Enterprise Portfolio Management Maturity Model

This week my evening R&D will be focused around creating an Enterprise Portfolio Management CMM similar to the marketing management CMM created for previous clients.  First task is to create a maturity model and assessment criteria.  I already have three of the five levels of core practice methods roughed out.  That was the good news this weekend.  The bad news was with this insight I’ll have to restructure the Enterprise Portfolio Management white paper to fit a CMMI-like structure infers it will be come a booklet rather than a white paper.

Level 1 is simply a three category investment prioritization, about as simple as one can get and can tie-in easily into most accounting systems Enterprises have today.  Level 3 ties Business Models to IT investments.  Level 5 brings a level of sophistication that investment firms typically use (options theory, arbitrage, derivatives, etc.).      Enterprise Portfolio Management Maturity Model

IT Business Model Dynamics

This past decade IT organizations have been challenged by executives to demonstrate business value. After years of budget crunches and pushes to show ROI on every line item Executives are questioning whether their IT organization provide value to the business or should these organizations be dissolved in favor of purchasing cloud services.

The problem for IT is as a function they have not focused on identifying and creating business value. This may have to do with its origins as a service and expense. Thus understanding how IT contributes to business value has not traditionally been a high priority as much as dealing with ever increasing demand and a shrinking budget to service such.

However, for IT to contribute to business value the organization needs to overcome three major problems: Alignment, Prioritization, and Interdependency.  Solving for these design constraints can be challenging.  However, if one applies system engineering methods a optimization of the business model and its implementation can be achieved.  This though is not a design once, build one, operate forever endeavor.  As with the Enterprise conditions change and IT organizations will need to be more agile in more than creating IT functionality.

Business Value led IT using Balance Scorecard, VA/VE, and DSM

Last several weeks picking up my R&D around business design and construction.  Most of the research has been around translating physical product engineering methods to work on intellectual product design and development.  This was a line of R&D I was doing at IBM years ago that show lots of promise before IBM Research was downsized.  Today as Business Models have become identified as highly valuable commodity the engineering of these verse ad hoc creation could be the next big productivity gain in industry.  The slide below are some of the concepts I’ve been using in my practice with great success aligning IT initiatives with business strategic intent.   Not sure this slide will make it as is for the business design and reengineering course I’m building but as lest I got some of the concepts recorded


Business Value Led IT using VA

Business Model Strength Evaluator V1 content complete

Version 1 of Business Model Evaluator based upon Business Model Canvas (refer Business Model Generation, Alexander Osterwalder, et al) content complete.  Sent out to colleagues this morning for testing with Real Customers.  Version 2 in process which will add ecosystem analysis (e.g., P.E.S.T, etc.)


Business Model Evaluator V1

Business Design and Reengineering Workshop

Back to my nightly development project working on a Business Architecture Curriculum / Workshop.  Finished the outline several weeks ago.  Now I’m detailing out the slide decks, next will be the  examples and problem sets for students to work out.  Expect to have entire weeklong workshop packaged and ready to deliver by end of year.  Most likely I’ll hold the workshop in greater Eatonville area, so as to ensure students can focus on materials rather than be interrupted by calls from office.  Next thing to nail down will be pricing.  Wondering how much to charge per person, given I’ve seen less than 1/4 of thus type of content go for $10k per person.

Business Design Course Agenda

Most likely will include in the course will be all the tools I’ve developed (spreadsheets, templates, and course materials burned on a DVD) I’ve developed over the years to support the methodology.

Business Model Analysis

E.g., Business Model Analysis Tool


Organizational Design

This weekend I restarted efforts around organizational design dimension of business architecture. Its interesting to note that this is an area that most Enterprise and Business Architects do not address in their practice.  Perhaps as its been seen as non-technical and squishy, thus relegated to Human Resource Departments.  I think this is a tremendous oversight.  Both HR and Enterprise/ Business Architecture has a lot to gain from the synergies of working together.  EA/BA work is not all technology as it appears to be heading often.  This maybe due to the situation of EA/BA departments being rooted in IT organizations that are tasked with building out technology and see the others aspects (process, organization, economics, etc.) as a means to an end which Executives measure the IT organization on ( running back office software and fulfilling PC requests).

Organizational Design

About two years ago I started some R&D around the organizational design vector of Enterprise / Business Architecture, came across an excellent book by Burton, Obel & DeSanctis on the topic and started to translate the materials into a analytic tool in EXCEL.  As I come close to completing the Business Model Evaluator spreadsheet, I plan on restarting this effort and linking to the BMC and Portfolio Management work I continue with.

IT Asset Class Hierarchy cio workbench Logical Architecture

…and yes this was the original vision I had for Active Directory way back when during my first stint with Microsoft.   Looking back twenty years its hard to believe we’ve progressed so much and so little.  I thought by now CIO Workbench (aka Enterprise Portfolio Management) would be a reality now, but the state of the industry is still a cataloging system for applications and a separate accounting system for tracking IT expenses.   The Value/Benefits Management work done at IBM, DMR, and Microsoft still is used as sales aids more than a investment management tool.  Guess I’m going to have to get funding and build out the system myself.

Business Model Evaluator

After a long gap in posting, I’ve got a short minute or to but out a status.  Still working on my Business Design and Reengineering course in spare time.  This past week I got back to working the Business Model Evaluation spreadsheet in connection to the Enterprise Portfolio Management section of the book.  Below is an in process screenshot.  Expect to complete tool by Thanksgiving.

BMC Evaluator


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