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Project Selection Using Data Analytics

The document discusses the importance of data analytics in project selection and management, emphasizing its role in decision-making and tracking project milestones. It highlights the need for project owners to understand analytics and the collaborative effort required from various teams to gather and analyze data. Ultimately, data analytics is presented as a tool to enhance project efficiency and effectiveness, rather than a strict rule for decision-making.

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14 views2 pages

Project Selection Using Data Analytics

The document discusses the importance of data analytics in project selection and management, emphasizing its role in decision-making and tracking project milestones. It highlights the need for project owners to understand analytics and the collaborative effort required from various teams to gather and analyze data. Ultimately, data analytics is presented as a tool to enhance project efficiency and effectiveness, rather than a strict rule for decision-making.

Uploaded by

rpmirashmultimedia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Project selection using Data Analytics

Introduction

Project are a great way to keep track of strategy and returns. Projects are different from a business
partnership agreement and contract. Projects have a fixed time frame of giving desired results. Projects
come and go, some are accepted and some are rejected. Projects haven’t harnessed the technology of
data analytics. Choosing one project over another project needs data analytics. 1Big data analytics are
technologies that have been developed to help organisations make sense of this vast amount of
information. 2No organization can run an existing business and promote a new expansion project
without a suitable internally mobilized financial base or both i.e internally and externally mobilized
financial base.

Definition
3
Project management is the management of a temporary endeavour — having a definite beginning and
a definite end — undertaken to create a unique product or service. Program management is the
management of a group of projects sharing common strategic goals, managed in a coordinated way so
as to realise benefits otherwise not available by managing projects as separate entities. The more
complex the strategy, the more likely a large number of projects will be required.

Virtual teams using data analytics to track their progress makes a project interesting to start and
complete. 2 or 3 KPI are good enough to run through data analytics. Can strategy implementation use
data analytics, i.e can strategic choices during strategy implementation be weighed using data
analytics? The answer is Yes.

Project milestone- use of data anlaytics

The tracking of various project milestones using data analytics is what we are going to discuss in detail.

Finance is just about numbers, however data analytics is about decision making which includes
numbers as well. The decisions in projects can be run through data analytics for interpretation of data.
Usually, data analytics makes an impact when 10% of project is completed. The project scenarios,
project decision to move forward, budget, returns and many other key performance factors are the
overall areas to be covered in a project using analytics. No analytics can provide a solution, analytics is
purely to take decisions from top management to lower management.

Who in a project needs to understand about analytics?

Project owners need to understand the process of involving analytics in their decision making. Project
owner can be anyone from a program manager to an operations manager, basically the champion of the
project. Research and data analytics are different. Data analytics gather data and provides the next step.
This means choice are followed by an action. In research, steps are not calculated or foreseen. Project
owner can calculate the steps to be taken to complete a project which makes analytics a great tool for
efficiency and effectiveness.
What happens if decision taken using analytics do not go in line with rational thinking of
management?

Avoid bias, choose by majority who are for a decision (decision taken using data analytics or using
rational thinking). Testing and validation can be done using analytics, however analytics do not provide
real life outputs all the time and management may consider that it must not go by analytics and instead
go by conscious real life strategy for a particular part of the project. Analytics don’t put a burden to use
it throughout the project which makes it user friendly for project owner to use or not use analytics for
tasks in the project.

Where can data be gathered for the purpose of streamlining the project?

Data for analytics are gathered from the data owners who maybe the business development team or
operations team and figures from finance team. There is no one single data owner. Real time data
comes from Customer Service Team.

Who is responsible for analytics of a project?

The risk and compliance team should weigh the risk of analytics for projects instead of using theory
methods or techniques of risk calculation for business segments or cost centres. The risk and
compliance team will be responsible for analytics along with project owners.

Let’s say, project has not crossed the agreed milestones and data analytics is being capitalized because
it is giving profound return on of useful information to keep the project heading forward. Can project
be considered as scrap just because of a loss monetary figure? The loss is a sign of negative ROI
however, data analytics can find out where the project deviated by running analytics and can bring the
project to positive, if loss is detected early.

Project analytics, to sum up, cover decision making beyond ROI and IRR and Capital Structure along
with ratio analysis. Analytics help the management to think vertical and horizontal across business.
There is no hard and fast rules to analytics. Each person’s assumption are considered as knowledge
based decisions which have a weight on the conduct and strategy of the business. Data analytics do not
give a report card of the project, it just helps to facilitate decision to streamline a project by stating
steps at each point analytics is used.

Reference
1
MODULE 2 Understanding the External Environment Pg 74, CPA Australia
2
FINANCIAL POLICY AND CORPORATE STRATEGY Pg 1.5, Strategic Financial Management,
CA Final, ICAI
3
MODULE 6 Strategy Implementation Pg 389, CPA Australia

About the Author


Jency Sara Easow (Jenccy) is a Chartered Accountant (Memb no. 246941) from ICAI and CELTA
qualified. She can be reached through LinkedIn or through Email ([email protected]).

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