Proposal Functional Component

id EAID C13634D3 4FCB 4959 9C23 C306BF523361
Figure 1. Proposal Functional Component Model


The Proposal functional component manage proposals to fund the implementation of a package of one of more Portfolio Backlog Items. Each package is described as a Scope Agreement. The Proposal functional component manages these Scope Agreements in various states: proposed, approved, active, deferred, or rejected. It can create views of Scope Agreements for specific functions, company-wide or for a line of business, such as for building an investment plan of record or for comparison of proposals.

The Proposal functional component interoperates and maintains alignment with the Portfolio Backlog, Product Portfolio, and Investment functional components. It supports and may automate evaluation of the feasibility and resources needs for each Scope Agreement. This evaluation includes refinement and rationalization of cost and resource estimates held in any associated Portfolio Backlog Items.

The Proposal functional component maintains approved Scope Agreement data objects over the life of all associated Digital Products. It retains unapproved Scope Agreement records according to the organization’s data management and retention rules.

The Proposal functional component supports the value streams:

Functional Criteria

The Proposal functional component:

  • Shall analyze and refine Proposals consisting of rationalized Portfolio Backlog Items and associated funding, create a Scope Agreement representing approved Proposals, and manage the portfolio of all Proposals and Scope Agreements in the data object repository

A Scope Agreement:

  • May follow an expedited analysis and approval for high-priority urgent items or Agile development proposals

  • May follow a structured analysis and approval; for instance, via annual planning activities

A Scope Agreement following an expedited analysis and approval:

  • Shall create a proposal from a rationalized Portfolio Backlog Item where the item requires high urgency due to business impact on an existing service/Digital Product

  • Shall allow a quick evaluation of the proposal and a decision on its approval; and if rejected, will then notify the Portfolio Backlog functional component

  • Shall create an updated Scope Agreement and update the corresponding in-flight Product Backlog Item data object for all activities associated with a newly approved demand

Scope Agreements following a structured analysis and approval:

  • Shall create proposals from rationalized Portfolio Backlog Items in the Portfolio Backlog Item data object repository

    Rationalized items are grouped based on priority and themes for a proposal creation purpose. Not all rationalized items will be grouped within proposals as a priority and a cut-off must be decided.

  • May periodically produce proposals throughout the year or once per planning period

  • Shall create a high-level labor consumption model for a proposal (for example, one project manager, five developers, and two quality assurers for the proposal) based on labor estimates

    If a Resource Management Offer exists in the Offer catalog, then the Proposal functional component shall receive the resource price from the mentioned Offer and validate the labor consumption model against available internal and external labor pools.

  • Shall create a high-level asset (non-labor) consumption model for a proposal based on asset estimates

    If an Asset Management Offer exists, then the Proposal functional component shall receive the asset price from the mentioned Offer.

  • Should validate the asset consumption model against available internal and external assets; for example, traditional/private cloud/managed cloud/public cloud

  • Should model the ongoing labor and non-labor budget for annual and future operations

  • May define tangible and intangible benefits for each proposal

    Tangible benefits may be cost savings or revenue growth, whereas intangible benefits may be strategic initiative support, competitive advantage, or compliance achieved. Work with a finance organization to validate tangible benefits can involve utilizing industry-specific methods of measuring the value of business processes and estimating the impact of the proposal on performance metrics. These planned benefits will characterize the anticipated business value.

  • Shall ensure the proposal meets the technology policies

  • Should rank proposals based on benefits and risks, labor and non-labor consumption models, ROI, or other defined evaluation criteria

  • May build proposal portfolio scenarios using proposals, conduct “what if” analysis on the proposal scenarios, and approve the optimal proposal scenario and its proposals

  • Shall send proposed investments to the Investment functional component for scoping and investment decisions

  • Shall update Scope Agreement(s) to compare approved baseline and actual resulting benefits derived from completing the Digital Product delivery, thus comparing planned with actual delivery

In addition, the Proposal functional component:

  • Shall review the Scope Agreement change request from the Integrate value stream

    The Digital Product team working to deliver the approved Scope Agreement may ask for change requests related to budget, resource, timeline, or scope, and may evaluate the change request and take action to update the existing Scope Agreement.

  • Shall consider the Product Portfolio as the authoritative source for the list of deliverables or services that will be rendered during a product lifecycle

  • May create Product Portfolio views for specific organizations such as a line of business portfolio or functions like financial views; the Product Portfolio is used for rationalizing and tracking resources across Product teams to best deliver on all products

  • Should actuate the Product Portfolio entries through a Project Management system

    The Product Portfolio functional component shall report back to the Investment functional component in order to accurately track progress and outcomes for a given Scope Agreement.

  • Shall identify the security controls necessary for protecting the various classifications of data