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PLM and Project Management Options

Few days ago, I run into Gartner Magic Quadrant about IT Project and Portfolio Management. You can get it by navigating to the following link (the link was live at the day I posted). Please take a read and make your opinion. Project and Portfolio management software is an interesting space, in my view. There are lots of vendors with very high level of diversification.

Customer Demands

This publication made me think about what are the customer options for PPM (Project and Portfolio Management). I think organizations are looking for this type of solutions today. The main reason is simple – it helps them to execute well. In product development, it becomes a very important tool to achieve their objectives.

PLM and Project Portfolio Management (PPM)

PLM PPM tools (sorry, I hate these TLAs) are becoming a normal part in a portfolio of PLM mind-share vendor. I’ve seen PLM vendors developed or acquired these functionality. You can find these products in the portfolio of ENOVIA (Program Central), TeamCenter (Program Portfolio Management), Windchill (ProjectLink) and in portfolios of other PLM and ERP vendors. I put examples of such applications in the following few videos.


Aras Innovator

ENOVIA Program Central

Project and Portfolio Management Tools

The Project and Portfolio Management tools covered by Gartner in this Magic-Q is representing a diverse set of applications. It scales from small niche players towards big superstars like Microsoft, HP, Oracle and others. Generally speaking all these tools are focused on how to gather data about project portfolio planning activities and make it available to people involved into this project. Now what happens if you are in an engineer involved into a product development project? You need to link somehow your engineering activities with project management. There is a certain disadvantage of most of these vendors in the inability to have deeper integration between project tools and engineering tools. On the other side, these independent vendors have a significant advantage in focusing on pure PPM functions. Some of the players (like Clarizen) have built a loosely coupled integration between CAD systems and their project management tools. You can take a look on a very nice demo of Clarizen working with AutoCAD.

What is my conclusion? In my view, the customer challenge is to choose between Integrated Products and separate Project Management Tools. In case you will pick up PLM Project Portfolio Management Tools, you are at the risk to stack with corporate wide deployment of this tool. In case of just picking up one of the available project management tools, you have a potential to stack in data integration between PDM/PLM modules and Project Management Tools. The decision is yours and probably very individual. I’m interested to hear your opinion and please, share your experience.

Best, Oleg

8 Responses to PLM and Project Management Options

  1. Thanks Oleg for your detailed review on PPM market and description of each PPM solution class.
    In some markets PPM is the originator of all requirements becasue company business process are turning around project management: PP&P and AEC markets are an example.
    The usual perception in most companies in AEC and PP&P markets, less familiar with PLM technology, is that they require two different kind of solutions to improve their business processes: one for Program&Portfolio Management (PPM) and another for Document Management (EDM) with process management (workflow) capabilites. Not so many people in these markets know they can have one solution covering most requirements related to PPM and EDM and, in addition, adding more business process management capabilities. Solutions I’ve address before are, obviously, PLM solutions.
    What is certain is that most of PPM solutions within the PLM solutions are not as complete in some aspects such as vertical PPM solutions. Also true is that gap is minumum and sometimes easy to strech.
    In conclusion, PPM solution in PLM portfolio can cover enough (in most cases, not ever) market needs but cost of implementation is higher so it must be linked to other needs flowing from enterprise level and not only operational level what can be addresses by PLM and not by PPM alone.
    Best, Juan-Ramón

  2. Juan-Ramón, thank you for your insight. Yes, I agree, PLM perceived as a technology that can cover both EDM and PPM. However, the problem, in my view is diversification of requirements and vertical integration. When you create highly integrated scenario, the overall portfolio cost is obviously going up. But, the most problematic is the cost of change. These three factors (diversification, solution cost of cost of change/customization) will have a major impact on the software market in the next 10 years. In my view, we will see fewer product suites and more granular tools. However, this move will not be simple. What is your view on this? Best, Oleg

  3. Forrester’s Roy Wildeman has done some excellent research on PPM solutions for the PLM space, discussing the business challenges they address and the various categories of vendors. Check out his report It’s Time to Revisit PPM for Product Development (full access available via the link, as my company purchased re-print rights).

  4. Matthew, thanks for the link recommendation. However, I’m still not sure this is the right link. What did you want to share? Best, Oleg

  5. Juan-Ramón says:

    Hi oleg,

    I agree with you that diversification, industry, make difficult to have only one solution supporting all different requirements. Also PLM solutions have higher cost than specific solutions, not only talking about cost of implementation but organizational cost of change. However, also it’s true that PPM without other integrated tools for management and analysis is too poor to be really useful in the context of enterprise (no pure departmental usage).
    When company looks for PPM integration in the context of full business processes, PPM tools into PLM solutions is the answer . To be really practical, PLM solution must have accelerators (industry specific preconfigured setups and functionality) also for PPM capabilities.
    For isolated departmental usage, vertical PPM solutions is better in all aspects.
    Thanks for your comments and best regards!!

  6. Juan-Ramon. Thanks for your insight. I agree, as much more you want to put in, the cost of integration raised higher… So, my conclusion is PLM accelerators with pre-configured templates are a possible, but very expensive way. That’s why people will have a tendency to get it implemented separately to decrease a cost of dependency. What is your view on this? Best, Oleg

  7. Futures Options…

    […]PLM and Project Management Options « Daily PLM Think Tank Blog[…]…

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