3. What is the Enterprise Portfolio?

I was talking with the CIO (let’s call him John) the other day and he was focused on application portfolio management. He was concerned that his application portfolio fell short of what he really needed. He thought he needed an enterprise portfolio management approach. He knew that the information in the current applications portfolio only told a small part of what was going on in his IT shop. He said he wanted a more comprehensive picture of all of the moving parts in his organization and how they were interrelated. He knew that everything had to be tied back to the business processes and focused on the business need.

John understood that the business processes drive the applications, data, and technology under his dominion.  These business processes delineated the services and solutions John’s shop provides. He realized the answer to his problem was to use an Enterprise Portfolio Management approach. This approach  integrates the vision of how everything connects and is traceable to the business processes. John’s organization provides a wide variety of services to its customers.

These business processes were not well documented. Each of the business managers knew their processes but this information was not shared nor available with many people. John told me he read our book Building Enterprise Architecture. He was enlightened because it gave him a roadmap to solve his dilemma.

We show that organizing architecture domains (business, applications, data, and technology) into information layers with the appropriate metadata, an organization can represent a complete vision of the business services being delivered through technology. The business processes are modeled in the business layer. The applications supporting each business model are linked to the appropriate places in each of the business processes. The data is cross-referenced to all of the appropriate applications. All of these interconnected systems are associated with the appropriate technology stacks. This enterprise portfolio approach is called ERAM (Enterprise Resource Allocation Management).

ERAM provides the single common vision needed to understand the enterprise portfolio and communicate business process, application, data, and technology and their interrelationships to business and technology leaders alike. A single page high-level model of the business and its supporting technology is now available for the entire organization. This vision facilitates effective resource management and planning.

The business and technical teams throughout the organization now have access to information on all systems. This information allows leaders to better understand existing business capabilities and quickly identify where redundancies are across the enterprise. Life suddenly gets a whole lot better. Opportunities for lowering cost and conducting business more effectively begin to unfold.

ERAM provides the single common vision needed to understand the enterprise portfolio and communicate business process, application, data, and technology and their interrelationships to business and technology leaders alike. A single page high-level model of the business and its supporting technology is now available for the entire organization. This vision facilitates effective resource management and planning.

The business and technical teams throughout the organization now have access to information on all systems. This information allows leaders to better understand existing business capabilities and quickly identify where redundancies are across the enterprise. Life suddenly gets a whole lot better.

www.WindsorCorp.com/BuildingEA

Enterprise Portfolio

Enterprise Portfolio Interconnection Relationships – Single Common Vision

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