{"id":3157,"date":"2021-03-12T00:00:10","date_gmt":"2021-03-12T00:00:10","guid":{"rendered":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/?p=3157"},"modified":"2023-12-21T07:15:47","modified_gmt":"2023-12-21T07:15:47","slug":"maximize-profitable-resource-utilization-with-modern-resource-management-software","status":"publish","type":"post","link":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/maximize-profitable-resource-utilization-with-modern-resource-management-software\/","title":{"rendered":"Maximize Profitable Resource Utilization with Modern Resource Management Solution"},"content":{"rendered":"<p>The <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/using-the-resource-based-view-strategy-for-competitive-advantage\/\" target=\"_blank\" rel=\"noopener noreferrer\">efficient utilization<\/a> of people in a business is the key to profitability and business sustainability. It is a no brainer that every business endeavors to maximize the <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/track-resource-utilization\/\" target=\"_blank\" rel=\"noopener noreferrer\">profitable utilization of their resources<\/a>, the biggest investment of most businesses.<\/p>\n<p>This article would help you understand the limitations of <strong>legacy systems<\/strong> used for the improvement of resource utilization and how a modern <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/the-complete-glossary-of-resource-or-workforce-planning-scheduling-and-management\/\" target=\"_blank\" rel=\"noopener noreferrer\">resource management<\/a> solution will assist your business move resources proactively from non-profitable work to profitable work and maximize overall billable utilization.<\/p>\n<p><a href=\"https:\/\/www.saviom.com\/resource-management-software.php\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-9702 fullwidth_img\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2021\/03\/MicrosoftTeams-image-1.png\" alt=\"Eliminate Suboptimal Resource Utilization and Improve Productivity\" width=\"1195\" height=\"450\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2021\/03\/MicrosoftTeams-image-1.png 1195w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2021\/03\/MicrosoftTeams-image-1-300x113.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2021\/03\/MicrosoftTeams-image-1-1024x386.png 1024w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2021\/03\/MicrosoftTeams-image-1-768x289.png 768w\" sizes=\"(max-width: 1195px) 100vw, 1195px\" \/><\/a><\/p>\n<h2 id=\"1\" class=\"target\">Legacy Systems Currently Used by Businesses<\/h2>\n<p>Most of the businesses are fighting against the challenges of the 2020s with the systems developed in the 1990s. It is a <strong>bitter fact<\/strong> irrespective of the market size, share, or reputation of these businesses. Some Examples of the legacy systems are:<\/p>\n<ul>\n<li><a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/what-should-you-not-use-spreadsheets-for\/\" target=\"_blank\" rel=\"noopener noreferrer\">Silos of spreadsheets<\/a> built with macros<\/li>\n<li>Home-grown half-baked systems<\/li>\n<li>Windows-based systems of the 1990s<\/li>\n<li>Entry-level <a href=\"https:\/\/www.saviom.com\/resource-management-software\/essentials-of-resource-management-software.html\" target=\"_blank\" rel=\"noopener noreferrer\">resource scheduling software<\/a><\/li>\n<\/ul>\n<p>These are either outdated or simplistic solutions not designed to address the modern-day challenges of a business.<\/p>\n<h2 id=\"2\" class=\"target\">How Legacy Systems Fail to Improve Profitable Resource Utilization?<\/h2>\n<p>Following are the <strong>limitations of legacy systems<\/strong> hindering the process of maximizing profitable resource utilization:<\/p>\n<ul>\n<li>Unable to provide visibility of enterprise-wide <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/how-to-measure-resource-capacity-and-demand\/\" target=\"_blank\" rel=\"noopener noreferrer\">resource demand<\/a><\/li>\n<li>Unable to address complexities of matrix organization structure<\/li>\n<li>Unable to provide resource forecasting and capacity planning<\/li>\n<li>Unable to provide multi-dimensional forecasting of profitable utilization<\/li>\n<\/ul>\n<p><a style=\"border-bottom: none !important;\" href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/resource-forecasting-guide-for-project-managers\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-5203 fullwidth_img\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2021\/02\/Resource-Forecasting-Guide-for-Project-Managers-Read-More-Post.png\" alt=\"Project Resource Management An Ultimate Guide on How to Master it\" width=\"830\" height=\"103\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2021\/02\/Resource-Forecasting-Guide-for-Project-Managers-Read-More-Post.png 830w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2021\/02\/Resource-Forecasting-Guide-for-Project-Managers-Read-More-Post-300x37.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2021\/02\/Resource-Forecasting-Guide-for-Project-Managers-Read-More-Post-768x95.png 768w\" sizes=\"(max-width: 830px) 100vw, 830px\" \/><\/a><\/p>\n<h2 id=\"3\" class=\"target\">How Can Efficient Resource Management Technique Maximize Profitable Utilization?<\/h2>\n<p>Improving <strong>profitable resource utilization<\/strong> requires foresight into the overall utilization of resources. So that corrective actions can be taken ahead of time. But, <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/resource-forecasting-guide-for-project-managers\/\" target=\"_blank\" rel=\"noopener noreferrer\">forecasting resource utilization<\/a> is a daunting task, especially in a matrix organization with constantly changing resource demand.<\/p>\n<p>The following steps are required to forecast profitable utilization and proactively take corrective actions to improvise it.<\/p>\n<ol>\n<li>Forecast resource demand<\/li>\n<li>Forecast resource capacity<\/li>\n<li>Forecast profitable and overall utilization<\/li>\n<li>Move resources from non-profitable work to profitable<\/li>\n<li>Market and sell excess capacity ahead of time<\/li>\n<li>Build <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/the-business-benefits-of-a-contingent-workforce-today\/\" target=\"_blank\" rel=\"noopener noreferrer\">On-Demand Workforce<\/a><\/li>\n<li>Analysing Forecasted vs. Actual Profitable Utilization<\/li>\n<\/ol>\n<p>The above processes are quite involved and complex. Modern <a href=\"https:\/\/www.saviom.com\/resource-management-software.php\" target=\"_blank\" rel=\"noopener noreferrer\">resource management software<\/a> can automate these processes and provide you with <strong>real-time information<\/strong> to improve profitable utilization.<\/p>\n<p><a style=\"border-bottom: none !important;\" href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/resource-management-a-comprehensive-handbook-for-project-managers\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-5345 fullwidth_img\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2019\/04\/Resource-Management-Read-More-Post-1-3.png\" alt=\"The Fundamentals of Leadership in Project Management\" width=\"830\" height=\"103\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2019\/04\/Resource-Management-Read-More-Post-1-3.png 830w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2019\/04\/Resource-Management-Read-More-Post-1-3-300x37.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2019\/04\/Resource-Management-Read-More-Post-1-3-768x95.png 768w\" sizes=\"(max-width: 830px) 100vw, 830px\" \/><\/a><\/p>\n<h3>Forecast resource demand<\/h3>\n<p>It is critical for a business to track all types of resource demand created by current work or <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/4-steps-perfect-project-pipeline-management-strategy\/\" target=\"_blank\" rel=\"noopener noreferrer\">future pipeline work<\/a>. It includes <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/how-to-measure-resource-capacity-and-demand\/\" target=\"_blank\" rel=\"noopener noreferrer\">resource demand<\/a> coming from the following sources<\/p>\n<ul>\n<li>Current projects under progress and past projects on hold.<\/li>\n<li>Non-project activities like BAU, support, admin, operational, etc.<\/li>\n<li>Future projects in the sales opportunity pipeline.<\/li>\n<li>Future internal projects in the approval pipeline.<\/li>\n<li>Future vacations, training, holidays, etc.<\/li>\n<\/ul>\n<h3>Forecast resource capacity<\/h3>\n<p>Forecasting <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/5-best-practices-better-capacity-management\/\" target=\"_blank\" rel=\"noopener noreferrer\">resource capacity<\/a> means calculating the total number of standard hours an individual is available to work in the future. As per employers, arrangement Resource capacity calculation needs to account for:<\/p>\n<ul>\n<li>Every type of employee, i.e., full time permanent, contractors, casuals, part-timers, etc.<\/li>\n<li>Employees leaving in future due to contract completion or resignation<\/li>\n<li>Employees planned to join as new recruitment<\/li>\n<\/ul>\n<p><a style=\"border-bottom: none !important;\" href=\"https:\/\/www.saviom.com\/ebook-registration.php?callFor=EBOOK&amp;ActionType=BDEBOOK&amp;ArticalTitle=The%20Comprehensive%20Guide%20to%20Resource%20Capacity%20Planning\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-5504 fullwidth_img\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2018\/08\/resource-capacity-planning-img-ebook-1024x394-1.jpg\" alt=\"7 Powerful Benefits of Resource Scheduling for Project Managers\" width=\"1024\" height=\"394\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2018\/08\/resource-capacity-planning-img-ebook-1024x394-1.jpg 1024w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2018\/08\/resource-capacity-planning-img-ebook-1024x394-1-300x115.jpg 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2018\/08\/resource-capacity-planning-img-ebook-1024x394-1-768x296.jpg 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<h3>Forecast overall and profitable resource utilization<\/h3>\n<p>Forecasting overall resource utilization is the ratio between the total <strong>demand forecast<\/strong> and total <strong>resource capacity<\/strong>. Similarly, forecasting <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/track-resource-utilization\/\" target=\"_blank\" rel=\"noopener noreferrer\">profitable resource utilization<\/a> is the ratio between profitable demand forecast and total resource capacity. These utilizations are mostly measured in percentages.<\/p>\n<h3>Corrective Actions: Move resources from non-profitable work to profitable<\/h3>\n<p>Once there is <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/track-resource-utilization\/\" target=\"_blank\" rel=\"noopener noreferrer\">foresight into overall utilization<\/a>, it is only a matter of <strong>mobilizing resources<\/strong> from non-profitable or low-priority projects to the profitable or high-priority projects by resource managers.<\/p>\n<h3>Corrective Actions: Market and sell excess capacity ahead of time<\/h3>\n<p>Similarly, <a href=\"https:\/\/www.saviom.com\/ebook\/the-holy-grail-of-resource-management-demand-forecasting-and-capacity-planning.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">forecasting capacity vs. profitable demand<\/a> provides foresight into the <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/understanding-resource-availability-within-project-management\/\" target=\"_blank\" rel=\"noopener noreferrer\">excess available<\/a> resources that can potentially go wasted. This wastage can be avoided by<\/p>\n<ul>\n<li>Bringing forward future profitable projects<\/li>\n<li>Selling resource time aggressively<\/li>\n<li>Restructuring capacity in different areas<\/li>\n<\/ul>\n<p><a style=\"border-bottom: none !important;\" href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/the-holygrail-of-resource-planning-in-project-management\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-full wp-image-5473 fullwidth_img\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2020\/06\/The-Holygrail-of-Resource-Planning-read-more-post.png\" alt=\"The Definitive Guide to Resource Scheduling\" width=\"830\" height=\"103\" srcset=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2020\/06\/The-Holygrail-of-Resource-Planning-read-more-post.png 830w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2020\/06\/The-Holygrail-of-Resource-Planning-read-more-post-300x37.png 300w, http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2020\/06\/The-Holygrail-of-Resource-Planning-read-more-post-768x95.png 768w\" sizes=\"(max-width: 830px) 100vw, 830px\" \/><\/a><\/p>\n<h3>Corrective Actions: Build On-Demand Workforce<\/h3>\n<p><span class=\"quote-style\">Nowadays, it is critical for a business to have an <a href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/the-business-benefits-of-a-contingent-workforce-today\/\" target=\"_blank\" rel=\"noopener noreferrer\">on-demand workforce<\/a> consisting of contractors, casuals, part-timers, freelancers, etc.<\/span><br \/>\nThis type of workforce helps in meeting the temporary shortage of resources without any permanent overhead cost or hiring\/firing costs.<\/p>\n<h3>Analysing Forecasted vs. Actual Profitable Utilization<\/h3>\n<p>It is critical to compare actual profitable utilization against the forecast on a regular basis. It helps in identifying the gap and the reasons behind it so that the overall forecasting process can be improved to achieve a <strong>higher degree of accuracy<\/strong> in estimation.<\/p>\n<h2 id=\"4\" class=\"target\">The Glossary<\/h2>\n<p><a style=\"border-bottom: 0px;\" href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/the-complete-glossary-of-resource-or-workforce-planning-scheduling-and-management\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" class=\"alignright size-full fullwidth_img wp-image-4606\" src=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2020\/11\/the-complete-glossary-of-resource-or-workforce-planning-scheduling-and-management-post.png\" alt=\"A Comprehensive Guide to Resource Planning in Project Management\" width=\"728\" height=\"auto\" \/><\/a><\/p>\n<h2 id=\"5\" class=\"target\">The SAVIOM Solution<\/h2>\n<p>SAVIOM is the market leader in offering the most powerful and configurable solutions for<a href=\"https:\/\/www.saviom.com\/resource-management-software.php\" target=\"_blank\" rel=\"noopener noreferrer\"> managing enterprise resources effectively<\/a>. Having more than 20 years of experience this Australia based MNC has established its global presence across 50+ countries and has helped top global companies address their business needs. SAVIOM also provides tools for project portfolio management, professional service automations and <a href=\"https:\/\/www.saviom.com\/workforce-planning-software.php\" target=\"_blank\" rel=\"noopener noreferrer\">workforce planning software<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The efficient utilization of people in a business is the key to profitability and business sustainability. It is a no brainer that every business endeavors to maximize the profitable utilization of their resources, the biggest investment of most businesses. This article would help you understand the limitations of legacy systems used for the improvement of [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Maximize Profitable Utilization With Resource Management?<\/title>\n<meta name=\"description\" content=\"Modern-day resource management solution is what you need to increase business productivity and profitability. It eliminates silos of time-consuming spreadsheets\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/maximize-profitable-resource-utilization-with-modern-resource-management-software\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Maximize Profitable Utilization With Resource Management?\" \/>\n<meta property=\"og:description\" content=\"Modern-day resource management solution is what you need to increase business productivity and profitability. It eliminates silos of time-consuming spreadsheets\" \/>\n<meta property=\"og:url\" content=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/maximize-profitable-resource-utilization-with-modern-resource-management-software\/\" \/>\n<meta property=\"og:site_name\" content=\"Resources Library\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-12T00:00:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-12-21T07:15:47+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/wp-content\/uploads\/2021\/03\/MicrosoftTeams-image-1.png\" \/>\n<meta name=\"author\" content=\"Om Gupta\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Om Gupta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/maximize-profitable-resource-utilization-with-modern-resource-management-software\/\",\"url\":\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/maximize-profitable-resource-utilization-with-modern-resource-management-software\/\",\"name\":\"How to Maximize Profitable Utilization With Resource Management?\",\"isPartOf\":{\"@id\":\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/#website\"},\"datePublished\":\"2021-03-12T00:00:10+00:00\",\"dateModified\":\"2023-12-21T07:15:47+00:00\",\"author\":{\"@id\":\"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/#\/schema\/person\/086dde90d03f4d4aa613f8f1ea3e0875\"},\"description\":\"Modern-day resource management solution is what you need to increase business productivity and profitability. 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