceptance of centralized policies, & good usage of resources • IT: satisfying users needs • Line management: understanding needs and get resources from central • IS: key operational

  18. Scarce Resource • Management: justifying development • Organization: tight budgetary • IT: making and justifying the best use of limited resource • Line management: identifying and justifying business needs • IS: support

  19. Portfolio Management Principals • High potential (wild cat - entrepreneur): process R & D, minimal integration, & cost control • Strategic (stars – developer or empire builder): continuous innovation, vertical integration, & high value added • Key operational (cash cows - controller): defensive innovation, effective resource utilization, high quality • Support (dogs - caretaker): disinvest/rationalize, efficiency, & sustained quality

  20. Points to Remember • Key questions on application portfolio management • IS/IT management methods • IS/IT environments & application portfolios • Key issues in application portfolio • Generic strategies • Portfolio management principals

  21. Question • How do you apply these application portfolio management methods or principle to an e-business?

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