Introduction of SAP PPM – Portfolio Project Management

When there are many projects run by an organization, it is vital for the organization to manage their project portfolio. This helps the organization to categorize the projects and align the projects with their organizational goals.

PPM is a management process with the help of methods aimed at helping the organization to acquire information and sort out projects according to a set of criteria.

Objectives of  Portfolio Project Management

Same as with financial portfolio management, the PPM also has its own set of objectives. These objectives are designed to bring about expected results through coherent team players.

When it comes to the objectives, the following factors need to be outlined.

• The need to create a descriptive document, which contains vital information such as name of project, estimated timeframe, cost and business objectives.
• The project needs to be evaluated on a regular basis to ensure that the project is meeting its target and stays in its course.
• Selection of the team players, who will work towards achieving the project’s objectives.

Benefits of Portfolio Project Management

PPM ensures that projects have a set of objectives, which when followed brings about the expected results. Furthermore, PPM can be used to bring out changes to the organization which will create a flexible structure within the organization in terms of project execution. In this manner, the change will not be a threat for the organization.

The following benefits can be gained through efficient PPM:

• Greater adaptability towards change.
• Constant review and close monitoring brings about a higher return.
• Management’s perspectives with regards to PPM is seen as an ‘initiative towards higher return’. Therefore, this will not be considered to be a detrimental factor to work.
• Identification of dependencies is easier to identify. This will eliminate some inefficiency from occurring.
• Advantage over other competitors (competitive advantage).
• Helps to concentrate on the strategies, which will help to achieve the targets rather than focusing on the project itself.
• The responsibilities of IT is focused on part of the business rather than scattering across several.
• The mix of both IT and business projects are seen as contributors to achieving the organizational objective