Understanding how your project evolves is a key factor in meeting KPIs.
Advanced data analytics is a driving power nowadays, covering various human activities and giving businesses worthy insights. Having enough analytical data about your enterprise, employees’ and customers’ satisfaction, finances, and more, project managers can contribute significantly to decision-making, business growth, and overall business prosperity.
The following article will show how this steering lever — data analytics — benefits project managers and can be practically valuable for project management.
Before exploring project management data analytics, let’s decompose the link between data, decision-making, and project management.
Data-driven decision-making in project management
We all know that data in modern business drive many business decisions made. Decision-making relies a lot on data. The more information you can obtain and analyze — the more hypotheses, tactics, ideas, and tests you may generate for your project to succeed.
Primarily, you need reliable approaches and tools to manipulate and evaluate data. Data gathering, synchronization, mining, and various types of analytics are ways to collect essential data and extract crucial insights.
Per Statista, the size of the business intelligence and analytics software application market is likely to reach 12.7 billion U.S. dollars (2022) to above 18 billion in the next three years.
Source: Statista
The business intelligence and analytics software application market is a subsegment of the enterprise application software market. Modern analytical software and business intelligence tools can fulfill the businesses’ goals through better resource management, the boost of the supply chain, and interaction between the parties involved in an enterprise.
Also, you need a scheme for making decisions. A well-thought decision-making framework enhances multiple context analysis and leads to an innovative and efficient solution. Eventually, you can boost your business on different levels using actual records and insights.
By analyzing data, project managers receive opportunities to impact projects and companies. Among others, PMs use data-driven decision-making to:
- define the project’s downsides
- add to project agility
- eliminate bottlenecks
- determine the customer’s needs and pain points
- improve teams’ productivity
- streamline the teams’ collaboration
How data analytics can benefit project managers
So project managers are involved in decision-making constantly, and their decisions are often backed up with data. Where data is, there should be analytics. Further, we’ll explore five practical benefits of data analytics for project managers.
Data analytics for project managers saves costs
Focusing on a company’s income is not everything. You should also know how to cut down project expenditure. With project management tools or simple spreadsheets, a project manager can monitor project financial data and make reports and dashboards to visualize and analyzes ways of saving money.
Poor financial planning may undermine processes and projects that affect the whole company. In this case, data analytics in project management gives you a clear-cut understanding of short and long-term perspectives on expenditures. For instance, you can detect weak operational areas and revise software spending for a team to avoid losses.
Data analytics for project managers improves risk management
Project management intersects with risk assessment often. Handling complex projects may create a risky environment for the entire delivery outcome. Here is where data analytics for project managers comes in handy.
Tracking your project management risks presupposes one’s ability to document all …….
Source: https://www.datasciencecentral.com/project-management-data-analytics-benefits-and-practices/