How Can Project Management Information Systems (PMIS) Give an Organization a Competitive Advantage?
An effective project management information system presents you with up-to-date information on project work, allowing you to make decisions that keep the project on schedule and within budget. Without timely information, you may not be able to make the appropriate decisions, and completion of the project may generate extra costs. The PMIS improves project management and results in a competitive advantage compared to companies not using such a system.
Because the PMIS keeps track of current costs and work progress, the project manager is aware of deviations and discrepancies as soon as they occur. He can reassign resources, adjust the schedule and implement new procedures to reduce costs. The PMIS tracks the results of the corrective action and lets the project manager know whether the changes have been effective. This rapid notification and tracking of the results of actions gives companies using a PMIS a competitive advantage in bringing projects in closer to the schedule and within budget.
A key part of project management is controlling, sharing and updating documentation. A PMIS tracks documents by reference and revision numbers and ensures that the people on the distribution list have an up-to-date copy. Minutes of meetings, drawings and specifications take time to distribute and track manually, and manual control is subject to errors. The PMIS reduces costs by automating this process and making it more reliable. This part of an overall cost reduction for the use of a PMIS contributes to the competitive advantage.
A PMIS lets you save money by reducing the time spent on selecting subcontractors and managing their work. Once you have awarded the contract, the PMIS retains a paper trail of contractual documents, reducing the scope for disputes. The cost of the purchased material may be lower if you can evaluate more bidders due to the reduced workload. The reduced cost from this and from improved contractual document handling contributes to the competitive advantage provided by lower project management costs.
The purpose of information systems is to provide quality information to management. The PMIS lets you access detailed records of project processes such as permitting, work hours and the results of testing. With such high-quality information at your disposal, you have a more complete overview of how your project is developing and can make decisions that are more likely to give the results you want. Such a competitive advantage results in projects that more effectively fulfill their required functionality and improves overall company performance.