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UNA Hotel Scandinavia – 15 Ottobre 2012
BA e Application Portfolio Management, strumenti per l’ Operational Excellence Michele Ferrara MEGA International Italia
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MEGA International
Company Founded in 1991
Headquarters in Paris, France
8 subsidiaries
More than 2,400 customers worldwide
Named « Leader » by Gartner and
Forrester (2011)
Key figures
300 people incl.130 consultants
30 M€ revenue in 2011
More than 600 consulting projects /
20,000 days per year
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Leader in Business Process Analysis, Application Portfolio Management, Enterprise Architecture and Governance, Risk and Compliance
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Agenda
APM Practice
MEGA Approach
Inventory
Evaluation
Trasformation
Implementation
Conclusion
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APM Practice
What is APM?
Why is it critical?
What is the added-value?
What are the key concepts?
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Application Portfolio Management
Understand the application landscape to optimize costs, quality, risks, and value
creation
Manage the significant part (40% to 80% ) of IT budgets devoted to application
maintenance and evolutions
Collect and analyze information on applications deployed in operations
Provide tools to help decision-making regarding application evolutions (remove,
adapt, etc.)
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Application portfolio optimization is required
Increasing complexity of the application landscape applications developed to support new projects / new technologies
applications resulting from multiple mergers and acquisitions
heterogeneous standard software packages and “homemade” applications
complex geographically and organizationally distributed applications
Increasing regulatory requirements
Increasing needs for IT agility
Operating within tight budget constraints
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APM Key Principles
Only IT assets (application, technology, etc.) that have acceptable business value, cost, and associated risks are to be maintained
What applications are… Not used? redundant? Requiring excessive maintenance costs? Running on obsolete technologies? Not supported in line with business requirements? ...
What are the impacts of maintenance/suppression of these applications?
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APM Benefits
Reducing costs and complexity of application portfolio
Risk and compliance management
Better investments that are better qualified
Alignment of IT assets with business challenges
Easier implementation of a complete and effective business
continuity plan
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The MEGA Approach
Inventory
Evaluation
Transformation
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The MEGA Approach
A long-term process
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Inventory
Essential information
Maintain up-to-date inventory
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The APM cornerstone: the application
Application ID Card: Key Criteria
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General Information
(ID, Age, Type …)
Functional & Data
(Supported processes,
capabilities …)
Technologies & Components
(Editor, versions …)
Environments & Hosting
Interfaces
Responsible Stakeholders
(Business owners, support, users ...)
Costs
Critical Information / Risks / BCP
History
(Incidents, decisions, recommendations
…)
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The MEGA Information Model
Strenghts: addresses the
complexity of deployment
o SAP HR has been used in Italy since
2010 for 3 functions: Payroll /
Recruitment/ Evaluation
o Germany will deploy Payroll in 2013
and Recruitment in 2014
o Payroll will be deployed in France in
2012, but will be adapted locally
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Evaluation
Tools for decision-making:
From assess to transform
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Tools for decision-making
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Analysis of
collected
information
allows to
qualify
applications
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Best practice : Assessing business value
Example of a capability model
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A high level business architecture view allows you to
describe what is needed (process/capabilities/organization)
to fulfill corporate the mission and implement its strategy.
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Best practice : Assessing business value
This simple model provides the ability to depict a reference
framework for application knowledge and evaluations: Enriching application landscape qualification and characterizing functional
coverage of applications (identifying redundancies or automation
requirements)
Aligning existing applications with business challenges
Providing information for evolution, investment and sourcing decisions (Cloud)
Others can be used (processes,...)
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Best practice : Assessing costs
The economic dimension is critical
Cost categories (permanent and periodic) Annual costs for maintenance of software and hardware
Potential costs of renting and insurance
Installations and migrations
IT asset procurement
Costs associated with hardware retirement
Etc.
TCO : Total Cost of Ownership, common cost model
Evaluation can be based on simplier models such as the
Relative Cost of Ownership (reduced to the costs that are
affected by application evolution
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Best practice : Assessing technical efficiency
Rationalization and simplification of the application portfolio
requires the optimization of technical components that
support these applications (ex for MEGA APM : IIS, MEGA,
ORACLE)
Do existing technologies facilitate the implementation of simplifying
operations and reducing costs while adhering to infrastructure
standards?
What are the risks associated with an obsolete technology?
What are the risks associated with the end of support by one supplier?
Are the technologies that are used compliant with the group
recommendations as it relates to the technical framework?
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Transformation
Applications lifecycle
Transformation scenarios
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Transformation
Portfolio applications, as well as their technical components,
evolve depending on certain needs in the context of: Business projects
Technological opportunities
Maintenance requirements
Each application, or even each version of an application, has
its own lifecycle: from implementation to operation to
retirement
Evaluation also needs to integrate planned maintenance and
transformation projects
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Transformation
In order to decide which actions to take, the CIO must:
Have a clear vision of the lifecycle of each application and
its components
Develop scenarios based on changes to lifecycles related
to the decisions made regarding applications (retirement,
maintenance, etc.)
Have the ability to sort through requested projects and
decide which are most important based on specific criteria
(risks, costs, business value, etc.) among different
transformation scenarios
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Analyze transformation scenarios
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Réponse aux attentes (axes stratégiques)
Retour sur investissement
Risque humain (1-16)
Risque budgétaire (1-16)
Coûts de fonctionnement (KEuros)
Impact sur la culture et l'organisation (1-16)
Couverture du SI
Risque juridique (1-16)
Coûts d'investissement (KEuros)
Scénario 1
Scénario 2
Scénario 3
Scenario : plan transformation initiatives
Compare the different scenarios to make decisions
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Implementation
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MEGA APM : an application portfolio concept
to organize transformation
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Conclusion
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The MEGA APM Solution in a nutshell
Web / Independent / Pre-packaged (models, workflow, reports)
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THANK YOU!
QUESTIONS?
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