An enterprise portfolio platform is essential to successful corporate governance and as such, a comprehensive fusing of a firm's strategic capabilities and intelligence.
Portfolio Management is the bridge between business strategy and execution. It’s about doing the right things. There are not many strong portfolio management options that truly facilitate the full reporting, scenario features, and calculations that would enable better and faster decision making.
An effective portfolio platform includes innovation management, project portfolio management, enterprise architecture, business process management with planning aspects. It plays a significant role in project delivery, portfolio optimization, and prioritization.
Innovation management: Digital innovation has a broader spectrum with the right mix of incremental innovation and radical innovation. Different types of innovation should be managed via tailored management processes and scientific resource allocation. Because innovation success depends on many factors such as talent, process, resource, etc. Part of innovation is not knowing how and for what you will use the budget, some innovation needs to be fed with more resources while others get better by starving them. It’s also important to consider the impact that the innovation could make and the speed of innovation deliveries. A well-built portfolio platform enables the business to integrate and manage a well-rounded innovation portfolio effectively and efficiently.
To improve the innovation success rate, innovation management needs to break down resource bottlenecks, some innovation initiatives take longer time to mature and deliver business results than the others. How resource allocation is determined should be understood by all-important business parties, the goal is to make the innovation process as visible and company-wide as possible. At the high level of innovation maturity, organizations can apply a portfolio platform to develop innovation competency of the business and make a leap to the next growth cycle of the business, helping the organization maximize its full potential.
Enterprise Architecture: An effective Enterprise Architecture is a strategic planning tool to maximize the value being provided to the business. EA has the potential to provide direct as well as indirect value to stakeholders. Enterprise Architecture creates a platform that enables strategic planning efficiently, and a portfolio platform helps to integrate the art and science of EA effectively.
The biggest value proposition of EA is the integrated view of IT and business, further enabled by EA repository tool; it brings slicing and dicing capability that can provide tremendous inputs to IT Strategic Planning and can be leveraged further for the overall strategic planning of the organization, make a necessary delegation, and implement plans collaboratively and seamlessly.
Project Portfolio Management: It’s important to highlight the real value of Project Portfolio Management (PPM) that can support strategic planning and execution. If projects are the principal vehicles being used to deliver the strategy, then executives need to apply enterprise portfolio platform, to have just enough visibility about the project execution layer and how the projects and programs are performing in order to monitor progress and make the right decisions to ensure that the strategy potential is achieved. Another interesting link to explore is the driver for identifying key strategic processes and PPM.
PPM offers the extensive configurability to reflect the way you like to see the portfolio sliced and projects run (flexible or formal process with "forks"). It provides the links to business strategy alignment, scenario planning, program and project life cycles, project initiation, requirements management, risk management, resource management, project controls (progress, finance, quality, and change), comprehensive dashboard reporting, and tracking of benefits realization.
Business Process Management: Business Process Management (BPM) is related to the analysis, understanding, design, development, test, and improvement of business processes, ensuring the alignment between strategy and culture. The goal-driven business process is primarily defined prior to process implementation. The processes are the tool to get the result you formulate in the strategy, get a deep understanding of crucial business issues, build transparent problem-solving processes, and make continuous improvement.
Traditional organizational management with siloed processes often causes bureaucracy. The reality in most organizations though is the process which is forcibly jammed within an existing organizational design; or many times, you don't consider the processes as the main driver to deliver the desired result, and then you will not get the result you hoped for. Thus, BPM is an effective tool, and more as a business management philosophy, as well as a holistic management practice. It requires senior management understanding and involvement (strategic), process-aware information systems, well-defined accountability, and a culture receptive to business processes and its changes.
The dynamic digital organizations need to get away from letting things fall apart and start to learn how to develop the lego-like digital organization by creating “integrated wholes,” and building differentiated and dynamic business competency. An enterprise portfolio platform is essential to successful corporate governance and as such, a comprehensive fusing of a firm's strategic capabilities and intelligence.
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