Thirty years ago, businesses were starting to recognize that data was the future. However, they never imagined that big data technology would have the impact that we have witnessed in recent years.
More companies are using big data to drive business decisions than ever before. However, many companies still neglect to have formal data strategies in place. The NewVantage Partners 2022 Executive Survey showed that only 53% of companies have official data strategies and many of them don’t leverage the right technology to deliver on them.
One of the things that you need to do if you want to create a successful data strategy is invest in the right software. There are a lot of software applications that can help companies make better data-driven decisions.
Big Data Has Led to Major Advances in Portfolio Management Software
Businesses thrive when they deliver every project successfully, but it’s not as easy as it sounds. When there’s an entire portfolio to monitor, diligently checking every project metric is incredibly challenging, which makes it difficult for data-driven companies to deliver on their goals.
Program and project managers need to standardize the process and centralize all their reporting and task management mechanisms. That’s where project portfolio management (PPM) software comes in. It lays the foundation for profitable and strategically aligned project execution. Let’s dive into the six most essential benefits of PPM software for your business.
1. Alignment with overall business strategy
Every firm’s ultimate mission is to generate profits and deliver value in the long term. To accomplish this, they need to focus on their short-term goals. And to do that, project managers need to ensure their projects align with the company’s business strategy and objectives. PPM software delivers a holistic view of all projects, making it easier to prioritize and allocate resources in line with the company’s overall goals. This is one of the many ways that big data is helping businesses meet their goals.
Let’s consider a tech startup, “FutureFit,” specializing in developing innovative mobile applications. Their business strategy involves launching a cutting-edge fitness app in the next six months to capture the rapidly growing wellness market. The tech startup operates on an Agile methodology, with multiple teams working on various aspects of the application.
Without a centralized overview, aligning all these teams with the business strategy can become a herculean task. Here’s where the PPM software becomes crucial. It allows the project manager to input the business strategy for launching the fitness application within the specified timeline. It then provides visibility to all Agile teams on the priority tasks, helping them understand how their efforts contribute to the overall goal.
2. A methodical approach to each project
While project management tools are prevalent across nearly every industry, only 61% of businesses say they use a particular methodology to manage their projects. PPM software enables project managers to standardize the process across all projects within a portfolio. It provides templates and configurable workflows for each project, ensuring every task follows a systematic approach. In turn, this reduces errors, improves collaboration, and drives efficiency.
3. Optimal resource management
The reality is that resources — be it manpower, time, or finances — are always limited. Mismanagement causes project delays, cost overruns, and reduced productivity.
Let’s consider a scenario: FitFuture, the same tech startup we mentioned earlier, is working on a new feature release. They have multiple teams working on different modules, and each team requires a diverse set of resources. Without a PPM system in place, manually tracking who is doing what can quickly become chaotic and time-consuming.
PPM software comes to the rescue by offering a centralized view of all resources and how they’re being utilized. The project manager can quickly glance at the software and see that John, a front-end developer, is currently overbooked, while Emily, a back-end developer, is underutilized. The manager can then reallocate tasks to balance the workload and improve productivity.
The PPM tool also provides vital information on resource cost and availability. If CloudTech wants to hire a new developer for a specific module, they can easily check the budget allocation and the status of other resources in the project. This way, informed decisions can be made to prevent overspending and ensure seamless project execution.
4. Data-driven risk management
Risks are an inevitable part of any project. How your firm manages them makes the difference. PPM software provides real-time data on project progress, allowing project managers to identify potential risks and take necessary actions.
- By offering predictive analytics, PPM software can forecast potential risks based on the current status and past trends in the project. For example, if a particular task is lagging, the software can flag it as a potential risk to the project’s deadline.
- PPM tools provide a ‘risk matrix’, a visual representation of risks based on their probability and potential impact. This aids in prioritizing risks and focusing on major ones that could have an adverse effect on the project’s success.
- PPM software supports risk breakdown structures (RBS). This feature allows project managers to categorize risks based on their origin or nature, helping in the development of more effective risk mitigation strategies.
- The software often includes a risk register, where all identified risks are recorded along with their severity, mitigation plans, and status. This centralized place for risk data aids in regular monitoring and swift response to issues.
Without a business management system like PPM, data-oriented risk management procedures would be impossible.
5. Higher productivity through team collaboration
Remote work is becoming more prevalent than ever, and cloud-based tools are essential for remote teams. PPM software provides various features to facilitate team communication and collaboration, leading to enhanced productivity.
- It offers a centralized platform to store all project-related communications, eliminating scattered email chains or multiple chat groups.
- PPM software allows for real-time tracking of tasks, making it easier to monitor progress and avoid delays.
- It provides a single source of truth for project information, reducing confusion arising from multiple versions of documents.
Most PPM software integrates with your collaboration software as well. A Slack, MS Teams, or Zoom integration helps teams stay connected and communicate effectively, no matter where they are.
6. Multiple task management options
Your organization probably runs different types of projects, which means you’ll need different styles of task management. PPM software supports both traditional and Agile methodologies, ensuring that all projects within a portfolio are managed efficiently.
- For teams using the Waterfall methodology, PPM software provides a Gantt chart view to track project tasks and timelines.
- For Agile teams, Kanban boards visualize task progress and identify any bottlenecks in the workflow.
- Calendar and timeline views give project managers and team members a bird’s-eye view of the whole project or company-wide tasks.
You’ll also have modules to manage project portfolios, programs, and individual tasks separately. This flexibility allows teams to work in a manner that best suits their project type, ensuring optimal efficiency.
Endnote
PPM software is not just another tool for your organization; it’s a strategic, ROI-driven investment. It empowers companies to improve project management processes, optimize resource utilization, mitigate risks, enhance collaboration, and ultimately achieve business success. With the right PPM software in place, organizations can streamline project execution and focus on delivering quality products and services to their customers.