Using ClarityTM for Application Portfolio Management
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1 WHITE PAPER: Application Portfolio Management February 2012 Using CA PPM ClarityTM for Application Portfolio Management David Werner CA Service & Portfolio Management agility made possible
2 table of contents Executive summary 3 SECTION 1: 4 Too many applications Redundant, under-used, and obsolete Slowing down the business Not aligned with your IT strategy Where to start? SECTION 2: 5 Inventorying and evaluating An accurate inventory Establishing business value Determining technical condition 10 step process Extending your APM efforts SECTION 3: 8 Transforming your application portfolio Better alignment with your business Strategy for moving to the cloud Improved resource availability Reduced costs SECTION 4: 10 Conclusion 2
3 executive summary Challenge Over time your business has accumulated a wide assortment of applications, some of which may now be redundant, underused, or obsolete. Some may be out of alignment with your strategic platform directions or out of compliance with policies. Others may be complicating business processes or simply out of alignment with business needs. Lack of governance of these applications is slowing your business and increasing your IT costs. The process of identifying applications to be reduced or retired can appear overwhelming. As simply inventorying your applications can be difficult, the prospect of transforming that inventory of applications can appear out of reach. Opportunity Application Portfolio Management (APM) provides a comprehensive understanding of your applications. APM can take you from an unclear inventory of applications with limited understanding of each, to a defined inventory with comprehensive data on the business value and technical condition of each application. With the powerful portfolio management capabilities of CA Clarity Project & Portfolio Management (CA Clarity PPM), you are able to analyze your inventory to make decisions that can truly transform your application portfolio. You ll identify applications to optimize, update, retire, or move to the cloud. Benefits How would you like to free up funds to invest in new projects? Or ease the workload on staff so they can focus on other areas? How would you like a clear strategy for which applications should move to the cloud? The benefits of transforming your application portfolio are too numerous to list. They range from the ability to make strategic decisions to immediately decreasing unnecessary costs. APM provides the ability to analyze your application portfolio now, and keep it aligned with the needs of your business and your IT strategies down the road. With CA Clarity PPM for Application Portfolio Management (CA Clarity PPM for APM), you can maintain an application portfolio that efficiently supports the business while staying within IT strategies and policies. 3
4 Section 1: Too many applications Your business likely runs so many applications that you re unsure which are used optimally and which aren t or even which ones are necessary. Some likely create unnecessary overhead and inefficiencies in the business. But, you don t have the insight into the business value and technical condition of your applications necessary to transform your portfolio into one more efficient and better aligned with your business. Redundant, under-used, and obsolete Applications are accumulated through acquisitions, technical evolution, and time. They can make up a complex landscape of inconsistent architectures not compliant with your policies or platform strategies. An unknown number of applications and a lack of insight into their usage and importance to the business can make it impossible to make progress in reducing them. Hardware resources, staff time, and maintenance fees are wasted every year. Resources and investments wasted on these applications could be utilized for new initiatives and under-funded areas. Slowing down the business Many older applications are slowing down your business by not supporting business processes that require more robust functionality or through duplicate applications being used for similar functions. Others are slowing down the business literally through inadequate performance or poor availability. Your IT organization often doesn t have the insight into the business usage to identify how these applications can be modified or reduced. The business users themselves often don t have insight from enough perspectives to understand how these applications can be optimized. From a performance perspective, your IT organization may not have the application performance tools necessary to provide metrics suitable for comparing and evaluating performance. Not aligned with your IT strategy Many of your applications are out of alignment with your IT strategies and policies yet they continue to live on. In-depth evaluation is necessary to identify the areas where these applications run counter to your strategies. Without this insight and an objective APM program manager to evaluate and recommend options, it can be difficult to make the case to the business to change or upgrade these applications. Where to start? Getting a handle on your application portfolio may appear to be an overwhelming task. The necessary data collection and evaluation can appear daunting. Fortunately, CA Clarity PPM provides powerful Application Portfolio Management functionality and the flexibility to work with your choice of established methodologies or one of your own. 4
5 Section 2: Inventorying and evaluating Every business has its own unique collection of applications. Likewise, each business must make its own unique assessments of the value and strategic directions for those applications. An accurate inventory You may not have a complete list of all the applications you have, in part because your IT organization may not have defined what is or isn t an application. Assembling an accurate inventory of your applications is a requirement before any transformational decisions can be made with regard to your portfolio. The inventory should include all relevant data on every application from which you can analyze the applications individually, by segments, and as a whole. Establishing business value An in-depth understanding of the business value is needed for each application. Without this understanding, your IT organization can t make informed decisions on optimizing or retiring applications used by the business. A comprehensive assessment of the business value is obtained by collecting input on multiple topics from people with varying roles and viewpoints. CA Clarity PPM allows you to collect all of these metrics and process them for analysis from multiple perspectives. Determining technical condition While the business value of an application carries the most weight in an evaluation, the technical condition must be factored in. The technical condition of the application is its quality, performance, availability, and strategic fit in your architecture among other metrics. Your IT organization has much of this information already, but surveying various roles such as users, application managers, and your helpdesk staff will give you a more comprehensive view. Reports from helpdesk systems like CA Service Desk Manager can identify time spent on issues and therefore identify the true cost of ownership. In addition, performance metrics can be pulled from tools such as CA Application Performance Management and imported to CA Clarity PPM. CA Application Performance Management Metrics from CA Application Performance Management provide a more robust technical condition evaluation, both in your initial assessments and in on-going application governance. CA Application Performance Management allows you to monitor, analyze, and report on transactions throughout your IT environment whether physical, virtual, or in the cloud. CA Application Performance Management and CA Clarity PPM for Application Portfolio Management are a powerful combination for transforming your application portfolio. 10 step process The following 10 steps provide a high level look at a typical APM process using CA Clarity PPM. There are several established APM methodologies you may choose to follow, including those from Gartner and Forrester. CA Clarity PPM s flexible architecture allows you to use any of these or create your own. Whatever methodology you use, you will likely go through some variation of the 10 steps listed here. CA Clarity PPM will support the process you choose and provide the organizing ability and accessibility needed by the various roles contributing to the effort. 5
6 Step 1: Appoint an APM program manager Appointing the right APM program manager to drive the process is key to the success of the effort. The APM program manager needs appropriate authority to champion the effort while remaining objective and judicial during the assessment and portfolio analysis. The program manager should facilitate discussion without pushing toward a pre-disposed resolution. The following are criteria to consider when appointing an APM program manager: Reports no lower than one level below CIO PMO or architecture affiliation Broad technology experience Financial experience or insight Step 2: Define what an application is to your business Your IT organization needs to establish the right definition of an application for your application portfolio management. Definitions may vary per business needs, your application landscape, or simple opinion, but you need one definition to work with in order to assemble your inventory. The following is an example of an application definition: Application An executable that directly supports a business process either through its own interface or as a business service through another UI. Step 3: Conduct an inventory Collect relevant information on all applications meeting the definition and capture the data in CA Clarity PPM, manually or by import. Gather data in pre-defined categories configured in CA Clarity PPM such as: Status Business process Acquisition source Collect deeper insight into the applications in your inventory by surveying stakeholders in multiple roles to get varying perspectives to questions such as: Who is responsible for the application? What business need does the application serve? What similar applications serve the same business need? 6
7 Step 4: Define your evaluation metrics To make the necessary decisions to transform your application portfolio, you must have agreed-upon metrics for how your decisions will be made. Methodologies from groups like Gartner and Forrester have their suggestions, but your organization must determine what metrics will work best for the decisions you need to make. CA Clarity PPM will work with whatever metrics you choose. The following are examples of the types of key metrics often used: Business value Costs Benefits Strategic fit Technical condition Vendor rating Step 5: Assess the business value Survey various roles in the business to collect their perspectives on the business value of each application. Collect opinions from roles such as individual contributors, managers, business analysts, and application managers. The following are examples of questions to ask about each application to uncover its business value: Why was the application introduced? To what extent does the application meet current functional needs? How content are users with the application? Step 6: Assess the technical condition The technical condition of the application is its quality, performance, availability, and strategic fit in your architecture among other metrics. This information can be gathered by surveying various roles such as users, application managers, and your helpdesk staff. Performance and quality metrics can be pulled from tools such as CA Application Performance Management and imported into CA Clarity PPM. The following are examples of metrics to collect on each application to assess the technical condition: Number of incidents related to the application Costs associated with resolving incidents Availability Compliance with IT policies and strategy Step 7: Assess the risk Develop a risk profile for your applications that takes into account areas such as security, disaster recovery, and vendor viability. Regulatory compliance, privacy, and other issues may need to be included per the needs of your business. A scoring system can be tailored to your risk assessment approach and configured in CA Clarity PPM. 7
8 Step 8: Analyze the portfolio Analyze each application in the portfolio per your evaluation metrics. CA Clarity PPM s robust portfolio management functionality will help you analyze each application individually, within segments of your portfolio, and as part of the entire portfolio. Again, CA Clarity PPM s flexibility allows you to work with analysis recommendations from Gartner, Forrester, or any other methodology. Step 9: Decide on actions to take The APM program manager develops various scenarios for potential actions based on the analyses of the applications. The scenarios should include a summary of the expected results if the scenario is acted on, including impact to budget, staff, policies, and strategy. The appropriate management team then reviews the scenarios and determines which scenarios should go forward. The decisions are captured and tracked in CA Clarity PPM. Step 10: Implement your decisions The actions decided upon often generate new IT projects. Typical projects include: Migrating applications Retiring applications Modernizing applications These projects typically require treatment like any other IT project. As such, they require a schedule, resource allocation, cost, delivery plan, and other project components. As this information is already in CA Clarity PPM, the decisions can be quickly turned into projects and managed to completion using CA Clarity PPM s capabilities. Extending your APM efforts For organizations interested in more robust APM efforts that extend beyond CA Clarity PPM, CA Technologies partners with Troux and other providers to offer more expansive solutions. Solutions can include data collection and reporting on potential impacts of proposed scenarios or comparisons of quality metrics for potential upgrades. These partner solutions can help you achieve the advanced level of Application Portfolio Management needed for your business. Section 3: Transforming your application portfolio Each action taken as a result of the decisions made during the APM process will benefit your application portfolio and your business. Below are some of the ways these changes can be transformative. 8
9 Better alignment with your business Application Portfolio Management allows you to optimize and invest in the applications that are best serving the business, while eliminating and consolidating those that are slowing it down. The initial APM process will bring your application portfolio in-line with what the business needs, and using APM for on-going governance will keep it aligned. Going forward, your IT organization will be a better strategic partner for the business armed with deep understanding of the business value of the applications you manage. Likewise, the business will be a better partner for your strategic IT initiatives that impact key applications when presented with comprehensive data on technical conditions as well as business value. Improved speed and efficiency Removal and consolidation of applications that complicate business practices will free the business of obstacles and inefficiencies. The improvement or replacement of applications with performance, quality, or availability issues will literally increase the speed of your business processes. Nearly all actions taken as a result of the APM evaluation process will have a positive impact on an area of the business. Strategy for moving to the cloud With cloud-related metrics added to your business, technical condition, and risk assessments, CA Clarity PPM provides the analysis to decide which applications in your portfolio are candidates for moving to the cloud. Proposed scenarios and decisions may include moving qualified applications or functions to the cloud, or recommending they be considered for the cloud in the future. Cloud candidates can be further analyzed for benefits, drawbacks, and prioritization by using CA Clarity PPM s cloud decision making capabilities. As a result, your IT organization can produce a clear strategy for what applications should move to the cloud, when they should move, and why. Improved resource availability Actions taken to eliminate and consolidate applications will ultimately increase the availability of your IT resources. Updating or replacing problematic applications that require excessive attention from your staff will reduce workload. Capacity of hardware resources such as servers will increase as applications are reduced or moved to the cloud. All of this adds up to improved resource availability for your IT organization availability that can be used for new projects, initiatives, or areas requiring more attention. Reduced costs Applications eliminated or reduced as a result of the APM process often have on-going costs associated with them for support, maintenance, and license fees. Eliminating or reducing those applications means cutting those costs. For some businesses, these cost reductions can be substantial. Customers using CA Clarity PPM for APM have been known to identify millions of dollars in savings in the first few years. Immediate ROI As the costs associated with an application are collected during the inventory, the cost reduction associated with eliminating or reducing an application is known immediately. Further, the financial impact of all decisions can be tracked so that the full ROI of the APM effort can be reported at any time during the effort. 9
10 Section 4: Conclusion Getting a handle on your application portfolio can seem like an overwhelming task. But, using CA Clarity PPM for Application Portfolio Management makes it a manageable undertaking with potentially enormous benefits to your IT organization and your business. Your business can see results ranging from increased process efficiency to reduced costs. Your IT organization will see benefits ranging from increased staff availability to a clear cloud strategy. However, the largest benefit of Application Portfolio Management is seen by both the business and your IT organization as the needs of each are brought into better alignment. APM helps you maintain an application portfolio that can efficiently support the business while staying within IT strategies and policies. CA Technologies is an IT management software and solutions company with expertise across all IT environments from mainframe and distributed, to virtual and cloud. CA Technologies manages and secures IT environments and enables customers to deliver more flexible IT services. CA Technologies innovative products and services provide the insight and control essential for IT organizations to power business agility. The majority of the Global Fortune 500 rely on CA Technologies to manage their evolving IT ecosystems. For additional information, visit CA Technologies at ca.com. Copyright 2011 CA. All rights reserved. All trademarks, trade names, service marks and logos referenced herein belong to their respective companies. This document is for your informational purposes only. CA assumes no responsibility for the accuracy or completeness of the information. To the extent permitted by applicable law, CA provides this document as is without warranty of any kind, including, without limitation, any implied warranties of merchantability, fitness for a particular purpose, or noninfringement. In no event will CA be liable for any loss or damage, direct or indirect, from the use of this document, including, without limitation, lost profits, business interruption, goodwill, or lost data, even if CA is expressly advised in advance of the possibility of such damages. CS1788_0212
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