Learn how PPM is delivering compelling ROI. In the September 2008 IDC White Paper sponsored by CA, How Project and Portfolio Management Solutions Are Delivering Value to Organizations, IDC analysts reveal that substantial business benefits are being realized by IT organizations deploying PPM solutions.
W H I T E P AP E R H o w P r o j e c t a n d P o r t f o l i o M a n a g e m e n t S o l u t i o n s Ar e D e l i v e r i n g V a l u e t o O r g a n i z a t i o n s Sponsored by: CA Randy Perry Eric Hatcher September 2008
E X E C U T I V E S U M M A R Y moc. To remain competitive in today's global marketplace, organizations seek to automate cdi. processes and leverage their technology infrastructure in alignment with their goals. ww IT staffs are thus tasked with managing multiple concurrent IT projects to introduce w new technology solutions while also conducting periodic upgrades of existing 510 infrastructure. Many organizations have deployed project and portfolio management 4.53 (PPM) solutions to create a more efficient and scalable process for leveraging their IT 9.8 infrastructure to help achieve organizational goals. 05.F To understand the impact of PPM solutions on complex organizations, IDC conducted 002 research with 13 highly successful companies that had implemented PPM solutions 8.2 and could articulate the pain points leading to the deployment as well as the benefits 78.8 to their organization. This paper describes the experiences of these 13 companies — 05. why they chose PPM solutions, pain points, and benefits — and lays out an approach P to justify the acquisition of PPM solutions. A summary of the benefits of the 13 AS companies in deploying PPM solutions follows: U 1071 ! Number of projects managed increased 35%. 0 AM , ! Cost per project was reduced 37%. mahgni ! Redundant projects dropped 78%. marF t ! IT staff productivity increased by 14%. eertS ! n Project failure rate dropped 59%. eepS ! The total annual benefit per 100 users is $83,500. 5 :sretr ! Payback occurred in 7.4 months. auqdaeH labolG
I N T R O D U C T I O N
As organizations strive to increase productivity, many have sought a PPM solution to help optimize IT resources and to better plan business strategies. Gauging resources against tasks and developing manageable timelines are essential components in ensuring the success of the organizations' initiatives.
A PPM solution deployment enables management to evaluate the IT organization and focus on the projects with the greatest value to the business. Creating an IT PPM program includes establishing standardized processes enabled by PPM solutions. The benefits extend beyond improved project management and include both IT resource optimization and operational efficiency.
N E E D F O R P P M
PPM solutions allow business and IT management to get a holistic view of its organization's entire project workload. From this perspective, C-level and business unit managers can assist IT management in aligning IT projects with the overall business strategy. Budgets, timelines, and project priorities are all designed to fit squarely with the direction of the organization. As one customer mentioned, "The value of going to portfolio management is that we can strategically plan a lot better than we used to."
In addition to offering better IT investment alignment, PPM solutions provide greater project and resource management efficiencies. For example, reducing the number of redundant projects allows staff to work on higher-value initiatives, leads to an improvement in staff productivity, and indirectly reduces the time and costs associated with hiring additional staff. A manager said, "We have approximately 700 projects. Before, we might have had 1,000 projects. We are now able to manage more complex projects with fewer people."
When considering a PPM solution, an organization should evaluate its processes and strategies in six areas:
1. IT governance. What are the processes that manage IT budget, spending, project planning, and governance? How does the organization evaluate IT spending and projects versus organizational strategy? Are review boards established? How are the organization's changes and the impact assessed?
2. IT demand assessment. How does the organization collect and manage IT requests? How are roles and responsibilities defined for demand assessment and management? How are the business needs for projects identified?
3. IT demand priori... [download for more]
