Different bodily functions require different vitamins and minerals to optimize their usability. The same goes for any businesses. Different types of business require certain types of tools in order to maximize returns. A lot has to be taken into consideration, not just the cost or brand name of the portfolio management software that you will be using to aid your company. Forming a specific set of guidelines in order to determine which functions you need the most will help you narrow down a long list of potential candidates or, hopefully, even trim it down to THE ONE.
Corporations and even small to medium businesses are already familiar with the convenience provided by a portfolio management software. They have already heard about it either through word of mouth or the internet. However, it can be extremely overwhelming to sift through the growing number of similar products in the market with the multitude of things that they have to offer to their clients, and at the same time work on marketing strategies for your business, for instance. It is of utmost importance that you know exactly what you are looking for and be able to paint a picture of it to be able to see it more clearly. Whether or not this is your first time buying portfolio management software, take a moment to see the following factors that could affect your decision.
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Project Management VS Portfolio Management
This is the first consideration that you should make: whether you need a project management software or a portfolio management software. Yes, you can use both at the same time, but they are not one and the same.
If you are looking for basic functions only or if you have mid-range projects, then you might be better off with project management software. You have a whole range of options if you go for a project management software and another set of useful features at your disposal.
To determine which one you need, you have to ask yourself how big your organization is, currently. For smaller scale organizations with a limited number of resources, and for up-and-coming mid-sized businesses that are on their way to expanding in the near future, then a project management software is what you are looking for. On the other hand, if your organization is on a larger scale and conducts global operations that require constant monitoring and performance management from several team members, then portfolio management is the right choice for you.
When finding out the right type of software you need, it is also important to take future plans into consideration. Are you planning to expand or downsize your business anytime within the next five, ten years? Do you wish to outsource a business operation such as budgeting? These are just a couple of questions that you could ask yourself before finishing this step.
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Goals Evaluation
Of course, any business’ goal is to maximize profit and increase the return on investment. According to a Total Economic Impact (TEI) Analysis done by Forrester in 2009, having an effective portfolio management tool can yield as much as 250% in return on investment (ROI). This alone emphasizes how important it is to rely on portfolio management software for various business needs. However, aside from monetary gain, a good portfolio management software has so much more to offer and can cater to various corporate objectives.
It is important to discuss your specific goals with your entire team to get everything in retrospect. This will help you review past actions and possibly make better predictions as to where you see your company in the near future. When making this executive decision, in particular, you need to look at it from all angles and be as critical about it as possible. It would be impractical otherwise and the consequences could be more dire than necessary.
After you’ve figured out what you want out of the software that you’re choosing, review your list of qualifications and proceed to doing research on various products in the market.
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Shortlisting: Narrow it down!
Now that you’ve got the list of all potential sellers, it’s time to make that list shorter. Go over your goals once again and cross out any that do not meet your requirements. This is where you try to balance out the cost versus the features that you will be getting out of them. A lot of them will offer a demonstration of their product, so it’s best to take advantage of that as much as possible, too. Ease of use could be a major selling point for some products and might possibly be the deciding factor that ends the search.
Some of the newer programs have learning curves that are shorter than others. While using the demo, it’s best if you try to determine right then whether the learning process will take longer than necessary. Aim for something that is simple yet sophisticated and easy to understand.
Cost. When looking for a program, this is among the top points for consideration. Instead of just looking at the face-value cost of the product, take the total cost of ownership (TCO) which also includes the cost over 3-5 years of ownership plus any maintenance or software support costs.
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Collaborative Selection
Once you are finished with a much shorter list, gather your team once more for a brainstorming session. Getting their input will once again prove useful. Two heads are better than one, after all. Plus, this could allow you to see some things that you’ve missed earlier on in the process.
This collaboration can lead to even better ideas more quickly. Furthermore, your team will also be using the software, so why not get their input about it as well? In order to have a broader understanding of the ins and outs of the selection process, get them to use the trial version of the software as well.
Attempt using the phased approach when implementing the new program. Try to gather reviews from your team starting with one department at a time. Take note of their feedback and try to change it as much as you can to your liking.
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Other Features
Select between custom-designed and configurable programs. Ask yourself if you want to optimize your portfolio in its true sense and not just base it on ranking alone. Consider if it will be effective when it comes to risk characterization and valuation. Most of the time, configurable models are programmed in a way that it makes it hard for users to make changes. The codes might be too complicated for anyone else but the original programmers to change it. This can cost the organization much more.
There might be some features that you may wish to purchase separately, which is perfectly fine. An example would be a project budget software. Top-of-the-line project budget software can give you weekly and / or monthly reports about your project expenditures and the overall costs. This gives you information on whether you have overstated your budget.
If you wish to get a summary of your budget performance within a certain period, make a report on analyzing your finances. With today’s available portfolio management tools, you can also incorporate an additional accounting software to give you a better idea about other expenses that are relevant to the projects within your portfolio.
Alternatively, you can also opt for a time tracking software that would be perfect for accounts reporting and marketing purposes.
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Finishing Touches
Of course, before you make your final decision, you have to consider your stakeholders. They have to have complete faith in the program that you are about to purchase for their use. Also, do not be so easily attracted to several marketing claims and be more skeptical of them. Keep in mind what your business stands for and what functionality it seeks.
To go beyond the mile, learn about the technical side of the program beforehand. This knowledge will always come in handy and it will be much easier for you to make informed choices about selecting the right tool. After all, not all tools are the same and additional knowledge is always good. Remember that an expensive product doesn’t always offer the best and the cheaper ones are not always of lower quality.
Finally, make sure that these tips are met in order to make the most appropriate portfolio management software choice for your growing investments. Every organization will most definitely have varied sets of objectives and management techniques; thus, a careful analysis of your needs and standards will lead you to the right direction. Of course, just as in any other purchasing endeavor, you have to make an informed decision and not just go at it blindly for that could potentially do you more harm than any good.
Similarly, as no two associations are the same, nor is there a perfect software out there. In the event that you experience the selection procedure with the right questions in mind, however – and confirm the answers during the verification process – you will discover a system that meets the greater part of your business needs.
You may find out more about the top portfolio management software reviews by going to https://www.crowdreviews.com/best-portfolio-management-software.
Jeev Trika
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