Enterprise Portfolio and Project Management (EPPM) is a way for large corporations to manage and evaluate a large number of projects by grouping them into strategic portfolios. These portfolios are then analyzed for overall effectiveness, how their estimates compare with actual costs, and whether they align with the strategic objectives of the organization. EPPM consist out of the following 5 areas;
1 Business model management - based on the Strategic Business Objectives, the projects required to improve the supply chain (e.g. vendor rationalization), the sales channels (e.g. user experience), operational excellence (e.g. LEAN ) are determined and related to the potential impact on the business model. (see previous blog)
2 Portfolio management - The projects and assets are categorized and divided into independent portfolio’s. The impact of every portfolio on the enterprise architecture and the value for the organization is analyzed and together with the stakeholders the priorities, investments and potential benefits are determined.
3 Program management – The program management offices (e.g. the ICT portfolio) calculates the impact of the program on the financial and logistical planning.
4 Project management – The projects charters are managed by the project managers and the projects are supported by financial and logistical administration.
5 Project execution – The project methodology is applied (e.g. Agile) and the deliverables are integrated into the business units (by BPM) and supported by the ITSM departments.
The following picture gives an overview;
Within many organization these 5 EPPM areas are supported by different departments with several (ICT) tools (mainly spreadsheets and project management tools). This causes misalignment and does not fully bring the benefits of integrated EPPM. Therefore many organization are rationalizing and integrating their EPPM application portfolio. The ERP vendors (like SAP) are integrating their EPPM tooling with the SAP logistical and financial administration and the ITSM platform (like SAP solution manager). The EA vendors (like Software AG) are integrating their EPPM tooling (Alphabet) with their Enterprise Architecture management tools.
The VNSG ADM expert group is organizing a meeting on 23 February to better understand the concepts of EPPM and the integration capabilities of the EPPM applications suite. The agenda of the meeting is as follows;
1 Overview of the EPPM concepts - Frank Luyckx
The concepts and benefits of an integrated EPPM platform and the available application suites are explained.
2 The capabilities of the SAP (E)PPM platform - Harald van der Zijl (Newitera)
The SAP PPM platform is tightly integrated with the SAP (HANA) business suite and covers a many topics of EPPM. The presentation will give an overview of the integration area's, the future of SAP PPM and lesson learned of several customer cases.
3 The EPPM platform of Philips - Erik Govearts (Enterprise Architect at Philips)
This presentation will cover the EPPM concepts and application portfolio of Philips (e.g. Alphabet of Software AG) and give an overview of the lesson learned and potential improvements
4 Integral IT portfolio management - Arthur de Niet (VNSG focusgroep EPM)
Arthur is the author of the book "Integral IT portfolio management". This presentation will compare the EPPM principles with his IITPM principles and identify the overlap and the differences. Arthur will also give an overview of his lesson learned and potential fit falls
5 EPPM forum discussion
More background information on the concepts of the Enterprise Project and Portfolio Management (EPPM) and the Business and ERP transformation life-cycle can be found in the book of the ADM expert group; "Business Transformation in operation(s)"
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