Post on 05-Jul-2015
description
transcript
1
Welcome
Johan MerckxEnterprise Architect
2
Enterprise Architecture is aboutEnterpreneurship and Engineering
7
@chrisdpotts
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment
Chris Potts
AE, Heverlee30th January 2014
© Copyright Dominic Barrow Services Limited. All rights reserved.
What I Do
FRUITION
Author of The FruITion Trilogy
RECREATION DEFRICTION
Practitioner & Mentor
Speaker & Facilitator
Corporate Strategist - Enterprise Investment -
Working with people around the worldhelping them to succeed with their strategies
and to increase their value, contribution and influence
© Copyright Dominic Barrow Services Limited. All rights reserved.
70% of projects fail*
*Does that mean 30% of projects succeed?
Enterprise Investment: How Are We Doing?
© Copyright Dominic Barrow Services Limited. All rights reserved.
Some Projects Succeed, Some Don’t
-$150 million-$120 million
-$115 million
-$101 million
© Copyright Dominic Barrow Services Limited. All rights reserved.
Some Projects Succeed, Some Don’t
+$919 million
© Copyright Dominic Barrow Services Limited. All rights reserved.
The First Principle of Enterprise Investment
Investment is about scenarios and probabilities not certainties
Do you agree with this principle?
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment
From Information Technology to Enterprise Investment
The Value Chain for Enterprise Investment
Enterprise Investment Culture
The Enterprise Investment Portfolio
End-to-End Process, Core Capabilities and Governance
© Copyright Dominic Barrow Services Limited. All rights reserved.
From Information Technologyto Enterprise Investment
© Copyright Dominic Barrow Services Limited. All rights reserved.
At the Heart of Every Strategy…
People
Money Technologies
Value
© Copyright Dominic Barrow Services Limited. All rights reserved.
Fourth GenerationEnterprise Investment
Focus: Return on investments in business change
Foundation: Portfolio of investments in change
The Four Generations of Corporate Strategy for IT
Third GenerationIT Exploitation
Focus: The value people create by exploiting IT
Foundation: Investments involving IT
Focus: Cost and performance of IT services
Foundation: IT spending (core capabilities, projects, services)Second Generation
IT Efficiency
Focus: Architecture & standards
Foundation: IT roadmapFirst Generation
Technology
The FruITion Strategy®
© Copyright Dominic Barrow Services Limited. All rights reserved.
The Value Chainfor Enterprise Investment
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment
Achieving your goals for both structure and valueas risk-efficiently as possible
© Copyright Dominic Barrow Services Limited. All rights reserved.
The Porter Value Chain
Enterprise Architecture?
Investment Portfolio Management?
Sourcing?
Strategy?
FIRM INFRASTRUCTURE
INBOUNDLOGISTICS
OPERATIONS OUTBOUNDLOGISTICS
MARKETING& SALES
SERVICE
SUPPORTACTIVITIES
PRIMARY ACTIVITIES
HUMAN RESOURCE MANAGEMENT
TECHNOLOGY DEVELOPMENT
PROCUREMENT
© Michael Porter
© Copyright Dominic Barrow Services Limited. All rights reserved.
Supply(Internal/External – Cloud)
The Enterprise Investment Value Chain
Strategy
Structure Value
People Services Products
Enterprise Architecture
Investment Portfolio Management
Enterprise Investment
Sourcing
© Copyright Dominic Barrow Services Limited. All rights reserved.
Supply(Internal/External – Cloud)
The Enterprise Investment Value Chain
Strategy
Structure Value
People Services Products
Enterprise Architecture
Investment Portfolio Management
Enterprise Investment
Sourcing
© Copyright Dominic Barrow Services Limited. All rights reserved.
Supply(Internal/External – Cloud)
The Enterprise Investment Value Chain
Strategy
Structure Value
People Services Products
Enterprise Architecture
Investment Portfolio Management
Enterprise Investment
Sourcing“CTO”
“CIO”
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment – Measures of Success
Enterprise Architecture Investments Management
Achievement of agreed design characteristics Success of structural investments
Influence on people’s strategies & plansImpact on portfolio productivity & efficiency
Impact on time-to-first benefit in projects
Achievement of agreed investment goalsPercentage investment by value type
Portfolio costs to P&LEach project: value milestones achieved
Contribution of ‘exploitation projects’
Sourcing
Supplier delivery to SLAs and Project MilestonesCosts to cash versus budgets
Business impacts of service disruptionsSupplier added value (over & above contract)
Mitigation of supply risks to agreed residual values
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment
Investing in Stability, Investing in Change
Strategy
Stability Change
Goals
Outcomes
Operations Projects
Invest inStability
Invest inChangeAgents
of StabilityAgents of Change
Predictabilities Probabilities
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment – Investing in Stability and Change
Achieving your goals for both structure and valueas risk-efficiently as possible
Core tacticDiversify your investments
until no more diversity improves their risk-efficiency
Modern Portfolio Theory (1952)adapted for an enterprise’s investments in change
plus: Behavioural Economicsas evidenced by the Investment Culture
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Culture
© Copyright Dominic Barrow Services Limited. All rights reserved.
Why Culture is at the Heart of Strategy
“Culture eats strategy for breakfast”
Peter Drucker
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Culture - Diagnosis
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Culture - Diagnosis
Dimension Prevailing Culture
Value Creation Consideredalways
Consideredlast Avoided Considered
first
Innovation Focus None Market Technical Internal
Investment Portfolio Inventory Bottom-up Non-existent Top-down
Targeting Outcomes Activities Outputs None
Exploiting Assets & Services Central Missing Peripheral Intended
Investment Strategy Random Strategic goals
Operationalgoals
Somethingelse
Sponsorship Accountable Nominal Absent Responsible
Project Management Deliveringchange
Time/cost/quality
ROIhypothesis
Deliveringvalue
Impact on Operating Costs Important Ignored Interesting Critical
Behaviour Towards Projects Controlling Influencing Undermining Not interested
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Culture – Example Diagnosis
Dimension Prevailing Culture
Value Creation Consideredalways
Consideredlast Avoided Considered
first
Innovation Focus None Market Technical Internal
Investment Portfolio Inventory Bottom-up Non-existent Top-down
Targeting Outcomes Activities Outputs None
Exploiting Assets & Services Central Missing Peripheral Intended
Investment Strategy Random Strategic goals
Operationalgoals
Somethingelse
Sponsorship Accountable Nominal Absent Responsible
Project Management Deliveringchange
Time/cost/quality
ROIhypothesis
Deliveringvalue
Impact on Operating Costs Important Ignored Interesting Critical
Behaviour Towards Projects Controlling Influencing Undermining Not interested
© Copyright Dominic Barrow Services Limited. All rights reserved.
Comparing Investment Cultures (Example)
© Copyright Dominic Barrow Services Limited. All rights reserved.
Does The Diagnosis Expose Any Paradoxes?
Do all the answers seem consistent with each other?
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Culture – Example Diagnosis
Dimension Prevailing Culture
Value Creation Consideredalways
Consideredlast Avoided Considered
first
Innovation Focus None Market Technical Internal
Investment Portfolio Inventory Bottom-up Non-existent Top-down
Targeting Outcomes Activities Outputs None
Exploiting Assets & Services Central Missing Peripheral Intended
Investment Strategy Random Strategic goals
Operationalgoals
Somethingelse
Sponsorship Accountable Nominal Absent Responsible
Project Management Deliveringchange
Time/cost/quality
ROIhypothesis
Deliveringvalue
Impact on Operating Costs Important Ignored Interesting Critical
Behaviour Towards Projects Controlling Influencing Undermining Not interested
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Culture – The “Perfect Diagnosis”
Dimension Prevailing Culture
Value Creation Consideredalways
Consideredlast Avoided Considered
first
Innovation Focus None Market Technical Internal
Investment Portfolio Inventory Bottom-up Non-existent Top-down
Targeting Outcomes Activities Outputs None
Exploiting Assets & Services Central Missing Peripheral Intended
Investment Strategy Random Strategic goals
Operationalgoals
Somethingelse
Sponsorship Accountable Nominal Absent Responsible
Project Management Deliveringchange
Time/cost/quality
ROIhypothesis
Deliveringvalue
Impact on Operating Costs Important Ignored Interesting Critical
Behaviour Towards Projects Controlling Influencing Undermining Not interested
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Culture – Example Diagnosis
Dimension Prevailing Culture
Value Creation Consideredalways
Consideredlast Avoided Considered
first
Innovation Focus None Market Technical Internal
Investment Portfolio Inventory Bottom-up Non-existent Top-down
Targeting Outcomes Activities Outputs None
Exploiting Assets & Services Central Missing Peripheral Intended
Investment Strategy Random Strategic goals
Operationalgoals
Somethingelse
Sponsorship Accountable Nominal Absent Responsible
Project Management Deliveringchange
Time/cost/quality
ROIhypothesis
Deliveringvalue
Impact on Operating Costs Important Ignored Interesting Critical
Behaviour Towards Projects Controlling Influencing Undermining Not interested
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Culture – What to Keep, What to Change?
Dimension Prevailing Culture
Value Creation Consideredalways
Consideredlast Avoided Considered
first
Innovation Focus None Market Technical Internal
Investment Portfolio Inventory Bottom-up Non-existent Top-down
Targeting Outcomes Activities Outputs None
Exploiting Assets & Services Central Missing Peripheral Intended
Investment Strategy Random Strategic goals
Operationalgoals
Somethingelse
Sponsorship Accountable Nominal Absent Responsible
Project Management Deliveringchange
Time/cost/quality
ROIhypothesis
Deliveringvalue
Impact on Operating Costs Important Ignored Interesting Critical
Behaviour Towards Projects Controlling Influencing Undermining Not interested
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Culture – What to Target?
Dimension Prevailing Culture
Value Creation Consideredalways
Consideredlast Avoided Considered
first
Innovation Focus None Market Technical Internal
Investment Portfolio Inventory Bottom-up Non-existent Top-down
Targeting Outcomes Activities Outputs None
Exploiting Assets & Services Central Missing Peripheral Intended
Investment Strategy Random Strategic goals
Operationalgoals
Somethingelse
Sponsorship Accountable Nominal Absent Responsible
Project Management Deliveringchange
Time/cost/quality
ROIhypothesis
Deliveringvalue
Impact on Operating Costs Important Ignored Interesting Critical
Behaviour Towards Projects Controlling Influencing Undermining Not interested
© Copyright Dominic Barrow Services Limited. All rights reserved.
The Enterprise Investment Portfolio
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment – Promise and First Principle
Achieving your goals for both structure and valueas risk-efficiently as possible
Investment is about scenarios and probabilities not certainties
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment
Achieving your goals for both structure and valueas risk-efficiently as possible
Core tacticDiversify your investments
until no more diversity improves their risk-efficiency
Modern Portfolio Theory (1952)adapted for an enterprise’s investments in change
plus: Behavioural Economicsas evidenced by the Investment Culture
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Culture – The “Perfect Diagnosis”
Dimension Prevailing Culture
Value Creation Consideredalways
Consideredlast Avoided Considered
first
Innovation Focus None Market Technical Internal
Investment Portfolio Inventory Bottom-up Non-existent Top-down
Targeting Outcomes Activities Outputs None
Exploiting Assets & Services Central Missing Peripheral Intended
Investment Strategy Random Strategic goals
Operationalgoals
Somethingelse
Sponsorship Accountable Nominal Absent Responsible
Project Management Deliveringchange
Time/cost/quality
ROIhypothesis
Deliveringvalue
Impact on Operating Costs Important Ignored Interesting Critical
Behaviour Towards Projects Controlling Influencing Undermining Not interested
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Culture – What to Target?
Dimension Prevailing Culture
Value Creation Consideredalways
Consideredlast Avoided Considered
first
Innovation Focus None Market Technical Internal
Investment Portfolio Inventory Bottom-up Non-existent Top-down
Targeting Outcomes Activities Outputs None
Exploiting Assets & Services Central Missing Peripheral Intended
Investment Strategy Random Strategic goals
Operationalgoals
Somethingelse
Sponsorship Accountable Nominal Absent Responsible
Project Management Deliveringchange
Time/cost/quality
ROIhypothesis
Deliveringvalue
Impact on Operating Costs Important Ignored Interesting Critical
Behaviour Towards Projects Controlling Influencing Undermining Not interested
© Copyright Dominic Barrow Services Limited. All rights reserved.
“Investment Portfolio” (Inventory)
Project Sponsor Capital €000 NPV €000
Apex 1 Tim Kahns 30,675 +49,376
Apex 2 Tim Kahns 46,230 +78,024
Redevelop Spartan Frances West 10,103 +36,200
CRMX version 3.6 Jerry Young 7,589 +22,017
V36 compliance Debbie Grant 31,120 +42,000
Web access to GRZA James Turner 12,974 +27,017
Refresh AOP and FFR Frances West 28,913 +48,384
Upgrade TRANSOP3 James Turner 62,252 +94,105
Building 21 Geoff Holden 96,048 +119,016
Firetop Phase 3 Julia Graham 4,456 +81,082
Firetop Phase 4 Julia Graham 1,940 +5,978
Replace WRKFLM Leo McKendrick 7.659 +15,377
OpCon Automation Miles Harrison 4,957 +6,790
Project Trio Trevor Dean 61,481 +113,967
QQT version 6 Frances West 41,468 +72,991
447,865
© Copyright Dominic Barrow Services Limited. All rights reserved.
Building a “Bottom-Up” Portfolio: The Smartie Matrix
Change Projects
Value Types A B C D E F G H I J K L M N O
Revenue protection & growth
Cost control & reduction
Productivity & efficiency
Brand reputation
Customer delight
Employees satisfaction
Compliance
Survival
Enterprise Architecture
Primary value typeSecondary value types
Project Probability ParadoxThe higher the probability of approval,the lower the probability of success!
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Portfolio (Live Projects)
Value TypeInvestment Goals
Projects Value Project Investment
P&L Cost impact
Probability
2014 2015 Implementation Investment
Revenueprotection & growth
+€125m +€150m
Project A +€13,5m 7,2 +3,9 High Medium
Project B +€131,8m 54,1 +12,6 Medium Medium
Project C +€11,2m 3,7 +8,1 High Low
Cost control & reduction
-€50m Zeroincrease
Project D -€33,1m 11,5 -33,1 Medium Zero
Project E -€25,1m 2,3 -25,3 High High
Productivity & Efficiency
+0,5 +1,0Project F +0,31 9,7 -7,0 Medium Low
Project G +0,63 30,5 +28,5 Medium Medium
Brand reputation +5,0% To beconfirmed
Project H +3,0% 52,5 +7,6 Low Low
Project I +8,5% 74,6 +18,9 High Medium
Customer delight +0,25 +0,40Project J +0,21 41,6 +9,4 High High
Project K +0,16 33,1 +3,1 Zero Zero
Employees satisfaction +10,0% +5,0% Project L +12,5% 62,9 -3,0 High Low
Compliance Yes Yes Project M Yes 49,0 +8,8 High Medium
Survival Yes Yes Project N Yes 12,0 +4,5 High Medium
Enterprise Architecture Yes Yes Project O Yes 76,6 +11,0 High High
Investments and P&L costs are in € million, and includeboth actual costs and the cost equivalent of time 521,3 +48,0
© Copyright Dominic Barrow Services Limited. All rights reserved.
What Do We Know About the Future?
Eur 000 2008 2009 2010 2011 2012
Revenues (Net Sales) 8,272 8,258 9,310 10,497 11,762
EBIT 779 834 1,118 1,249 1,345
Net Profits 401 441 613 683 735
Operating Expenses 2,103 2,109 2,412 2,807 3,166
© Copyright Dominic Barrow Services Limited. All rights reserved.
What Do We Know About the Future?
€000 2008 2009 2010 2011 2012
Revenues (Net Sales) 8,272 8,258 9,310 10,497 11,762
EBIT 779 834 1,118 1,249 1,345
Net Profits 401 441 613 683 735
Operating Expenses 2,103 2,109 2,412 2,807 3,166
© Copyright Dominic Barrow Services Limited. All rights reserved.
What Do We Know About the Future?
Revenues per €1 of Operating Expenses
3,6
3,7
3,8
3,9
?
EBIT per €1 of Revenues
0,00
0,05
0,10
0,15
?
€000 2008 2009 2010 2011 2012
Revenues (Net Sales) 8,272 8,258 9,310 10,497 11,762
EBIT 779 834 1,118 1,249 1,345
Net Profits 401 441 613 683 735
Operating Expenses 2,103 2,109 2,412 2,807 3,166
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Architecture Scenario Planning (Example Output)
Customers Processes Products & Services Organisation Technologies
De Facto Scenario
Innovation Incremental Step Change Incremental Breakthrough Breakthrough
Investment Low High High Medium Medium
Scenario A Innovation Incremental Incremental Incremental Step Change Step Change
Investment Low Medium High Medium Medium
Scenario B Innovation Breakthrough Breakthrough Step Change Incremental Incremental
Investment Low Medium Medium Low Low
Scenario C Innovation Step Change Incremental Breakthrough Incremental Step Change
Investment Medium Medium Medium Medium High
Scenario XInnovation ? ? ? ? ?
Investment ? ? ? ? ?
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Architecture Scenario Planning (Example Output)
Customers Processes Products & Services Organisation Technologies
De Facto Scenario
Innovation Incremental Step Change Incremental Breakthrough Breakthrough
Investment Low High High Medium Medium
Scenario A Innovation Incremental Incremental Incremental Step Change Step Change
Investment Low Medium High Medium Medium
Scenario B Innovation Breakthrough Breakthrough Step Change Incremental Incremental
Investment Low Medium Medium Low Low
Scenario C Innovation Step Change Incremental Breakthrough Incremental Step Change
Investment Medium Medium Medium Medium High
Scenario XInnovation ? ? ? ? ?
Investment ? ? ? ? ?
Customers Processes Products & Services Organisation Technologies
De Facto Scenario
Innovation Incremental Step Change Incremental Breakthrough Breakthrough
Investment Low High High Medium Medium
Scenario A Innovation Incremental Incremental Incremental Step Change Step Change
Investment Low Medium High Medium Medium
Scenario B Innovation Breakthrough Breakthrough Step Change Incremental Incremental
Investment Low Medium Medium Low Low
Scenario C Innovation Step Change Incremental Breakthrough Incremental Step Change
Investment Medium Medium Medium Medium High
Scenario XInnovation ? ? ? ? ?
Investment ? ? ? ? ?
© Copyright Dominic Barrow Services Limited. All rights reserved.
End-to-End Process Core Capabilities and Governance
© Copyright Dominic Barrow Services Limited. All rights reserved.
Supply(Internal/External – Cloud)
Enterprise Investment Value Chain
Strategy
Structure Value
People Services Products
Enterprise Architecture
Investment Portfolio Management
Enterprise Investment
Sourcing
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment - End-to-End Process
Innovate Invest ExecuteExecute Exploit
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment - End-to-End Process
Innovate Invest Execute
Investor’s Perspective
Innovate Invest Execute Exploit
Implementer’s Perspective
Exploit
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Process – Core Capabilities
High
Low
Asset & ServiceExploitation(Enterprise)
Operations Management
Project Management(Implementation)
Project Management(Investment)
Sourcing
Investment PortfolioManagement
Enterprise Architecture
Contribution& Influence
Innovate Invest Execute Exploit
Investment Process
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investments Board
Replaces “IT Governance Board”
Sets investment goals, constraints, priorities
Monitors aggregate performance of investments
Examines predicted impacts of investments on future operating costs
Scrutinises existing investments and steers their execution
Approves or reject new proposals for investment
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Portfolio (Live Projects)
Value TypeInvestment Goals
Projects Value Project Investment
P&L Cost impact
Probability
2014 2015 Implementation Investment
Revenueprotection & growth
+€125m +€150m
Project A +€13,5m 7,2 +3,9 High Medium
Project B +€131,8m 54,1 +12,6 Medium Medium
Project C +€11,2m 3,7 +8,1 High Low
Cost control & reduction
-€50m Zeroincrease
Project D -€33,1m 11,5 -33,1 Medium Zero
Project E -€25,1m 2,3 -25,3 High High
Productivity & Efficiency
+0,5 +1,0Project F +0,31 9,7 -7,0 Medium Low
Project G +0,63 30,5 +28,5 Medium Medium
Brand reputation +5,0% To beconfirmed
Project H +3,0% 52,5 +7,6 Low Low
Project I +8,5% 74,6 +18,9 High Medium
Customer delight +0,25 +0,40Project J +0,21 41,6 +9,4 High High
Project K +0,16 33,1 +3,1 Zero Zero
Employees satisfaction +10,0% +5,0% Project L +12,5% 62,9 -3,0 High Low
Compliance Yes Yes Project M Yes 49,0 +8,8 High Medium
Survival Yes Yes Project N Yes 12,0 +4,5 High Medium
Enterprise Architecture Yes Yes Project O Yes 76,6 +11,0 High High
Investments and P&L costs are in € million, and includeboth actual costs and the cost equivalent of time 521,3 +48,0
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Architecture Scenario Planning (Example Output)
Customers Processes Products & Services Organisation Technologies
De Facto Scenario
Innovation Incremental Step Change Incremental Breakthrough Breakthrough
Investment Low High High Medium Medium
Scenario A Innovation Incremental Incremental Incremental Step Change Step Change
Investment Low Medium High Medium Medium
Scenario B Innovation Breakthrough Breakthrough Step Change Incremental Incremental
Investment Low Medium Medium Low Low
Scenario C Innovation Step Change Incremental Breakthrough Incremental Step Change
Investment Medium Medium Medium Medium High
Scenario XInnovation ? ? ? ? ?
Investment ? ? ? ? ?
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Proposal
Completed and presented by whoeverwill deliver the benefits
Overall sequence of questions:- Primary goal, any secondary goals- Estimated costs - Preferred solution- Probability of success
Whose behaviours will need to change, and how, for the investment to succeed?
Specific people that success will depend upon
Timescale, end-backwards
© Copyright Dominic Barrow Services Limited. All rights reserved.
In Conclusion
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment – Promise and First Principle
Achieving your goals for both structure and valueas risk-efficiently as possible
Investment is about scenarios and probabilities not certainties
© Copyright Dominic Barrow Services Limited. All rights reserved.
Supply(Internal/External – Cloud)
Enterprise Investment Value Chain
Strategy
Structure Value
People Services Products
Enterprise Architecture
Investment Portfolio Management
Enterprise Investment
Sourcing
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Process – Core Capabilities
High
Low
Asset & ServiceExploitation(Enterprise)
Operations Management
Project Management(Implementation)
Project Management(Investment)
Sourcing
Investment PortfolioManagement
Enterprise Architecture
Contribution& Influence
Innovate Invest Execute Exploit
Investment Process
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Culture - Diagnosis
Dimension Prevailing Culture
Value Creation Consideredalways
Consideredlast Avoided Considered
first
Innovation Focus None Market Technical Internal
Investment Portfolio Inventory Bottom-up Non-existent Top-down
Targeting Outcomes Activities Outputs None
Exploiting Assets & Services Central Missing Peripheral Intended
Investment Strategy Random Strategic goals
Operationalgoals
Somethingelse
Sponsorship Accountable Nominal Absent Responsible
Project Management Deliveringchange
Time/cost/quality
ROIhypothesis
Deliveringvalue
Impact on Operating Costs Important Ignored Interesting Critical
Behaviour Towards Projects Controlling Influencing Undermining Not interested
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Culture – Example Diagnosis
Dimension Prevailing Culture
Value Creation Consideredalways
Consideredlast Avoided Considered
first
Innovation Focus None Market Technical Internal
Investment Portfolio Inventory Bottom-up Non-existent Top-down
Targeting Outcomes Activities Outputs None
Exploiting Assets & Services Central Missing Peripheral Intended
Investment Strategy Random Strategic goals
Operationalgoals
Somethingelse
Sponsorship Accountable Nominal Absent Responsible
Project Management Deliveringchange
Time/cost/quality
ROIhypothesis
Deliveringvalue
Impact on Operating Costs Important Ignored Interesting Critical
Behaviour Towards Projects Controlling Influencing Undermining Not interested
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Culture – The “Perfect Diagnosis”
Dimension Prevailing Culture
Value Creation Consideredalways
Consideredlast Avoided Considered
first
Innovation Focus None Market Technical Internal
Investment Portfolio Inventory Bottom-up Non-existent Top-down
Targeting Outcomes Activities Outputs None
Exploiting Assets & Services Central Missing Peripheral Intended
Investment Strategy Random Strategic goals
Operationalgoals
Somethingelse
Sponsorship Accountable Nominal Absent Responsible
Project Management Deliveringchange
Time/cost/quality
ROIhypothesis
Deliveringvalue
Impact on Operating Costs Important Ignored Interesting Critical
Behaviour Towards Projects Controlling Influencing Undermining Not interested
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Culture – What to Keep, What to Change?
Dimension Prevailing Culture
Value Creation Consideredalways
Consideredlast Avoided Considered
first
Innovation Focus None Market Technical Internal
Investment Portfolio Inventory Bottom-up Non-existent Top-down
Targeting Outcomes Activities Outputs None
Exploiting Assets & Services Central Missing Peripheral Intended
Investment Strategy Random Strategic goals
Operationalgoals
Somethingelse
Sponsorship Accountable Nominal Absent Responsible
Project Management Deliveringchange
Time/cost/quality
ROIhypothesis
Deliveringvalue
Impact on Operating Costs Important Ignored Interesting Critical
Behaviour Towards Projects Controlling Influencing Undermining Not interested
© Copyright Dominic Barrow Services Limited. All rights reserved.
Enterprise Investment Portfolio (Live Projects)
Value TypeInvestment Goals
Projects Value Project Investment
P&L Cost impact
Probability
2014 2015 Implementation Investment
Revenueprotection & growth
+€125m +€150m
Project A +€13,5m 7,2 +3,9 High Medium
Project B +€131,8m 54,1 +12,6 Medium Medium
Project C +€11,2m 3,7 +8,1 High Low
Cost control & reduction
-€50m Zeroincrease
Project D -€33,1m 11,5 -33,1 Medium Zero
Project E -€25,1m 2,3 -25,3 High High
Productivity & Efficiency
+0,5 +1,0Project F +0,31 9,7 -7,0 Medium Low
Project G +0,63 30,5 +28,5 Medium Medium
Brand reputation +5,0% To beconfirmed
Project H +3,0% 52,5 +7,6 Low Low
Project I +8,5% 74,6 +18,9 High Medium
Customer delight +0,25 +0,40Project J +0,21 41,6 +9,4 High High
Project K +0,16 33,1 +3,1 Zero Zero
Employees satisfaction +10,0% +5,0% Project L +12,5% 62,9 -3,0 High Low
Compliance Yes Yes Project M Yes 49,0 +8,8 High Medium
Survival Yes Yes Project N Yes 12,0 +4,5 High Medium
Enterprise Architecture Yes Yes Project O Yes 76,6 +11,0 High High
Investments and P&L costs are in € million, and includeboth actual costs and the cost equivalent of time 521,3 +48,0
© Copyright Dominic Barrow Services Limited. All rights reserved.
Summary
Enterprise Investment emerging from IT (but doesn’t have to)
Combination of Enterprise Architecture & Investments Management
Culture eats strategy for breakfast - diagnose, handle with care
Goals-driven and efficient investments portfolio
Enterprise Architecture framed by alternative scenarios
© Copyright Dominic Barrow Services Limited. All rights reserved.
The End
Thank You
Have a Safe Journey
It's a metamorphosis
@ae_nv
linkedin.com/company/ae-nv-sa