Portfolio Management Best Practices: Measuring Business Value

Enterprise goals, the portfolio, work, and investment decisions should all be based on measurable business outcomes. Business outcomes generate metrics, the way to measure value. The key is to standardize the way the enterprise measures business value.

Business Value Standards can help guide the right decisions for the portfolio, based on the work that can generate the most value. The standards list in the table provides six primary business value types with the associated examples and metrics.

Table 1

Business Value Type Associated Examples Associated Metrics
Generate New Revenue Net new sales, improve lead conversion rates or reduce sale cycle time, improve up-sell/cross-sell Increase revenue by X currency
Reduce Costs Reduce costs for licensing, managed services, maintenance support contracts costs, retire legacy platform, reduce workforce needs due to automation or reduced skills needed Reduce costs by X currency
Increase Productivity Automate or eliminate a process step or task, reduce cycle time or manual hours # of hours * estimated hourly cost * quantity
Improve Service Delivery Improve service delivery by reducing cost of performing a service Reduce cost per day, per hour, or per service
Mitigate Business Risk Implement new security systems or disaster recovery solutions Benchmarked industry risk analysis data with (ROM) risk scenarios

These example metrics help define how to measure the results from prioritization of items within the portfolio. The performance of the portfolio is based on the business value results that are realized by successfully executing on business objectives.

Five Links: A Big Cup of Joe Edition

Happy Friday, everyone.

This week started off great with a bout on Monday with a lot of people talking about AI and virtual reality (links picked at random). I’m not saying I started a trend, I am simply observing a certain zeitgeist. This is week, I’ve been looking at more familiar worlds: Java, Java EE, and app development. This is the heart of what we do in middleware.

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Image credit: Headline Shirts. Also, the shirt is on sale now.

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Does this Java EE application platform make my app look fat?

It’s time to stop perpetuating the myth that all Java Enterprise Edition (EE) application platforms are a bloated mess. Overweight, over-engineered, slow performing platforms that are a burden to simply deploy Java EE applications on. There. I said it. Now can I prove the myth is unfounded? Let’s see.

First let’s agree on what a Java EE application platform is. I propose a minimalist definition. That being, a Java EE application platform is verified to have implemented a specific Java EE specification. The current Java EE 7 specification is extensive and runs 290 pages long. Implementing the details is no trivial task. As of the date of this article, there are eight products that have been verified by Oracle to be Java EE 7 full platform compatible implementations. Red Hat JBoss EAP 7 is one of those products. However, Apache Tomcat and Pivotal tcServer are not on the list. Neither of those products are Java EE application platforms.

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Portfolio Management: Balancing the Portfolio

One of the challenges of IT management is to balance the enterprise portfolio with initiatives that deliver on objectives and outcomes with varying timeframes and differing investment categories. Yet this balance is key to run, grow, and transform the business now and over time.

Balancing the enterprise portfolio is important to deliver on initiatives within short (within the fiscal year), medium (1 to 2 years) and long (over 2 years) timeframes. This is part of the advice for a lean startup.

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Source: Gartner PPM & IT Governance Summit 2016 – Secrets of Prioritizing IT Demand – Audrey Apfel

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Five Links: How Virtual Is Reality Edition

Happy Friday, everyone.

As always, the “Internets” is a fascinating place (assuming a massive denial of service attack hasn’t cut you off from Twitter and Spotify) and there is a new trend in the things I was clicking. This is probably inspired by my recent obsession with Westworld, but I have been thinking in general about the essence of reality and how far technology can go to both conceal reality and create it. So this week’s theme is reality-bending technology: virtual reality, augmented reality, artificial intelligence, and the technologies behind it.

weekend

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If you are thinking API Management, you should be at APIStrat

I had the pleasure of meeting my colleague, Steve Willmott, at the Red Hat booth at the Gartner ITXPO Symposium where we had a chance to have some insightful discussion about API Management — how it has evolved, where it is headed and its usage patterns etc.  API Management is one of the techniques I called out during my session on the Relevance of Innovation at the Gartner symposium where I had made the point about the need to modernize integration techniques themselves over and above the modernization of infrastructure and applications.  Just like I had made the point about “Integration is dead! Long live integration”.

“So, are you coming to APIStrat?” asked Wilmott.

Pictured: Steve Wilmott and E.G. Nadhan

steve-wilmott

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Data and Architecture Simplified, pt. 3: Business Architecture – The Core Diagram

To effectively plan and execute a technology-driven service or product offering, IT and business leaders should start with business architecture. Business architecture is the essential building block for mapping an organization’s business vision of what they want to accomplish. Business architecture is one of the four enterprise architecture domains – including data, applications and technology.

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Five Links: We Are All Connected Edition

Happy Friday, everyone.

This has been a cool week on the web, and I noticed a trend in the things I was clicking. I saw a lot of articles and images that show relationships — mainly with the Internet of Things (relationships between devices, software, and people), but a couple of interesting ones on group dynamics.

stay

Why Group Brainstorming Doesn’t Work (Trello blog)

This deserves the top spot because of how counterintuitive it is, but the post makes some excellent points about how to get group ideas more effectively. Along with pointing out a lot of the pitfalls of group brainstorming sessions, it also has advice on how to be more effective in eliciting the best ideas from a group — including creating time for independent brainstorming, providing better structure to the process, and having a final decision.

Interactive Map of Internet of Things Companies (The Pointy Haired Manager blog, via IoT LinkedIn group)

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It’s a great Red Hat day in Minneapolis — Go Microservices !

Cross posted from the Red Hat Events Blog.

It was a great day in Minneapolis! The Microservices with Apache Camel was held at Target Field (inside the ballpark, overlooking the field of play). “Takes a lot to put together an event like this but can certainly be a lot of fun! Go microservices!,” says Red Hat associate Jen Fissel.

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Jen Fissel

I had the privilege of hosting the event and kicked off the event with a reference to the connected world we live in that requires enterprises to be agile while being integrated across the systems of yesterday with the evolving applications of the future. The future of Enterprise IT, containers, are here today and microservices are the stars of the show. Welcome to Minneapolis!

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Data and Architecture, pt 2: Process Improvement

Does your organization need to reduce costs and improve efficiencies? Start with a process-first approach. Before you dive into what software tool to implement or select a new solution to address a business challenge, understand your existing business processes. What steps does your organization take within the business processes? Are things manual? Can you automate and improve the way you do business?

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