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Enterprise Project Portfolio Management best practices series

Episode I: Fact not fiction - make informed business decisions with
           reliable project data
Richard Sappé
Industry Strategist
Sales Brief Agenda


• Introduction and PPM as an enterprise         <Insert Picture Here>

  critical business function
• Five key project information challenges
• Five key project information best practices
• Demonstration
• Summary
• Questions & Answers




                                                                   3
Enterprise project portfolio management

                                          4
The problem
             Too few projects finish on time and on budget




   90% say project
   management is
       critical or          Yet 49% only       Only 6% say                       Only 20% use
     important to           follow formal      their projects   Less than 50%    standardised
        deliver                 project      come in on time    measure return      project
      successful            management        and on budget     on investment    management
    projects and              practices       all of the time                      solutions
        remain
     competitive




Source :Economist Intelligence Unit Survey


© 2010 Oracle Corporation                                                                       5
Macro trends


     The Economy – financial volatility, budget constraints, overall
     uncertainty, competitive pressures

     The People – skill and resource constraints, aging/ retiring
     workforce, virtual teams, partners

     The Customer – higher expectations to do more with less, and do
     it faster, better and cheaper, heroics the new norm

     The Work – increasing complexity and greater risk of projects,
     more inter-relationships among projects and players; balancing
     core vs. context

     The Process – more complex IT environments; more systems,
     more people, more information; “flattened” processes




                                                                       6
Driving business value
    The business impact of Enterprise Project Portfolio Management

      Inefficiency                                           Value
•   Lack of Standards                              •   Strategic Alignment
•   Unmitigated Risks                              •   Governance
•   Poor Accountability                            •   Innovation
•   Inadequate                   Enterprise
                                                   •   Competitive Advantage
    Capacity Planning         Project Portfolio    •   Velocity, Agility
•   Rework, Waste              Management
                                                   •   Repeatable Success
•   Overruns                                       •   Successful Projects
•   No Best Practices                              •   Visibility
•   Process Inefficiency                           •   One version of the
•   High TCO                                           “truth”




                                                                               7
Managing the challenges 21st century projects

                                     Companies utilising project portfolio management can expect
       Governance                    greater consistency in project execution and ability to drive
                                     project outcome.




                                     53% of organisations are continually working to improve their
        Optimisation                 PPM methods and processes. Yet only 10% rated themselves
                                     as excellent at PPM. (EIU*)




                                     73% of organisations measure project success by determining
        Predictability               whether projects come in on time and on budget. Yet only 6%
                                     consistently deliver projects both on time and on budget. (EIU*)



                                     80% of organisations say having project portfolio management
                                     as a core competency helps them remain competitive during a
       Inclusivity                   recession. Yet 49% follow formal PPM processes on only large
                                     or complex projects. (EIU*)

* Source: EIU Poll, September 2009




                                                                                                        8
Project information challenges

                                 9
Five enterprise and project information challenges


1. Increasing amounts of information
      Complexity, information overload
2. Multiple sources of information and information
   ownership
      Inter-organisational ownership, siloes of data, multiple
      system repositories, non-interoperability
3. Increasing time-criticality of information
      The right information for the right person at the right time,
      rear-view mirror project management




                                                                      10
Five enterprise and project information challenges


4. Consistent information and the lack of project
   processes
      Lack of effective baselines, apples to oranges, lack of
      accuracy and reliability, information dissemination and
      security
5. Conflicting priorities for information use
      Arduous non-management tasks and busy-work, lack of
      automation, lack of analysis and scenario development




                                                                11
Project information best practices

                                     12
Five enterprise and project information best practices


1. Centralise and/or integrate project information
      Eliminate siloes not through dumps, but integration and
      interoperability – standards vs. proprietary – data centric vs.
      file centric (document centric – even e-docs)
2. Secure project information at appropriate levels of
   granularity for access by role
      Centralised security profiles for easy role out, field level
      data security
3. Develop and capture project information processes
      Standardise workflows and processes to maximise
      automation and efficiency, and raise accuracy and
      timeliness


                                                                        13
Five enterprise and project information best practices


4. Automate reporting
     Eliminate administrative tasks within project team and focus
     on information use. Security ensures reporting automation
     is controlled
5. Focus project and portfolio teams on information
   analysis and decision-making
     Encourage data analysis, problem discussion, collaboration
     and resolution. Early warning for tactical executive support
     and enterprise visibility for strategic planning and control




                                                                    14
Oracle Primavera ePPM
      EPPM                                                             Integration
   Business Uses

     Construction             Project Portfolio Management             Financials
      Program
                              Project                  Resource        Business
     Management
                            Management                Management      Intelligence
     Capital Asset
     Maintenance                                                         Building
                                                                       Information
  Software System                                                    Modeling / VDC
   Development &
                                         Global Project
    Deployment                            Repository                   Asset Mgmt
      Enterprise                                      Construction
                               Risk
     Investment                                                       Supply Chain
    Portfolio Mgmt          Management                Management

Resource Productivity                                                     Product
                                  Project Collaboration               Lifecycle Mgmt
 & Capacity Planning
  Product Design ,                       Role-Based Views            Human Capital
  Manufacturing, &                       All projects, all sizes      Management
   Implementation
      Program                                                         Performance
    Management                                                        Management



© 2010 Oracle Corporation
Oracle Primavera ePPM


                       P6 Analytics / P6 ERD / BI / Reporting

                           Business Process Management

                                  Portfolio Management
                                Propose, Prioritize & Select Initiatives
                                  Review, Track & Adjust Portfolio


                                            P6 ePPM                        Contract Management
     Risk Analysis                      Project Management                   Change Management
  Quantitative Risk Analysis             Risk Management                     Contract Management
 Quantitative Risk Management            Project Scheduling                   Claim Management
                                       Resource Management                    Issue Management


                      Oracle Universal Content Management
                            (or other content management system)

                                                ERP

     Integration with other core Applications (AutoVue, Spatial, etc.)



                                      © 2010 Oracle Corporation
Demonstration

                17
• Centralise and integrate project information i.e. eliminate siloes
   – Show integration of ERP and PPM information
   – Show project driven cost/resource or schedule information that would be lost or very late in an ERP



• Secure project information at appropriate levels of granularity for
  access by role
   –   Show the right information for the right person at the right time (an alert for instance)
   –   Show security so that even external project participants can see and enter information
   –   Show a roll-up to an executive level making the appropriate synopsis for strategic evaluation
   –   Show effective information comparison - within a project and within a portfolio - i.e. apples to apples
       across two projects, to determine true performance rates


• Develop and capture project information processes
   – Standardise workflows and processes to maximise automation and efficiency, and raise accuracy and
     timeliness
   – Show an information entry process (status update for instance), as well as the configurability of the
     process support (BPM information update and approval from/by non-P6 user)




                                                                                                                 18
• Automate reporting
   – Eliminate administrative tasks within project team and focus on information
     use. Security ensures reporting automation is controlled
   – automated reporting -
   – Show automated reporting as well as ease of reporting on the fly, i.e. no
     more scrambling for an executive meeting, or a client report out - taking the
     waste out of it


• Focus project and portfolio teams on information analysis and
  decision-making
   – Encourage data analysis, problem discussion, collaboration and resolution.
     Early warning for tactical executive support and enterprise visibility for
     strategic planning and control
   – Show scenario analysis to leverage information dynamically to evaluate
     decision options rather than finding info and stabbing in the blind with
     incomplete info




                                                                                     19
Summary

          20
Drive efficiency, reduce risk and gain transparency
with real-time project and portfolio information

• Project data and information is an invaluable asset to
  the project and the enterprise – use it!
• Eliminate information guarding
• Workflow information gathering and approvals
• Automate information dissemination and reporting
• Shift back to a culture of analysis, evaluation and
  informed decision making

Target: informed decisions versus best guesses



                                                           21
22

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EPPM Webcast

  • 1. 1
  • 2. <Insert Picture Here> Enterprise Project Portfolio Management best practices series Episode I: Fact not fiction - make informed business decisions with reliable project data Richard Sappé Industry Strategist
  • 3. Sales Brief Agenda • Introduction and PPM as an enterprise <Insert Picture Here> critical business function • Five key project information challenges • Five key project information best practices • Demonstration • Summary • Questions & Answers 3
  • 5. The problem Too few projects finish on time and on budget 90% say project management is critical or Yet 49% only Only 6% say Only 20% use important to follow formal their projects Less than 50% standardised deliver project come in on time measure return project successful management and on budget on investment management projects and practices all of the time solutions remain competitive Source :Economist Intelligence Unit Survey © 2010 Oracle Corporation 5
  • 6. Macro trends The Economy – financial volatility, budget constraints, overall uncertainty, competitive pressures The People – skill and resource constraints, aging/ retiring workforce, virtual teams, partners The Customer – higher expectations to do more with less, and do it faster, better and cheaper, heroics the new norm The Work – increasing complexity and greater risk of projects, more inter-relationships among projects and players; balancing core vs. context The Process – more complex IT environments; more systems, more people, more information; “flattened” processes 6
  • 7. Driving business value The business impact of Enterprise Project Portfolio Management Inefficiency Value • Lack of Standards • Strategic Alignment • Unmitigated Risks • Governance • Poor Accountability • Innovation • Inadequate Enterprise • Competitive Advantage Capacity Planning Project Portfolio • Velocity, Agility • Rework, Waste Management • Repeatable Success • Overruns • Successful Projects • No Best Practices • Visibility • Process Inefficiency • One version of the • High TCO “truth” 7
  • 8. Managing the challenges 21st century projects Companies utilising project portfolio management can expect Governance greater consistency in project execution and ability to drive project outcome. 53% of organisations are continually working to improve their Optimisation PPM methods and processes. Yet only 10% rated themselves as excellent at PPM. (EIU*) 73% of organisations measure project success by determining Predictability whether projects come in on time and on budget. Yet only 6% consistently deliver projects both on time and on budget. (EIU*) 80% of organisations say having project portfolio management as a core competency helps them remain competitive during a Inclusivity recession. Yet 49% follow formal PPM processes on only large or complex projects. (EIU*) * Source: EIU Poll, September 2009 8
  • 10. Five enterprise and project information challenges 1. Increasing amounts of information Complexity, information overload 2. Multiple sources of information and information ownership Inter-organisational ownership, siloes of data, multiple system repositories, non-interoperability 3. Increasing time-criticality of information The right information for the right person at the right time, rear-view mirror project management 10
  • 11. Five enterprise and project information challenges 4. Consistent information and the lack of project processes Lack of effective baselines, apples to oranges, lack of accuracy and reliability, information dissemination and security 5. Conflicting priorities for information use Arduous non-management tasks and busy-work, lack of automation, lack of analysis and scenario development 11
  • 12. Project information best practices 12
  • 13. Five enterprise and project information best practices 1. Centralise and/or integrate project information Eliminate siloes not through dumps, but integration and interoperability – standards vs. proprietary – data centric vs. file centric (document centric – even e-docs) 2. Secure project information at appropriate levels of granularity for access by role Centralised security profiles for easy role out, field level data security 3. Develop and capture project information processes Standardise workflows and processes to maximise automation and efficiency, and raise accuracy and timeliness 13
  • 14. Five enterprise and project information best practices 4. Automate reporting Eliminate administrative tasks within project team and focus on information use. Security ensures reporting automation is controlled 5. Focus project and portfolio teams on information analysis and decision-making Encourage data analysis, problem discussion, collaboration and resolution. Early warning for tactical executive support and enterprise visibility for strategic planning and control 14
  • 15. Oracle Primavera ePPM EPPM Integration Business Uses Construction Project Portfolio Management Financials Program Project Resource Business Management Management Management Intelligence Capital Asset Maintenance Building Information Software System Modeling / VDC Development & Global Project Deployment Repository Asset Mgmt Enterprise Construction Risk Investment Supply Chain Portfolio Mgmt Management Management Resource Productivity Product Project Collaboration Lifecycle Mgmt & Capacity Planning Product Design , Role-Based Views Human Capital Manufacturing, & All projects, all sizes Management Implementation Program Performance Management Management © 2010 Oracle Corporation
  • 16. Oracle Primavera ePPM P6 Analytics / P6 ERD / BI / Reporting Business Process Management Portfolio Management Propose, Prioritize & Select Initiatives Review, Track & Adjust Portfolio P6 ePPM Contract Management Risk Analysis Project Management Change Management Quantitative Risk Analysis Risk Management Contract Management Quantitative Risk Management Project Scheduling Claim Management Resource Management Issue Management Oracle Universal Content Management (or other content management system) ERP Integration with other core Applications (AutoVue, Spatial, etc.) © 2010 Oracle Corporation
  • 18. • Centralise and integrate project information i.e. eliminate siloes – Show integration of ERP and PPM information – Show project driven cost/resource or schedule information that would be lost or very late in an ERP • Secure project information at appropriate levels of granularity for access by role – Show the right information for the right person at the right time (an alert for instance) – Show security so that even external project participants can see and enter information – Show a roll-up to an executive level making the appropriate synopsis for strategic evaluation – Show effective information comparison - within a project and within a portfolio - i.e. apples to apples across two projects, to determine true performance rates • Develop and capture project information processes – Standardise workflows and processes to maximise automation and efficiency, and raise accuracy and timeliness – Show an information entry process (status update for instance), as well as the configurability of the process support (BPM information update and approval from/by non-P6 user) 18
  • 19. • Automate reporting – Eliminate administrative tasks within project team and focus on information use. Security ensures reporting automation is controlled – automated reporting - – Show automated reporting as well as ease of reporting on the fly, i.e. no more scrambling for an executive meeting, or a client report out - taking the waste out of it • Focus project and portfolio teams on information analysis and decision-making – Encourage data analysis, problem discussion, collaboration and resolution. Early warning for tactical executive support and enterprise visibility for strategic planning and control – Show scenario analysis to leverage information dynamically to evaluate decision options rather than finding info and stabbing in the blind with incomplete info 19
  • 20. Summary 20
  • 21. Drive efficiency, reduce risk and gain transparency with real-time project and portfolio information • Project data and information is an invaluable asset to the project and the enterprise – use it! • Eliminate information guarding • Workflow information gathering and approvals • Automate information dissemination and reporting • Shift back to a culture of analysis, evaluation and informed decision making Target: informed decisions versus best guesses 21
  • 22. 22