How is 2011 looking for you and your team as we begin the new year? A December 2010 IDC custom survey showed financial and resource constraints as most problematic to software quality, followed closely by complexity, and then by pace of change and finally, project prioritization. The triple whammy of limited resources, increased complexity and ever increasing demand for faster software delivery makes poor IT Governance and anemic project prioritization approaches untenable. My team at IDC continues to see c
For those not familiar with this market, IT PPM products provide project, portfolio, resource, program, financial, workflow management (among other features). These capabilities are of particular importance when prioritizing scarce resources and getting a handle on financial impact of IT project portfolio decisions. As software increasingly enables business and product innovation, the impact of these investments is key. Visibility and data management are also important for CFOs who increasingly hold the purse strings for IT projects. Yet these tools also can be hard to use, expensive, with long deployment times and tough adoption cycles.
Last year's IDC Marketscape for IT PPM in 2009 therefore provided two views – an Enterprise IT PPM and a Software as a Service (SaaS) IT PPM perspective. We sought to graphically illustrate the need for context when making purchase decisions with variegated, differently weighted scoring – from the high-end, global deployments characteristic of enterprise IT PPM needs, to faster, more intuitive, less functionally demanding and less expensive deployments typical for SaaS. This initial approach to more variegated assessments and scoring for the IT PPM market was helpful to many, and set the stage to extend our research further in 2010, where we now double the number of views made available to users making purchase decisions for IT PPM.
IDC's intent to surface four different views in our current research was to broaden visibility into key areas most often brought up by business and IT organizations in conversation with us as they face project portfolio decisions. Those areas included the Enterprise and SaaS views surfaced last year (and again in 2010) and were expanded to encompass an IT Financial and IT service management view and a combined IT PPM / Application Lifecycle Management (ALM) view.
As we continue to deal with volatility, close coordination with business-critical financial and human resource applications is a pressing area. Increasingly, the office of the chief financial officer (CFO) signs off on most or nearly all expenditures (including IT). Visibility into the financial impact of IT projects and programs and management of the IT portfolio along with the overall corporate portfolio is pressing for organizations querying us. IDC also sees the gradual evolution and use of coordination between the IT project portfolio and IT systems and service management portfolios. With 70–80%+ of expenditures on the operations side, and complexity increasing, executive demand for managing the overall IT portfolio to handle resource allocation and costs efficiently is growing. How do executives and program and project managers gain visibility into end-to-end costing from application development through to deployment? Low maturity levels have limited coordination in the past. And the schisms between IT and operations have been as costly as they are fracturing. However, the complexity for release and provisioning (encompassing virtual and physical infrastructure) and the potential for cost savings evolving from a grim economy are driving interest and adoption on the part of mature, savvy organizations. For this reason, IDC included assessment of coordination between the IT project and IT service management and infrastructure portfolios as a criterion for our IT Financial management view in this research.
In addition, we increasingly see broader use of IT PPM in coordination with application life-cycle management solutions. Why? With complex sourcing the norm, and the need for metrics and for quantifiable, current information about project process, what could be more useful than data from tools that developers use daily? These products — which include requirements, testing, software change management, and version control and process management — can help to provide granular metrics for the assessment of IT software project delivery and/or delays and quality. These quantitative metrics can provide guidance both for project success and failure and for the effectiveness of internal and external resources being used to execute on IT initiatives. Those metrics then enable qualitative choices about risk, compliance, and where additional resources may be needed to troubleshoot challenging, delayed programs. (Typically, the projects with the greatest business value and dynamism involve greater risk and need to be monitored effectively.) These metrics can also help inform choices about internal resources and service providers where outsourcing is a key element for IT portfolio execution.
These market factors and end-user demands informed IDC's choices about focus and weighting for our IT PPM MarketScape assessment framework with four different views — enterprise IT PPM, SaaS IT PPM, IT financial management, and ALM PPM.
So which of these areas is most challenging to your organization as you move into 2011 and we march inexorably on into 2012? Which of the views that we show are most relevant? How is your organization reaching out across the divide between development, operations, business stakeholders (including executive decision-makers to bridge the gap? What's working, and what isn't?
Let us know if there are additional, customized IT PPM weighting and other perspectives that you would be relevant to you and your teams as you evaluate these solutions. How do you overcome cultural and organizational barriers to adoption and what approaches are you taking to meet financial and resource challenges? Feel free to respond here with comments and questions and check out our Webcast from earlier this month at http://event.on24.com/r.htm?e=272921&s=1&k=61985C181588A29FB62B961D6C953971.