Technology Portfolio NOW!

by Jeff Tash

OK. You’ve been notified. Ignore the importance of technology portfolio management at your own peril. 

Don’t say you weren’t warned.

Let me ask you a simple question. When I say the word, “technology”

-- do you immediately think

• cost? 

-- or do you think

• value? 

Bottom line: IMHO (in my humble opinion) if you are an “IT-is-COST” kind of CIO, I hope you’re not surprised when you wake up one morning and suddenly discover that your job initials stand for “Career Is Over”. Bye. Sayonara. Auf Wierdersehen. Ciao. You and I have nothing further to discuss. I’m an ITscout. You’re looking for an ITaccountant.

All right. Hi there -- all you “IT-is-VALUE” folks. Is everybody else gone? No loitering please! Only true believers need proceed further. 

Now, let me set the record straight. I’m as much in favor of enterprise architecture as the next guy. It’s great to foster an IT environment that wants to move beyond technology to encompass business issues, and to enhance the relationship between IT and the business. Let’s face it -- integrated supply chains, data-based marketing, virtual workplaces, e-business applications -- I sure as heck hope you’re not out there trying to tackle complex requirements such as those without first putting in place your standards and architectures. 

BTW (by the way), anyone who resembles that last remark -- anyone who doesn’t believe in standards and architectures -- I don’t care if you are an IT-is-VALUE kind of guy, I want you outta here -- now. Architectures are VERY IMPORTANT. Standards are the maintenance of architecture. Standards are VERY IMPORTANT. Standards and architectures are non-negotiable. You must have a technology portfolio that establishes, communicates, and enforces your standards and architectures. Like standards and architectures, a technology portfolio is non-negotiable. 

The basic idea of creating an architectural construct for information technology used within the enterprise has been around for years -- dating at least as far back as when John Zachman was still employed by IBM. 

Enterprise Architecture (EA) was framed as a master plan to reach an improved future state for IT that spanned the entirety of an organization. Pretty laudable stuff. 

But, personally, my advice to you is -- as soon as you hear anybody start talking about this heady stuff -- you immediately put your hand on your wallet and run. Otherwise, it’s going to get real expensive real fast. That’s my opinion, anyway.

Enterprise architecture -- however you define it -- needs a rock solid foundation upon which to rest. That base layer is your technology portfolio.

Do you want your technology portfolio to fail? The biggest mistake you can make is to adopt a technology portfolio approach that isn’t product-centric. 

I urge you to consider the lightweight (as opposed to heavyweight) methodology for developing your technology portfolio called XEA -- eXtreme Enterprise Architecture. For starters, XEA is practical, concrete, effective, efficient -- XEA is a commonsense way to develop a technology portfolio that everyone can understand.

XEA includes four distinct steps:

• products
• collections
• versions
• process

Leverage your technology. It’s the best competitive weapon you’ve got.

Build your technology portfolio. Invest and re-invest. But be sure to take the time to winnow away your underperforming investments. Think about how your enterprise’s financial portfolio is always diversified. Why would you want to choose a different strategy with your technology portfolio? Remember, even the greatest Hall of Fame hitters failed to get a hit two out of every three times they stepped up to the plate. Every technology investment is not going to be a home run. Just work for a decent average. Whenever you’re thinking about your technology investments, I suggest you recall the lyrics from that famous old Kenny Rogers song, “you gotta know when to hold ‘em and know when to fold ‘em”.

My observation has been that tools shape the solution! No one knew they needed a spreadsheet before VisiCalc (what’s nowadays known as Excel). No one needed a home page before the World Wide Web. Need more examples? I’ve got a million of ‘em.

Concentrate on the tools. Find competitive advantage by selecting and standardizing on best products. Adopt and share best practices globally throughout your organization. Leverage the knowledge and skills locked inside the heads of the people who comprise your user communities.

Don’t forget, problems are often expressed in terms of available solutions. You can’t afford to ignore advances in today’s technology -- especially since technology is moving at exponential speed. By carefully monitoring the competitive marketplace, smart CIOs can identify early opportunities to jump ahead as an innovator -- long before the large masses of others arrive.

[Note: portions of my description of EA were liberally and graciously borrowed from META Group’s 2002 Enterprise Architecture Desk Reference Executive Summary.]