Critical reflection on Project Portfolio Management software - Revision history

Tkokotas at 12:33, 20 December 2018

2018-12-20T12:33:41Z

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	''Developed by ~~Kasper Kjær Rasmussen~~''		''Developed by Thomas Ingemann Jensen''

Tkokotas at 12:33, 20 December 2018

2018-12-20T12:33:21Z

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	~~[[Category:Portfolio Management]]~~		''Developed by Kasper Kjær Rasmussen''


	With the movement against project-based organizations, it has become key that organisations are capable of not only doing projects right, but also do the right projects. It has become a must for a company to survive and grow in an increasingly competitive environment. Senior executives must be able to manage their project pipeline effectively; so that it provides the highest possible value at the lowest level of risk and at the same time fits the company's strategic goals. For this complex decision-making is needed. More and more senior executives have turned to the use of complex and sophisticated [http://en.wikipedia.org/wiki/Project_portfolio_management Project Portfolio Management] (PPM) software to ease the decision-making.		With the movement against project-based organizations, it has become key that organisations are capable of not only doing projects right, but also do the right projects. It has become a must for a company to survive and grow in an increasingly competitive environment. Senior executives must be able to manage their project pipeline effectively; so that it provides the highest possible value at the lowest level of risk and at the same time fits the company's strategic goals. For this complex decision-making is needed. More and more senior executives have turned to the use of complex and sophisticated [http://en.wikipedia.org/wiki/Project_portfolio_management Project Portfolio Management] (PPM) software to ease the decision-making.

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	<references />		<references />
			[[Category:Portfolio Management]][[Category:Tools]][[Category:IT]]

Akemb at 16:47, 30 November 2014

2014-11-30T16:47:05Z

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	== Business drivers for PPM software ==		== Business drivers for PPM software ==
	Cooper R and Edgett S; 2006, states that gut feeling is one of the worst portfolio management practices and argues that even a poorly made system for decision making is better than no system <ref name="PPM7">Cooper R, Edgett S. Ten ways to make better portfolio and project selection decisions – 2006</ref>. The business driver for senior executives to implement decision-making tools in their PPM practices, is mainly to make them capable of making decisions, based on an analytical approach, and hereby remove elements such as gut feeling. The decision making process is complex and several factors must be considered <ref name="PPM8">F. Ghasemzadeh, N.P. Archer. Project portfolio selection through decision support - 2000</ref>.		Cooper R and Edgett S; 2006, states that gut feeling is one of the worst portfolio management practices and argues that even a poorly made system for decision making is better than no system <ref name="PPM7">Cooper R, Edgett S. Ten ways to make better portfolio and project selection decisions – 2006</ref>. The business driver for senior executives to implement decision-making tools in their PPM practices, is mainly to make them capable of making decisions, based on an analytical approach, and hereby remove elements such as gut feeling. The decision making-process is complex and several factors must be considered <ref name="PPM8">F. Ghasemzadeh, N.P. Archer. Project portfolio selection through decision support - 2000</ref>.


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	===Implementation failure===		===Implementation failure===

	Much connected to selecting the wrong software, comes failures of successful implementation. Most Executives have no or only little experience with software projects. Most likely they do not fully understand the underlying complexity of the millions of lines of codes, which creates its functionality. What seems to be a quick buy and install project is met by organizational resistance because of the bureaucratic process of fitting the organization to the tool instead of the opposite <ref name="PPM10">Adam Bookman," " Project Portfolio Management: Three Dangerous Myths"-2010</ref>. Major and unforeseen system flaws arises and installation costs goes up to several millions of dollars. The following is based on a multiyear analysis made on the implementation of complex [http://en.wikipedia.org/wiki/Enterprise_resource_planning ERP] software in 400 companies <ref name="PPM11">Rettig, C. (2013). The trouble with enterprise software. MIT Sloan Management Review, 49</ref>. Like ERP software, PPM software is a complex system required to integrated ~~acroos~~ the organization. Therefore it can be assumed that some of the challenges faced when implementing ERP systems can be transferred to PPM systems.		Much connected to selecting the wrong software, comes failures of successful implementation. Most Executives have no or only little experience with software projects. Most likely they do not fully understand the underlying complexity of the millions of lines of codes, which creates its functionality. What seems to be a quick buy and install project is met by organizational resistance because of the bureaucratic process of fitting the organization to the tool instead of the opposite <ref name="PPM10">Adam Bookman," " Project Portfolio Management: Three Dangerous Myths"-2010</ref>. Major and unforeseen system flaws arises and installation costs goes up to several millions of dollars. The following is based on a multiyear analysis made on the implementation of complex [http://en.wikipedia.org/wiki/Enterprise_resource_planning ERP] software in 400 companies <ref name="PPM11">Rettig, C. (2013). The trouble with enterprise software. MIT Sloan Management Review, 49</ref>. Like ERP software, PPM software is a complex system required to integrated across the organization. Therefore it can be assumed that some of the challenges faced when implementing ERP systems can be transferred to PPM systems.

	The complexity of such software implementations can be seen by looking at IT investment costs. From 1990 - 1999 IT investments rose from 9% - 22% of companies total investment costs. Of these investments, IT departments used 70% to 80% of their budgets to keep their systems running <ref name="PPM12"> J. Dedrick, V. Gurbaxani and K.L. Kraemer, “Information Technology and Economic Performance: A Critical Review of the Empirical Evidence,” ACM Computing Surveys 35, no. 1 (March 2003): 18.</ref>. Even though this analysis is 15 years old, it is most likely that the tendency has kept increasing in the recent years.		The complexity of such software implementations can be seen by looking at IT investment costs. From 1990 - 1999 IT investments rose from 9% - 22% of companies total investment costs. Of these investments, IT departments used 70% to 80% of their budgets to keep their systems running <ref name="PPM12"> J. Dedrick, V. Gurbaxani and K.L. Kraemer, “Information Technology and Economic Performance: A Critical Review of the Empirical Evidence,” ACM Computing Surveys 35, no. 1 (March 2003): 18.</ref>. Even though this analysis is 15 years old, it is most likely that the tendency has kept increasing in the recent years.

Akemb at 15:32, 30 November 2014

2014-11-30T15:32:35Z

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	[[File:PPM2.PNG\|200px\|thumb\|left\|Figure 2: Use of PPM software based on 34 major companies <ref name=''PPM6''> ''Calderini S, Reyck D, Cockayne Y, Lockett M, Moura M, Sloper A. The impact of Project Portfolio Management on Information Technology Projects – 2005'' </ref> ]]		[[File:PPM2.PNG\|200px\|thumb\|left\|Figure 2: Use of PPM software based on 34 major companies <ref name=''PPM6''> ''Calderini S, Reyck D, Cockayne Y, Lockett M, Moura M, Sloper A. The impact of Project Portfolio Management on Information Technology Projects – 2005'' </ref> ]]

Akemb at 15:31, 30 November 2014

2014-11-30T15:31:43Z

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	[[File:PPM2.PNG\|200px\|thumb\|left\|Figure 2: Use of PPM software based on 34 major companies <ref name=''PPM6''> ''Calderini S, Reyck D, Cockayne Y, Lockett M, Moura M, Sloper A. The impact of Project Portfolio Management on Information Technology Projects – 2005'' </ref> ]]		[[File:PPM2.PNG\|200px\|thumb\|left\|Figure 2: Use of PPM software based on 34 major companies <ref name=''PPM6''> ''Calderini S, Reyck D, Cockayne Y, Lockett M, Moura M, Sloper A. The impact of Project Portfolio Management on Information Technology Projects – 2005'' </ref> ]]
























	== Business drivers for PPM software ==		== Business drivers for PPM software ==

Akemb: /* What is PPM software */

2014-11-30T15:26:55Z

What is PPM software

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	The idea behind PPM software is to make the decision-making process needed to manage a portfolio easier and more effective. This is done by giving managers an overview of projects and resources and to help them in the decision-making process. The software offered by different vendors can be very different in their content. Typical project data include the project description, owner, cost estimates, resources required, schedule, anticipated project benefits, and so forth.		The idea behind PPM software is to make the decision-making process needed to manage a portfolio easier and more effective. This is done by giving managers an overview of projects and resources and to help them in the decision-making process. The software offered by different vendors can be very different in their content. Typical project data include the project description, owner, cost estimates, resources required, schedule, anticipated project benefits, and so forth.

	Vendors market their tools as being quantitative and rigorous built on unique algorithms based on industry best practices. At the same time they promise users flexibility and customization. Only a few, if any, live up to their promises. A similarity between all tools, is that they use beautiful charts and printouts to impress its users and provide them with an easy and professional way of communicating.		Vendors market their tools as being quantitative and rigorous built on unique algorithms based on industry best practices. At the same time, they promise users flexibility and customization. Only a few, if any, live up to their promises. A similarity between all tools, is that they use beautiful charts and printouts to impress its users and provide them with an easy and professional way of communicating.

	The list of PPM Software vendors is long with more than 100 providers (August 2014), all promising significant benefits to their users <ref name="PPM4">http://www.prioritysystem.com/tools0.html</ref>		The list of PPM Software vendors is long with more than 100 providers (August 2014), all promising significant benefits to their users <ref name="PPM4">http://www.prioritysystem.com/tools0.html</ref>

Akemb: /* What is PPM software */

2014-11-30T15:26:15Z

What is PPM software

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-In the recent years more and more companies has moved towards project based structures <ref name=''PPM1''> ''Recent developments in project-based organisations - Michel Thiry, Manon Deguire – 2007'' </ref>. This makes it increasingly important to do projects right and to do the right projects <ref name=''PPM2''> ''Linenberg Y, Stadlker Z, Arbuthnot, S. Optimising organizational Performance by Managing project benefits. PMI global congress 2003'' </ref>. PPM has to do with the latter. Project evaluation criteria is typically reliant on financial methods, taking into account risk assessment and resource based analysis <ref name="PPM3">Cooper R, Edgett S, Kleinschmidt E. Portfolio management for new product development: Results of an industry practices study – 2001</ref>. Such evaluations require extensive data analysis, which can be time consuming and complex. The result is software developers and vendors, rushing to the market to assist in the complex process.
+In the recent years more and more companies has moved towards project-based structures <ref name=''PPM1''> ''Recent developments in project-based organisations - Michel Thiry, Manon Deguire – 2007'' </ref>. This makes it increasingly important to do projects right and to do the right projects <ref name=''PPM2''> ''Linenberg Y, Stadlker Z, Arbuthnot, S. Optimising organizational Performance by Managing project benefits. PMI global congress 2003'' </ref>. PPM has to do with the latter. Project evaluation criteria is typically reliant on financial methods, taking into account risk assessment and resource based analysis <ref name="PPM3">Cooper R, Edgett S, Kleinschmidt E. Portfolio management for new product development: Results of an industry practices study – 2001</ref>. Such evaluations require extensive data analysis, which can be time consuming and complex. The result is software developers and vendors, rushing to the market to assist in the complex process.
 The idea behind PPM software is to make the decision-making process needed to manage a portfolio easier and more effective. This is done by giving managers an overview of projects and resources and to help them in the decision-making process. The software offered by different vendors can be very different in their content. Typical project data include the project description, owner, cost estimates, resources required, schedule, anticipated project benefits, and so forth.
@@ Line 45: / Line 45: @@
 [[File:PPM2.PNG|200px|thumb|left|Figure 2: Use of PPM software based on 34 major companies <ref name=''PPM6''> ''Calderini S, Reyck D, Cockayne Y, Lockett M, Moura M, Sloper A. The impact of Project Portfolio Management on Information Technology Projects – 2005'' </ref> ]]
 == Business drivers for PPM software ==

Akemb at 15:24, 30 November 2014

2014-11-30T15:24:53Z

← Older revision		Revision as of 15:24, 30 November 2014
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	[[Category:Portfolio Management]]		[[Category:Portfolio Management]]
	With the movement against project-based organizations, it has become key that organisations are capable of not only doing projects right, but also do the right projects. It has become a must for a company to survive and grow in an increasingly competitive environment. Senior executives must be able to manage their project pipeline effectively; so that it provides the highest possible value at the lowest level of risk and at the same time fits the company's strategic goals. For this complex decision-making is needed. More and more senior executives have turned to the use of complex and sophisticated [http://en.wikipedia.org/wiki/Project_portfolio_management Project Portfolio Management] (PPM) software to ease the decision making.		With the movement against project-based organizations, it has become key that organisations are capable of not only doing projects right, but also do the right projects. It has become a must for a company to survive and grow in an increasingly competitive environment. Senior executives must be able to manage their project pipeline effectively; so that it provides the highest possible value at the lowest level of risk and at the same time fits the company's strategic goals. For this complex decision-making is needed. More and more senior executives have turned to the use of complex and sophisticated [http://en.wikipedia.org/wiki/Project_portfolio_management Project Portfolio Management] (PPM) software to ease the decision-making.

	PPM Software developers such as Intel, Microsoft, Siemens and many others, brand their PPM software as a leading solution and a best practice tool, able to solve almost any PPM management issue. However, after the implementation of such software systems many executives fail to see the promised results emerge in their organization.		PPM Software developers such as Intel, Microsoft, Siemens and many others, brand their PPM software as a leading solution and a best practice tool, able to solve almost any PPM management issue. However, after the implementation of such software systems many executives fail to see the promised results emerge in their organization.

Akemb at 15:24, 30 November 2014

2014-11-30T15:24:36Z

← Older revision		Revision as of 15:24, 30 November 2014
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	[[Category:Portfolio Management]]		[[Category:Portfolio Management]]
	With the movement against project-based organizations, it has become key that organisations are capable of not only doing projects right, but also do the right projects. It has become a must for a company to survive and grow in an increasingly competitive environment. Senior executives must be able to manage their project pipeline effectively; so that it provides the highest possible value at the lowest level of risk and at the same time fits the company's strategic goals. For this complex decision-making is needed. More and more senior executives have turned to the use of complex and sophisticated Project Portfolio Management (PPM) software to ease the decision making.		With the movement against project-based organizations, it has become key that organisations are capable of not only doing projects right, but also do the right projects. It has become a must for a company to survive and grow in an increasingly competitive environment. Senior executives must be able to manage their project pipeline effectively; so that it provides the highest possible value at the lowest level of risk and at the same time fits the company's strategic goals. For this complex decision-making is needed. More and more senior executives have turned to the use of complex and sophisticated [http://en.wikipedia.org/wiki/Project_portfolio_management Project Portfolio Management] (PPM) software to ease the decision making.

	PPM Software developers such as Intel, Microsoft, Siemens and many others, brand their PPM software as a leading solution and a best practice tool, able to solve almost any PPM management issue. However, after the implementation of such software systems many executives fail to see the promised results emerge in their organization.		PPM Software developers such as Intel, Microsoft, Siemens and many others, brand their PPM software as a leading solution and a best practice tool, able to solve almost any PPM management issue. However, after the implementation of such software systems many executives fail to see the promised results emerge in their organization.

Akemb at 15:21, 30 November 2014

2014-11-30T15:21:08Z

← Older revision		Revision as of 15:21, 30 November 2014
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	[[Category:Portfolio Management]]		[[Category:Portfolio Management]]
	With the movement against project-based organizations, it has become key that organisations are capable of not only doing projects right, but also do the right projects. It has become a must for a company to survive and grow in an increasingly competitive environment. Senior executives must be able to manage their project pipeline effectively; so that it provides the highest possible value at the lowest level of risk and at the same time fits the company's strategic goals. For this complex decision making is needed. More and more senior executives have turned to the use of complex and sophisticated Project Portfolio Management (PPM) software to ease the decision making.		With the movement against project-based organizations, it has become key that organisations are capable of not only doing projects right, but also do the right projects. It has become a must for a company to survive and grow in an increasingly competitive environment. Senior executives must be able to manage their project pipeline effectively; so that it provides the highest possible value at the lowest level of risk and at the same time fits the company's strategic goals. For this complex decision-making is needed. More and more senior executives have turned to the use of complex and sophisticated Project Portfolio Management (PPM) software to ease the decision making.

	PPM Software developers such as Intel, Microsoft, Siemens and many others, brand their PPM software as a leading solution and a best practice tool, able to solve almost any PPM management issue. However, after the implementation of such software systems many executives fail to see the promised results emerge in their organization.		PPM Software developers such as Intel, Microsoft, Siemens and many others, brand their PPM software as a leading solution and a best practice tool, able to solve almost any PPM management issue. However, after the implementation of such software systems many executives fail to see the promised results emerge in their organization.