Technology Multipliers PPM solutions help optimize the value of your project portfolio and increase pipeline productivity. Our solutions utilize ProModel's project and portfolio simulation tools and Microsoft's project management tools. This Technology Multipliers webinar provides a comprehensive overview of project portfolio management concepts, process, and keys to success for technology companies.

1. Kerim Tumay
Managing Director
October 2011
© 2011 Technology Multipliers, LLC

2. Outline
• What is PPM?
• Why PPM?
PPM Concept • Benefits & Business value
• What makes it a challenge?
• Standard PPM Process
• Collaboration
PPM Process • Governance Visibility
• Advanced PPM With Predictive Analytics
• Software Evaluation Considerations
PPM Technologies • Software Providers and Tools
Success Factors • Key Success Factors
© 2011 Technology Multipliers, LLC

3. PPM Concept PPM Process PPM Success Factors
Technologies
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.
© 2011 Technology Multipliers, LLC

4. PPM Concept PPM Process PPM Success Factors
Technologies
Why PPM? - Portfolio Mix
Projects Stage 1 Stage 2 Stage 3 Stage 4 Commercial
New Should we
Products accelerate
this project?
Should we
Lifecycle cancel this
Products project?
Should we
suspend this one?
How will this
potential project
affect us?
© 2011 Technology Multipliers, LLC

5. PPM Concept PPM Process PPM Success Factors
Technologies
Why PPM? – Resource Capacity
Resources Capacity Cost
Clinical Development
Are we
Clinical Operations overstaffed?
Clinical Pharmacology
Do we have
Drug Safety enough
resources?
Toxicology
Metabolism Do we have
the resources
Pharmacokinetic
allocated
Pharmacodynamic properly?
© 2011 Technology Multipliers, LLC

6. PPM Concept PPM Process PPM Success Factors
Technologies
How Does Your Company Make Project Portfolio Decisions?
Cultural Drivers Inputs to Decisions Portfolio Decisions
Collaboration
a) Trust Evidence-Based
Systems Thinking
Collective
b) Politics Power-Based
Ambition
Experienced
c) Intuition Opinion-Based
Leadership
© 2011 Technology Multipliers, LLC

7. PPM Concept PPM Process PPM Success Factors
Technologies
Benefits & Business Value
General Specific to NPD and PLM
 Saves money  Increases pipeline productivity
 Adds value  Accelerates new product launch
 Adds transparency  Creates competitive advantage
 Improves governance  Enables profitable growth
© 2011 Technology Multipliers, LLC

8. PPM Concept PPM Process PPM Success Factors
Technologies
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
© 2011 Technology Multipliers, LLC

9. PPM Concept PPM Process PPM Success Factors
Technologies
PPM Inefficiency and Forecasting Confidence
PPM Efficiency Forecasting Confidence
9% • 84% of respondents were
“somewhat” or “not
confident” when looking at 3-
35% year project plans
56%
• 81% of respondents were
Highly Optimized “somewhat” or “not
Somewhat Optimized confident” in their 3-year
Not Optimized resource capacity forecasts
Reference: “Trends in Portfolio Management”, Insight Pharma Report, 4th Annual Portfolio Management Conference, November 2009
© 2011 Technology Multipliers, LLC

10. PPM Concept PPM Process PPM Success Factors
Technologies
Standard PPM Process – Top-down, Bottom-up Approach
Bottom-up Top-down
6. Review trade-offs, Vision & 1. Define goals, demand,
Align portfolio with strategy Business Strategy resource supply, constraints
Strategic
5. Analyze portfolio trade- Project Portfolio 2. Select/Prioritize projects,
offs , Stage-Gate reviews Management Define Stages & Gates
Tactical
4. Track resources, activities, Project & Program 3. Define projects, scope,
schedules, Update progress Management Plan & Schedule resources
Execution
© 2011 Technology Multipliers, LLC

11. PPM Concept PPM Process PPM Success Factors
Technologies
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, Project/Program
Product Mgt Managers
© 2011 Technology Multipliers, LLC

12. PPM Concept PPM Process PPM Success Factors
Technologies
Advanced PPM With Predictive Analytics
• Variability in activity durations
• Resource constraints & dynamics
• Probability of project success
© 2011 Technology Multipliers, LLC

13. PPM Concept PPM Process PPM Success Factors
Technologies
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 Resource Supply vs. Demand
– Automatically create multiple optimal portfolio
scenarios
– Compare project, resource, and financial reports
• Key benefits: Timeline Comparison
– Improved PPM efficiency
– Increased confidence in forecast
Risk Range for Finish Dates
© 2011 Technology Multipliers, LLC

14. PPM Concept PPM Process PPM Success Factors
Technologies
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
© 2011 Technology Multipliers, LLC

15. PPM Concept PPM Process PPM Success Factors
Technologies
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
© 2011 Technology Multipliers, LLC

16. PPM Concept PPM Process PPM Success Factors
Technologies
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.
© 2011 Technology Multipliers, LLC

17. Thank you!
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