application portfolio management strategies that accelerate digital transformation
TRANSCRIPT
Application Portfolio Management Strategies that Accelerate Digital Transformation
Webinar
Arjo van OostenGlobal Director Digital
Execution Practice, Mendix
@arjovanoosten
Rod WillmottInnovation Specialist & Fast
Track Director, LV=
@rwbdjr
Presentation Review Discussion PointsInsights From:
Digital Execution: an introduction
Selecting your first project
Definitions
DIGITAL
TRANSFORMATION:
The (re)alignment & investment in
technology & business models to more
successfully engage digital users at
every point in the user lifecycle
DIGITAL EXECUTION:
A set of best practices to realize your
digital goals
Digital Execution – Technology is NOT the Biggest Challenge
Source: Gartner, Insights From the 2016 Gartner CIO Agenda Report
People
Process
People
Process
People
Portfolio
Platform
First Time
RightProcess
Software ‘Lives’
PeopleBusiness & IT
Collaboration
PlatformOpen
Innovation Platform
PortfolioThink Bi-Modal IT
Digital Execution: Focus on the 4 Ps
StartStart Small and
Celebrate Success
Structure
Scale
Formalize Processes, Portfolio, Team &
Strategy
The Digital Enterprise
Think Big, Start Small
FOCUS:
Gain the
confidence to start
your Digital
Execution
FOCUS:
Find, prioritize and
create solutions that
deliver value & support
your strategic goals
FOCUS:
Drive and scale
innovation to achieve
and sustain
leadership
Digital Execution: an introduction
Selecting your first project
EXPERIENCES(your application)
INFLUENCE
resultsattitudes drive behaviors deliver
H.E.L.M.E.T. : Discovery of Accelerators and Decelerators
H E L
M E T
HIGH LEVEL
LEADERSHIP
COMPELLIN
G
EVENT
LOCATIONS
MINDSET &
METHODOLOGYENTERPRISE
IT LANDSCAPE
TALENT
Health Insurance
CRM
Car Insurance Bank Accounts
Customer
Portal
Internal
Portal
Mobile
AppPhone Email
Postal
Service
Customer Employee Call Center Account Manager Insurance Partner
Financial System DMS BI
Declare Manage Reporting Fraud detection
Roles
Channels
Primary Functions
Secondary Functions
IT landscape
Define Your Business Function Model
Systemsof Differentiation
Extend core systems
Systems of Innovation
Enable new ways of working
Systems
of Record
Modernize legacy systems
Selecting Digital Acceleration Initiatives
Business Considerations: Technical Considerations:
Time to market is important (opportunity costs)
Continuous changing requirements (even after delivery)
Unclear business requirements before delivery
A combination of
A data driven,
user friendly application
working on multi device / mobile
with workflow,
and data integrations
* most boxes should be checked
Selecting Digital Acceleration Initiatives
Core Adjacent Disruptive
More Than One Type of Innovation
Road to the Perfect 1st Initiative
Does the initiative meet
the majority of business
characteristics?
PERFECT
FIT
Does it meet the majority
of technical
characteristics?
Can you initially
work towards an
MVP?
FIT
Is it a system of
innovation or
differentiation?
PROJECT WHAT IS IT AND WHAT DOES IT SOLVE #USERS
1
2
3
4
5
Starting Point: Your Top 5 First Initiative Ideas
• Goal of the first app is to create adoption, acceptance and proof of building your digital acceleration capability
• Example:
• Proving Business and IT collaboration
• Proving development acceleration
• Unexpected high-impact feature
• Solving a real problem of business users
• Proving ROI on a program level
• MVP can go live in 30-60 days
Step 1: Validate First Success Focus (Wow Factor)
Step 2: Validate an Achievable Business Function Model
Health Insurance
CRM
Car Insurance Bank Accounts
Customer
Portal
Internal
Portal
Mobile
AppPhone Email
Postal
Service
Customer Employee Call Center Account Manager Insurance Partner
Financial System DMS BI
Declare Manage Reporting Fraud detection
Roles
Channels
Primary Functions
Secondary Functions
Registers
Step 3: Validate the Minimum Viable Digital Use Case
Current Situation:Our incident management processes today are paper-based, with no immediate access to safety
systems, and capturing of incidents is delayed.
Description of the Idea (“we believe”):Mobile incident management enables anyone to capture initial information related to incidents,
near misses, or any safety observation from anywhere at any time.
Enabled by:Connecting existing safety
systems together in one new
app that alerts stakeholders
when an incident or near miss
occurs
What Will It Solve:The problem that stakeholders
now only rely on reactive
monitoring instead of proactive
management of risks.
What Are the Affected
KPIs:• Increased reporting capture,
and accuracy
• Decreased time to response
• Increase safety culture.
Step 4: Validate Complexity vs. Exposure
Complexity
High Complexity,
High Exposure
Low Complexity, High Exposure
Low Complexity, Low Exposure
High Complexity,
Low Exposure
Example: automating manual processes
Example: integrate multiple systems / single view across systems
Example: lead generation app, customer engagement
Example: customer self-service portal
Exposure
Business Unit Company
Internal
External
• Should be size “S” (as MVP delivery)• Functionality expected (MVP)
• Integrations
• Parties involved (interdepartmental, integrations)
• Architecture impact (SOA, CBA)
• Governance (cross regional, foreign, cross BU)
Step 5: Validate the Right T-shirt Size
PROJECT WHAT IS IT AND WHAT DOES IT SOLVE #USERS
1
2
3
4
5
Your Top 5 Portfolio Apps with a (Perfect) Fit
Which one is the best candidate?
Download the on-demand webinar to learn more about expertly prioritizing
your digital initiatives.
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