Besides being relevant to professional services organizations (PSO) and internal information technology (IT) departments, project portfolio management (PPM) software is applied in multiple vertical markets in the area of new product development (NPD). In industries ranging from manufacturing and high technology to consumer goods and biotechnology, PPM solutions help manage the corporate objectives associated with NPD projects.
PPM for NPD and research and development (R&D) projects addresses the needs of organizations seeking to maximize resource utilization for a portfolio of projects. PPM software empowers decision makers to select, evaluate, and prioritize their NPD and R&D projects. Furthermore, existing projects can be accelerated, terminated, or de-prioritized by the allocation or re-allocation of the resources that deliver project tasks. In the area of NPD, the primary objective of a PPM solution is to facilitate strategic and financial control throughout the project or product lifecycle.
The following article will examine the features and benefits of PPM in the NPD arena, as well as some of the vendors that provide specific functionality for this growing market segment.
Challenges in NPD
PPM is a key component of an organization's NPD strategy. The main challenge faced by managers and executives tracking NPD projects is the identification of bottlenecks within the NPD process that are relevant to their unique function within an organization. For instance, at any given time, project managers need to identify the short term availability of resources in relation to the requirements of a portfolio of projects. Vice presidents (VP) and "C" level executives, on the other hand, need to identify mid-term and long-term viability, return on investment (ROI), and strategic business decisions regarding their resource investments.
According to the Product Development Institute (http://www.prod-dev.com), organizations apply PPM methodology to address the following three critical issues in NPD and R&D projects.
1. Maximizing the value of portfolios by effectively managing and allocating resources to optimize profitability, maximize ROI, and reduce risk. This is achieved through the financial controls and scoring models offered by PPM solutions.
2. Achieving balance between business goals, risks, vertical markets, business strategies, and technologies. PPM solutions offer bubble diagrams, histograms, and other graphical reports to assist organizations in benchmarking their balance.
3. Aligning portfolio spending with the organization's business strategy. This can be achieved by implementing a PPM solution that provides strategic cross-referencing between projects, as well as a "gating" process, which enforces checkpoints to evaluate the viability of projects.
It is important to note that PPM solutions help provide the streamlined system that is necessary to address these critical issues by centralizing the information needed to track and evaluate NPD and R&D projects from idea to launch.
PPM for NPD and research and development (R&D) projects addresses the needs of organizations seeking to maximize resource utilization for a portfolio of projects. PPM software empowers decision makers to select, evaluate, and prioritize their NPD and R&D projects. Furthermore, existing projects can be accelerated, terminated, or de-prioritized by the allocation or re-allocation of the resources that deliver project tasks. In the area of NPD, the primary objective of a PPM solution is to facilitate strategic and financial control throughout the project or product lifecycle.
The following article will examine the features and benefits of PPM in the NPD arena, as well as some of the vendors that provide specific functionality for this growing market segment.
Challenges in NPD
PPM is a key component of an organization's NPD strategy. The main challenge faced by managers and executives tracking NPD projects is the identification of bottlenecks within the NPD process that are relevant to their unique function within an organization. For instance, at any given time, project managers need to identify the short term availability of resources in relation to the requirements of a portfolio of projects. Vice presidents (VP) and "C" level executives, on the other hand, need to identify mid-term and long-term viability, return on investment (ROI), and strategic business decisions regarding their resource investments.
According to the Product Development Institute (http://www.prod-dev.com), organizations apply PPM methodology to address the following three critical issues in NPD and R&D projects.
1. Maximizing the value of portfolios by effectively managing and allocating resources to optimize profitability, maximize ROI, and reduce risk. This is achieved through the financial controls and scoring models offered by PPM solutions.
2. Achieving balance between business goals, risks, vertical markets, business strategies, and technologies. PPM solutions offer bubble diagrams, histograms, and other graphical reports to assist organizations in benchmarking their balance.
3. Aligning portfolio spending with the organization's business strategy. This can be achieved by implementing a PPM solution that provides strategic cross-referencing between projects, as well as a "gating" process, which enforces checkpoints to evaluate the viability of projects.
It is important to note that PPM solutions help provide the streamlined system that is necessary to address these critical issues by centralizing the information needed to track and evaluate NPD and R&D projects from idea to launch.
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