In today’s business environment, many companies have adopted a matrix organizational structure to enhance operational efficiency and optimize project delivery. However, this approach has also led to resourcing challenges, such as scheduling conflicts and double booking, due to siloed information.
To overcome these hurdles and gain a competitive edge, firms need a data-driven approach to manage their resources. By leveraging an advanced resource management tool, companies can use accurate data to plan, forecast and allocate competent resources to projects and make informed decisions.
In addition, 91% of companies say that data-driven decision-making is important to the growth of their business.
This article explains the significance of data-driven decision-making and how SAVIOM can help.
Let’s get started.
2.Significance of data-driven decision-making in business
Data-driven decision-making is the process of making informed decisions through an action plan that utilizes data, facts, and other complex details instead of depending on guesswork and intuitions. Furthermore, companies can transform the data into actionable insights using the right tools and KPIs.
Here are some key reasons why data-driven it is essential for a business:
First, a data-driven approach helps managers formulate an effective resource plan that ensures competent allocation. Additionally, it provides foresight into pipeline project demand and identify the excess/shortage of resources in advance. Based on this, managers can implement appropriate measures like training/upskilling, planned hiring, selling excess capacity, etc., to ensure an optimized workforce.
In addition, data-backed reports help managers identify instances of under/ overutilization and apply optimization techniques. This will keep the projects on track, improve efficiency and reduce costs. Moreover, the documented data from previous projects can be used as a reference to plan future ones, avoiding any mistakes.
Further, managers can generate data-driven reports of key resource metrics in graphs, dashboards, etc., for better comprehension and stakeholder engagement. Thus, leveraging data insights can help businesses boost profitability and streamline processes.
Now that we know the importance of data-driven decision-making, let’s see how a modern resource management tool can help make effective decisions.
3.5 ways on how ERM software enables data-driven decision making
Resource management software helps organizations procure various workforce-related metrics on a single platform. Following are the methods in which it can facilitate data-driven decision-making:
3.1 Facilitates enterprise-wide visibility of resources
An enterprise-grade solution provides a holistic view of resources, projects, schedules, bookings, leaves, profiles, etc. Moreover, the tool offers 360-degree visibility of resources, skills, competencies, location, cost, qualifications, etc., that help identify the matching capabilities within the organization.
For instance, a banking project in New York required a financial data analyst. Using the tool, the manager could identify a resource with similar skills within the organization in San Francisco available for 40% of their capacity. This way, firms can ensure the competent allocation of resources to the project.
3.2 Provides role-based access to avoid information overload
Providing role-based access control is vital for organizations to reduce the risk of data breaches, maintain security, minimize booking errors, and save time. A robust ERM tool offers role-based access to highly configurable reports and dashboards. It will avoid information overload and help critical stakeholders make informed decisions quickly.
For instance, the resource manager can view the utilization, capacity, demand, availability, booking types, etc., of resources under their span of control. Contrarily, a project manager can view the reports and dashboards of resources working on projects under their supervision. Therefore, role-based access helps declutter the view to access only relevant information.
3.3 Generates real-time reports on various KPIs
In a fast-paced business environment where organizations handle large volumes of data, they can procure accurate insights through business intelligence reports. Resource management software provides real-time insights into various resource metrics, such as utilization, availability, capacity vs. demand, forecast vs. actuals, etc. These reports enable the senior management and managers to make better decisions.
For instance, the capacity vs. demand report helps analyze the gap between capacity and demand and fill it with appropriate measures like training, upskilling, hiring, etc. Besides, using the project vacancy and people-on-the-bench reports, managers can analyze and fill vacancies with suitably skilled benched resources, thereby ensuring effective bench management. Thus, real-time reports help managers make better decisions, improving productivity and operational efficiency.
3.4 Offers configurable dashboards and graphs
Resource management software offers configurable dashboards and graphs that enable managers to access and interpret information easily. The BI capabilities of the tool provide a visual representation of data to fast-track the decision-making process. Moreover, it enables managers to slice/dice and filter out information that helps stakeholders make informed and strategic decisions.
For instance, the color-coded heat maps allow managers to view under/overutilized resources. Furthermore, you can create your dashboards as per your organizational needs. This way, managers can ensure uniform workload distribution and optimize the resource health index.
3.5 Improve resource planning with modeling and simulation technique
Resource management software provides the What-If analysis feature that helps managers build and compare various scenarios before choosing the right resource plan. Additionally, managers can compare different results by changing various metrics like cost, utilization, availability, etc.
For instance, an iOS app development project requires developers to be adept in frameworks like UIKit, CoreLocation, and CoreData. For this, the managers can use simulation and modeling techniques to create and compare multiple scenarios and choose the best course of action. Moreover, it will help managers arrive at the best resource plan, and minimize the risk of overruns, project delays, etc., that can negatively impact the project’s progress.
In a nutshell, advanced ERM software can help modern businesses optimize their workforce to meet the changing demands in real time.
Data is a precious thing that will last longer than the systems themselves. ~ Tim Berners – Lee, the founder of the World Wide Web
Data-driven decision-making is an essential element of modern business strategy as it provides a competitive edge and maximizes business impact. A futuristic resource management solution provides actionable insights into real-time resource-centric data that help boost business performance and profitability.