A Comparison of Project Management Software and Spreadsheets

 

Spreadsheets are the undisputed king of project management support tools due to their ease of use and frequency of use. What are the advantages and disadvantages of these solutions in comparison to project management software? Which one is better, and when should you switch to project management software? While only you can decide when to switch, this article will discuss the advantages of each and provide some guidelines.

The market for project management software is estimated to be worth between $1.5 billion and $3.5 billion, depending on which research you consult. That is for project management software that is purpose-built. Most organizations that have made significant investments in effective project management have recognized that managing a larger number of projects and people, or a larger project, without the assistance of technology is extremely difficult.

Despite the fact that spreadsheets are not designed to be project support tools, there is no other tool for online diploma in project management that is more popular or widespread than the spreadsheet. Spreadsheets are used in organizations that already have a well-established project management tool. Reasons for this are self-evident. Almost every computer in every organization has a spreadsheet program installed, people are familiar with spreadsheets and how to use them, and people are predisposed to use these "office" software tools to solve problems. And I'm standing alongside them. I enjoy using spreadsheets to manage a variety of different types of data. It's simple, convenient, and, admittedly, ego-enhancing to demonstrate my spreadsheet prowess.

With that in mind, let us examine some of the distinctions between these two distinct tool types. I chose six criteria to compare for the purposes of this article. These were chosen based on customer and prospect feedback, as well as an understanding of what factors contribute to an organization's successful adoption and implementation of project tools.

Mining of Data

Data mining is a critical component of project management software. The entire purpose of a tool is to collect data in order to analyze it intelligently, ensure that your processes are performing as advertised, and make sound decisions. You must be aware of which projects and tasks are falling through the cracks in order to react appropriately. You must understand when there will be insufficient resources to meet demand in order to properly allocate them or manage demand. You need to be aware of potential issues so that you can address them quickly before losing the favor of a critical customer. Additionally, you must monitor the effectiveness of your processes in order to continually improve them.

You must have data to operate effectively in today's economy, competitive landscape, and accountability standards. Managers are being taken by surprise because they are unaware of what is happening. This is where the right project management software tool shines, while spreadsheets fade into obscurity. A good project management tool will be database-driven and will support a variety of ad hoc reporting across multiple projects. This allows for the mining of a variety of different types of data. At the same level, this is simply not possible in a spreadsheet. If you are extremely knowledgeable about spreadsheets, it is possible to connect them and generate some integrated data. However, this is not synonymous. You simply cannot mine your multiple spreadsheets' data on a whim. Which is critical in today's environment. The days of being able to function with incomplete data are over.

The Benefit of Project Management Software

Affordability

There are simple-to-use project management software programs. Spreadsheets, on the other hand, have a clear advantage in this case. The majority of people are familiar with spreadsheets; they are at ease with them and even enjoy their use. The lack of structure in spreadsheets is a significant reason. Generally, people are not "compelled" to use them in certain ways. They may use them in any way they wish. Naturally, this has some drawbacks. It is extremely difficult to standardize a process or to maintain a consistent data structure when the tool itself lacks structure. Spreadsheets, on the other hand, cannot be beat in terms of ease of use.

To combat this in project management software, you can implement effective, relevant, and periodic training, keep your implementation simple, and leverage tools like templates. However, spreadsheets will win this one.

Spreadsheets' advantage

Access via a single point

Providing everyone with access to the project information they require is one of the ways that organizations are becoming more competitive and efficient today. Marketing firms are putting all of their client projects' information online. Engineering organizations are constantly monitoring schedules and identifying issues as they arise. Government agencies are integrating all of the necessary data into their projects online. It continues indefinitely. Instant access to information is extremely valuable. An engineer can quickly locate the specifications he requires by examining one system. A client manager can monitor the progress of his client's projects and identify potential problems early on. Before responding to a question, a professional services manager can check the contract details and scope of work for a critical project.

Productivity is defined as the ability to produce results, bring about change, or effect change. This type of centralized access enables those responsible for delivering results to know which actions to take when.

This one is a no-brainer for project management software, particularly online project management software. Spreadsheets are not designed to allow multiple users from multiple locations to access them simultaneously. They are intended for use with a single file and a single user.

The Benefit of Project Management Software

Administration and upkeep

I frequently speak with organizations that invest an incredible amount of time in spreadsheet maintenance. 

There is a significant amount of time spent on spreadsheet-related activities:

Locate the appropriate spreadsheet

Locating the correct spreadsheet version

Locating the email using the appropriate spreadsheet version

Distributing the appropriate spreadsheet to those who lack it via email

Identifying individuals who possess the necessary information to update the spreadsheet

The spreadsheet is actually being updated.

Keeping track of the spreadsheet's formulas and formatting

Updating the spreadsheets' standard format to include a "process enhancement"

New spreadsheets creation

This list could go on indefinitely. The point is that while maintaining any tool requires time, spreadsheets require an abnormal amount of time due to their single-user focus. They can be updated only by a single individual. Additionally, they take time because they are file-based, requiring separate files to be maintained. Unless an organization is exceptionally adept at managing these files (which is the exception, not the rule), files are typically stored in a jumble of locations with non-standardized file names and even non-standardized layouts. You will be amazed at how much time people spend maintaining these spreadsheets if you take the time to look into it.

On the other hand, maintaining project management software requires time. Otherwise, I am powerless to say. It takes time to ensure that the data in the system is correct, that processes are followed correctly, and that information is simply entered into the system. One advantage of this is that many project management software systems allow for collaborative data entry, which eliminates the need for a single person to locate and enter data. In this case, maintenance is more akin to normal operation than continuous, non-stop data entry.

There are a few strategies for reducing the amount of maintenance and time spent on project management software systems, and these strategies are focused on the initial setup. Maintenance time is reduced if the system is properly configured. Utilizing templates and pre-configured reports significantly reduces time spent in the tool.

While both types of tools require time to implement, a properly configured project management software system easily outperforms spreadsheets.

The Benefit of Project Management Software

Flexibility

Flexibility refers to a tool's capacity to adapt to your processes in this context. In practice, this entails tracking any type of data unique to your business (i.e. adding fields) or implementing a new project template.

This is a more difficult attribute to quantify, particularly given the wide variety of project management software tools available. Numerous tools are extremely rigid, with the result that what you see is exactly what you get. Certain tools have become more adaptable and flexible, allowing for the adaptation of screens and data structures, for example. This has grown in importance over time.

It's difficult to make a direct comparison because it truly depends on the project management software system under consideration, but many systems will lack the flexibility of a spreadsheet. You can add a new column or row to a spreadsheet on the fly or create a new spreadsheet to track new data. Obviously, this flexibility has a cost, specifically the difficulty associated with standardizing a process. However, when it comes to sheer flexibility, spreadsheets win the day. However, I would caution you to evaluate the flexibility of your project management software and conduct your own comparison.