Information Systems Portfolio Management by tFa2vT

VIEWS: 5 PAGES: 18

									Information Systems Portfolio
        Management


          March 7, 2002
Kraft Foods                   Agenda
Information
Services



• Kraft background
      – Business
      – Information Systems

• Some context to help think about Information Systems role

• Aligning Business - Information Systems visions /
  strategies

• Architecture

• Kraft Portfolio Management Process

• Key principles for successful IS Portfolio Management

• Questions and answers
                                                          H:FINNERTY\PRESENTA\03/07/02
                                                                       2
              Information Systems Portfolio
Kraft Foods
Information       Management Challenge
Services



• Breadth of the business

• Many people

• Many projects

• Picking the highest value initiatives

• Balancing short term return, longer term / strategic
  initiatives / and overall risk

• Ensuring the right sequence of initiatives

• Getting things to fit together towards a cohesive future
  vision
                                                             H:FINNERTY\PRESENTA\03/07/02
                                                                          3
               Aligning Business and
Kraft Foods
Information          IS Strategy
Services




                   Business
  Catalyst
                   Strategy &
   Role
                    Direction



                                     Core
  Technology                       Business
                                   Processes



                   Information
                       and
                   Knowledge              Value

                                               H:FINNERTY\PRESENTA\03/07/02
                                                            4
                  Three-Legged Stool of
Kraft Foods
Information   Effective Change Management
Services




                    Change




                                            H:FINNERTY\PRESENTA\03/07/02
                                                         5
   Kraft Foods
                         KFIS Vision
   Information
   Services




• Vision
Information Services will support Kraft Food’s vision of Undisputed
Leadership and establish information as a source of competitive
advantage by transforming the way people work, and harnessing
the collective knowledge and innovation of people throughout the
company to out-think and out-perform the competition.




                                                            H:FINNERTY\PRESENTA\03/07/02
                                                                         6
                   Our Information Systems Strategies
    Kraft Foods
                  are Well Aligned to the Kraft Business
    Information
    Services                       Strategies

Strategies
•   Drive growth by enabling superior consumer insight, streamlining revenue
    producing activities, providing value added customer services and increasing
    collective innovation

•   Accelerate productivity by eliminating people, paper and time from business
    processes and providing people with unique insights into their activities and
    decision processes

•   Enable organizational excellence by providing people with instantaneous,
    relevant, integrated information and knowledge any time and any place in the
    world

•   Provide an information technology infrastructure which is reliable, secure and
    responsive at top 10% cost efficiency levels

•   Develop an integrated, information systems plan to support global food
    business and deploy solutions which enable global business processes   H:FINNERTY\PRESENTA\03/07/02
                                                                                        7
Kraft Foods                 Architecture
Information
Services



A set of guidelines and standards detailed enough that
people can work independently yet create an envisioned end
product

      – Blueprint for a house

      – Sub-division plan

      – City highway plan




                                                      H:FINNERTY\PRESENTA\03/07/02
                                                                   8
                    An Information Technology
Kraft Foods
Information                Architecture
Services




                                       Portal



                Data Warehouse                   Knowledge Repositories



              EAI                      E-Hub                     Master Files

                                  Applications
 Buy                 Make              Deliver            Sell            Market



                                  Infrastructure
 Desktop            Database     O/S        Hardware         Network       Tools
                                                                                H:FINNERTY\PRESENTA\03/07/02
                                                                                             9
Kraft Foods             Portfolio Process
Information
Services



• Projects > $250,000

• Evaluation criteria aligned to Kraft business / IS strategies
      – Value to the company
      – Risk or ability to deliver
      – Cost to develop and run

• Project write-ups submitted. Value and risk challenged by sub-
  committee

• Project ranking by combination of value and risk developed

• Senior management steering team with broad representation
  selected

• Projects reviewed for understanding with steering team

• Forced rank voting by steering team to apply strategic
  management judgement                                            H:FINNERTY\PRESENTA\03/07/02
                                                                               10
  Kraft Foods           Portfolio Model
  Information
  Services




Portfolio Model Process Flow

Register project idea

IT investment proposal form (project definition)

Infrastructure review

Scoring of value and risk criteria

Cross-functional review

Senior Management Council review / selection       H:FINNERTY\PRESENTA\03/07/02
                                                                11
                 The Following Criteria Were
Kraft Foods
Information    Used to Evaluate the IS Projects
Services




     Likelihood of               Wt.   Score   Business Value Criteria         Wt.   Score
     Success Criteria
     Technical Standards   X1:   10%           Financial Return          Y1:   30%

     Skills Capability &   X2:   10%           Customer & Consumer       Y2:   20%
     Training                                  Focus
     Scope & Complexity    X3:   25%           Supply Chain Business     Y3:   15%
                                               Benefits
     Business Alignment    X4:   22%           Technology Efficiency     Y4    15%

     Risk Factors          X5:   21%           Knowledge Advantage       Y5:   10%

     Management            X6:   12%           Work life Balance         Y6:   10%
     Capability
     Dimension Total       X     100           Dimension Total           Y     100




    An independent review committee evaluated all projects
    and ensured consistency of scoring
                                                                                             H:FINNERTY\PRESENTA\03/07/02
                                                                                                          12
Kraft Foods             Portfolio Model
Information
Services




                        Portfolio Application Model

              100




              50




               0                                      100
                    0               50
                               Ability to Succeed

                                                            H:FINNERTY\PRESENTA\03/07/02
                                                                         13
Kraft Foods          Portfolio Model
Information
Services




The Following are Key Factors Required for Success
of This Process

• Buy-in within IS and our business partners that this is an
  equitable approach to funding IS development

• Sufficient resources dedicated to perform good project
  write-ups (scope, benefit, costs, etc.)

• Tailor project rating criteria to link with Kraft business and
  IS goals

• Review committees that have the confidence of IS and our
  clients                                                   H:FINNERTY\PRESENTA\03/07/02
                                                                         14
Kraft Foods               So What
Information
Services



• 80% of the IS investments went to the top 50 Kraft wide
  projects vs. functionally best projects

• Stronger alignment to business, Information Systems
  objectives and wider support from senior business
  management

• IRR from 20 to 100+%

• Balance short term value, strategic investments and risk

• Perceived to be fair, objective and equitable. . . rigor to the
  process and people got their day in court

                                                            H:FINNERTY\PRESENTA\03/07/02
                                                                         15
                Our Strategies and Deliverables
  Kraft Foods
  Information
                  Support KFNA Strategies
  Services
   Strategies                          LRP Deliverables
                           eCRM
                           Internet Marketing
    Drive Growth           CRIC
                           Idea to Market Rollout
                           Marketing and Global Brand Management Reengineer

                           Supply Chain Optimization / CPFR
      Accelerate           Exception Based / Real Time Demand / eHub
     Productivity          Millenium / Trade Systems
                           eProcurement

                           Employee Portal
                           Best Practice Collaboration
Enable Organizational      Nabisco Integration
                           eLearning
     Excellence
                           Planning and Reporting / eFinance / Virtual Close

     Enable IS             Fast Track Deployment of Systems
   Organizational          Component Based interfaces
    Excellence             Centralized Planning and Prioritization

                           Reliable, Secure, Responsive, Cost Effective Infrastructure
   Cost Effective          Network Improvements
   Infrastructure          Standardized Employee Productivity Tools and Support
                           Security and Business Continuance Investments
                           Data Center Outsourcing
  Support Global
                           Global Systems Plan
    Business               Global Process Enablement
                                                                                         H:FINNERTY\PRESENTA\03/07/02
                                                                                                      16
              10 Principles for Successful
Kraft Foods
Information      Portfolio Management
Services


•   Communicated direction (vision - strategies - goals)

•   Partnership (business process owner and Information Systems)

•   Architecture

•   Common, integrating processes
      –   Systems development process
      –   Master Files design
      –   Project reviews

•   Think programs vs. projects
      –   e.g. inventory reduction vs. new forecasting system

•   Alignment to business strategy and direction

•   Rigor and balance on priorities

•   Project tracking (cascading the top 10)

•   Think asset lifecycles (add, maintain, shed)

•   Trusted people                                                 H:FINNERTY\PRESENTA\03/07/02
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Questions and Answers

								
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