Project Management - Software and Vendors

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What is a project?

A project is a time-defined and one-off task with a specific start and end point.

A project is an undertaking that is essentially characterized by the uniqueness of the conditions in their entirety, such as: Objective, time, financial, personnel or other conditions, delimitation from other projects and project-specific organization.

Projects can vary greatly in scope and complexity. A construction project can involve numerous trades and project participants, while the development of a software app can be completed in a relatively short time with just a few programmers.

What is project management?

Project management comprises the planning, control and implementation of a project. There is usually one person responsible for the project, the project manager or project leader, and the project team members. The main task of project management is to achieve the set goal of the project while adhering to the time frame and budget and delivering the desired quality.

Regardless of the project management method chosen, project management goes through various project phases. As a project has a defined start and end point, there is therefore a start phase and a project completion phase. Furthermore, a planning phase and the realization or implementation of the planning are necessary. These two sections can also be divided into more than just two phases. The individual project phases can overlap or be organized sequentially. The latter means that one phase must be completed before the next can begin. Project management comprises a variety of components that help to plan, monitor and complete projects effectively.

Important components of project management

Project objectives and scope: Defining clear project objectives and scope is crucial to establish the focus of the project and ensure that all stakeholders have a common understanding of what is to be achieved

Resource planning: The planning and allocation of human, financial, time and material resources needed for the project to ensure that all requirements can be met.

Time management: Developing a schedule, setting milestones and deadlines, and monitoring progress to ensure that the project is completed on time.

Communication: Establishing effective communication channels and structures to ensure that all stakeholders are kept regularly informed and that issues can be addressed quickly.

Risk management: The identification, assessment and management of risks that could affect the project and the development of strategies to minimize or manage risks.

Quality management: The establishment of quality standards and guidelines and the monitoring of project implementation to ensure that results meet expectations.

Stakeholder management: The identification and engagement of all stakeholders, including customers, team members, suppliers and other involved parties, to ensure that their needs and expectations are taken into account.

Change management: The management of changes in project scope, schedule or other aspects of the project to ensure that the project remains flexible and can adapt to changing requirements.

Documentation: The creation and maintenance of project records, reports, logs and other documents to record project progress and status and to serve as a reference for future projects.

Closure and evaluation: The formal closure phase of the project, including reviewing results, success against objectives, documenting lessons learned and conducting final stakeholder reporting.

Project management methods

There are various project management methods. In addition to the traditional or classic method, there is also agile project management and a combination of the two methods mentioned, hybrid project management. A large number of methods and terms are used in connection with project management.

Classic project management
The classic or traditional method is often referred to as the waterfall method because the individual tasks are sequenced from the beginning to the end of the project like a kind of waterfall. The method is particularly suitable for projects whose tasks are interdependent (sequential), as is the case in the construction industry, plant engineering or production, for example.
These classic methods generally use Gantt charts or networks and milestones. Classic project management offers a variety of methods for control and management. Classic project management methods include DIN, milestones, PMI (Project Management Institute), Six Sigma, ICB 4.0 (Individual Competence Baseline) and many more.

Examples of Gantt charts

Agile project management
Scrum and Kanban are among the most frequently used agile project management methods. Agile project management focuses on self-organized teamwork and working in short iteration cycles. With this method, the client or customer is presented with a preliminary result at the end of each cycle and can issue partial acceptances, request changes or provide feedback. Scrum, Kanban, Design Thinking, Lean Management, Lean Startup, XP (Extreme Programming) and many other agile methods are ideal for large, complex projects in production and software development.

Hybrid project management
Hybrid project management is a combination of two project management methods, usually classic and agile. Agile approaches such as PRINCE2, Hermes, V-Modell XT, V-Modell Bund, Crystal, Dynamic System Development Methodology (DSDM), Feature Driven Development (FDD), project process according to IPMA, PMBOK® Guide etc. are implemented with a narrow or fixed framework. Of course, two agile approaches can also be combined with each other. For example, PRINCE2 or Hermes can be combined with methods such as Scrum or Kanban. Ultimately, there are no limits to the "joy of combination".

Which project management method is suitable for which project?

It is not easy to say which method is best suited to which project or project environment. If the project is easy to plan in terms of activities and times, if you have fixed structures and requirements, classic methods are preferable. If you are working on customer-oriented projects with a high communication effort, developing software or advertising campaigns etc., working in flexible environments, then agile methods are the better choice. Combinations of methods are often also suitable for successful project work.

Table: Comparison of project management methods

	classic	agile	hybrid
Target	Precisely defined at the start of the project	No final project result defined at the start of the project	Defined and not clearly defined project objectives
Advantages	Temporal representation via Gantt chart and visualization of dependencies Projects are well planned and clearly structured Better management of distributed teams Effective integration of external project participants Comprehensive, compliant documentation, e.g. for approval procedures Process reliability	Easy adaptation to changes (plans and objectives) Fewer rules Frequent intermediate results Team organizes itself Customer benefit in the foreground	sharpening the target despite planning security Meet fixed deadlines and react flexibly to last-minute changes Quickly validatable partial results Short feedback loops Increased efficiency Stakeholder involvement Focus on customer benefits
Disadvantages	Easy adaptation to changes (plans and goals) Fewer rules Frequent intermediate results Team organizes itself Customer benefit in the foreground	High need for communication Less formal documentation	Increased administrative effort Changed management culture High level of communication
Attributes	Plan-based detailed Compliant with rules	Flexible lean Feedback-based fast	Situation-dependent complex Context-bound
Application areas	Stable project environment Construction projects (bridges, roads, buildings, etc.), engineering projects with a very large mechanical component Plant construction, mechanical engineering, pharmaceutical industry	Projects with a short duration Projects with high customer benefit (e.g. advertising campaigns) Software development	Software development Marketing campaigns Product development

Advantages of using project management software

Project management software offers numerous advantages that support companies in the efficient planning, management and implementation of projects. It provides a central platform on which all project information and activities converge, helping to complete projects on time and on budget and increase efficiency within the company. Project management software tools are usually designed to support the most common project management methods and techniques. However, please note that not all software is able to fully map every conceivable method.

Advantages of using project management software

Project management methods such as Waterfall, Scrum, Kanban, PRINCE2, Agile, Lean and many others each have their own specific processes, practices and tools. Some project management tools are specifically geared towards one or more of these methods and offer functions and templates that meet the requirements of these methods. To reap the benefits of project management software, it is therefore important to consider the requirements of your project and preferred project management method when looking for project management software.

Better project planning and resource allocation

Project management software enables detailed project planning of tasks, milestones and resources. The visual representation of schedules and processes facilitates planning and creates transparency. The software supports the optimal allocation of resources, including employees, budgets and materials. This minimizes the waste of resources and ensures maximum efficiency. The software generally automates routine tasks such as creating reports and Gantt charts, which saves time and minimizes administrative effort.

Collaboration and project status tracking

Communication, collaboration and tracking of project status

Project management software promotes communication within the team and with stakeholders. Updated information and documents are easily accessible, which reduces misunderstandings. The software also enables real-time tracking of project progress, so you always know whether the project is on schedule or experiencing delays. Project management software usually also includes tools for cross-team collaboration, regardless of geographical location. Teams can collaborate, share files and give feedback in real time.

Document management

Project management software usually provides a central repository for documents so that project participants can easily access all relevant information. This eliminates the hassle of searching for files in emails or different folders. The software often also supports the management of different versions of documents. This is particularly useful when several people are working on a document and changes need to be tracked. The integrated document management ensures that the latest version is always available. Naturally, the software includes access management to ensure that only authorized persons can access certain information and make changes. Document management within the project software also includes search and filter functions that make it much easier to find documents. You can search by keyword, date, author and other criteria.

Risk management

The software enables the identification and management of project risks. All risk information and activities are recorded and logged in the software. This creates a clear history and documentation for later analysis and reporting. Project management software enables risk analyses to be carried out and scenarios to be planned. The software supports the management of risk mitigation measures. You can define measures, assign responsible persons and track their progress. Risk information can be presented transparently for project participants and stakeholders. This creates trust and enables better communication regarding potential challenges. The software stores historical risk data, which is invaluable for future projects. Teams can learn from past risk experiences and improve their risk management skills.

Performance monitoring, reporting and analysis

Among other things, project management software supports performance tracking and monitoring the performance of team members and tasks, often in real time. This promotes accountability and helps identify bottlenecks. The software generates reports and analytics that provide insights into project progress, budget overruns and resource utilization. The comprehensive data and analysis provided by the software supports informed decision making and continuous improvement in project planning and execution. Project management software provides tools to monitor time and resource allocation as well as analytical tools to identify patterns and trends in project progress. This enables proactive adjustment of the project strategy.

User-defined workflows

Custom workflows are a key feature in many project management software applications. They allow companies to customize their workflows and processes to meet specific requirements and business processes. In most project management software applications, custom workflows are created visually. This means that you can design the work steps, states and transitions in a graphical editor. Custom workflows make it easier to track the progress of tasks and projects. This is particularly important for traceability, quality assurance and risk management.

Typical functions of the software for project management

Typical functions in relation to project management methods

Additional functionalities for more comprehensive project management solutions

Tips for evaluating project management software

Before making a software decision, conduct a thorough market research of potentially suitable solutions. Our tip: Use our free research service without any obligation. Large parts of the tender are taken over, potential solutions are presented in a structured way and the communication with the providers is documented!

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Software Tips

What is a project?

What is project management?

Important components of project management

Project management methods

Which project management method is suitable for which project?

Advantages of using project management software

Better project planning and resource allocation

Communication, collaboration and tracking of project status

Document management

Risk management

Performance monitoring, reporting and analysis

User-defined workflows

Typical functions of the software for project management

Typical functions in relation to project management methods

Additional functionalities for more comprehensive project management solutions

Tips for evaluating project management software