How Evolving Technology Will Affect the Future of Project Portfolio Management

The full force of digital transformation has started in 2017 and its influence can be felt in initiatives such as project portfolio management. According to the International Data Corporation, percentage of enterprises creating advanced digital transformation initiatives is expected to increase in more than double figures over the next five years, from 22% in 2017, to almost 50%. 

In IDC's worldwide information technology (IT) industry predictions for 2016 and beyond, spending on cloud services and ancillaries will exceed $500 billion, resulting from the emergency of the digital transformation economy. This "DX economy" has already influenced enterprises to see beyond their traditional project portfolio management software and practices and adapt cloud-based tools, collaboration technology, and visual and social project management. 

The nature of these projects has experienced a huge shift because of the rapid advances in technology. This pushed organizations to approach project portfolio management in a different manner. 

These are the major predictions about the future of project portfolio management leading up to 2022. 

* A new breed of deployment will arise from the adoption of private cloud technologies 

Enterprises now see digital transformation as a means of transforming the way they run their businesses. This goes beyond looking at digital transformation as revenue stream. As private cloud deployment gains steady support, enterprises are considering open source technologies given its control, flexibility, and scalability. 

Cloud technologies can handle various levels of computing, are compatible with standard hardware, and has a huge market for products and services. Enterprises get what they want, which is cloud-based access to private data which are still on-premises. 

* Massive growth for the PPM market There is a rise in Bring Your Own Device (BYOD) trend among businesses. According to a study by TechPro Research, 74% of organizations have adopted or plan to adopt BYOD. It allows employees "to bring their own devices into the office for business use it has helped companies cut hardware and service costs, although in some cases it has also resulted in an added burden upon the IT departments tasked with maintaining these devices." 

This, as well as the increase in business optimization needs, and the inclination towards cloud-based software solutions are driving the PPM market, which is expected to grow from $2.52 billion in 2015 to $4.63 billion over the next five years, at a compound annual growth rate of 12.9%. Rising complexities within projects are driving the PPM market are also a consideration. A Markets and Markets report stated that "with the increasing complexities in handling various projects and analyzing huge data, organizations would have a tough time maintaining efficient work pace, while optimizing all assets such as resource, time, and financial." 

"For this, the Project portfolio management software came into existence with an aim to cater to the project handling needs of organizations. The Project portfolio management tool is all about mixing and synchronizing people, tools, and culture within the framework of business. This tool provides organizations with unparalleled visibility into business processes and helps in aligning projects with business objectives and corporate strategies." 

"The growth of this market is propelled by increasing complexities in handling projects, which necessitates the adoption of Project portfolio management solutions." 

The mature markets of Europe and North America are expected to dominate the PPM software market growth. Increased traction in some of the developing regions such as Indonesia, Turkey, and Chile is also expected. Capterra also notes that "an important point to note is that, while emerging economies will drive more growth, PPM adoption does not necessarily have a direct relation to economic factors. It can be seen as more of an evolutionary aspect that companies will look to get in and derive value out of." 

* Software providers still has to address adoption 

There's a dramatic increase among small to medium businesses in terms of buying PPM software, but a lot are still struggling with the adoption process. This is not unusual given that compared to bigger businesses; SMBs are still new to this game. 

* All-in-one PPM tools will gain popularity among SMBs 

More than 60% of SMBs still use multiple PM tools or a combination of tools and manual methods for project and portfolio management. Around 8% are using non-PM software like CRM tools to manage projects, according to a 2016 Software Advice report. 

The good news, more SMBs are welcoming a more structured project management approach and started investing in all-in-one PM tools. Capterra describes all-in-one PPM systems as "[helping] streamline project management efforts and processes by consolidating planning, tracking, reporting, and analysis on a single platform, and by integrating key functions like marketing, sales, HR, and finance with project management." 

Digital transformation is going to drive enterprises in rethinking their approach in technology, processes, skill sets, and organizational structures. As an organization-wide discipline, project management has to cope with this evolution. Providers will need to accommodate these demands and make sure to keep up with the rapid pace of digital transformation.