As we slowly emerge post-lockdown and come to terms with the new normal, many project-based companies are still finding it difficult to maintain productivity while following changing pandemic guidelines. Project businesses in construction, engineering and manufacturing continue to suffer from labor shortages, productivity losses, resource constraints and disrupted supply chains. And unfortunately, although these challenges were evident prior to the pandemic, it’s even more difficult to manage in such an unpredictable environment.
According to a recent Dodge Data and Analytics study, approximately three quarters of both civil and commercial contractors report that they have had to change their work procedures to increase social distancing. Unlike traditional business industries that can accommodate remote work, project-based companies including construction, engineering, ETO manufacturing and professional services don’t have that luxury.
Why Projects are Delivered Late and Over Budget
While there’s been an influx of new technology impacting the industry, many project businesses still operate in a fragmented environment of different systems and applications to manage their business processes. Whether it’s a project accounting software, scheduling system, resource management application, etc., the common thread is spreadsheets.
Oftentimes, to manage all these tools and applications, companies have to hire controllers and data processors to export, import and consolidate data from all these systems. It takes time to manipulate all this data to create reports for executives who are trying to manage the business and make decisions based on this information.
In this landscape, it’s not surprising project business executives typically have very little visibility into the current status of their projects, let alone the business as a whole. They may be receiving weekly status updates and monthly overviews, but this information is already outdated because of the time it takes to consolidate and generate these reports. It’s a pretty scary thought to realize that many important decisions are made based on inaccurate and unreliable information. This is why many projects are delivered late and over budget.
Post-Lockdown Calls for a Change
However, as we come through on the other side of the pandemic, many project businesses are starting to make changes to embrace new technologies to make them more productive, sustainable, and ultimately, profitable.
According to Nicholas Woodroof, assistant editor at Hydrocarbon Engineering, now is the time for project businesses to think of fully integrated ERP systems that encompass planning, design, procurement, project financial control, operations, and maintenance.
“A priority area for all stakeholders will be the implementation of digitalization and digital solutions to improve real-time data accessibility and visibility across all strata of project management,” he said in a Hydrocarbon Engineering article.
The Project Business Automation Paradigm
The primary problem for project businesses is this non-integrated mode of operation most of have. Therefore, it only makes sense that the solution is to integrate. This is exactly what Project Business Automation (PBA) does.
PBA is a new type of solution for project-based companies now recognized by Forrester. PBA standardizes, integrates and systemizes all project business processes and data. More specifically, PBA rejects the status quo of disparate, disconnected applications in favor of one integrated business system that automates all project business processes and connects them seamlessly in real time.
PBA is more than a solution; it is a growing movement. More and more vendors are beginning to embrace this new category and more and more project businesses are adopting PBA and seeing amazing results. PBA is changing the industry for the better.
Download the Project Business Automation Blueprint to learn how PBA creates a streamlined, comprehensive system for project-based companies.
