What is Enterprise Project Management (EPM)? How does it differ from conventional project management?
A project is an effort a person or group or people undertake in creating unique result, product and service. It is a concept encompassing planning, executing, controlling and closing a mission objective. Burke (2002) asserts this mission objective can be large or small in size, varying among estimated completion period of about a day or years. Managing a project is so challenging because it involves uncertainty and constraint – there is no clear cut formula that works well with every project– and has different attributes (the unique purpose, the required resources, the project sponsor...). This ambiguity forms a paradigm shift for a project manager in succeeding with specific project portfolio. The effective use of tools and techniques however can leverage a project task congruous with applying EPM: The Enterprise Project Management.
EPM according to PMBOK Guide (2008) is the ...view middle of the document...
and Hobbs, B. 2006).
Researchers suggest that a lot of information technology (IT) projects have a high failure rate. According the report unearthed by the Standish Group in 1995 entitled the “CHAOS report” (Schwalbe, 2011, pp.3), out of 8380 IT application projects launched in the US, the success rate was projected at 16.2 %. Furthermore, an estimated 31 percent of the said projects were cancelled before completing, costing various stakeholders to the tune of more than $ 81 billion. The situation although quite different today, the fact is that, it is still complex to lead successful Information Technology projects. Using better tools such as EPM solution, better management processes have been adopted and used by many project managers. The group’s report in 2006 highlighted significant success in that direction. Failed projects were recorded to $ 53 billion in 2006 in the United States as compared to $ 140 billion in 1994 (Johnson, J. 2007).
What astrophysicists called black holes, which is described as absorbing of matter and energy in large quantities is comparable to failed projects. When that happens, resources get sucked while little result is produced. Similarly, a project will surely fail without the involvement and support of management (Keil, M. Mähring & Magnus, 2010). For companies that handle multiple interconnected projects at once an EPM practice is ideal in dealing with uncertainty and constraint.
Schwalbe, K. (2011) Information Technology Project Management 6th Ed. Course Technology, Cengage Learning
Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fourth Edition (2008).
Burke, E. (2002) “Project Portfolio Management,” PMI Houston Chapter Meeting.
Besner, C. and Hobbs, B. (2006)., “The Perceived Value and Potential Contribution of Project Management Practices to Project Success,” PMI Research Conference Proceedings .
Johnson, J. (2007), “CHAOS 2006 Research Project,” CHAOS Activity News, 2:no. 1.
Keil, M. Mähring & Magnus (2010) "Is Your Project Turning into a Black Hole?"California Management Review; Vol. 53 Issue 1, p6-31, 26p, 1 EBSCOhost (Accessed: 6 December 2012)