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PRACTICAL IMPLEMENTATION STEP Pertemuan 25-26

PRACTICAL IMPLEMENTATION STEP Pertemuan 25-26. Matakuliah : A0824/IT Investment Portfolio Tahun : 2009. One should expect that the expected can be prevented, But the unexpected should have been expected. ~ Norman Augustine in Augustine’s Laws. Fundamental Implementation Rules.

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PRACTICAL IMPLEMENTATION STEP Pertemuan 25-26

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  1. PRACTICAL IMPLEMENTATION STEPPertemuan 25-26 Matakuliah : A0824/IT Investment Portfolio Tahun : 2009 One should expect that the expected can be prevented, But the unexpected should have been expected. ~ Norman Augustine in Augustine’s Laws

  2. Fundamental Implementation Rules • Don’t implement anything before you have defined success and how it will be measured • Major project fail because there is no definition of success • No agreement • Definition of success at the outset of a project • The result is different views of success • Individuals pushing in different directions • Resources not concentrated where they are needed most

  3. Fundamental Implementation Rules 2. Update the strategic plan and enterprise architecture plan as needed before kicking off the initiative • Focuses on the right goals and objectives • Having an updated enterprise architecture plan with transition guidance

  4. Fundamental Implementation Rules 3. Develop a plan that will be implemented in phases and regularly communicate achievements to stakeholders • It is wise to plan for “quick hit” successes within each chunk and to regularly publicize those successes. the analysis performed as part of project planning generally identifies many quick-hit improvements that can be made during the life of the project. Quick hits can be scheduled so they average, say, one a week or every two weeks.

  5. Fundamental Implementation Rules 4. Get senior line managers involved at the outset and make them accountable for results the participation of senior line managers is especially important because they will be the key decision makers on the Investment Review Board, the proposal sponsors, the executive managers of organizational change, and the champions for the proposals and projects in their business areas.

  6. Fundamental Implementation Rules 5. Appoint an executive manager of organizational change while the project is being planned this is an executive sponsor of this project who assumes the role of manager of organizational change for the project. This must be a senior executive because of the need to interact with other senior executives who may quietly resist the ITPM project or be indifferent with their cooperation and support.

  7. Fundamental Implementation Rules 6. Plan and implement a communication program Clear communications prevents false rumors and misunderstandings, aids in managing expectations, and helps to maintain support for the project. Specific communications objectives and channels need to be established for each target group.

  8. Key Implementation Steps • Assemble an Integrated Project Team • Prepare a Business Case • Establish an Investment Review Board • Make the best use of limited resources • Are evaluated in competition with other investment opportunities • Are aligned with, and justified in terms of, the organization’s priority goals and objectives • Contribute to balancing the IT portfolio in terms benefits, costs, risks and enterprise performance objectives • Have appropriate sponsorship and support from senior management and other stakeholders • Are managed effectively as a project and as implemented systems • Are documented in business cases and, as required, in detailed proposals and their subplans, that meet established standards

  9. Key Implementation Steps • Form the Boards’s Staff Group • Establish the Operations Analysis Group • Develop Performance Measures • Defne the IT Investment Management Approach • Develop an Assessment Instrument

  10. Key Implementation Steps • Establish Business Case Standards and Guidelines • Supportive Policies • A business case, generally with an associated detailed proposal, will be used to seek approval for any IT investment, in every phase of its investment management life cycle, with limited exceptions • Every significant expenditure on IT is considered an “investment” • The entire cost of an IT project and the subsequent operating cost of the implemented system are included in the “IT investment” • Larger project are to be conducted in chunks of no greater than 12 months to increase the likelihood of success and to control risk and cost • Business Case Content Requirements • Validating Standards and Guidelines

  11. Key Implementation Steps • Appoint a portfolio manger • Develop the IT Portfolio • Select Portfolio Management Software • Systems for Federal Agencies

  12. Key Implementation Steps • Select Complementary Software • Conduct Manual Simulations • Make Interfaces Friendly • Establish a Project Management Methodology

  13. Key Implementation Steps • Establish a Project Management Methodology • Consistent use of a specific project management methodology with repeatable, standards, metrics, and training in the use of the methodology • Provision for coaching and mentoring project managers, such as through program managers who are expert at project management and who develop project managers who report to them • Use of a project management software system that provides such functions as project planning, risk analysis and tracking, analyses of actual versus planned, resource management, and reporting and interfaces with other software, such as project office software and the portfolio management software

  14. Key Implementation Steps • Implement a Results Oriented Phased Roll Out • Provide Training • On-Line training • Training products • “Walk-Through” Approach • Provide Ongoing Fine-Tuning

  15. The benefits of ITPM • Reduce costs, such as saving from avoiding duplications and overlaps of IT projects and systems and from identifying poor proposed investments and preventing them from being funded • Improve competitive advantage. A good job of implementing ITPM will surpass about three-fourths of other organizations that claim to have adopted IT portfolio management but have weak implementation. Conversely, there is a competitive risk associated with delaying implementation. • Maximize the return on IT investments by enabling only the most worthy IT proposals to be funded

  16. The benefits of ITPM • Reduce and control risk by using portfolio analysis techniques that improve risk identification, facilitate diversification and balancing, and enable risk to be monitored and managed • Improve alignment by providing proposal teams with investment criteria that enable them to align their proposals with the strategic goals • Create value. ITPM motivates and rewards performance improvements and innovation. Adopting successful management practices creates value, reduces cost and risk, and produces the types of internal controls called for by the Sarbanes – Oxley Act.

  17. Future Expectations • The substantial benefits of IT portfolio management will cause it to continue to grow and become a fundamental part of corporate management and especially enterprise performance management • Software to support ITPM will improve significantly over the next few years as more organizations and vendors gain experience, insights, and knowledge of ITPM • Adoptions of enterprise architecture plans and related application integration software will continue and leverage the power and potential of ITPM • The increasing importance of an “enterprise viewpoint” will lead to greater standardization of performance measures, data collection, analyses, and reporting. This will result in more powerful ITPM systems

  18. Future Expectations • There will be ongoing growth in the development of guidelines and best practices for portfolio development. They will aid such tasks as defining content categories , determining, data structures and relationships, and establishing criteria for portfolio balance and resource allocations • Automated approaches to capturing performance information will increase the quality and quantity of information provided to the IT portfolio. This in turn will increase the value of IT portfolio information provided to managers in support of their decision making • Vendors will increasingly offer software packages that integrate It portfolio management with other software to facilitate enterprise performance management.

  19. Future Expectations • The sarbanes-oxley financial disclosure act and other legal and regulatory requirements will continue to provide an added stimulus for the adoption and expansion of ITPM, which has built-in tools and data to enable compliance • IT portfolio management will become common in mid-size companies as software aimed at the mid-size company continues to evolve • The increasing reliance on the Internet and the demands for information security and privacy will stimulate greater use of portfolio management as a tool for planning, monitoring and controlling information security and privacy

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