Collaborative Post

5 ways technology can help reduce your project costs

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Technology has become part and parcel of our offices and businesses. And automation has made processes faster, improving the productivity of industries. This has helped reduce costs in the long run and improved profits for companies.

It should be noted that a number of factors help determine the final cost of a project. Unplanned expenses, lack of communication, and changes in the project scope can prove to be heavy on your pocket. In some cases, projects may also turn out to be more complex than planned, increasing costs in the long run.

Let’s look at the different ways technology can reduce these project uncertainties while reducing costs, and help improve how enterprises function.

  1. Encourages complete visibility

As a project manager, the introduction of technology in organisational processes would have probably benefited you the most. For one, adopting mechanisation offers clear visibility for projects and resources. And for another, your staff can update their progress online, which would be reflected directly on the software, with hardly any delays. This makes it easier to track how multiple inflight projects are running based on the information of how resources are occupied, and how many are required.

Using a software to handle projects is the easiest way to use technology in your projects. You can integrate them easily with your current tools, which eliminates the need for adding data separately into the resource management software. The tool can also help stay in touch with remote teams, and you can be on track with their activities as well.

  1. Predicts staffing requirements

Resources are the basic backbone behind any projects. It includes both humans and different tools and implements which are used as a part of the project. If you want to use the resources optimally, tracking their current requirements will help in accurate future resource predictions and also in expansions and scaling up.

Data on the different projects and the engagement of resources would help you plan for your projects better. Using technology in your project cycle would help you figure out resource management in the near future. If required, new staff can also be hired for the projects. Resources which are burdened with work can be excused from future projects.

With diverse skill-sets, you can boost project performance by assigning your staff to cross-departmental projects. Not only would this speed up processes considerably but would also enable your staff to collaborate better, leading to better results in the long run.  You, on the other hand, can also plan better training and capacity building sessions to enhance these skills further.

  1. Helps in an informed decision making

Automation can help you shape your project portfolio in the company. With detailed data analysis of your projects and resources, executive decisions can become easier to implement in the long run.

Suitable processes can help clear any ambiguity about your work, including both current and future projects. Costs can additionally be kept in control with a clear idea of the exact steps to be taken by you and your team. With the help of analytical reports, you can cut off under-performing projects in time or where there have been severe resource crunches or logistical issues.

Technological processes would help reduce costs by simulating the costs of different situations and prioritising their projects. It allows you to scope out projects with cost details, including financial and non-financial details. You can, therefore, maintain a profitable project portfolio at all times.

  1. Make accurate effortto-cost estimation

Cost transparency can become much easier when you have clarity on your projects. With the help of technology, you can plan out the exact measures to be taken in your project in order to conduct resource planning ahead of future requirements. This helps reduce costs associated with staffing work in the long run.

A detailed report of the expenses on different resources and assets would help reduce the impact of variable costs on your projects. High-cost fixed assets can be utilised to their maximum potential in order to utilise them effectively.

More number of fixed costs can also be made variable with the help of project visibility. This will help reduce exigencies and sudden expenses in your project. You can also incorporate lean manufacturing and agile methodologies in your project when you have the right visibility on your projects.

  1. Reduce financial roadblocks

With the inclusion of technology, financial roadblocks can be a thing of the past. With the help of a solid plan for the project, you can make sure that both the time and finances invested in your project will bear fruit.

Project management tools would facilitate you to maintain good records in all aspects of your work. With features such as timesheet filling and details of project milestones, roadblocks would become evident. This would give enough time to plan and take the necessary steps with enough time in hand.  You can also perform quality control tests from time to time which will flag risks before they turn into major issues.

Mechanisation of production processes is one of the many processes through which technology has made an impact on industries. AI, IoT and cloud computing are some of the technological innovations which would revolutionise how organisations work in the long run. With processes becoming extremely agile and workplaces becoming flexible, the future of technology in projects only seems to be brighter.

Author bio:

Aakash Gupta heads the Business Sales wing at Saviom. As the chief consultant on enterprise resource management and workforce planning solutions, his publications have helped project experts redefine business efficiency.

Reach out to him here to know more.