PPM Application Landscape
Analyst source: Matt Light and Daniel Stang
Presented by: Oldrich Priklenk
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PPM Activity Cycle
“Building business cases “Prioritizing the Work”
and forecasting value”
“Move Forward “Getting Things Done”
and Get Better”
processes, cost and “Sense, Respond and
business value” Change”
Practice Doesn't Make Perfect If You
Practice the Wrong Things
Execute Select Communicate Define
Results of Dec. 2006 survey of Execute
434 PPM leaders
Innovation and Acquisition
n 1999 Primavera — Eagle Ray
n 2000 Niku — ABT and Proamics
n 2000 Microsoft — Enterprise Project
n 2003 Mercury — Kintana
n 2003 Primavera — Evolve
n 2004 Compuware — Changepoint
n 2004 IBM — Systemcorp
n 2005 CA — Niku
n 2005 Borland — Legadero
n 2005 Microsoft — United Management Technologies
n 2006 Deltek — Welcom Software
n 2006 HP – Mercury
n 2006 Serena – Pacific Edge
By 2010, at least one IT PPM leader will emerge with a mid-market focus, largely
by featuring a strong SaaS offering (0.7 probability).
Merger and acquisition activity in the IT PPM market will continue, with at least
one more vendor being acquired through 2007 (0.7 probability).
1. What are the key functions and market
drivers of PPM application packages?
2. What are effective approaches to PPM
3. What is the state of the PPM market, and
how do you assess product and vendor
4. How will technology and market trends
affect PPM market vendors?
PPM Critical Mass
PPM Market Demand:
Drivers and Directions
n PPM is a maturing software market.
n IT and other project organizations
are being held more accountable.
n PPM prospects rate themselves
low in several key processes.
n Familiar point tools make compliance
n Visibility is really what prospects are after.
n At onset, there are more "soft" than
"hard" benefits to PPM.
n PPM requires both process and process automation
investment — it is not a short-term strategy.
Pitfalls of IT PPM Application Implementation
n Overkill or Underkill
n Security – Internal and External
n Management Inertia –
Use It or Lose It
n Organizational Inertia
– No Goals, Incentives
– Unskilled, Key Integrations
– No PMO or Program/Portfolio Managers
– Training and Administration; Too Little, Too Late
Core PPM Functions Are Still in Demand
n Time Management manages deliverable
activity timelines and deadlines for programs,
projects, tasks and assignments.
n Resource Management handles the
allocation of available personnel using a
resource profile repository and enables
resource loading and leveling (natively or
at least via third-party tool integration).
n Cost Management tracks resource (and
often other) costs and facilitates the
approval of project expenses — for example,
those associated with billing, chargeback,
travel, equipment or other material.
Additional PPM Function Areas
n Scope Management
n Procurement Management
n Communication Management
n Risk Management
n Quality Management
n Integration (Portfolio) Management
Successful PPM Requires a
Balanced Dual Strategy
Failure and Risk
Process Process Automation
Failure and Risk
Project Portfolio Management:
Industry/Discipline Specific Features
– Billability — Invoicing — Multicurrency
n Engineering and Construction
– Mobile — Multiple Subcontractor Collaboration —
Cost/Schedule Management — Earned Value
n New Product and R&D
– Design Interface/Document Management — Product
– Ideation Stage-Gating — Product Service Tracking
n Information Technology
– Software Quality Management — Service Workflows
— IT Skills Management — CIO Portal
IT PPM Evaluation Criteria
Vision Ability to Execute
Market Understanding n Product/Service
n Offering (Product) n Overall Viability
n Sales Execution/ Pricing
n Business Model
n Market Responsiveness
n Vertical/Industry and Track Record
n Customer Experience
Magic Quadrant for
IT Project and Portfolio Management, 2006
Source: "Magic Quadrant for IT Project and
Portfolio Management, 2006," June 2006
2005 Overall PPM Market Worldwide
(General, Eng./Constr., IT, Prof. Svcs., NPD & Others)
Oracle 6.2% Primavera
PlanView 3.8% CA
Other 32.8% IBM Deltek
$728 million 2005 PPM market (including maintenance and support)
+9.6% from 2004 ($664 million)
IT Planning & Control Trend: Project Portfolio,
Business Service & Application Life Cycle Mgmt. Meet
Pacific Edge, PlanView,
ITSM Compuware ALM
BMC, HP, Aldon, MKS,
Managed Objects Serena Parasoft,
The Enterprise PMO Trend and E-PPM
Business Business Business
PO No. 1 PO No. 2 PO No. 3
1. The "Lite" Model 2. The "Coach" Model 3. The "Manager" Model
Builds on "repository" Project office assumes Concentrates project
of standardized project willingness to share management capabilities
methodology, tools and project mgmt. activities and responsibilities within
knowledge via limited, and responsibilities the project office, and
part-time support for across organization's may provide the direct
maintaining and functional units, & uses management of projects
disseminating the office to coordinate
ü Merger and acquisition activity in the IT PPM market will continue,
with at least one more vendor being acquired through 2007
(0.7 probability). Users should plan for this M&A activity and
negotiate clauses for same.
ü Visibility that leads to accountability is ultimately what the PPM
prospect needs, regardless of the origin of the initial need for PPM,
whether it be portfolio planning, project mgmt., time reporting or
ü To be successful, PPM customers must balance investment in both
process and process automation to reduce implementation risk and
ü The worldwide PPM market grew almost 10 percent to about $728
million in 2005, with continued growth of between 8 percent to14
percent expected through 2010.
ü By 2010, at least one IT PPM leader will emerge with a mid-market
focus, largely by featuring a strong SaaS offering (0.7 probability).
ü Even as segmented product and marketing approaches to PPM
meet targeted customer needs, a market for E-PPM solutions that
bridge stovepiped implementations is emerging.