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Research from the Aberdeen Group uncovers the reasons that organizations utilize cloud solutions for project management, as well as the benefits received from these solutions.
Introduction
Successful project-based businesses excel at deploying their resources across projects to consistently deliver quality services, all while keeping costs and project timelines in check. This is easier said than done.
Coordinating a diverse, geographically dispersed workforce requires superior project management tools. As organizations, project timelines, and project teams grow, project management can be daunting for even the best project managers. Aberdeen Group’s research finds that 69 percent of Best-in-Class organizations utilize project management tools and reporting to account for this challenge. While project management software can have a significant impact on an organization’s ability to succeed, the unique characteristics of cloud technology may have an exponential impact on project management. The data finds that cloud-based project management software connects teams and data to ensure project ROI.
69%
of Best-in-Class organizations utilize project management tools and reporting to account for this challenge.
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Chapter one
Project Management Challenges
In order to understand why project-based businesses utilize project management software and tools, it's important to understand the top project management challenges and pressures that organizations report today.

Project Plans & Resource
Scheduling Are Not Aligned
Contention for
Limited Resources
Need to Use Project
Resources More Effectively
Customers Frequently
Change Their Mind Mid-Project
Inaccurate or Insufficient
Project Reporting
Low Profit Margins
Leave Little Room for Error
Three project management challenges emerge from the data
A need for improved resource allocation. It is extremely difficult to allocate resources and utilize them to their fullest potential.
Lack of ability to manage projects on an ongoing basis. Changing priorities and lack of defined project plans make it difficult for team members to execute and avoid scope creep.
Poor visibility into essential data. Utilizing current business systems, many businesses have trouble keeping track of costs, keeping an eye on project timelines and deliverables, and managing across the project portfolio.
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Chapter two
The Need for Project Management Tools
These project management challenges can lead to increased costs, unhappy customers, and reduced profits.

Best In Class
All Others
To help these organizations become more collaborative, agile, and effective, Best-in-Class organizations are more likely to implement project management technology.
Businesses Using
Project Management
Businesses Using
Project Portfolio Management
Project Management
Deployed in the Cloud
Project Management deployed On Premise for remaining amount.
Aberdeen Group, August 2017
Project management tools and reporting provides visibility into necessary information, from resource availability and skillsets, to contract terms, project timelines, and costs.
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Chapter three
The Shift to the Cloud
Traditionally, project management software was installed and managed on-site. More recently, project management software has been offered in the cloud.

Cloud Project Management
No Cloud
There are many reasons project management cloud solutions are gaining steam. Beyond the cost and IT benefits, organizations that implement cloud solutions for project management are more likely to have capabilities that improve collaboration, agility, and effectiveness. A cloud solution also enables an organization to more effectively utilize its human resources. Furthermore, enhanced visibility that cloud-based project management reporting provides enables decision-makers to make quicker, more intelligent choices.
Cloud Project Management Systems Allow Visibility for Improved Decision-Making.
+15%
All project information is captured in a central repository
+23%
Real-time visibility into all project milestone and schedule status
+6%
Real-time visibility into project data and information for organizational stakeholders (internal)
+12%
Central visibility resource workload across projects
+14%
Real-time visibility into project data and information for partners / customers / suppliers
Aberdeen Group, August 2017
The Cloud Improves Collaboration, Agility & Effectiveness
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Collaboration

With cloud-based project management software and tools, geographically dispersed teams can all view the same data, including project plans, costs, and change orders. They are also over twice as likely to be able to share project information with customers and suppliers.

Agility

Since those with cloud project management software are more likely to have real-time visibility into project timelines, these organizations can be more agile in reacting to scope changing events when they happen.

Effectiveness

Project managers can be assured that they always have real-time information in the cloud. Having this data always at their fingertips can help employees make more informed decisions, which should have an impact on their effectiveness.

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Chapter four
Benefits
of the Cloud
Organizations that have implemented a cloud project management solution perform better in a variety of Key Performance Metrics (KPIs) than organizations that have implemented only on-premise solutions.

Organizations that use cloud solutions saw a 9 percent greater improvement in time-to-decision over 2016. This is evidence that they are able to make more agile decisions thanks to project management reporting and software. But what is ultimately most important is the fact that organizations with cloud project management tools and software deliver more projects within budget and on time while seeing greater increases in profitability than their competitors with on-premise solutions.
Cloud Project Management
No Cloud
Project delivered under budget
Customer satisfaction
Project delivered on-time or early
72 73
Percentage of employees that exceed performance metrics
Improvement in profitiability over the past year
Improvement in the time-to decision over the past year

Next Steps

Project management does not have to be complicated. Take the next steps to learn how you can use a cloud project management solution to optimize your collaboration, agility, and effectiveness.
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