IDC Energy Insights' IDC MarketScape Reveals Three Leaders For Project Portfolio Management Software In The Global Oil And Gas Industry

Microsoft, Oracle and SAP considered “leaders”

IDC Energy Insights announced recently the availability of a new report, “IDC Marketscape: Project Portfolio Management Solutions in the Worldwide Oil & Gas Industry,” (Document#WWGT01U).The new report used the IDC MarketScape vendor assessment model to evaluate vendors globally supplying Project Portfolio Management (PPM) applications to the Oil & Gas industry to manage large capital projects. Vendors evaluated include Microsoft, Oracle, SAP, IFS and Meridian Systems. IDC Energy Insights estimates that the global market for PPM software in the oil and gas industry for 2012 is $320.1M.

The Oil & Gas industry has continued to increase its capital spending, creating an even greater need for improved processes and technologies to manage large capital projects. While PPM software spending only represents 1% of total Oil & Gas’ IT spending, the opportunity for impact is significant. PPM applications help organizations manage the scope, time, and cost of discrete sets of related people processes (projects) on an individual and portfolio basis. For the purpose of this report, the process of managing large capital projects includes planning, design, construction and commissioning/handoff, but does not include operations and maintenance. This research presents an analysis of quantitative and qualitative characteristics to provide metrics and context for Oil & Gas companies evaluating solutions in this area, and also to help analyze vendors' current comparative success in the marketplace and anticipate vendors' offering evolution. The evaluation is based on a comprehensive and rigorous framework that assesses vendors relative to the criteria and highlights the factors expected to be the most influential for success in the market in both the short and long term.

"The oil & gas industry continues to struggle with the management of large capital projects, with frequent budget and schedule overruns. Reducing the capital and the time required for these projects can have a significant positive impact on the return that they can generate," said Roberta Bigliani, head, IDC Energy Insights Europe, Middle East, and Africa. "Project Portfolio Management software spending is far from representing a significant item in Oil & Gas' IT spending and budget: its share is only around 1% of total IT spending. However, its potential impact on business performance is substantial".

This study is comprised of four key sections:

• A situation overview of the market factors driving and challenging PPM solutions for capital project management in the oil and gas industry worldwide.
• The criteria considered and their respective weighting, which IDC Energy Insights analysts believe enable PPM solutions to respond to user needs and future demands in managing capital project management in the global oil and gas industry. These characteristics are based on buyer and vendor surveys and analyst observations of the evolving market and industry practices.
• The Future Outlook, a visual representation of the resulting vendor analysis in a single bubble chart. This depicts the quantified scores of the 5 reviewed vendors along two axes — future strategy and current capabilities — which determine whether a vendor is a Leader, a Major Player, a Contender, or a Participant.
• Additional vendor summaries that discuss IDC Energy Insights' positioning of each vendor in the market, along with commentary on strengths reflected in the scoring and opportunities for improvement.

The document concludes with IDC Energy Insights' Essential Guidance, providing support for users in setting evaluation criteria with the perspective of their needs and organizational maturity. It also includes directions for PPM project planning and execution.

About IDC MarketScape
IDC MarketScape vendor analysis model is designed to provide an overview of the competitive fitness of ICT (information and communications technology) suppliers in a given market. The research methodology utilizes a rigorous scoring methodology based on both qualitative and quantitative criteria that results in a single graphical illustration of each vendor’s position within a given market. IDC MarketScape provides a clear framework in which the product and service offerings, capabilities and strategies, and current and future market success factors of IT and telecommunications vendors can be meaningfully compared. The framework also provides technology buyers with a 360-degree assessment of the strengths and weaknesses of current and prospective vendors.

About IDC Energy Insights
IDC Energy Insights assists energy businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the utility and oil and gas industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. For more information, visit www.idc-ei.com and http://idc-insights-community.com/energy.