EPM and Costs

Accepting my opinions on the importance of methodology and process, EPM implementations are not as cheap as a first glance might appear i.e product cost alone. Inevitably the implementation of an EPM tool like project server will identify process change. I should add that the process changes are definitely worth while as they add consistency and therefore transparency across the enterprise. Of course with this kind of change there are the associated change management, learning & development costs. When compared to potential cost savings of transparent and accountable issue and risk management, the cost could be considered relatively small. The problem as I see it, rests in companies not having a tangible way of measuring the cost of risk realisation which prohibits decision makers being in a position to justify the spend on an EPM solution. It seems to be a bit of chicken and egg scenario i.e. effective program/risk management is an outcome of EPM. This is only one cost justification for EPM but many more exist.

Anyway, as corporations grow in size and complexity, effective approaches to EPM will realise competitive advantages and the ability to respond quickly to costly mistakes. Let's remember that in today’s market, atleast 60% of projects die a slow death due to the many problems not being captured by current processes. It would be scary to quantify the lost revenue faced by many large corporates.