Portfolio Management Initiative

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Portfolio Management Initiative
III. Operation, Maintenance and Replacement
(Applications Portfolio Management)
I. Strategic Business and IT Planning and
Budgeting (Investment Portfolio Management)
Life Cycle of IT Investments
II. Project Implementation (Project Portfolio
Management)

• October 25, 2005

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Themes in Recent Legislation for Better
Management of IT

• Improve the planning for and budgeting of IT
  investments.
• Prepare better researched and more thoroughly
  developed project plans.
• Provide stronger project management and more
  appropriate oversight.
• Improve the inventorying and analysis of major IT
  assets.

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North Carolinas Portfolio Management Initiative

• With legacy analysis and other efforts, North
  Carolina is ahead of other states in the
  implementation of portfolio management
• Late 2004 Purchased UMT software tool from
  competitive bidding process.
• January 2005 Began software tool implementation
  project.
• August 2005 Began using tool for project
  management
• 2006 Plan to have tool fully operating in
  management of projects and applications and in IT
  budgeting

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Portfolio Management in State Government

• Approving and monitoring IT projects (project
  portfolio management) Streamline and improve
  the effectiveness of department and statewide
  approval and periodic (monthly) status reporting.
• Analyzing legacy business software (applications
  portfolio management) Maintain a statewide
  database of current business systems and provide
  analytical capabilities for managing these,
  including the identification of those at-risk and
  the forecasting of long-term cost liabilities for
  replacements and renovations.
• Identifying, analyzing, and prioritizing
  potential IT investments (investment portfolio
  management) assist departments in evaluating
  alternative IT investment needs and opportunities
  and preparing funding requests.

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Project Portfolio Management
Improve the management of IT projects

• Clarify roles and responsibilities.
• Provide for well understood and comparable
  oversight.
• Ensure projects are
• Planned well and researched thoroughly prior to
  starting business case.
• Managed and monitored proficiently to achieve
  budget, schedule, scope, and quality expectations
  - dashboard.
• Completed successfully so that business goals and
  objectives are realized - post-implementation
  assessment/closeout review.

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Applications Portfolio Management

• Objective is to develop and maintain a
  comprehensive database of major state software
  applications to assist in managing them
• Identify present technical and business status.
• Determine best approaches and ascertaining the
  priorities and timeframes for remediation/renovati
  on, retirement, or replacement.
• Estimate associated costs future liabilities.

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Investment Portfolio Management

• Since late 1990s, becoming popular in public and
  private sectors to help align IT investments with
  organizational missions and business priorities.
• Recognizes that the management of IT is a joint
  business and IT responsibility.
• Helps evaluate and rank potential investments
  using a variety of criteria, including agreement
  with business strategies and goals (governmental
  priorities), costs, financial and societal
  benefits/value, project and business risks and
  architectural fit.

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Training

• Hands-on training sessions
• Basic half day, hands-on course on the project
  portfolio module and its functionality and their
  assigned roles within their agency.
• Intermediate full day, hands-on course on the
  project portfolio module and its functionality,
  their roles, status reporting, approval flows,
  and business case.
• Advanced additional 2 day hands-on course on
  using other functions of the Project Portfolio
  module.
• 135 attended
• Theory training sessions
• Project Portfolio Management Conceptual Class
  three, half-day sessions on the concept behind
  Portfolio Management and business case
  development.
• Application Portfolio Management Two, 2-hour
  sessions on the specifics of Application
  Portfolio Management were open to all agencies
• 295 attended

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Portfolio Management Implementation

• Project approval and monitoring (Completed)
• Streamlined and simplified old processes
• No change in underlying concepts and principles,
  but better way of managing and communicating.
• Immediate benefit to projects, departments, and
  oversight organizations.
• Legacy applications (Next phase)
• Transfer of study data to tool and update of
  information
• Validate study findings, especially for immediate
  action applications.
• Begin cost estimating efforts for submitting
  long-term liabilities to General Assembly.

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Portfolio Management Tool Implementation

• Planning and budgeting (Winter 2005-2006)
• Involves more sophisticated techniques and
  analysis activities (portfolio optimization and
  staffing resource scheduling).
• Less pressing timetable, as follows budget cycle.
• Some departments have volunteered to test these
  capabilities further before statewide rollout.

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Portfolio Management

• For more information http//www.scio.state.nc.us/
  PortfolioManagementInitiative.asp