© 2011 Technology Multipliers, LLC

Kerim Tumay

Managing Director

October 2011

© 2011 Technology Multipliers, LLC

Outline

• What is PPM?

• Why PPM?

• Benefits & Business value

• What makes it a challenge?

PPM Concept

• Standard PPM Process

• Collaboration

• Governance Visibility

• Advanced PPM With Predictive Analytics

PPM Process

• Software Evaluation Considerations

• Software Providers and Tools PPM Technologies

• Key Success Factors Success Factors

© 2011 Technology Multipliers, LLC

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 organization's

goals while honoring constraints.

PPM Concept PPM Process PPM

Technologies

Success Factors

© 2011 Technology Multipliers, LLC

Why PPM? - Portfolio Mix

Projects Stage 1 Stage 2 Stage 3 Stage 4 Commercial

Lifecycle Products

Should we cancel this

project?

Should we accelerate

this project?

PPM Concept PPM Process PPM

Technologies

Success Factors

Should we suspend this one?

New Products

How will this potential project

affect us?

© 2011 Technology Multipliers, LLC

Why PPM? – Resource Capacity

Resources Capacity Cost

Clinical Development

Clinical Operations

Clinical Pharmacology

Drug Safety

Toxicology

Metabolism

Pharmacokinetic

Pharmacodynamic

Are we overstaffed?

Do we have enough

resources?

Do we have the resources

allocated properly?

PPM Concept PPM Process PPM

Technologies

Success Factors

© 2011 Technology Multipliers, LLC

How Does Your Company Make Project Portfolio Decisions?

Trust Collaboration

Systems Thinking Evidence-Based

Collective Ambition

Politics Power-Based

Experienced

Leadership Intuition Opinion-Based

Cultural Drivers

Inputs to Decisions Portfolio Decisions

a) b) c)

PPM Concept PPM Process PPM

Technologies

Success Factors

© 2011 Technology Multipliers, LLC

Benefits & Business Value

Increases pipeline productivity

Accelerates new product launch

Creates competitive advantage

Enables profitable growth

Saves money

Adds value

Adds transparency

Improves governance

Specific to NPD and PLM General

PPM Concept PPM Process PPM

Technologies

Success Factors

© 2011 Technology Multipliers, LLC

6 Reasons Why PPM is a Challenge for NPD

1. Unpredictable project demand

2. Increasing project complexity and risk

3. Competition for resources

4. Variable activity durations

5. Uncertainty of project success outcomes

6. Loose stage-gate processes

PPM Concept PPM Process PPM

Technologies

Success Factors

© 2011 Technology Multipliers, LLC

Forecasting Confidence

• 84% of respondents were

“somewhat” or “not

confident” when looking at 3-

year project plans

• 81% of respondents were

“somewhat” or “not

confident” in their 3-year

resource capacity forecasts

9%

35% 56%

PPM Efficiency

Highly Optimized

Somewhat Optimized

Not Optimized

Reference: “Trends in Portfolio Management”, Insight Pharma Report, 4th Annual Portfolio Management Conference, November 2009

PPM Inefficiency and Forecasting Confidence

PPM Concept PPM Process PPM

Technologies

Success Factors

© 2011 Technology Multipliers, LLC

Standard PPM Process – Top-down, Bottom-up Approach

PPM Concept PPM Process PPM

Technologies

Success Factors

Vision & Business Strategy

Project Portfolio Management

Project & Program Management

1. Define goals, demand, resource supply, constraints

3. Define projects, scope, Plan & Schedule resources

2. Select/Prioritize projects, Define Stages & Gates

4. Track resources, activities, schedules, Update progress

5. Analyze portfolio trade-offs , Stage-Gate reviews

6. Review trade-offs, Align portfolio with strategy

Strategic

Tactical

Execution

Top-down Bottom-up

© 2011 Technology Multipliers, LLC

How is PPM Different than Project Management?

Portfolio Management Project Management

Focus Strategic Tactical/Execution

Scope Portfolio of projects Individual projects

Planning Window 1-12 years 1-12 months

Users Executives, PMO, Product Mgt

Project/Program Managers

PPM Concept PPM Process PPM

Technologies

Success Factors

© 2011 Technology Multipliers, LLC

Advanced PPM With Predictive Analytics

• Variability in activity durations

• Resource constraints & dynamics

• Probability of project success

PPM Concept PPM Process PPM

Technologies

Success Factors

© 2011 Technology Multipliers, LLC

Portfolio & 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

– Automatically create multiple optimal portfolio scenarios

– Compare project, resource, and financial reports

• Key benefits: – Improved PPM efficiency

– Increased confidence in forecast

Resource Supply vs. Demand

Timeline Comparison

Risk Range for Finish Dates

PPM Concept PPM Process PPM

Technologies

Success Factors

© 2011 Technology Multipliers, LLC

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

PPM Concept PPM Process PPM

Technologies

Success Factors

© 2011 Technology Multipliers, LLC

PPM Software Providers and Tools

Company/Product Offered as Focused on

Daptiv SaaS Tactical/Strategic – Portfolio Mgt

Microsoft - Project Server 2010 On-premise Execution/Tactical - Project Mgt

Instantis - Enterprise Track SaaS Tactical/Strategic – Portfolio Mgt

PD-Track Hosted Tactical/Strategic – Portfolio Mgt

Planisware On-premise Tactical/Strategic – Portfolio Mgt

Planview Enterprise On-premise Tactical/Strategic – Portfolio Mgt

PowerSteering SaaS Tactical/Strategic – Portfolio Mgt

ProModel - EPS SaaS Strategic – Portfolio/Resource Planning

PPM Concept PPM Process PPM

Technologies

Success Factors

© 2011 Technology Multipliers, LLC

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.

PPM Concept PPM Process PPM

Technologies

Success Factors

© 2011 Technology Multipliers, LLC

Thank you!

• Visit Technology Multipliers to

learn more

• Sign-up for a Free Assessment

• Download Related E-books

• Follow us