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Guide to Project Portfolio Management

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Technology Multipliers PPM solutions help optimize the value of your project portfolio and increase pipeline productivity. Our solutions utilize ProModel's project and portfolio simulation tools and Microsoft's project management tools. This Technology Multipliers webinar provides a comprehensive overview of project portfolio management concepts, process, and keys to success for technology companies.

Published in: Business, Economy & Finance

Guide to Project Portfolio Management

  1. 1. Kerim TumayManaging Director October 2011 © 2011 Technology Multipliers, LLC
  2. 2. Outline • What is PPM? • Why PPM? PPM Concept • Benefits & Business value • What makes it a challenge? • Standard PPM Process • Collaboration PPM Process • Governance Visibility • Advanced PPM With Predictive Analytics • Software Evaluation Considerations PPM Technologies • Software Providers and Tools Success Factors • Key Success Factors © 2011 Technology Multipliers, LLC
  3. 3. PPM Concept PPM Process PPM Success Factors Technologies What is Project Portfolio Management?Methods and tools used by organizations to• Obtain an accurate view of resource utilization and project timelines• Analyze the project and portfolio trade- offs, performance, value, and risks• Select and prioritize the right projects… in order to best achieve the organizations goals while honoring constraints. © 2011 Technology Multipliers, LLC
  4. 4. PPM Concept PPM Process PPM Success Factors TechnologiesWhy PPM? - Portfolio Mix Projects Stage 1 Stage 2 Stage 3 Stage 4 Commercial New Should we Products accelerate this project? Should we Lifecycle cancel this Products project? Should we suspend this one? How will this potential project affect us? © 2011 Technology Multipliers, LLC
  5. 5. PPM Concept PPM Process PPM Success Factors Technologies Why PPM? – Resource CapacityResources Capacity CostClinical Development Are weClinical Operations overstaffed?Clinical Pharmacology Do we haveDrug Safety enough resources?ToxicologyMetabolism Do we have the resourcesPharmacokinetic allocatedPharmacodynamic properly? © 2011 Technology Multipliers, LLC
  6. 6. PPM Concept PPM Process PPM Success Factors Technologies How Does Your Company Make Project Portfolio Decisions? Cultural Drivers Inputs to Decisions Portfolio Decisions Collaborationa) Trust Evidence-Based Systems Thinking Collectiveb) Politics Power-Based Ambition Experiencedc) Intuition Opinion-Based Leadership © 2011 Technology Multipliers, LLC
  7. 7. PPM Concept PPM Process PPM Success Factors Technologies Benefits & Business Value General Specific to NPD and PLM Saves money  Increases pipeline productivity Adds value  Accelerates new product launch Adds transparency  Creates competitive advantage Improves governance  Enables profitable growth © 2011 Technology Multipliers, LLC
  8. 8. PPM Concept PPM Process PPM Success Factors Technologies6 Reasons Why PPM is a Challenge for NPD1. Unpredictable project demand2. Increasing project complexity and risk3. Competition for resources4. Variable activity durations5. Uncertainty of project success outcomes6. Loose stage-gate processes © 2011 Technology Multipliers, LLC
  9. 9. PPM Concept PPM Process PPM Success Factors TechnologiesPPM Inefficiency and Forecasting Confidence PPM Efficiency Forecasting Confidence 9% • 84% of respondents were “somewhat” or “not confident” when looking at 3- 35% year project plans 56% • 81% of respondents were Highly Optimized “somewhat” or “not Somewhat Optimized confident” in their 3-year Not Optimized resource capacity forecastsReference: “Trends in Portfolio Management”, Insight Pharma Report, 4th Annual Portfolio Management Conference, November 2009 © 2011 Technology Multipliers, LLC
  10. 10. PPM Concept PPM Process PPM Success Factors Technologies Standard PPM Process – Top-down, Bottom-up Approach Bottom-up Top-down6. Review trade-offs, Vision & 1. Define goals, demand,Align portfolio with strategy Business Strategy resource supply, constraints Strategic5. Analyze portfolio trade- Project Portfolio 2. Select/Prioritize projects,offs , Stage-Gate reviews Management Define Stages & Gates Tactical4. Track resources, activities, Project & Program 3. Define projects, scope,schedules, Update progress Management Plan & Schedule resources Execution © 2011 Technology Multipliers, LLC
  11. 11. PPM Concept PPM Process PPM Success Factors Technologies How is PPM Different than Project Management? Portfolio Management Project ManagementFocus Strategic Tactical/ExecutionScope Portfolio of projects Individual projectsPlanning Window 1-12 years 1-12 monthsUsers Executives, PMO, Project/Program Product Mgt Managers © 2011 Technology Multipliers, LLC
  12. 12. PPM Concept PPM Process PPM Success Factors TechnologiesAdvanced PPM With Predictive Analytics • Variability in activity durations • Resource constraints & dynamics • Probability of project success © 2011 Technology Multipliers, LLC
  13. 13. PPM Concept PPM Process PPM Success Factors TechnologiesPortfolio & Resource Planning With Predictive Analytics• Simulate/Analyze multiple scenarios – play ‘what ifs’ with project priorities, resource constrains, project attrition, add/remove projects in a matter of a few minutes Resource Supply vs. Demand – Automatically create multiple optimal portfolio scenarios – Compare project, resource, and financial reports• Key benefits: Timeline Comparison – Improved PPM efficiency – Increased confidence in forecast Risk Range for Finish Dates © 2011 Technology Multipliers, LLC
  14. 14. PPM Concept PPM Process PPM Success Factors Technologies PPM Software Evaluation Considerations• Offered as – On-premise – Hosted – SaaS• Deployment Timeframe – 2-8 weeks – 3-12 months• Implementation Approach – Stand-alone – Coupled with an execution-level PM or PLM software• Total Cost of Ownership – Under $100K – Over $100K © 2011 Technology Multipliers, LLC
  15. 15. PPM Concept PPM Process PPM Success Factors Technologies PPM Software Providers and ToolsCompany/Product Offered as Focused onDaptiv SaaS Tactical/Strategic – Portfolio MgtMicrosoft - Project Server 2010 On-premise Execution/Tactical - Project MgtInstantis - Enterprise Track SaaS Tactical/Strategic – Portfolio MgtPD-Track Hosted Tactical/Strategic – Portfolio MgtPlanisware On-premise Tactical/Strategic – Portfolio MgtPlanview Enterprise On-premise Tactical/Strategic – Portfolio MgtPowerSteering SaaS Tactical/Strategic – Portfolio MgtProModel - EPS SaaS Strategic – Portfolio/Resource Planning © 2011 Technology Multipliers, LLC
  16. 16. PPM Concept PPM Process PPM Success Factors Technologies Keys to Success with PPM• Don’t … – start without total buy-in from executives, – be afraid to start with less than perfect information, – overwhelm the organization with ‘heavy process’.• Do … – adopt a portfolio mindset and evidence-based decision making, – use the “top-down and bottom-up” process that promotes collaboration, visibility, and productivity, – capture risk and uncertainty with predictive analytics, – KISS! Start with a stand-alone implementation and SaaS software. Make it work in a short timeframe. Then integrate with execution systems. © 2011 Technology Multipliers, LLC
  17. 17. Thank you!• Visit Technology Multipliers to learn more• Sign-up for a Free Assessment• Download Related E-books• Follow us © 2011 Technology Multipliers, LLC

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