PORTFOLIO MANAGEMENT Thomas Zimmermann, Solutions Director, Software AG, May 03, PDF Free Download

UNLEASH YOUR DIGITAL VISION #WITHOUTCOMPROMISE Innovation in Business & IT Transformation PORTFOLIO MANAGEMENT Thomas Zimmermann, Solutions Director, Software AG, May 03, 2017 2017 Software AG. All rights reserved.

DIGITAL BUSINESS PLATFORM BUSINESS & IT TRANSFORMATION Business Process Analysis ANALYTICS & DECISIONS Streaming Analytics Operational Intelligence PROCESS Business Process Management Agile Applications powered by APAMA & WEBMETHODS powered by WEBMETHODS CLOUD Governance, Risk & Compliance Portfolio Management INTEGRATION Integration API Management powered by WEBMETHODS + HYBRID Enterprise Architecture Management IN-MEMORY DATA In-memory Data Fabric powered by TERRACOTTA ON PREMISE powered by ARIS & ALFABET 2 2017 Software AG. All rights reserved.

CREATE AND MAINTAIN THE 21 ST CENTURY ARCHITECTURE 15+ Experience in ITPM & Years Planning All Capabilities available in the CLOUD Great Analysts Recognition 97% Customer Retention Rich Meta Model with 200+ Configurable Classes Typical reduction of operating costs 10% 3 2017 Software AG. All rights reserved.

WHAT IS THE PAIN? A COMPLEX SET OF PORTFOLIOS TO MANAGE Strategy & Planning, Architecture, Portfolio Managers and IT Finance teams are working in silos. This lack of alignment causes expensive errors and delays. Data on the enterprise portfolios is poor and is not integrated. A poor basis for decision making. Applications Technologies Capabilities Strategies Demands? Risks Regulations Overlaps and redundancies in technology assets are not recognized. This leads to higher costs. Devices Budgets Projects are not meeting their goals - some fail completely. Roadmaps Projects Skills 5 2017 Software AG. All rights reserved.

WHAT IS THE PLAN? BRINGING STAKEHOLDER AND THEIR KNOWLEDGE TOGETHER Create enterprise portfolios Transparency across capabilities, processes, applications and technologies BUSINESS Map business context to technology domain Understand how existing application portfolio supports the business Identify capability gaps Link to existing program portfolio ARCHITECTURE FINANCE & RISK Integrate finance & risk perspectives Understand ongoing transformation through running and future projects Add risk and financial view to the integrated portfolio management solution PROJECTS 6 2017 Software AG. All rights reserved.

WHAT IS THE GAIN? OPEX REDUCTION Technology standardization Application rationalization Service level alignment INCREASED EFFECTIVNESS Reduce time for: data validation, search and reporting CAPEX OPTIMIZATION RISK REDUCTION Prioritization on criticality and value Reduction of duplication and overlap Acceleration of project delivery Understand change impact Transparency of risk and compliance areas Visibility of data usage Trust your data = transparent decisions = improved planning 7 2017 Software AG. All rights reserved.

SOFTWARE AG POSITIONED IN LEADERS QUADRANT GARTNER S 2016 MAGIC QUADRANT FOR ENTERPRISE ARCHITECTURE MANAGEMENT TOOLS Figure 1. Magic Quadrant for Enterprise Architecture Tools The Leaders in our 2016 Magic Quadrant demonstrate clear support for delivering business outcome-driven EA, modeling and analysis. The Leaders also demonstrate a clear vision of the direction and maturation of the EA discipline, as well as its relevance for digital business today and in the future. The Leaders are responding to the needs of leading EA practitioners that Gartner highlights in its research. Source: Gartner, Inc., Magic Quadrant for Enterprise Architecture Tools, Mark McGregor, May 3, 2016 This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is 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 or other designation. 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. 11 2017 Software AG. All rights reserved.

SOFTWARE AG POSITIONED IN LEADERS QUADRANT GARTNER S 2015 MAGIC QUADRANT FOR INTEGRATED IT PORTFOLIO ANALYSIS APPLICATIONS Figure 1. Magic Quadrant for Integrated IT Portfolio Analysis Applications Leading products aggressively strive to integrate the planned execution of change to the IT footprint in response to the needs of the business, using portfolio management as a foundation. These products can analyze the cost and progress of the IT response to the business and IT strategy, and deliver the right perspectives, analysis, and impact views required by CIOs, IT portfolio managers, and other business leaders. Source: Gartner, Inc., Magic Quadrant for Integrated IT Portfolio Analysis Applications, Daniel B. Stang, Jim Duggan, November 30, 2015 This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is 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 or other designation. 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. 12 2017 Software AG. All rights reserved.

IS THE ONLY INTEGRATED SOLUTION REPRESENTED AND POSITIONED AS THE CURRENT LEADER FOR BOTH ENTERPRISE ARCHITECTURE AND IT PORTFOLIO MANAGEMENT Figure 1. Magic Quadrant for Enterprise Architecture Tools Figure 1. Magic Quadrant for Integrated IT Portfolio Analysis Applications Source: Gartner, Inc., Magic Quadrant for Enterprise Architecture Tools, Mark McGregor, May 3, 2016 Source: Gartner, Inc., Magic Quadrant for Integrated IT Portfolio Analysis Applications, Daniel B. Stang, Jim Duggan, November 30, 2015 This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is 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 or other designation. 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. 13 2017 Software AG. All rights reserved.

IS THE ONLY LEADING SOLUTION FOR EAMS, PORTFOLIO MANAGEMENT AND STRATEGIC PLANNING Enterprise Architecture Management Suites Portfolio Management For The BT Agenda Strategic Planning For BT Strategists Sources: - The Forrester Wave : Enterprise Architecture Management Suites, Q3 2015, Forrester Research, Inc., September 1, 2015 - The Forrester Wave : Portfolio Management For The BT Agenda, Q1 2015, Forrester Research, Inc., March 18, 2015 - The Forrester Wave : Strategic Planning for the BT Agenda, Q1 2015, Forrester Research, Inc., March 13, 2015 The Forrester Wave is copyrighted by Forrester Research, Inc. Forrester and Forrester Wave are trademarks of Forrester Research, Inc. The Forrester Wave is a graphical representation of Forrester's call on a market and is plotted using a detailed spreadsheet with exposed scores, weightings, and comments. Forrester does not endorse any vendor, product, or service depicted in the Forrester Wave. Information is based on best available resources. Opinions reflect judgment at the time and are subject to change. 14 2017 Software AG. All rights reserved.

USE CASE EXAMPLES Strategy Operationalization & Value Contribution Analysis Business Capability Management Operating Model Planning Application Landscape Planning Investment Approval & Governance Business Demand Management Technology Governance & Standardization Solution Architecture Governance Information Dependency Analysis Compliance Portfolio Management Application Risk Assessment & Mitigation Planning IT Spend Optimization Cloud Transformation Application Consolidation Planning Investment Program Roadmapping Contract & Vendor Management Merger & Acquisition Implementation Planning Project Portfolio Management 15 2017 Software AG. All rights reserved.

ALFABET PORTFOLIO PLAYBOOKS BUSINESS OUTCOME -FOCUSED USE CASES March 7 th April 4 th integration May 2 nd June 6 th - More bang for the buck from IT spending - Faster gain, less pain in acquisition - Digital excellence with technology innovation - Business confidence from reduced IT risk http://alfabet.softwareag.com/ 16 2017 Software AG. All rights reserved.

THE WISH LIST FROM BUSINESS AND THE IT BUDGET PROBLEM Digital business! Customer experience! Higher automation levels! New markets! M&A integration! New products and services! New algorithms! etc. Now! but carry on doing the other stuff and for less money! 17

IT Spend THE WISH LIST FROM BUSINESS AND THE IT BUDGET PROBLEM Will this be enough invest for digital business? Good old days Process improvement saturation Financial crisis Digital business revolution investment operations Time 18

IT Spend THE WISH LIST FROM BUSINESS AND THE IT BUDGET PROBLEM Or do we need to achieve this? Process improvement saturation Financial crisis Digital business revolution investment operations Time 19

Cost Cost MORE BANG FOR THE BUCK FROM IT SPENDING BE STRATEGIC INSTEAD OF REACTIVE Reactive: Resource-based cost reduction Hiring stop IT project budget freeze Termination of sub-contracting agreements Early retirement Renegotiation of contracts with IT vendors Strategic: Architecture-based cost reduction Strategic alignment and prioritization Portfolio optimization Centralized vs. decentralized IT governance Business process outsourcing Shared infrastructure services and infrastructure innovation reduce resources, optimize resources, optimize control change the IT operating model Volume Volume 20

execution plan and strategize MORE BANG FOR THE BUCK FROM IT SPENDING MEASURE TO MANAGE WITHIN A BUSINESS CONTEXT Capability business context mapping Application ERP / ITSM Organization cost center mapping Mapping IT spend: Involves knowing how applications support business Provides transparency of application costs at application and business levels Delivers trends that are signs for action Mappings need careful consideration: Number of users supported Business service calls Processes executed Mappings need to be pragmatic, executable and near the truth of business usage 21

execution plan and strategize MORE BANG FOR THE BUCK FROM IT SPENDING STRATEGY-DRIVEN IT INVESTMENTS Capability business context mapping Project Strategy Organization Investment Mapping: Involves knowing how projects contribute to strategy as well as how they support business Projects can contribute to multiple strategies The nature of projects is different run vs. grow vs. change the business ERP / PPM cost center mapping Mappings to other business structures such as products and services are similar and provide further insights 29

OPERATIONAL PROJECT MANAGEMENT PREVIOUSLY THE DOMAIN OF PPM TOOLS PPM Tool e.g. Clarity, Planview Focus EAM, PPM, demand management PPM, project execution Users Enterprise architect, portfolio manager, business user, Project manager, project resources Focus on planning Leading system for Reporting on project task level Strategic planning and portfolio management Applications, roadmaps, planned projects, milestones NO Portfolio management, near-term operational task planning Project (in execution), project step, roles YES 32

OPERATIONAL PROJECT MANAGEMENT WITH RELEASE 10.0 ALL-IN-ONE STRATEGIC, TACTICAL & OPERATIONAL PROJECT MGMT. Focus Users Focus on planning Leading system for Reporting on project task level EAM, PPM, demand management, project execution EA, portfolio manager, business user, project manager Strategic planning, portfolio mgmt., near-term operational task planning Applications, roadmaps, planned projects, milestones, project (in execution) NO X YES Ensure project execution is closely tied to project investment decisions Allocate budget and resources at a task level Monitor changes to original project plans Assess the impact of alterations to those plans 33

OPERATIONAL PROJECT MANAGEMENT NEW CAPABILITIES Resource Data transparency Planning Allocate budget and resources at project task level. Plan and schedule skill and resource requests in detail. Reporting efficiency Multi-Currency Support Capture project costs in different currencies across the enterprise. Capture costs in the currency accrued. Report on projects in the currency of choice. Project Baselining Track changes to a project during project execution. Report on project deviations across dimensions such as costs, benefits, architecture delivery and milestones. Data Project transparency Scenarios Explore and plan multiple what-if scenarios for projects in execution. Create new to-be architectures, budgeting and cost calculations. Project Reporting Issue efficiency Tracking Capture, manage and track project issues. Refine issue management for critical dimensions such as schedule, cost, architecture and resource tasks. Time Reporting Keep track of the hours worked on all assigned tasks. Define enterprise and personal calendars. 34

INTEGRATION WITH SERVICENOW DIFFERENT YET COMPLEMENTARY ROLES CHANGE THE COMPANY System of record for change planning of the IT environment How do business programs and business strategy impact IT? What is the plan for business capability customer mgmt.? How many applications will there be in three years time? Which technologies will be the standards to use next year? RUN THE COMPANY System of record for the current configuration of the IT environment What IT is installed? Is the deployment and its configuration safe? What IT services can be ordered through the helpdesk? When will the release be installed? 36

INTEGRATION WITH SERVICENOW STRATEGY AND PLANNING MEET OPERATIONS EXCELLENCE Application Application Platform Components 1. Application data 2. Planned stacks 3. Workflow triggers Logical Application Logical Components Stack Stack Deployment Deployment Device Location 1. Actual deployments, devices, locations 2. Any changes to applications 3. KPIs, costs 4. Trigger workflows 5. SLAs (documents or links) CI CI CI CI CI CI Lead system Alfabet Lead system ServiceNow uses a bi-directional Web service physical applications and technologies are mapped once to their logical equivalents business rules are used to map CIs to the mirror structures in Alfabet only a subset of all the CMDB information is transferred to Alfabet 37

ENHANCED ARIS ALFABET INTEROPERABILITY ALIGNED USER EXPERIENCE Data Exchange & Cross-Navigation Users can easily traverse between the unified user interfaces of ARIS and Alfabet for a 360- DEGREE VIEW of relevant artefacts mastered across both solutions 38 2017 Software AG. All rights reserved.

ARIS ALFABET INTEROPERABILITY DATABASE CONNECTION ENHANCEMENTS BU5 BU4 BU3 A R I S BU2 BU1 A R I S A R I S D e s i g n ASR eir S v e r A R I S D e s i g n S e r v e r D e s i g n S e r v e r D e s i g n S e r v e r D e s i g n S e r v e r " S y s t e m s " " P r o c e s s e s " BU1, BU2, BU3, BU4, BU5 A l f a b e t R e p o s i t o r y Connect to multiple ARIS databases from the Alfabet server. This supports organizations using both products with, for example, individual business units that are represented as mandates in Alfabet and have their own ARIS database. 39 2017 Software AG. All rights reserved.

BUSINESS PROCESS PORTFOLIO MANAGEMENT PORTFOLIO-LEVEL PLANNING OF NEW VERSIONS & VARIANTS Different versions for the same business process are often used across federated organizations New: information on which version of the process is being used/planned to be used when and in which organization Business process versions are related to their business supports to understand their use and the time perspective of a roll-out Process: Payments 4.2.6 Business support (e.g. App PAYSYS for Argentina) Process version (e.g. 1, 2, 3) 40

ARIS + ALFABET - JOINT USE CASE EXAMPLE 7 STEPS TO AN IMPROVED CUSTOMER EXPERIENCE Discover Design & Plan Change & Evaluate Monitoring Customer Journey Strategy Map Demands & Initiatives Capability Model Project (Proposal) To-Be Processes ARIS ALFABET 41 2017 Software AG. All rights reserved.

ALFABET PORTFOLIO PLAYBOOKS BUSINESS-FOCUSED OUTCOMES March 7 th April 4 th May 2 nd June 6 th - More bang for the buck from IT spending - Faster gain, less pain in acquisition integration - Digital excellence with technology innovation - Business confidence from reduced IT risk http://alfabet.softwareag.com/ 43