IT Transformation - Make IT the Engine of Innovation for Enterprise Transformation - Conrad Langhammer - Software AG
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IT transformation is driven by digital engagement with customers, employees, and partners. IT departments face challenges around complexity from working in silos, poor data integration, and redundancy. This leads to failed projects and lack of business confidence in IT. Portfolio management can help by providing transparency across applications, technologies, and projects to optimize budgets and align IT with business strategies through roadmaps and governance. An integrated portfolio practice involving business can help communicate priorities, prioritize investments, and deliver business value through successful transformation.
IT Transformation - Make IT the Engine of Innovation for Enterprise Transformation - Conrad Langhammer - Software AG
- 1. ©2014 Software AG. All rights reserved. Conrad Langhammer Global Director: Portfolio Management IT Transformation Make IT the Engine of Innovation for Enterprise Transformation
- 2. ©2014 Software AG. All rights reserved.2 | Change is Fundamental to any Business • Change is constant and it is nothing new • Embracing change is key to business success • IT transformation is elemental to business change Source : Forrester Research, Inc., October 2013 “Competitive Strategy In The Age Of The Customer”
- 3. ©2014 Software AG. All rights reserved.3 | Digital Engagement is driving current IT Transformation Intuitive, Anytime, Anywhere C U S TO M E R SE M P L O Y E E S P A R T N E R S Systems of Record Mobile Social Big Data Cloud
- 4. ©2014 Software AG. All rights reserved.4 | IT Transformation Challenges - IT Complexity • EA, PPM and other IT teams are working in silos. This causes expensive errors and conflict. • Data on the IT portfolio is poor and is not integrated. An unreliable basis for decision making. • Overlaps and redundancy in IT support are not recognized. This leads to higher costs. IT projects fail. Business is frustrated and has no confidence in IT. DemandsCapabilities Strategies Applications Technologies Budgets Regulations Roadmaps Projects Risks Devices Skills
- 5. ©2014 Software AG. All rights reserved.5 | IT Transformation Challenges - Aligning to Business Strategy • Business strategy is unknown and lacks detail. • Strategy is siloed resulting in conflicts. • Business and IT are speaking different languages - or just not speaking. • Lack of transparent governance leads to pet projects trumping projects that are strategic or mandated.
- 6. ©2014 Software AG. All rights reserved.6 | IT Transformation Challenges - Getting the BudgetTotalITBudget Transform the business Time Keep the lights on The available budget for IT transformation has been squeezed from above and from below
- 7. ©2014 Software AG. All rights reserved.7 | Capabilities to meet IT Transformation Challenges
- 8. ©2014 Software AG. All rights reserved.8 | • Roadmaps • Business strategies • Tactical demands Highly Interconnected and Volatile IT Portfolios need Synchronization IT change portfolios Business strategy portfolios IT asset portfolios • Metrics on performance of IT support • Business assessments of IT support • Delivery roadmaps • Costs & risks • Portfolio strategies • Tactical demands
- 9. ©2014 Software AG. All rights reserved.9 | Portfolio Management enables IT Transformation C U S TO M E R SE M P L O Y E E S P A R T N E R S Systems of Record TRANSFORMATION Through Portfolio Management Manage IT assets through an integrated environment Understand and manage impact of change Flexibility allows for IT transformation
- 10. ©2014 Software AG. All rights reserved.10 | COLLABORATIVE PROCESS ANALYSIS PORTFOLIO MANAGEMENT PROCESS AUTOMATION AND INTEGRATION INTELLIGENT BUSINESS OPERATIONS AND BIG DATA ALFABET IT Planning and Portfolio Management ALFABET Enterprise Architecture Management Portfolios Live WEBMETHODS Integration WEBMETHODS Business Process Management AgileApps Live Integration Live* APAMA Intelligent Business Operations TERRACOTTA In-Memory Data Management ARIS Business Process Analysis ARIS Governance, Risk and Compliance Management Process Live * General Availability of Integration Live is planned for second half of 2014
- 11. ©2014 Software AG. All rights reserved.11 | Establish an Integrated IT Portfolio Practice involving Business DemandsCapabilities Applications Technologies Roadmaps Projects Devices Skills Business Architecture Projects Strategies Budgets Regulations Risks Finance & Risk Transparency across applications, devices and technologies Create the application portfolio Understand ongoing transformation through running and future projects Link to the existing program portfolio Understand how existing application portfolio supports the business Identify gaps Map business context to the application portfolio Add risk, regulatory and financial view to the integrated IT portfolio Integrate finance & risk perspectives
- 12. ©2014 Software AG. All rights reserved.12 | Communicate using Business Structures • Use strategies, operating models and business capabilities. • Associate them to demands, projects and IT architecture. • Use heat maps to take the politics out of discussions. • Prioritize using portfolio metrics. • Implement transparent IT governance workflows. E.g., use business capabilities to align project investments to business priorities
- 13. ©2014 Software AG. All rights reserved.13 | Optimize the IT Portfolio • Establish and empower IT portfolio management roles. • Use natural (given) business structures for the portfolio breakdown. • Set clear goals and monitor them. • Use dashboards to provide stakeholder-specific overviews.
- 14. ©2014 Software AG. All rights reserved.14 | The Advantages of IT Portfolio Management • Teams collaborating with a single view of IT • Reliable data and informed decision making • Successful transformation • IT delivering real business value $13M savings in first year through strategic standardization! $1.1M yearly savings from improved productivity & reduced scope! Data accuracy up to 95% with an integrated repository! $11M yearly savings by avoiding development projects! Reduced compliance effort and better governance!
- 15. ©2014 Software AG. All rights reserved.15 | through IT Portfolio Management ALFABET - Delivering customer value
- 16. ©2014 Software AG. All rights reserved.16 | Payback in 6 MONTHS SEVERAL MILLION DOLLARS SAVED O P P O R T U N I T Y : • Free up IT budget to directly support ‐ Aggressive international growth in the private banking sector ‐ Higher cross-selling across divisions R E S U L T S : • Avoided development projects: Credit Suisse saves $6 million annually • Eliminated software costs: the organization is saving $5 million annually Transforming Financial Services R E S U L T:
- 17. ©2014 Software AG. All rights reserved.17 | ALFABET - Delivering customer value They identified that 7% $13 million of applications in the first year could be retired and they saved
- 18. ©2014 Software AG. All rights reserved.18 | ALFABET - Proven Leadership These graphic were published by Gartner, Inc. as part of larger research documents and should be evaluated in the context of the entire documents. The Gartner documents are available upon request from Software AG. Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.