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“Project management tools” and “project management software” are used interchangeably in most conversations, so there’s usually not a meaningful difference in the way people use these terms.
“Tools” is the broader term that can include spreadsheets, whiteboards, shared docs, or simple to-do lists. “Software” is a subset that usually means a digital platform with features like task management, timelines, dashboards, collaboration, automation, and reporting.
In most contexts today, people actually refer to the software as a “project management tool” or “project management platform” when discussing this topic.
Anyone who manages projects can benefit from project management software. Even if you don’t run formal projects or have the title of “project manager,” this software can still be useful.
Many companies that don’t run formal projects use software to plan, organize, track, monitor, and execute their work. For instance, some of your plans may be simple processes that only involve you and another person, while others can take multiple teams months (or even years) to complete.
Excel is not built for team collaboration, task management, timelines, and many other key aspects of project management. Dedicated project management software overcomes these limitations.
A spreadsheet has to be manually updated and reuploaded to a central location whenever a team member makes an update. This makes it easy to miss crucial updates. Other issues project managers can have with spreadsheets are:
- Multiple versions of the same file exist, leading to confusion over which is the most accurate and up-to-date
- Trouble syncing information so people can work together in real time
- Potential security issues due to spreadsheets being uploaded and downloaded multiple times in multiple places
- Difficulty in recording developments and updates promptly
- If you have multiple projects, a single spreadsheet can become unwieldy, while it’s impossible to share data between multiple sheets
The right project management tool can benefit your productivity, profit margins, and team efficiency. It can also deliver real, tangible savings to organizations at a time when they need to cut costs and boost productivity.
Project management software also solves the problems of methods like spreadsheets, whiteboards, and emails for managing work. They replace scattered conversations with centralized information, provide enhanced visibility for team members and clients, and often automate tedious tasks like status updates.
Project management tools achieve these benefits thanks to powerful features like:
- Custom request forms
- Gantt charts and Kanban boards
- Live editing, proofing tools, and automated approvals
- Shared dashboards and automated project progress reporting
Without a robust project management software solution that unites teams, streamlines processes, and centralizes work, companies are losing valuable time every day. We call this the Dark Matter of Work, and the cost is devastatingly high:
- 13.7 Hours per week wasted by knowledge workers due to unstructured work, lack of visibility into project progress, and lack of tracking
- $16.5k Average annual cost of wasted time for a single knowledge worker
- 89 Working days per year wasted by knowledge workers
- $52m Annual cost of wasted time
The price of project management software varies depending on the vendor, the specific pricing plan, and your business size and use cases:
- Software vendor: Costs vary widely across companies, with most charging anywhere between $5 to $15 per user/month. Return to each tool above to see its pricing.
- Pricing plans: Most vendors offer a range of different plans, from basic free options to more sophisticated, custom packages.
- The size of your business: Workflow management software costs vary depending on the number of users and the volume of storage space required.
While there are free project management software options on the market, these often come with hidden costs. Many free options don’t offer training and support, for instance, which means you’ll need to spend more on implementing and maintaining the system.
It’s also important to consider the costs of not having project management software. Teams that use Wrike, for instance, make substantial efficiency gains that lower their cost.
Yes, most project management software solutions can integrate with many other tools. For example, Wrike integrates with hundreds of tools, including CRMs, file storage platforms, messaging tools, and many others. Integrations are actually a critical part of most project management platforms, as they keep data flowing between systems, reduce context switching, and make it easier to generate accurate reports based on information from multiple sources.
Project management tools can include the following planning features:
- Planning/scheduling: PM tools allow you to plan and delegate work in one place with tasks, subtasks, folders, templates, workflows, and calendars.
- Collaboration: Email should not be your only form of communication. With project or work management tools, you can build a better way of working with your team — assign tasks, add comments, organize dashboards, and proof or approve changes.
- Documentation: Avoid missing or outdated files with file management features that allow for editing, versioning, and storing files.
- Evaluation: Track and assess productivity and growth through resource management and reporting.
Program management tools track several interacting projects that work toward a larger, long-term business goal. They’re similar to project management tools but with a heavier emphasis on understanding and managing how multiple projects interact with each other.
To understand this in detail, it’s important to also consider the difference between programs and projects:
Projects typically have clear start and end dates, with short-term goals that lead to tangible outcomes or deliverables. Constraints such as cost, resources, budget, and time all factor into a project’s feasibility.
Meanwhile, programs are composed of several interconnected projects that, when combined, achieve a long-term business objective. Project managers oversee individual projects, and program managers supervise groups of projects, focusing on a larger goal.
Program management tools need advanced features to manage projects at a higher level and see how each project interacts with the others. These tools can include:
- Flexible work views
- Cross-functional resource management
- Dashboards
- Reporting
- Gantt charts
- Timesheets
We can identify four types of project management software: individual, collaborative, integrated, and cloud-based. Each one has its own merits, suitable for different types of people and teams.
Individual project management software
For one person who needs lightweight software to manage their projects, individual project tools are a great fit. They have fewer features than more comprehensive solutions, making them more limited but also easier to use and (usually) cheaper. If you require only basic project management features, this is a good place to start.
Collaborative project management software
A perfect option for large teams that need a low-tech solution. It allows all team members to access, view, and collaborate on project tasks easily. However, it may be insufficient for large teams with diverse projects. Productivity can suffer if members can’t link data from different projects.
Integrated project management software
An integrated solution works best for companies with large portfolios or different teams for various projects. It provides a centralized database of information, digital assets, and workflows. Users have permission-based access to data and information, and they can track time and task dependencies and use messaging functionality, all in an intuitive dashboard.
Cloud-based project management software
The most popular type hosts services and data in the cloud, allowing remote access from anywhere with an internet connection. It offers security and flexibility with customization.
You can use PM software for any of the following:
- Project planning and project scheduling
- Resource allocation and capacity planning
- Project portfolio management
- Business process management
- Workflow management
- Quality management
- Creating and publishing project reports
- Tracking the actual time spent on project tasks
- Analyzing trends and forecasting
For example, Wrike combines all four types of project management software in one, providing a platform suitable for individuals to large enterprises. It features real-time collaboration, scalability, and cloud-based data storage that’s protected by enterprise-grade security.
Project management software can benefit every type of project and every size of project management team. It makes the process smoother, more streamlined, and ultimately more successful. Let’s look at how to use project management software from the perspective of various industries:
A versatile project management solution is a key component of a marketing agency’s toolkit. Marketing project management helps teams collaborate on digital assets, centralize communication, assign tasks, and track campaign progress. Using personalized dashboards, marketing teams can also monitor social channels, get a 360-degree view of all campaigns, and track results for each client.
Construction
Construction projects for roads, rail, buildings, and utilities can take months or even years to complete. Every construction team lays down its goals, plans tasks, creates estimates, and controls its costs. All construction projects, such as commercial, residential, or industrial, can benefit from using construction management software. With a reliable project data source, teams can access accurate information, automate repeatable actions, and work more efficiently.
IT
Workflow management software is a game changer for IT. IT projects can vary widely in their design, scope, and scale. IT project management software allows teams to use Kanban boards, Gantt charts, customized reports, and personalized dashboards to manage risk, scope creep, and frequently evolving client needs.
Law
Legal project management solutions replace spreadsheets and paper trails to help teams organize paperwork, meet business goals, and make their clients happier. With all legal data, contracts, and information stored in a centralized database, teams can securely and accurately prepare for negotiations, court trials, or company audits.
Event management
With the rapid adoption of online events and the return of offline conferences, having event management software is a no-brainer for event professionals. It’ll help you plan, organize, and execute successful events and can also easily be integrated with other software for customer relationship management, marketing automation, payment gateways, or accounting and finance.
Engineering
Engineering projects are varied and complex. Engineering project management software lets teams define project scope and work on milestones in collaboration with other stakeholders. You can optimize your workflows with premade templates for project schedules, complex projects with phases, and tools such as Gantt charts.
Similar to engineering, manufacturing work requires precision and collaboration in a complex environment. Manufacturing project management software gives teams customizable visibility to crucial workflows, the tools they need to plan work and resources, and reporting required to understand where processes can be improved.
It makes sense to invest in a project management solution before problems like missed deadlines and miscommunications start occurring. That way, you can avoid missed contracts, reputational damage, and reduced morale.
Here are three signs that it’s time to invest in a good project management platform:
- Your business is growing. When teams grow, projects multiply, and you start operating out of multiple locations, project management software is a good idea. Still, it’s smarter to have it in place before you start to scale. It will reduce barriers to growth and help you maintain an Agile methodology at all stages of your business.
- Your business is changing in structure. Even when your organization is not growing, changes in functional structures or physical locations can signal the need for project management software. For instance, communication and integration become more challenging if you start employing contractors or remote workers. And, in this case, management and oversight can quickly become difficult without the right processes in place.
- You’re seeking greater efficiency. Project management software reduces the need for manual and repetitive tasks, freeing up your team for more analysis and big-picture planning. This functionality also helps ensure they aren’t overloaded and that people are engaged and happy. If your team members are struggling with increased workloads — or you’re simply looking to reduce labor hours — it’s time to invest in project management software.





