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TOPIC 8 Managing the Portfolio of Business Applications - Coggle Diagram
TOPIC 8 Managing the Portfolio of Business Applications
Classification of Application in Portfolio
Existing and Future applications using portfolio may assist with a lot of the issues that come up when trying to reach an agreement on the substance of the IS strategy among management
the one agreed, overall decisions on resource allocation across the portfolio and the selection of the most cost-effective supply sources will be decide
the one that old and do not longer require may be underutilised and using excessive resources
Importance
To ensure applications are managed successfully
Types
: 1) Different implementation strategies 2) Different Planning Approach
Criteria of classifying the application
Key Operational
:
a) Overcome known business disadvantages in relation to competitors
b) Avoid known or foreseeable business risks becoming major problems in the near future
Support
: Improve the productivity of the business and reduce costs or meet general statutory requirements
Strategic
:
a) create a clear competitive advantage for the business
b) enable the achievement of specific business objectives and/or critical success factors
High Potential
: if the impact it could have is as yet uncertain but could be of a
Strategic
nature
Generic Application Management Strategies
5 Strategy
Centrally Planned :
Promotes attention of senior management
Facilitates changes to business practice
Leading Edge :
New technology may be identified by IT people
Evaluation of applicability in conjunction with business needs
Monopoly:
Centralized IT control
High quality system, cost effective
danger in resentment in business units
Scarce Resource :
Control spend on IT through budget limitation (ROI)
No innovative IT
Package solutions
Free market :
Business problem resolve by wll tailored IT/IS solutions
attractive to strong line manager
company-wide integration will be difficult
Aligning Management Styles
High Potential = Entrepreneurial
Strategic = Developer
Key Operational = Controller
Support = Caretakers
Aligning Development Approaches
High Potential :
Critical Requirement : Rapid evaluation of prototype , Understand the potential/economics and Identify the best way to proceed
Application Development : Prototypes and pilots to test performance, scalability and user acceptance, Evaluate potential benefits and Acquire new skills/knowledge from outside expertise
Key Operational :
Critical Requirements : High quality, long life solutions , Balancing costs and Evaluation of options including outsourcing available
Application Development : SSADM and project management methodologies, process redesign , Use industry-specific packages and Combined IS/IT and business team
Strategic :
Critical Requirements : Rapid, Flexible system and Link to an associated business initiative
Application Development : using Agile methods to share knowledge, RAD and GUI tools to test functionality and performanace
Support:
Critical Requirement : Low cost, long term solutions , Process and IS outsourcing is an option
and Objective cost/benefit analysis to reduce/control financial risk
Application Developement : Design procedures to use software package efficiency, interface not integrated,
Take advantage of the external capabilities available and User makes final selection of package that compliance with IT strategy
Portfolio Management Principles
Strategic (Star) :
Continuous innovation
Vertical integration
High value added
Key Operational (Cash Cows)
:
Defensive innovation
Effective resource utilization
High quality
High Potential (Wildcats @ Question mark) :
Process research and design
Minimal integration
Cost control
Support (Dogs) :
Disinvest/Rationalize
Efficiency Sustained quality