How do mature organizations use PPM?

I was pleased to be invited to join Ian Strain’s panel discussion at the SAP PPM conference in Chicago last week. Ian posed a provocative question about the maturity of organizations as pertains to utilization of PPM. Based on a decade or more with clients in a variety of industries, my conclusion is that I know of no single company that has a high level of maturity throughout the entire organization, although there are pockets of excellence within divisions or departments. More companies, however, thanks to improvements in PPM/PLM process and software like PPM 5.0 are moving more rapidly towards higher levels of maturity.

 

I touched on the concept of “Advanced PPM”, which recognizes basically two levels of PPM management and, thus at least two levels of maturity in decision making. Simplistically, it boils down to decisions made at C-level or their direct reports around which projects or products to fund (“doing the right projects”) and decisions made at the project/portfolio management level around “doing the projects right.” Many companies have reached a level of maturity in the latter area but, only within the last decade of so have many companies initiated processes and software to address the former. This addition is what we refer to as “Advanced PPM” and which is supported by the PPM Optimization Workbench™, an SAP-certified integration of PPM 5.0 and SmartOrg Portfolio Navigator® analytics.

 

The integrated product places SAP ahead of other suppliers of project/portfolio management software, extending analytics beyond scorecards, scoring rules and questionnaires in project ranking. The advanced analytics apply to some 20% of projects – those that are expected to have a major impact on company revenues and profitability, which involve large investments in resources over time and which are often clouded by uncertainty.

 

Advanced PPM is discussed in a white paper by Tech-Clarity. Another white paper, which may be of interest summarizes a recent workshop of innovation executives “Assessing the State of Innovation.” Each of these white papers may be downloaded from https://smartorg.com/library/.

 

If you have questions about Advanced PPM and the Sap-Certified integration the PPM Optimization Workbench™, please call me or send an email; I’d be pleased to chat. For additional information about the workbench, you may also visit http://ecohub.sap.com/catalog/#!solution:PlatinumDBServices