Are you struggling to assign the right resources to your projects?
Do you strive to reduce your project resourcing costs?
If yes, you are not alone! Numerous managers rely on guesswork and approximation while managing resources which often results in operational inefficiencies and lower profit margins. This is where resource management software comes into the picture. It provides accurate insights into the workforce and maximizes their utilization, leading to better profitability.
By implementing a modern ERM tool, businesses can unleash their employees’ fullest potential, improve sustainability and stay competitive in today’s fast-paced and dynamic marketplace.
This blog will discuss the various business benefits of using advanced resource management software and how SAVIOM’s ERM tool will improve business efficiency.
How has resource management software evolved over the years?
Earlier, resource management was integrated into the project or human resource management. It became a distinct discipline around the 1990s due to technological advancements, globalization, and the growing adoption of matrix organizational structures. Over time, resource management has undergone various changes and developments, such as –
- 1st Gen Spreadsheet Based Resource Allocation Tool – Initially, resource management was only limited to basic scheduling and allocations, which were carried out using spreadsheets. However, as businesses expanded, managing employees with excel sheets became cumbersome.
- 2nd Gen Home-grown Resource Allocation Tool – To overcome the limitations of spreadsheets, businesses built home-grown tools which were half-baked and costly to maintain. It also had minimal capabilities and required in-house IT staff for maintenance.
- 3rd Gen Centralized Visual Resource Scheduling Tool – By 2000, client-server technology had advanced. As a result, off-the-shelf resource scheduling software with visual drag-and-drop capabilities came into the picture, and scheduling through a centralized database became possible.
- 4th Gen WEB-Based Visual Resource Scheduling Tool – The internet’s growth led to an increase in the usage of “Web-based 3 tier Architecture” for software development. Thus, web-based resource scheduling tools have become more prevalent in the market. However, these tools were primarily focused on resource scheduling and had restricted planning capabilities.
- 5th Gen WEB-Based Enterprise Resource Management Solution – Eventually, the significance of resource management as an individual tool was recognized, leading to the creation of 5th-generation software. This software facilitated the efficient utilization of both human and non-human resources, reducing costs and increasing profitable utilization. It also conducts demand capacity planning, provides resource visibility, and offers other advanced features.
Now, let’s discuss the significance of ERM software in firms.
Benefits of resource management software
Resource management software is a valuable and powerful tool for businesses as it helps to manage resources efficiently and effectively.
Following are some of the key benefits of the tool:
Reduces project resourcing costs
Resource management software helps reduce project resourcing costs by enabling the allocation of cost-effective resources. For example, the software can display cost rates for available resources in different locations. This allows managers to choose the most cost-effective option for projects and increase profitability.
Moreover, the tool helps managers identify and leverage a skilled junior resource with a lower charge-out rate to work on a project instead of an expensive senior employee, thereby reducing costs. Further, the tool provides a bench report, which helps managers leverage underutilized resources and minimize revenue loss effectively.
Provides 360-degree visibility of resources
Advanced resource management software offers 360-degree visibility of resources across the organization. It provides a birds-eye view of all resources related information such as their department, location, roles, skills, competency, expertise, availability, etc. Additionally, with advanced filters and sort-by options, managers can analyze data from multiple angles for deeper insights.
Furthermore, the software provides foresight into upcoming billable and non-billable requirements and the future availability of resources. This streamlines the resource allocation process and serves as a single source of truth for all current and future project bookings.
Helps foresee and bridge demand gaps for pipeline projects
The lack of foresight into future project demands leads to last-minute firefighting for resources. However, an advanced ERM tool with robust capacity planning capabilities enables managers to proactively identify resource shortages or excess and take the necessary steps to address them.
If there is excess capacity, firms can bring forward project timelines or sell the additional resources at discounted rates. Conversely, during resource shortages, managers can implement out-rotation and back-filling strategies, conduct appropriate training programs, or carry out planned hiring. This ensures that the necessary resources are available before the start of the project, leading to its timely delivery.
Streamlines resource requisition workflow
The resource management software assists organizations in streamlining their resource requisition workflows. It enables users to submit requests for human and non-human resources through a customizable online portal. The software automatically directs the request to the appropriate approver(s) based on predefined rules.
Resources can then be allocated based on availability and other factors after approval. This system helps organizations reduce errors and increase accuracy with an integrated audit trail that records every booking. Moreover, automating the tasks associated with resource requisition can save staff time for other essential tasks, increasing overall productivity.
Enhances organizational resource health index
Employees who are consistently overloaded can experience burnout and stress, while underutilized employees can lose the motivation to work, leading to disengagement. To address this issue, resource management software offers color-coded heatmaps and utilization reports that track employee utilization levels. This will enable managers to identify overutilized or underutilized resources.
As a result, they can take appropriate action to ensure optimal utilization and enhance the organizational resource health index. The tool also provides real-time updates on employee schedules and availability and alerts to prevent overbooking of resources. By monitoring and improving resource health, businesses can increase efficiency and boost profitability.
Futureproofs the workforce against market volatilities
Resource management software can support organizations in building a more resilient and adaptable workforce that can weather market volatility. It offers advanced resource forecasting functions and capacity vs. demand reports by which managers can gain insight into upcoming project demands and the required skillsets.
Using this information, they can take data-driven actions and implement training and upskilling programs, to address the existing skill gaps. Further, managers can create IDPs and execute different training models like- peer-to-peer coaching, online learning, etc. This will allow the workforce to diversify their knowledge and skillset, thus future proofing them against market uncertainties.
7 Delivers project within time and budget
Resource management software is a valuable tool for ensuring that projects are delivered within the set time and budget. It helps managers plan for future projects and proactively identify and address potential bottlenecks, ensuring that projects can be completed on time and within budget.
Furthermore, by providing complete visibility into resources, the software enables managers to allocate the right employees to the right projects at the right time. This eliminates the under/overutilization of resources, which can lead to project delays and budget overruns. Thus, advanced resource management software enables businesses to optimize resource allocation and utilization, ensuring timely project delivery within the stipulated budget.
Thus, using an ERM tool will improve your organization’s overall performance and give it an edge in the volatile market.
Robust resource management software helps businesses manage their workforce effectively and efficiently. It further benefits the company by maintaining optimal utilization, reducing costs, and improving productivity. As a result, projects are delivered successfully, enhancing customer satisfaction and boosting profitability in the long ru