Planisware 5 PLANISWARE PROJECT AND PRODUCT PORTFOLIO MANAGEMENT

Planisware 5 PLANISWARE PROJECT AND PRODUCT PORTFOLIO MANAGEMENT

PLANISWARE PROJECT AND PRODUCT PORTFOLIO MANAGEMENT Introduction to Planisware as a Project and Product Portfolio Management solution Planisware 5 is your solution for managing the complete lifecycle of your company s innovation processes - from ideation to project delivery. With the Planisware 5 solution your company can define a high-level project strategy and then integrate this strategy within the day to day activities executed at the operational level. Planisware 5 provides business decision guidance, global visibility over the project portfolio and the means to collect reliable project data quickly and thus to get faster innovation-to-market! More recently, Planisware New Product Development additions gained a lot of momentum by giving more control over the company s idea to market pipeline. Projects and Products share many components of the Planisware solution such as the ideation module, the workflow engine, value analysis tools, documentation management, etc. The new Planisware Product Portfolio Management module, seen as the next step of project portfolio management for Product companies, is tightly integrated into Planisware s project and portfolio capacities: At Portfolio level, both products and projects benefit from Planisware simulation, global roadmapping and budgeting tools. At Execution level, the Planisware product module is able to aggregate the cost and scheduling information of contributing projects in order to feed the product decision process. A. Planisware as a tool for Project and Portfolio Management Planisware manages the entire project funnel and enables your organization to deliver innovation faster to market. Some of the key activities managed by Planisware: Project Portfolio Management - choose the right projects to work on, maximizing the value of your portfolio Roadmapping and simulation to produce a strategically aligned, capacity-driven project pipeline Program, project, and resource scheduling to improve project execution As an enterprise solution, Planisware 5 manages the different aspects of your business from idea to launch, including: All your projects, regardless of their nature: new products, IT, process improvements, maintenance and fixes, fundamental search, merger and acquisitions... All stages of your program including: ideas, initiatives, projects, post-launch... All levels of your organization including: operations, programs, portfolios, contractors... All project stakeholders have access to structured information flows and tools relevant to their roles: marketing, sales, product development, research, IT, country business units. B. Planisware as a tool for Product Portfolio Management Planisware project management capabilities have been used in the past in certain Planisware customer organizations to manage product development projects. These capabilities had enabled Planisware customers to better manage the strategic alignment of the company s new products and the supporting product development projects. New Product Development represents comonly about 30% of the activity and budget of a product organization while 70% of the effort is spent on existing products. Providing effective support for the full product lifecycle brings the current Planisware solution to an entirely new level. The recently released Planisware Product Portfolio management module solves several functional shortcomings of the Planisware solution that had been missing some specific product development aspects: The ability to follow-up a product over its entire lifecycle, whereas projects should have a clear beginning and end. The addition of several management tools such as requirements, configurations or competition analysis which would not logically fit within a project toolbox but which make sense when dealing with products. The ability to address and to process high-level product management needs through an easy and intuitive modeling of the company portfolio of products, components, configurations and technologies. The ability to aggregate information from legacy PLM (Product Life Cycle management) into the Planisware solution. Purpose of this brochure As project and product portfolio management are two functional and strongly interdependent aspects of the Planisware solution both application areas of the Planisware software are illustrated in one only brochure. Page 3 of this brochure gives a quick graphical overview on shared tool functionalities and the components. Pages 4-11 focus on Project Portfolio with Planisware. You learn how Planisware 5 enables you to make the right strategic decision on which projects to develop and in which order so that you can achieve a healthy project portfolio. This part of the brochure also covers all aspects of project management: planning, resource scheduling, and cost control. The pages 12-17 introduce to Planisware Product Portfolio Management functionality. The brochure concludes on the pages 18-20 with a short functional overview and a list of some reference customers. 2

PLANISWARE PROJECT AND PRODUCT PORTFOLIO MANAGEMENT Planisware Solution Capabilities: Global Overview Figure 1: On operational and strategic portfolio level Planisware project management and Planisware product portfolio management share capabilities. Profit & Loss Product Capabilities Roadmapping Project Capabilities Capacity Business Case Inititiave management Competitive Analysis Shared Capabilities Lifecycle Revenues Simulation Investment Scenario Product Revenue Portfolio Risk Mgt. Workflow Sales Forecast Ideation Budget Cost Management Metrics Operations Documents Resource and Skills Management Product Configuration Cost of Goods Sold Time Tracking Planning Release Management Requirement Management Product Portfolio Main Components and Information Flows Figure 2: Information from projects are aggregated on a product portfolio management level of the tool. The information flow and the integration between project life cycle and product life cycle management is carried out seamlessly. Exemples of commonly shared functionalities in both the project and the product management environment are the ideation module, document management functionality, risk management and the workflow engine. Roadmap P & L Product Costs of Goods Sold Competitive Information Product Lifecycle Revenues Product Metrics Product Requirements Releases Sales Forecast Risks Documents Support Project Activities Supplier Milestones Tradeshows Strategic Objectives Planning Risks Documents R & D Product Development Planning Hours Expenditures Risks Documents... Projects Marketing Project Planning Hours Expenditures Risks Documents... R & D Component Development Manufacturing Project Product End of Life Technology Development Planning Hours Expenditures Risks Documents... 3

PLANISWARE PLANISWARE PROJECT PORTFOLIO PROJECT PORTFOLIO MANAGEMENT Planisware 5 Funnel Architecture Defining the Corporate Strategy and Aligning the Project Pipeline The Planisware 5 solution has been designed around a project funnel development process. Planisware 5 processes Overview and reporting have all been created to get your innovation faster Each to market. roadmap Planisware includes covers internal each items step and from can early even idea link to collection to project/product launch: components from other roadmaps or projects, like milestones The first step toward achieving a well-balanced, healthy Interested Project Portfolio Management and strategic investment and deliverables. trade-off? To Pages manage 4-11 such explain an how interconnected pipeline is to define and communicate the Strategic Roadmap for your company. Within Planisware 5, the Roadmap Planisware 5 enables you to make the right strategic decision on which projects network to of develop roadmaps and and in which projects, order all dependencies so that you can can be achieve a healthy project portfolio. visualized. feature allows you to articulate the strategic intent of the company Need for to a learn given more time about frame how across Planisware and within 5 can crossfunctional aspects departments. of project management: planning, resource scheduling, roadmaps and cost can control. be resynchronized With Planisware on demand 5, you can at any imple- time. help you better Updates manage in external your projects? components Pages are 12-15 easily covers identified all and ment an enterprise-wide, standardized, highly integrated system. Such revisions are traceable and evolutions can be This is complemented by the Budgeting Envelope concept, otherwise known as Strategic Buckets in Planisware 5. compared throughout time. Strategic Buckets allow for a top-down budget allocation process, ensuring that the budget spent on projects aligns with the overall corporate strategy. Strategic Roadmaps and Strategic Buckets offer the following benefits: Define strategic intent in terms of timeline and budget Facilitate communication across functions and to development teams Mitigate misalignment between strategic vision and project execution Provide visibility and control within and across business units Above all else, these modules allow you to measure the difference between your strategic vision, and the portfolio at hand. Modules discussed later will help you find ways to improve it. Creating Strategic Roadmaps A company roadmap reflects the strategic vision of what needs to be achieved in order to sustain the development of the organization. Usually covering a 5 years period, the roadmap encompasses the relevant components needed to understand the company s strategic intent: the target markets, company products, key technologies, people, and processes. In Planisware 5, in addition to a top level roadmap summarizing the company s strategic goals, any number of more detailed roadmaps can be added to focus on a particular aspect of the path. For example, you may want to break down a piece of the roadmap to detail the development of a particular product or technology. With its multi-layered approach, the Planisware 5 Roadmap feature fosters cross-functional communication while providing a concrete representation of the corporate strategy, ultimately improving enterprise-wide alignment of all initiatives. The Roadmap can serve as a starting point for defining Strategic Buckets. Align the Portfolio - Top-down Strategic Buckets in Planisware 5 allow you to align your project activities according to the corporate goals and strategy like those defined within the Roadmap. Buckets can be defined across multiple axes or dimensions, like organization, strategic goals, product lines, project types and geography, and then budgets are assigned within each dimension. Each potential new project or opportunity is assessed against those pre-defined dimensions and rated accordingly. The budget for each dimension is then measured against project and opportunity funding needs. The top-down budget allocation helps the company keep the projects and opportunities that best meet the company s strategic vision and provides the basis to halt, re-prioritize or accelerate projects in order to avoid overspending. Planisware 5 Funnel Architecture The figure 3 below describes the Planisware 5 project development process. Planisware 5 processes and reporting have all been created to get innovation faster to market. Planisware covers each step from early idea collection to the end of the project. DO THE RIGHT PROJECTS DO THE PROJECTS RIGHT Strategic orientation Project development Strategic buckets Portfolio Performance Strategic Roadmap Investment scenarios Detailed Roadmap Project Management LAUNCH Idea Management Business Case & Sales Market Analysis Resource Scheduling 4

PLANISWARE PROJECT PORTFOLIO PLANISWARE MANAGEMENT PROJECT PORTFOLIO Turning Ideas and Demands into Opportunities Overview New opportunities start from fresh ideas and relevant demands. In Planisware 5, the process begins in the Ideation Portal where ideas and demands are collected, scored, and ranked. The most promising ideas and demands are transformed into opportunities. The Opportunity Management Module enables users to build a compelling business case by documenting qualitative and quantitative metrics. Capture the Future of your Organization Organizations routinely collect ideas in order to nourish the project pipeline and answer demands issued by customers. The Ideation Portal in Planisware 5 allows your organization s staff at large to enter all their ideas, including demands, into a single system. With a design familiar to any web user, the Ideation Portal is intuitive and immediately operational. It provides powerful features including idea sharing, ranking by proximity, voting, advanced searching and category management. Once collected, ideas can be triaged through a multi-user scoring engine. The best ideas are incorporated into potential projects, called opportunities, which must be further detailed and re-assessed. Each idea is tracked throughout its lifecycle so that the originating submitter can get feedback on his or her contributions. As already mentioned the Ideation module within the Planisware solution is available for product portfolio management, too. New products, new components, configurations and innovative technologies follow a comparable process. Prepare a Business Case Opportunity Management in Planisware 5 provides a simple process that helps you further assess the value of an idea and build a case for it: Form Opportunities - Organize the ideas to form your opportunities. Several ideas can form one opportunity and, conversely, one idea may spawn several opportunities. Opportunities may have interdependencies, which can be tracked and managed. Score Opportunities - Assess each opportunity in both quantitative and qualitative terms. Quantitative metrics like cash flow, NPV and ECV can be entered or derived. Qualitative attributes like risk, business or market strategy can be scored and weighted. Estimate resources required - Forecasting budgetary needs is difficult at such an early stage. Planisware 5 provides two tools - Parametric Estimation, based on pre-defined equations, and Analagous Estimation, based on historical data - to analyze resource and cost loading needs. Early estimates can be refined during the development process. Assess resource capacity and budget constraints - Capacity and bottleneck analysis screens alert you to cost and resource constraints which impede the organization s ability to carry out opportunities. The Opportunity Management Module ensures that opportunities are evaluated using the standard metrics, and the decision process is based on homogeneous presentation and comparable data. On page 14 this brochure outlines how in a context of product portfolio management the decision process dealing with new demands coming from various sources involves the new Planisware requirement management module. Forecast the Financial Value of Opportunities To properly assess potential benefits and costs of an opportunity to an organization, a full financial forecast is required. Because each company has slightly different needs when it comes to computing finances, Planisware provides a flexible module that is able to accommodate a wide array of requirements. The Financial Forecasting capabilities in Planisware enables users to quickly set up the project cash flow estimate by taking into account expected project costs, contributing project costs, and potential revenues or cost savings. By applying a consistent methodology on all projects, the Financial Forecasting feature ensures that data can be aggregated and compared at the portfolio level. As the project evolves, revenue and cost estimates can be revised or re-synchronized on-demand so accuracy increases as projects progress. Financial Forecasts are connected to the Planisware trend analysis framework which monitors the evolution of financial objectives and expectations through time. The Financial Forecast can be exported and edited within Excel. The exported spreadsheet includes a dynamic link to the data source, enabling users to locally stress-test the product sale and cost assumptions and quickly create new variations. On page 16 this brochure shows how the estimation of sales and revenue forecasting are also critical issues in a product portfolio management context. Typical scenario: Build a business case from ideas Companies often face too many opportunities for far too little a budget. How can Planisware help the company select the best ideas, develop a strong business case, and build a healthy product portfolio? Ideas for new products are submitted to the Ideation Portal, scored, and monitored for popularity The best ideas are transformed into opportunities. Each opportunity undergoes a full financial assessment. An advanced scoring approach weighing the company s most valued criteria can be utilized. Each opportunity is then assessed against several metrics. Metrics like NPV, expected ROI, consolidated development costs, probability of success, scoring results, and risk level are often considered. The impact on existing projects within your portfolio is also assessed through a set of carefully designed reports. 5

PLANISWARE PLANISWARE PROJECT PORTFOLIO PROJECT PORTFOLIO MANAGEMENT Choosing the Right Projects and Opportunities to Optimize your Portfolio Overview After setting roadmaps and strategic buckets, project priorities have been defined to comply with the budget and strategic guidelines. Meanwhile, the opportunity qualification process has resulted in a scored and ranked list of opportunities. At this point it is necessary for the company to weigh the value of the new opportunities against the existing projects to define the best mix of projects that can be achieved given limitations to the organization s budget and resources. The Investment Scenario capabilities of Planisware 5 can help your organization get there. Maximize Portfolio Value by Weighing Investment Scenarios The Portfolio Selection process starts with creating Investment Scenarios that let you easily group and compare opportunities and projects. With Investment Scenarios you are able to follow a simple selection process. Define any number of potential investment scenarios by selecting the criteria to consider, including factors Build a Balanced and Sustainable Portfolio like market penetration, cost reduction and customer At this step, the company is required to build a balanced satisfaction improvements. Portfolio that sustains the corporate strategy, maximizes Figure Then 5: select Some and ideation group the reporting. projects that All ideas support can each be scored or ranked according to popularity. Reward rules can Investment be established Scenario. to promote the best idea makers Compare the Investment Scenarios with a selection of comparison reports. Typical scenario: Project selection Organizations often find it difficult to define what makes the best portfolio. Would a portfolio made of the highest scoring opportunies and projects be the best? How should the company account for on-going projects and organizational capacity? How should the organization deal with a heterogeneous set of opportunities and projects that feature different maturities, assumptions, accuracy and final objectives? Project selection and portfolio optimization is a delicate art. Planisware s project selection lets you refine that process in the following steps: First, group opportunities and projects into multiple scenarios to compare them against each other so you can select the opportunities and projects that would bring the most value for the organization. Repeat the exercise as new facts emerge from the marketplace, and as underlying data and assumptions are fine-tuned for maturing projects. Implement portfolio decisions at the operational level, monitor project execution and then consolidate the results in order to feed the decision process. Simulate Portfolio Optimization Planisware s Efficient Frontier and Sensitivity Analysis features may also assist you in project selection. These methods compute a list of best projects and opportunities based on a user-defined strategy and constraints. The Efficient Frontier computes a list of projects that would maximize a user-selected value (e.g. NPV) under a user-selected constraint, commonly the budget. For each additional increment of the constraint, like additional budget, the system computes the list of projects that will add the most value. Sensitivity Analysis goes one step further and computes a list of projects under multiple constraints. In addition to an optimal project list, the Sensitivity Analysis feature displays the most important constraints on the portfolio and determines how a given change on each constraint can affect portfolio value. value, and can be executed given the organization s capacity. Planisware provides tools and options to support and even accelerate this process. Multi-axes comparisons allow you to view the portfolio in terms of multiple tradeoffs and benefits such as risk, ROI, timing, cost, market and other factors, enabling you to effectively balance the organization s portfolio. An exposed organizational capacity forecast provides the information needed to more accurately review schedules, priorities and additional costs. All resources, including employees, temporary hires, consultants, partners, and outsourced resources can be taken into account. Advanced simulation capabilities allow you to sandbox potential strategic roadmaps and then select the optimal solution set.. Synchronize the Portfolio with Operations Planisware 5 tightly integrates the project portfolio level with operational project management. Planisware 5 enables users to communicate through new project objectives and constraints (schedule, resources or costs) and through gate decisions (continue, hold, kill projects). The system consolidates live information from operations to feed the portfolio with reliable and current data from projects. This information helps the organization to continually assess the health of its projects and to provide an early warning of any significant shift from expectations. 6

PLANISWARE PROJECT PORTFOLIO PLANISWARE MANAGEMENT PROJECT PORTFOLIO Figure 4: The Portfolio dashboard enables portfolio managers to better understand their development portfolio in terms of various strategic and tactical criteria. This allows portfolio managers to look for undue risks or for unexploited opportunities and to make adjustments in order to maximize the value of the overall portfolio Figure 5: Role-based portfolio dashboard displays the corporate project development funnel by status (idea, opportunity, project) as well as a selection of key performance indicators. Each user may tune this screen individually with his/her selection of preferred views. 7

PLANISWARE PLANISWARE PROJECT PORTFOLIO PROJECT PORTFOLIO MANAGEMENT Building Visibility and Streamlining Project Management Activities Overview The Project Management capabilities of Planisware 5 provide the complete solution for your operational needs. A fully integrated cost and scheduling engine and deliverables management system help your organization complete projects on-time and on-budget. Scheduling Planisware 5 is one of very few applications that has its own integrated scheduling engine. Available from a web browser the scheduling engine has been designed to accommodate a wide range of scheduling needs - from simple milestone management to advanced scheduling, including critical path analysis capabilities. A matrixed environment allows work to be distributed and owned by different departments. Multi-project views facilitate communication among separate business units and enable a cross-functional view of the project as a whole. In an environment where the success of one project depends on deliverables from others, dependencies among projects can be defined. You have the choice to automatically accept shifting dates, or view the date of a deliverable your project depends on before synchronizing it with your own. Planisware 5 comes complete with the option of bidirectional integration with Microsoft Project. Key Project Management Benefits Planisware 5 is an intuitive, web-based solution. Users accustomed to planning in other advanced scheduling tools transition easily to Planisware s user interface. The system provides increased visibility over all projects. Predefined views in Planisware 5 make it simple to review changes, risks and opportunities, and trends concerning schedule changes, resource/cost consumption and key performance indicators. Planisware 5 acts as a single source of truth for all to share. All project stakeholders use the same tool, work with the same methodologies, and see the same data. This builds trust around the system, increases frequency of use and results in more frequent updates. All Project Management processes are designed around best practices defined in the PMBOK, and based upon methodologies including PACE from PRTM, and Stage-gate from Stage-Gate Inc. Years of feedback from partnering with our customers for all types of products, projects, and industries are incorporated into our solution. Tracking Budget and Cost Projects in Planisware 5 are structured and tracked according to enterprise-wide standards. The system tracks costs according to work, resource, cost account, and organizational breakdown structures, compliant with PMBOK methodologies. Currencies and labor rates can be defined in the system and updated as needed to reflect current market rates. Moreover, historical rates can be preserved for the time period in which they were effective. Estimation tools can be used to instantiate forecasted project costs, input tables allow users to manually update forecasts and budgets and variance reports highlight the deltas. Planisware 5 supports the Earned Value methodology to track costs and measure forward progress. Combining scope, schedule, cost and performance into a single methodology, Planisware 5 provides users with the tools they need to meet all ANSI/EIA 748 requirements. Adhering to the Stage-Gate Process The Stage-Gate (or Phase Gate) process in Planisware 5 has achieved Stage-Gate Ready certification and PACE compliance and was designed with Six Sigma best practices in mind. The solution empowers users to effectively assess which projects should be pursued or continued by providing a series of gate reviews at which users can generate score cards for evaluation or for which criteria must be met before the project can pass into subsequent gates and move forward in the process. Project Level What-If Analysis Scenarios can be created to weigh different scheduling and resourcing options. Users can create multiple copies of the live project play out different scenarios and then compare them against each other, and against the live project as well. The resulting variances in milestone delivery, resource capacity, and costs inform project decisions. Document Management and Collaboration Effective communication among stakeholders is essential to ensure that projects run smoothly. In an age of telecommuters and global participants, connectivity is often difficult to achieve. Collaborative tools in Planisware such as document sharing, discussion forums and issue and risk tracking ensure that project team members stay on the same page throughout the duration of the project, while text searching makes it easy to find what they re looking for. Documents can be housed directly in the Planisware 5 database or accessed from an external location. They can be attached directly to project activities and milestones, and/or set as mandatory deliverables. Project Consolidation and Reporting The uniquely structured data model incorporated in Planisware 5 allows for quick aggregation of quantitative data in the system. Planisware 5 comes with a complete set of pre-defined reports to meet a multitude of needs. These standard reports can be easily reconfigured to meet specific requirements. 8 8

PLANISWARE PROJECT PORTFOLIO PLANISWARE MANAGEMENT PROJECT PORTFOLIO Portfolio Reporting and What-If Scenarios Overview Once an opportunity becomes an active project, it becomes crucial to not only track its progress, but also to continue to review it in the context of the greater portfolio. Planisware 5 comes with pre-built standard reports as well as a flexible Reporting Wizard so you can see the state of your projects and portfolio at all times, on your own accord. Integration with Microsoft Office and Microsoft Sharepoint lets you easily share information with others. Where the current status is not satisfactory, Planisware comes with a variety of tools to help you address the issues. Capabilities range from quick ad-hoc simulations in the live project to an extensive versioning module, to an assortment of optimization and estimation tools. Project and Portfolio Reporting Planisware is committed to providing users the reporting capabilities they need to accomplish their objectives. Planisware includes several reporting options: Built-in Standard Reports - Based on industry experience, Planisware provides out-of-the box reports that cover the needs of an industry. All reports are configurable along multiple axes (time unit, currency, department, geography, work package, cost account, and more) in order to accommodate multiple needs in a very simple, efficient way. Reporting Wizard - When standard reports are not enough, Planisware provides a wizard to empower users to create new ones. All created reports can be updated, shared and inserted as new pages within the application. Microsoft Office - Planisware provides the ability to work seamlessly with Microsoft Office. Just one-click gets you a bi-directional link with Microsoft Project, or a presentation deck in PowerPoint while live XML data streams keep the data in sync with Microsoft Excel. Microsoft SharePoint Planisware includes comprehensive integration with Microsoft SharePoint, featuring the ability to seamlessly share documents, create live data streams as well as create a mash-up under Microsoft SharePoint with live information and widgets from the Planisware application. Ad-hoc Simulations Planisware s dynamic change-tracking tree tool provides the ability to perform unlimited un-do s and re-do s. Through this tool, each user has access to all the different paths of his or her actions which are automatically tracked while he or she is editing the project. This makes it possible for the user to make changes, perform several un-dos, resume work in a different way but still be able to jump back to any of the previous stages and results by pointing to the desired state in the tree of actions. Advanced What-If Analysis Users can create project or portfolio level data cubes with the desired granularity of data and play with them in a sandbox environment. In this environment, Planisware 5 allows users to move future milestones, freeze projects, adjust resource availabilities, and alter prioritization criteria and strategies. Simulation cubes can be used for what-if analysis, where elements may be changed without affecting real project data. The user is able to see what would happen if a specific change were to be made, for example, that would delay or accelerate the delivery of a milestone, change the scope of a project, or require a significant change in workload. After setting the premise, the user can compare variations against one another or against the current live project(s), and then accept the chosen changes permanently if desired. Risk Assessment Planisware 5 also features an integrated Monte-Carlo engine. Planisware Monte-Carlo Simulation lets you perform simulations over tasks, resources or costs at any level of granularity in consideration of risk management and mitigation. Results of Monte-Carlo simulation enables users to take into account probability before a critical decision and to assess the effectiveness of risk mitigation plans. 9

PLANISWARE PLANISWARE PROJECT PORTFOLIO PROJECT PORTFOLIO MANAGEMENT Managing Resource Capacity and Optimizing Resource Scheduling Overview Planisware 5 contains powerful resource forecasting, planning and management capabilities so your organization can effectively maximize the time and value of your most precious and expensive commodity. Demand Estimation At very early project phases, reliable estimates concerning resources and costs can be difficult to obtain. In addition to accommodating expert judgement, Planisware includes two estimation tools to assist with this task. The Parametric Estimation methodology calculates forecasted demand through a set of parametric equations while the Estimation Analogy tool determines forecasts based on analogies from a set of past relevant projects. Coupled with Project Templates, these estimation tools enable you to put together resource and cost forecasts quickly, with a dependable level of accuracy. Resource Capacity Planning Resource bottlenecks are often the biggest obstacle faced by project development organizations. The resource bottleneck and supply vs. demand vs. capacity views allow for overallocations and underutilized resources to be identified immediately. Resource shortages for the future can be anticipated so avenues like hiring new employees or contracting temporary resources can be initiated in a timely manner. Key Resource Management Benefits Planisware 5 provides short, mid, and long term tactical resource load and capacity information. Analysis can lead to necessary immediate changes as well as predictive actions to prevent staffing shortages for the future. Resources can be managed by department, by individual, by skill, or by a combination of the three. Over-under analysis is available for staffing at all levels of the organization. The system highlights critical resources. Visualize resource bottlenecks to make proper go/no-go decisions at the portfolio level and better handle project priorities at the operational level. Planisware 5 is a role-based solution that enables different departments to take ownership of various project work packages. Coordination of resource assignments is facilitated through a standardized supply-demand model. An out of the box workflow streamlines resource assignment. Planisware 5 allows you to organize resource contracting so you can efficiently plan contracted works and report current contracting levels within the organization. As resourcing issues arise, Planisware 5 simulation tools allow users to play out different what-if scenarios and assess different options for solutions. Meanwhile, easy access to project data like project priorities help inform Resource Managers when decisions requiring resource allocations or delaying vs. accelerating a project need to be made quickly. What-if capabilities allow Resource Managers to test out these changes for their departments across the portfolio of project before making difficult decisions. Resource Assignment Planisware 5 contains built-in workflows that allow project managers to send work requests to resource or functional managers. These requests can be defined by skill, by department, or by individual resource name. Upon receiving a request, the resource manager can assign an individual resource to the task, request more information from the project manager, or refuse the request altogether. As usual, this built-in workflow can be configured to meet the specific processes of the organization. Over-under allocation analysis is available at this level, to complement the assignment process. Time Tracking Actual hours are also commonly tracked in the Planisware 5 solution. These may be imported from a third-party timecard system, or tracked directly in Planisware 5 using Planisware 5 TimeCard. Planisware s TimeCard module provides a simple yet powerful way to track time for all project stakeholders and calculate the estimate to complete your projects. With Planisware TimeCard you can adjust the time periods, task granularity, and user rights. This module is fully integrated with the rest of the system, ensuring that data collection occurs in a timely manner and with the highest level of accuracy. Resource Load Analysis at the Portfolio Level As with the project information, resource loads can be rolled up and aggregated along different dimensions. At the portfolio level, information regarding the status of the resource loads (committed, tentative, and actual time expenditures) can still be displayed. The capacity, supply, demand and actuals framework of resource scheduling ensures a robust system with clear visibility of the organization s resource commitment, project progress, resource consumption and future works. Users are empowered to evaluate resources against a variety of metrics. For instance, you can display financial performance per resource - assess both the cost and value of a resource after taking into account constraints like geography, work time, etc. 10

PLANISWARE PROJECT PORTFOLIO PLANISWARE MANAGEMENT PROJECT PORTFOLIO Figure 6: Project manager dashboard view with project description and a selection of key performance indicators Figure 7: Planisware 5 provides its own fully web enabled planning tool. It accommodates the most advanced requirements and planning techniques. 11 11

PLANISWARE PRODUCT PORTFOLIO MANAGEMENT The Resource Manager Dashboard An Introduction to Product Portfolio Management What is Product Portfolio Management? Product Portfolio Management is the next step in the evolution of business applications that work to enable Product Development and Innovation. Before, Project and Portfolio Management (PPM) solutions had a focus on the selection and delivery of new products. Planisware s Product Portfolio Management goes a step further and addresses new products as well as existing products from their inception/selection to their retirement, thus covering the full life cycle of products at Portfolio level. Within one single solution, Planisware 5 streamlines the communication between all the product stakeholders such as Marketing, Development, Manufacturing and Quality and aggregates product data from many disjointed sources and systems in order to provide an enterprise-wide visibility around the company product portfolio. The Product Lifecycle Managed at Decision Level Planisware product portfolio management enables: Figure At portfolio 14: Planned level, workload to actively by manage project all the for products a department. The information is displayed in a chart as well as in table of format the organization in order to maximize the future value of the company, prioritize developments and foster cross-functional communication between the marketing, development and manufacturing departments. At product level, to support the decision process during the complete lifecycle of products as well as track design decisions and their rationale through time with the help of dedicated tools such as high-level requirement and configuration management, competitive analysis, advanced profit and loss statement... Typical scenario: Product development Go/No Go Companies usually face too many initiatives for too little budgets. How can Planisware help the company select the best initiatives and build a healthy product portfolio? Ideas for new products are submitted to the idea portal in order to score them as well as monitor popularity Marketing is requested to provide some market estimates on the most promising ideas. Marketing is exchanging information with Development and Manufacturing to have figures around the costs: configurations, processes Each product is assessed against several metrics: expected Return on Investment, gross margin and consolidated development costs, resulting cash-flow and sourcing strategy, as well as the strategic fit with the corporate strategy and goals. The impact on existing products and components is assessed (cannibalization, shared component rationalization, economies of scale) as well as more globally impact on the product portfolio (positioning, balance, contribution, company capacity.) To consolidate and centralize product information that can be found in various parts of the information system, such as legacy product lifecycle management but also spreadsheets and Word documents, within a structured product management module. Thanks to its flexible design, Planisware Product Portfolio management module accommodates both discrete and process manufacturing industries. Product Portfolio management compared to Product Lifecycle Management (PLM) Planisware Product Portfolio management focuses on business and decision support with tools such as sales and marketing forecasting, competitive intelligence, business and market requirement analysis, sourcing strategy, idea and configuration management On the other hand, legacy Product Lifecycle management focuses on process and data with tools such as product and data configuration, product mock-up and visualization, material sourcing, manufacturing process management Planisware Product Portfolio is fully complementary to legacy Product Lifecycle Management (PLM) solution: Planisware solution aggregates information that can be found in product lifecycle solutions such as configurations, requirements as well as various product or market metrics in order to provide a high-level visibility throughout the product lifecycle and the company s product portfolio. Benefits of Planisware Product Portfolio Management At Portfolio level: Ensure that the product portfolio is aligned with the company strategy. Raise awareness concerning corporate goals with a visual representation of the company strategy. Improve decision with data shared among all product development stakeholders. At Product level: Standardize Profit & Loss with consistent methodology and supporting data. Help understand and shape a cohesive sourcing strategy with a global visibility around product configurations and sourcing options. Track key product trends, inflection points and design decisions rationale. Enable a common platform between the various product stakeholders: development, marketing, research, executives, sales. 12

PLANISWARE PRODUCT PORTFOLIO MANAGEMENT Where is the Organization going? Product Lifecycle and Roadmapping The Product Lifecycle: from Inception to Retirement Planisware Product Portfolio module follows products from inception to their retirement: During the inception phases by enabling a seamless communication between the marketing and development teams around the product requirements, and early cost and sales assumptions. During the development phases, by providing a global vision across the multiple projects and technology deliverables that contribute to the product as well as help the company control the releases, set sourcing strategies and monitor the competition. During maintenance phases in order to introduce product enhancements and rationalization projects. All the product information and progress are consolidated at portfolio level where gate decisions, product assessments and budget revisions are performed based on the latest information available. Understanding the Competitive Landscape A key addition to Planisware s product management module is its comprehensive competition analysis tool. The product manager is able to add any number of competing products and use scorecards to weigh the company product against its competitors or perform a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). Based on Planisware s multi-user scoring engine, the competition can be updated and compared on an on-going basis, thus providing a decisive tool to understand the company s product behavior throughout its lifecycle: such as being behind / above market or financial targets, market dynamics and trends. Planisware s competitive analysis main features are: A multi-user and multi-criteria scoring engine Quantitative evaluation: time to market, estimated price, probability of success Qualitative (SWOT) competitive landscape evaluation Iterative assessments enables to track competition evolution through time. Maintenance Launch Initial Product Modules - Ideas / Requirements - Roadmap - Competition Analysis - P&L Portfolio - Trade-off / Simulation Project Contributions - Opportunity Management Development Product Modules - Ideas - Requirements - Release - Metrics - Configurations Portfolio - Go, NoGo Project Contributions - Development Projects Product Modules - Ideas - Requirements - Release - Metrics - Configurations Portfolio - Consolidation Project Contributions - Launch Projects - Evolutions / Changes Product Modules - Ideas - Requirements - Release - Metrics - Configurations - P&L Updates Portfolio - Consolidation - Business Contribution Project Contributions - Maintenance Projects - Upgrades - Scope Extensions Time Figure 8: The Planisware Product Portfolio module follows products from inception to their retirement 13

PLANISWARE PRODUCT PORTFOLIO MANAGEMENT How are Design Decisions made? Tracking Requirements from the Idea to the Release Idea Management The ideation management functionality is provided in Planisware as an Ideation Module. As already pointed out that ideation is part of the shared functionalities that are available for both project and product portfolio management. Ideation management has been described in details on page 5 of this brochure. Releases and Versions Once ranked and documented, some requirements are selected and grouped to serve as the basis for one or more releases depending on the product objectives. Release decision are built upon strong requirement value analysis, against the product deadline and development time available. The product can be refined into several versions in order to incrementally include more features and thus secure improved market value without compromising the time to market of a first release. Requirements are followed during development and can be checked at any time within the release cycle: if the requirements dependencies have been met, test and validation status, and final release inclusion status. Besides, further down the development path and at any point during the product lifecycle, all the decision background will be kept under record in order to later explain decisions and their impetus as well as serve for further product enhancements or changes. Managing Requirements Planisware requirement management provides the ability to create, evaluate and manage high level product requirements. Requirements improve the communication around the product stakeholders marketing, development or product managers specifically at the early stages of development or during the release cycles. Requirements are organized around several categories: business, regulatory, functional and technical requirements, with the ability to add, remove or rename categories. Requirements are populated through the import of structured word documents, aggregated data from PLM requirement solutions, and with items from the ideation component or manual additions. Once created, requirements are further organized into hierarchies with dependency relationships. Requirements are evaluated against criteria by multiple scorers. Each requirement score will later serve as a common base to discuss inclusin in a release. Requirements are then matched across categories: for instance a business requirement is linked to functional requirements that can be refined into several technical requirements Cross-category dependency network enables quick visualization of nodal points and orphan requirements, thus supporting the creation of a strong product release. Typical scenario: Portfolio Rebalancing Several products show a decrease in sales and margin, should the company try to develop sales, milk the products or withdraw them? A first assessment at the global product roadmap shows that new products are set to come online to replace some of the aging products. A withdrawal strategy is already implemented for the corresponding products. For few of the remaining products, a market and competition analysis proves that some markets are still developing. Given current company market position and the level of additional development required, the profit and loss is cash-flow positive within six months and the ROI on par with the corporate standards. Some new development projects can be launched. Finally, a couple of products have fallen outside the company scope: after a value analysis, it appears that maintaining market share would be difficult and the product configuration demonstrates that to maintain the supply price level, it would require a disproportionate effort from the company. Retirement projects are launched on these remaining products. 14

PLANISWARE PRODUCT PORTFOLIO MANAGEMENT Figure 9: sample of a product roadmap. The full product lifecycle is displayed at the top as well as key market events such as tradeshows and the higher level of the contributing development, marketing or operations projects. Figure 10: the product configuration provides the ability to break a product into components with pricing and supplier information in order to support the product profit and loss statement and global awareness around key supplier information. 15 15

PLANISWARE PRODUCT PORTFOLIO MANAGEMENT What is my Product Profit and Loss? Measuring the Product Business Contribution Understanding the Product Costs: Planisware Configuration Management Planisware Configuration Management helps the product manager define and explore sourcing strategies. Configuration Management lists all the product components and parts or formula items as well as quantities, pricing and supplier information. Planisware Configuration Management supports advanced features such as volume discounts, alternative configurations and variations. With the help of Planisware Configuration Management, the product manager is able to provide a documented estimation of the cost of the product or estimate the impact of a sourcing change. With a focus on providing high level estimates, the configuration items (price of materials, price of components, shipping costs, volume discounts with suppliers, ingredients within a formulation, packaging costs, manufacturing costs) are either entered manually or imported from an existing bill of material or from a recipe management system. The product manager is able to iteratively explore options and scenarios before opting for any particular sourcing strategy. The product cost profile is synchronized with the profit and loss statements. Estimating the Product Sales and Revenues Typical scenario: Product Configuration Management A company supplier is to drop one of its products. What is the risk for the product portfolio and what mitigation plan can be set? The product configuration module helps the company identify all products impacted by the change. A study is made to explore a development project to replace the component and its costs. Alternative suppliers are considered in the short term. Adaptation costs are assessed through a dedicated project with cost shared by all impacted products. The roadmap of the impacted products is checked to see if new releases are already planned. For the products that have no release planned on the short term, costs and feasibility of a new release is asked. Products Profit and Loss are updated. All changes are simulated and scenarios are developed at portfolio level in order to make the final sourcing tradeoffs as well as validate the change strategy. Planisware provides an advanced sales and revenues estimation tool directly connected to the product global profit and loss statement. At early phases of the product lifecycle, the project manager is able to forecast the product s revenues and sales with the help of adaptable sales profiles, distribution curves or market events (cannibalization, patent expirations ). Later in the product lifecycle, sales assumptions are maintained against actual sales. Revisions are automatically tracked and compared through time giving insights on the product trends. At any time, the product manager is able to perform dynamic analysis and simulations, and deriving scenarios for comparison. Planisware Product Profit and Loss Statement Planisware product Profit and Loss (P&L) summarizes the input from the product s cost of goods sold and expected sales revenues as well as consolidates costs from all contributing projects partially or fully in order to provide a comprehensive vision over the product financial position. Planisware s Profit & Loss module is characterized by: A decentralized input of P&L data at country level with consolidation in a single P&L module Sales estimates by country, by packaging P&L drivers such as market share, market size, market segment, time frame, competition price, price erosion assumptions Product prices by country, by packaging etc. Cost of Goods Sold (CoGS) by packaging and logistic options Computation of the ROI, NPV, Payback At any time, the product profit and loss can be exported and edited within Excel. The exported spreadsheet includes a dynamic link to the data source, thus providing the ability to stress-test the product sales and cost assumptions as well as quickly create new variations. The product cash flow can then be compared to the product expected results or to other products in the portfolio. All changes to the product cash-flow are tracked and are incorporated into the product portfolio trend analysis in order to detect early product misbehavior or unexpected results. 16

PLANISWARE PRODUCT PORTFOLIO MANAGEMENT Figure 11: product requirements with description. Each requirement can be scored as well as linked between requirement categories. Workflow, Collaboration and Document Management Figure 12: Planisware Business & Decision Support: Management of the Product Life Cycle at Decision Level 17

PLANISWARE PROJECT AND PRODUCT PORTFOLIO MANAGEMENT Functional Overview Planisware 5 Project Portfolio Management Idea Management Multiple users scoring engine to assess, sort, improve, select and prioritize ideas Monitoring of the idea workflow Analysis of the ideas contribution to business Assignment of ideas to projects and products for example to an existing additive, a new formulation, a new requirement for an existing product, an alternative formulation. Portfolio Planning and Budget Management Management of multidimensional strategic buckets Top-down budgeting process Financial evaluation (business case) and scoring of project candidates Comparison of top-down and bottom-up planning Alignment of portfolio with strategy What if simulations for decision support Scenario management Portfolio optimization under multiple constraints. Strategic Roadmaps Representation of the company s strategic goals with different roadmaps like roadmaps for markets, products, key technologies, improvement projects (application engineering, process engineering etc.) Definition and management of roadmap interdependencies with operational projects and deliverables. Portfolio Reporting Definition and tracking of key performance indicators (KPIs) and metrics Monitoring of different portfolios with built-in standard views, reports and indicators (ROI, NPV, earned value ) Multiple consolidation of project data by cost types, departments, products, customers, project phases, skills... Reporting wizard to define configurable out-of-the box cockpits and reports (tables, pies, bars, curves, bubble charts, load arrays, crossing matrix, ) Integration with Microsoft Office (Word, PowerPoint, Excel), for example to create dynamical cost reports in Excel or generate monthly status reports in PowerPoint. Project Scheduling, Resource and Cost Planning, Project Tracking Integrated and comprehensive multi-project scheduling engine Project templates Estimation and tracking of labor, procurements and expenses Parametric and analogous estimations Management of project baselines, versions and simulations Management of project interdependencies Work package management Built-in reports, tracking of KPIs and metrics Reporting Wizard, integration with Microsoft Office. Resource Management Management of internal resources and external contractors Skills management Work request management (demand/supply) with resource search engine Medium-term capacity planning Consolidation of capacity and resource demand at different levels (individual resource, team, department, company) Time tracking (Planisware TimeCard Module) for project and line activities. Document Management and Collaboration Input of ideas, risks, project issues for team members Document management system (association of uploaded or linked documents to project activities and milestones, versioning of project documents) Synchronization with Microsoft SharePoint Search function for Planisware objects and documents Support of interdisciplinary teams through functional modules, workflows and the Planisware role concept. 18

PLANISWARE PROJECT AND PRODUCT PORTFOLIO MANAGEMENT Planisware 5 Product Portfolio Management Competition Assessment Competitive analysis tool to score a product against competetive products and represent them in bubble charts SWOT analysis Definition and monitoring of the market position of the product (behind, ahead, innovative etc.). Requirements Management Creation, evaluation, scoring and managing of high level product requirements (business, functional, technical, regulatory...) Definition of hierarchies of requirements Management of requirements Management of interdependencies. Product Configuration Management List of all product information available: components, parts and quantities (resp. formulation), pricing, shipping cost, supplier information such as volume discounts, alternative configurations and variations, etc. Product Profit & Loss Module Advanced sales and revenue estimation tool Comparison of the input of the product s costs (development, production, launch, maintenance) against expected sales revenues (product cash flow). Product revenue forecasts with product sales profiles, distribution curves and market trends (cannibalization, patents expiration, competitive analysis etc.). Release Management Requirements selection for product release (for example enhancements in the recipe of a existing additive). Release decisions built on a multi-user scoring framework (value analysis, product deadlines, available development time etc.). Planisware IT Architecture Interfaces with financial s/w packages & ERP like SAP, Microsoft Office interfaces, LDAP interface. Technical requirements Oracle (10g, 11g) or SQL-Server (2005, 2008) database, Web client (IE, Firefox, Chrome, Safari) with Acrobat Reader Plug-In 64 bit application server with Windows (W2000, W2003, W2008), Unix or Linux operating system. 19

PLANISWARE PROJECT AND PRODUCT PORTFOLIO MANAGEMENT A sample of Planisware Customers... New Product Development Air France, Alstom Transport, Bayer CropScience, Biomérieux, Bosch Engineering, CNIM, Candy, Comau, Die Bahn, FCB Ciments, Faurecia, Hexion, IBA, International Trucks, LG Display, Medtronic, Michelin, Renault, Renault Trucks, Rexam, Schaeffler Technologies, Siemens Mobility, Syngenta, Transdev, Turbomeca, Volvo Parts, Volvo Trucks, Whirlpool. Aerospace & Defense Airbus, Arianespace, Avio, CEA (French Public Nuclear Research), CNES (French Government Space Policy Agency), DCNS (French Naval Defence Group), DGA (French DoD), EADS Astrium, Eurocopter, Europropulsion, Messier Bugatti, ONERA, Sogitec, Thales Raytheon Systems, Williams International. Energy Aramco, Areva, EDF, GDF Suez, IFP (French Petroleum Research Institute), RTE, RWE Power, Snam Rete Gas. Pharma & Biotech Actelion, Alcon Labs, Amgen, Angelini, Astellas, AstraZeneca, Bristol-Myers-Squibb, Chiesi, DCRI, GlaxoSmithKline, Galderma, Johnson&Johnson, Laboratoires Pierre Fabre, Merck Serono, Merial, Novartis, Novartis Vaccines, PDL BioPharma, Roche Pharma, Sanofi Pasteur, Sanofi-Aventis, Solvay, UCB Pharma, Vertex. IT Management, Hightech, Services Air France KLM, Arval, Axa Konzern AG, Bouygues Telecom, Dexia, EDF IT, Generali Deutschland Holding, GE Capital Bank, GIPS (APICIL group), GISA GmbH, HUK-Coburg Versicherung, Le Crédit Lyonnais, La Poste, MAIF, Orange, Raiffeisen Switzerland, SBB CFF FFS (Swiss Railroad), SFR, SNCF (French Railroad), Skyguide, Vauban Humanis. Civil Services Assistance Publique - Hôpitaux de Paris, Canton of Vaud (Switzerland), DoT Montana, INRAP (French Preventive Archaeology Institute), Ifremer (Public Sea Research Institute), Lyon County (France), Lille County (France), Minefi (French Public Accounting Services), Rhone-Alpes Region, Landesbetrieb Strassenbau NRW, Utrecht Province, vts Politie Nederland. Planisware is the leading global provider of world-class project & portfolio management solutions. Planisware s acclaimed configurability accommodates the company s global customers across a variety of industries including pharmaceutical, medical device, biotechnology, energy, aerospace and defense, automotive, and high-tech and empowers users to align the solution with key business programs and portfolio management processes. With more than 150,000 users worldwide and a 99% customer retention rate, Planisware has been recognized as an industry leader by several esteemed analysts, as well as has achieved Stage-Gate Ready and SAP integration certifications. www.planisware.com Planisware Copyright 2011. Version GmbH, April 2011 20