Information technology

Though IT is essentially a tool within the company, it is discussed separately to stress its importance in the processes.

Assess current need for IT, implement systems and ensure alignment Explanation As often is the case, the first step is to analyze the current situation and

implement IT that is able to support the processes. To keep track of information, in the early phases a simple spreadsheet or document could suffice. But often the information stream rapidly becomes too complicated to handle using these tools. Commit to a system able to handle the information needs and train employees to make use of the possibilities it brings. In other words align IT with the processes in place. Keep in mind that this system must have the potential to also be of use in the (near) future. Implementing a

different system every time a change has occurred is a costly and inefficient endeavor. Also make sure every individual requiring information has access to it, this also applies to higher level management.

Partly automate the processes

Explanation When the information systems in place are sufficient to provide in the information requirements, the next step is to partly automate the process. Analytical tools, for example, could automate the task of finding trends in product information leaving ‘only’ the evaluation of the trend to the decision maker. Or report generators could automate the generation of standard reports for management. By automating parts of the processes, the overall efficiency should increase.

Integrate with other (major) enterprise systems

Explanation The final guideline is on integration with the other (major) enterprise systems. As more information becomes available, more automation of the process can be realized and decision makers will in general be better informed. With complete integration not only general portfolio information will become available, but also individual information of specific products. An issue here is to maintain a balance between the amount of information available and the information that is actually presented. In this case a company specific best practice best practice should be realized, this time with regard to IT usage.

55 5.1.3 Core processes

The core processes are the main processes concerning portfolio management and consist of product portfolio management, product lifecycle management and project portfolio

management.

5.1.3.1 Product portfolio management

Assign product manager and review the current product portfolio Explanation Formally assigning a product manager ensures the products are properly

handled on a tactical level. A product manager, amongst others, keeps track of all the information regarding a product, links a product to strategy, reports to higher management and manages the requirements and forthcoming releases. This person should be empowered to fulfill these tasks and review the current portfolio. Identify how the products contribute to the portfolio in place, what is the right number of projects given the available resources, if the portfolio reflects business strategy, if the portfolio makes it possible to do projects on time and create a (departmental) roadmap towards portfolio improvement. Establish rules and processes with management support and introduce multifunctional core teams

Explanation The second guideline is on formally establishing rules and processes for maintaining the departmental portfolio while keeping in mind the ‘process formalization’ process already explained. Requirements management could for example be formally put into place, establishing prioritization methods that fit the department. Also keeping in mind that resources are distributed in line with the constructed roadmap. Considering the fact that a products success also depends on other factors, a multifunctional core team should be established consisting of product manager, marketing manager and project manager that are fully responsible for the success of a product. Higher management support is essential to enable this team to carry out the tasks at hand.

Analyze external environment and evaluate distribution channels

Explanation By now the processes in place and the evaluation methods should be sufficient for managing products on departmental level and, depending on the other processes, the organization should have sufficient information available to make informed decisions. With this in place the focus can shift to the external product environment. With activities like trend watching, pricing model assessments and competitor analysis, decisions can be made for each product made that better fit the market. (Note the role a gatekeeper can have in providing this information) Also, if required, the roadmap can be adjusted according to these findings. With regard to the distribution channels, new technological advances can be kept track of and opportunities can be identified (e.g. cloud computing).

Introduce portfolio review board

Explanation Often an organization consists of multiple business units and the product portfolio is the sum of what these business units deliver. With a portfolio review board, consisting of high level executives representing the business units, the collective efforts can be managed in terms of cross-product and cross- functional decisions. This brings about more efficient resource management,

56 promotes software reuse throughout the organization and paves the road

towards software product lines. Also portfolio scope analysis can be performed to identify overlaps and gaps in the portfolio, for respectively collaborative and integration efforts. To amplify the importance to co-evolve, in this case, IT systems, consider the information required for such a board to function properly.