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PPM Application Landscape

Analyst source: Matt Light and Daniel StangPresented by: Oldrich Priklenk

PPM Activity Cycle

DEFINE

“Building business cases and forecasting value”

SELECT

“Prioritizing the Work”

EXECUTE“Getting Things Done”

EVALUATE

“Measuring outcomes, processes, cost and business value”

EVOLVE

“Move Forward and Get Better”

COMMUNICATE

“Sense, Respond and Change”

Communicate

DefineDefine SelectSelect

EvolveEvaluateEvaluate

Execute

Practice Doesn't Make Perfect If You Practice the Wrong Things

Select

Evolve

Execute

DefineEvaluate

Communicate

1

34

5

2Select 3.16Evolve

3.15

Evaluate2.98

Communicate 3.5

Define 3.12

Execute 3.24

Results of Dec. 2006 survey of 434 PPM leaders

Market Building:Innovation and Acquisition n 1999 Primavera — Eagle Rayn 2000 Niku — ABT and Proamicsn 2000 Microsoft — Enterprise Projectn 2003 Mercury — Kintanan 2003 Primavera — Evolven 2004 Compuware — Changepointn 2004 IBM — Systemcorpn 2005 CA — Nikun 2005 Borland — Legaderon 2005 Microsoft — United Management Technologiesn 2006 Deltek — Welcom Softwaren 2006 HP – Mercuryn 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).

Key Issues

1.What are the key functions and market drivers of PPM application packages?

2.What are effective approaches to PPM implementation?

3.What is the state of the PPM market, and how do you assess product and vendor market positions?

4.How will technology and market trends affect PPM market vendors?

PPM Critical Mass

Global Mature

Demand Innovating

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

too cumbersome.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 Underkilln Security – Internal and Externaln Management Inertia –

Use It or Lose Itn Organizational Inertia

– No Goals, Incentivesn Implementation

– Unskilled, Key Integrations Missed, Delayed

n Unreadiness– No PMO or Program/Portfolio Managers

n Role– Training and Administration; Too Little, Too Late

Core PPM Functions Are Still in Demand

n Resource Management handles the allocation of available personnel using a resource profile repository and enablesresource 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.

n Time Management manages deliverable activity timelines and deadlines for programs, projects, tasks and assignments.

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

Failure and Risk

Process Process Automation

Project Portfolio Management:Market Segments

Industry/Discipline Specific Featuresn Consulting/Engagement-Driven

– Billability — Invoicing — Multicurrencyn 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

Ability to ExecuteVision

IT PPM Evaluation Criteria

Market Understandingn Offering (Product)

Strategyn Business Modeln Vertical/Industry

Strategyn Innovation

n Product/Servicen Overall Viabilityn Sales Execution/ Pricingn Market Responsiveness

and Track Recordn Customer Experiencen Operations

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)

32.8%Other

2.5%Compuware

2.6%Sciforma3.8%Artemis3.8%PlanView4.0%IBM5.1%Deltek6.2%Oracle7.2%Mercury7.3%CA

12.3%Primavera12.5%Microsoft

$728 million 2005 PPM market (including maintenance and support)+9.6% from 2004 ($664 million)

Microsoft

Primavera

Mercury

CA

Deltek IBMPlanView

ArtemisSciforma

Compuware

Other

Oracle

IT Planning & Control Trend: Project Portfolio, Business Service & Application Life Cycle Mgmt. Meet

PPM

ALMITSM

ITPC

Borland, Microsoft,

SAP

CA

Aldon, MKS, Parasoft,Telelogic

Business Engine, Pacific Edge, PlanView,

Primavera

BMC, HP,Managed Objects Serena

Oracle

IBM,Mercury

Compuware

Beyond IT:The Enterprise PMO Trend and E-PPM

BusinessPO No. 1

BusinessPO No. 3

BusinessPO No. 2

"Enterprise" Project/Program

Management Office

2. The "Coach" ModelProject office assumes willingness to share project mgmt. activities and responsibilities across organization's functional units, & uses the office to coordinate communication

3. The "Manager" ModelConcentrates project management capabilities and responsibilities within the project office, and may provide the direct management of projects

1. The "Lite" Model Builds on "repository" of standardized project methodology, tools and knowledge via limited, part-time support for maintaining and disseminating

RecommendationsüMerger 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.üVisibility 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 tracking resources. ü To be successful, PPM customers must balance investment in both

process and process automation to reduce implementation risk andavoid failure. ü The worldwide PPM market grew almost 10 percent to about $728

million in 2005, with continued growth of between 8 percent to14percent expected through 2010.üBy 2010, at least one IT PPM leader will emerge with a mid-market

focus, largely by featuring a strong SaaS offering (0.7 probability). üEven as segmented product and marketing approaches to PPM

meet targeted customer needs, a market for E-PPM solutions that bridge stovepiped implementations is emerging.