Report:
Magic Quadrant for Strategic Portfolio Management
How does Gartner define the Strategic Portfolio Management market in 2024?
Gartner defines strategic portfolio management (SPM) as a set of business capabilities, processes and supporting portfolio management technology. Business leaders, enterprise portfolio management office (EPMO) leaders and IT leaders require SPM to support enterprisewide strategy-to-execution alignment and adaptation. The SPM market addresses the integrated portfolio management technology needs of business leaders, EPMO leaders and IT leaders. SPM technology supports clear definition of key business strategies and desired business outcomes, and the formulation and mapping of these with key portfolio elements, such as business capabilities, investments, programs, digital and physical products, applications and projects. SPM technology allows users to create multiple portfolio and subportfolio types with focused themes, such as programs, digital products, physical products, business or IT services, projects and applications. It allows users to link and cross-reference elements in the different portfolios and subportfolios to support integrated portfolio analysis and tracking.
Key Facts for Magic Quadrant for Strategic Portfolio Management in 2024
- Publication Date: 28-May-2024
- Document ID: G00794218
- Coverage: Global
- Authors: John Spaeth, Shailesh Muvera
- Core Purpose: Strategic portfolio management technologies enable continuous modeling and adaptation of the path to successful business outcomes from digital investments. This research helps portfolio management leaders identify suitable vendors to support their organization's enterprisewide SPM effectiveness.
Strategic Planning Assumptions
- By 2026, 30% of organizations will embrace effective strategic portfolio management (SPM), and invest in talent and enabling technology to become industry leaders
- By 2027, 75% of organizations will enrich business architecture by connecting financial benefits to digital investment decisions
How was the Strategic Portfolio Management market evolved in 2024?
- SPM is a set of business capabilities, processes and supporting portfolio management technology
- Addresses integrated portfolio management technology needs of business leaders, EPMO leaders and IT leaders
- Supports enterprisewide strategy-to-execution alignment and adaptation
- Technology allows creation of multiple portfolio and subportfolio types (programs, digital products, physical products, business/IT services, projects, applications)
- Enables linking and cross-referencing elements in different portfolios for integrated analysis and tracking
- Supports continuous modeling and adaptation of paths to successful business outcomes from digital investments
- Enterprises face continuous business disruption (supply chain constraints, talent shortages) while increasing digital technology investment
- EPMOs, portfolio offices and transformation management offices are being established to adopt and mature SPM capabilities
- Market includes 11 evaluated vendors: Broadcom, Cora Systems, EOS Software, North Highland (UMT360), Planisware, Planview, Shibumi, Software AG, Uppwise, and Wellspring (Sopheon)
- Leaders quadrant includes: Broadcom, Planview, and Software AG
- Challengers quadrant includes: EOS Software, North Highland (UMT360), and Planisware
- Niche Players quadrant includes: Cora Systems, Shibumi, Uppwise, and Wellspring (Sopheon)
- No vendors currently in Visionaries quadrant
What product features are required to be included in this year's evaluation?
- Strategic element definition and mapping
- Element-neutral portfolio creation
- Dynamic funding and investment modeling
- Demand management
- Adaptive program management
- Dynamic portfolio-level resource planning and what-if scenario modeling
- Element-neutral roadmapping
- Integrated portfolio element mapping, tracking and analysis
- Integration to third-party data sources and systems
What are the common features of top products in the Strategic Portfolio Management space?
- Centralized and responsive funding to help enterprises invest quickly in ways that resolve a significant disruption
- Increased speed in delivering value and innovations via the adoption of agile practices (e.g., product management and adaptive program management)
- Effective prioritization of the right initiatives by introducing more dynamic and active stewardship facilitated by increased transparency and dynamic what-if analyses that yield investment insights
- Optimization of an increasing, constrained set of resources to realize enterprise outcomes
Scope Exclusions
- Providers participating primarily in markets adjacent to or outside of the SPM or PPM market, even when offering SPM extensions or modules
- ERP, IT service management (ITSM), sales force automation (SFA), and similar platform providers offering SPM extensions or modules
- Providers with primary focus on niche or specialized PPM or SPM markets (e.g., architecture, engineering, construction; professional service automation)
- Certified partners, systems implementers, or consulting firms using third party technologies to deliver SPM products or solutions
Inclusion Criteria
Vendors must, among other requirements:
- Active participation in the SPM market as a pure-play provider of SPM software technology
- SPM software products must not require purchase of separate, non-SPM or non-PPM technology platform
- Actively market, sell and support stand-alone SPM technology products or online application services
- Focus mainly on SEM, IIPA, and EPPM use cases for digital business
- Offer integrated strategy, goal, business capability, investment, portfolio, program, project, digital product and application management features
- At least 10 consecutive years of SPM product general availability and active marketing
- Evolving SPM market presence with penetration, sales and support for multiple regions
- Product development and innovation cadence shorter than 12-month intervals
- At least 10 new SPM customers during the past 12 months
- At least $5 million in annual SPM software revenue and/or reliable financial backing
Ability to Execute — Relative Weighting
- Product or Service - High
- Overall Viability - High
- Sales Execution/Pricing - Medium
- Market Responsiveness/Record - High
- Marketing Execution - Medium
- Customer Experience - Medium
- Operations - Medium
Completeness of Vision — Relative Weighting
- Market Understanding - High
- Marketing Strategy - High
- Sales Strategy - High
- Offering (Product) Strategy - High
- Business Model - Medium
- Vertical/Industry Strategy - Low
- Innovation - High
- Geographic Strategy - Low
FAQs
Q: What does this research cover?
A: This research provides a comparative analysis of strategic portfolio management (SPM) technology providers that serve business leaders, EPMO leaders, and IT leaders. It evaluates vendors based on their ability to execute and completeness of vision across three primary SPM use cases: Strategy Execution Management (SEM), Integrated IT Portfolio Analysis (IIPA), and Enterprise Program and Portfolio Management (EPPM). The research covers vendors' product capabilities, market presence, innovation, customer experience, and strategic vision for supporting enterprisewide strategy-to-execution alignment and adaptation in the context of digital business transformation.
Q: Who should use this research?
A: Portfolio management leaders, business leaders, IT leaders, and EPMO leaders should use this research to identify and evaluate suitable SPM technology vendors that can support their organization's enterprisewide SPM effectiveness. It helps organizations select vendors based on their specific needs for strategic planning and execution, digital business transformation, and portfolio optimization. The research is particularly valuable for organizations seeking to improve strategy-to-execution alignment, manage digital investments more effectively, navigate continuous business disruption, and build adaptive governance mechanisms. Users should combine this Magic Quadrant with the companion Critical Capabilities research for product selection and Gartner Peer Insights for user perspectives.
Q: What are the mandatory features of vendors included in this market?
A: Vendors must offer integrated strategy, goal, business capability, investment, portfolio, program, project, digital product and application management features. The standard capabilities include: strategic element definition and mapping, element-neutral portfolio creation, dynamic funding and investment modeling, demand management, adaptive program management, dynamic portfolio-level resource planning and what-if scenario modeling, element-neutral roadmapping, integrated portfolio element mapping, tracking and analysis, and integration to third-party data sources and systems.
Q: What are some reasons for not being included in this report?
A:
- Not being a pure-play provider of SPM software technology with a clear primary SPM software business model
- Requiring purchase of separate, non-SPM or non-PPM technology platform to obtain SPM functionality
- Not actively marketing, selling, and supporting stand-alone SPM technology products
- Not focusing mainly on SEM, IIPA, and EPPM use cases for digital business
- Not demonstrating at least 10 consecutive years of SPM product general availability and active marketing
- Insufficient market presence across multiple regions
- Product development and innovation cadence longer than 12-month intervals
- Fewer than 10 new SPM customers during the past 12 months
- Less than $5 million in annual SPM software revenue without reliable financial backing
- Primary participation in adjacent markets like ERP, ITSM, or SFA even when offering SPM extensions
- Primary focus on niche or specialized PPM/SPM markets like architecture, engineering, or construction
- Being a certified partner, systems implementer, or consulting firm using third-party technologies rather than a primary technology provider
Q: What differentiates Ability to Execute vs. Completeness of Vision?
A: Ability to Execute measures a vendor's current market performance and operational capabilities, including product quality, financial viability, sales effectiveness, market responsiveness, marketing execution, customer experience, and operations. It focuses on present-day execution and delivery capabilities. Completeness of Vision evaluates a vendor's strategic direction and future market positioning, including market understanding, marketing and sales strategy, product strategy, business model, vertical/industry strategy, innovation capabilities, and geographic strategy. It assesses how well vendors understand market evolution and can shape future direction rather than just responding to current demands.
Reference
- Gartner, Magic Quadrant for Strategic Portfolio Management, 28-May-2024, ID G00794218
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