®
IBM Software Group
Smarter Application Portfolio Management
Per Kroll - [email protected]
August 2011
IBM Software Group | Rational software
Problem: Insufficient spend on strategic projects
“A large UK bank initiated its APM effort to take a 90:10 ratio for run-the-bank / grow-the-bank down
to a more reasonable 40:60 ratio. Dell shifted its maintenance-to-innovation ratio from 80:20 to 50:50.”
- The Application Portfolio Management Landscape — Combine Process And Tools To Tame The Beast, Phil Murphy, Forrester Research, Inc. April 15, 2011
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IBM Software Group | Rational software
Solving the problems requires a different approach….
”We can't solve problems by using the same kind of
thinking we used when we created them.”
- Albert Einstein
Addressing the problem requires an asset (application) portfolio approach to
complement the traditional project portfolio approach
Project Portfolio Management
Application Portfolio Management

Commonly used in mature companies

Used effectively by only a few leaders

Provides executives (only)

Provides executives
 control over 20% of this year’s budget,
 multi-year control over 80% of the budget,
 ability to affect this year’s project proposals.
 ability to generate new project proposals
such as structural changes to address
problems faced.
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IBM Software Group | Rational software
Solution: Well-defined process with information feeds
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Effectively translate business needs to executable roadmaps
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Retire
Application
Details
Architecture
& Technology
Retain
Financial
Performance
Organization
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Business
Alignment
Sample
feeds
Application Portfolio
Management
Replace
Discontinue
As-Is
Retool
Consolidate
Upgrade
Rehost
Wrap
Convert
Refactor
Rewrite
Purchase
Lease
Determine Disposition
Gather info, analyze,
make decisions
Technical
Debt
Service
Quality
Do Macro Planning / Roadmapping
Enabled through maturing analytics:
Qualitative  Quantitative  Predictive
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IBM Software Group | Rational software
APM-Driven IT Optimizations
Consolidation
Driver: M&A, divestitures, silos
Benefit: Cost
Payback time: Short
Rightshore / Outsource
Modernization
Driver: Globalization, cost
Benefit: Cost, competency
Payback time: Short
Driver: Brittle architectures, retention, age
Benefit: Cost, Agility, Risk
Payback time: Medium
Application
Inventory
Cloud
Driver: Operational cost, fluctuations
Benefit: Cost, Flexibility
Payback time: Short
Investment Management
Driver: Transparency, Efficiency
Benefit: Cost, Business alignment
Payback time: Medium
Compliance
SLA Optimization
Driver: Regulations
Benefit: Risk
Payback time: Short
Driver: Operational complexity, Cost, Risk
Benefit: Operational Cost, Bus alignment
Payback time: Short
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IBM Software Group | Rational software
Adoption of APM: Industry Maturity
“Business leaders demand that IT
leaders “do more with less” to free
resources for innovation and growth.
Applications professionals are turning
to application portfolio management
(APM) to meet those challenges”
-The Application Portfolio Management Landscape — Combine Process
And Tools To Tame The Beast, Phil Murphy, Forrester Research, Inc.
April 15, 2011
20% use tools Often too complex and
‘blank sheet” issue
80% use
spreadsheets Scalability issue
beyond 50
applications
The market situation opens an opportunity for leaders to differentiate themselves from laggards
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IBM Software Group | Rational software
APM Reference Model: IBM Rational Focal Point
Out-of-the-box Information model and analytics
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IBM Software Group | Rational software
Application Rationalization through Smarter APM
Effectively execute on business planning and architectural roadmapping
Rational Focal Point
Architecture
Execution
roadmap
Execution
Status
Business
Planning &
Alignment
Rational System Architect
Impact analysis and architectural
roadmaps.
Analysis, decisions,
roadmaps.
Product
& Project
Management
Collaborative
Lifecycle
Management
Your
existing capabilities
Compliance
& Security
Engineering
& Software
Tools
Future
IBM
Capabilities
3rd-Party
Jazz
Capabilities
Best Practice Processes
Administration:
Users, projects,
process
Collaboration
Presentation:
Mashups
Storage
Discovery
Query
Application Lifecycle Management
“Vision without execution is hallucination”
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IBM Software Group | Rational software
Execute with collaborative application lifecycle management
Deploy new, common team infrastructure to manage modernization projects
Benefits
• Improved communication, higher quality, informed decision making, and more
automated, transparent, and predictable software development
• Support for re-platforming, UI modernization, conversion, refactoring, and rewriting
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IBM Software Group | Rational software
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