Why PPM Tools Aren't Enough?

  Manufacturing   Portfolio Management   ProjectsAtWork  

Does your PPM solution help you understand the cost of IT operations or just your projects and portfolios? Technology Business Management is an emerging category of software solutions designed to help CIOs and IT executives manage and communicate the cost, quality and value of IT Services.

With a market expected to surpass the $1 billion mark by 2012, PPM is a well-established software category helping IT manage the projects side of the IT business. However, as Gartner noted in its 2010 Project Portfolio Management Magic Quadrant, “Potential buyers of IT PPM systems face many challenges. They need PPM systems, but PPM as a technology alone cannot help an IT department.”

One great example of an area where PPM alone cannot (and, should not) be solely relied upon is managing the financial performance of an entire IT operation. The primary goal of PPM is to manage IT projects — the project schedules, resources, dependencies, and portfolio of projects within the Project Management Office (PMO). It is predominantly focused on the human capital element.  But it’s widely known that in most organizations the PMO’s area of responsibility accounts for only 20% to 30% of the overall IT budget, and IT operations accounts for the other 70% to 80%. IT leaders need a way to manage the financial and quality performance of the entire IT function.

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