Capterra conducted a study on the use of project management software in small and medium-sized companies in Germany to gain a deeper insight into the methods, challenges and trends in project management in German SMEs.
The user study surveyed 247 SMEs to identify the top trends among project management software buyers. It also asked what the main reasons are why most companies do not yet use project management software despite the relevant benefits.
User Study 2018: How Project Management Software is Used in Germany
Highlights of the study
The majority of German SMEs do not use any special software applications other than Excel, Outlook, etc. for their project management and work with manual methods.
Half of the companies are willing to invest in new project management software.
Only 13% of the project management software used in SMEs is cloud software.
Almost 60% of companies are willing to pay a higher price for software from Germany and data protection according to German law.
Why project management software?
The aim of project management is to use the right tools and methods to plan and manage projects so that project goals are achieved in a high quality, on time and within budget. Software is a helpful tool for companies to achieve these goals.
Using the right project management software enables a better overview and transparency of the project. Project risks are quickly identified and displayed by the software, which reduces the risk of project failures. The project process is made more efficient and project implementation can be completed more quickly. PM software also leads to improved communication and collaboration within the team. Good communication options are crucial to success, as more than a third of project failures are due to poor communication.
Only half of German SMEs manage their projects using software
Less than half of the companies surveyed use one or more software applications to manage their projects.
User Study 2018: How Project Management Software is Used in Germany
The result is astonishing: A full 54% do not use any special PM software, but work with Excel, Outlook or use manual methods. In 30% of companies only a single project management software solution is used, in 16% two or more solutions are used. If you look at the connection between company size and software usage, the results correspond to the trend: In companies with 1-5 employees, only 33% use one or more software applications, while in companies with 51-100 employees the number is almost twice as high.
A study by Capterra in collaboration with Prof. Dr. Schmietendorf showed that, given their high importance, at least the areas of customer management, project management, enterprise resource management and human resource management should be supported with software. Companies that do not yet use PM software are likely to complete work with more effort and make less profit because they waste time juggling small tasks instead of concentrating on the core business. Managing projects in large companies would be unthinkable without software. In small companies, projects can often be managed without software. However, this leads to major disadvantages, loss of time, communication gaps and human errors that can be avoided with software.
Implementing project management software is a challenge for many small companies. Business processes must be transferred to the software and mapped in it. Small companies often do not have defined processes. These must first be mapped and defined in order to use the software effectively. Just as often there is a lack of specialist staff who can carry out the implementation.
However, cloud software offers a solution. Tasks that require expertise, specialist personnel and time - such as installation, configuration, software updates, etc. - can be outsourced. We asked companies that use software for project management whether the application they use is a cloud solution.
Cloud software is still in the minority in Germany
User Study 2018: How Project Management Software is Used in Germany
Only 13% of German companies use a project management solution from the cloud. This unexpectedly low proportion can be attributed to data security concerns. Almost 44% of companies use on-premises software. Almost as high is the proportion of respondents who do not know whether the solution used in the company is installed or cloud software. Cloud technologies are nothing new. It is shocking how little employees in Germany are informed about software. The same survey was conducted in France. A comparison of the results shows that in France a full 35% of SMEs use cloud software.
Cloud solutions are scalable according to the needs of the company. They are more dynamic and flexible and can be adapted to the growth and needs of the company. Company lebanon telegram data data is available from anywhere and mobile working is supported. Furthermore, SMEs have a relative cost advantage by using cloud software, which comes about because the costs for cloud software are incurred on a monthly basis. A one-off large investment in installed software is a major burden for small companies, which also always carries the risk of a bad investment.
Special project management software from the cloud makes all processes and changes to a project visible to all employees involved in real time, improving project transparency and communication within the company. Documents can be added to projects and can be viewed and accessed from anywhere. Time recording is also made much easier with a cloud solution and can also be done using a smartphone.
Data security concerns are particularly high in Germany and prevent many companies from investing in crucial cloud technologies and taking advantage of competitive advantages. In a Capterra survey on user behavior on the comparison portal, "no trust in the cloud in terms of data security" was named as the biggest challenge when selecting cloud software by 29%.
Challenges in project management are due to missing software
User Study 2018: How Project Management Software is Used in Germany
Respondents were asked to select the three biggest difficulties in project management. 18% said it was difficult to meet deadlines, 13% of study participants had problems responding quickly to changes within a project, 12% said organizing tasks was a challenge, and 9% said it was difficult to stay within budget.