Questions and Answers
What is the primary focus during the Initiation Phase of a project?
What is a primary component of the Business Case?
Which of the following is NOT typically included in the Business Case?
How should estimated costs in the Business Case be categorized?
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What question should be asked before launching a project?
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What does the brief analysis of alternatives in the Business Case typically include?
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What is likely to happen if the answer to 'Should the project be started?' is yes?
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What is a potential risk mentioned for the project?
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What is the primary objective of the full product launch option?
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Which option offers the lowest risk of product launch delays?
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Which promotional method is included in the full product launch?
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What benefit does the soft product launch primarily provide?
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Who is primarily responsible for selecting the desired product launch option?
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Which option includes no promotional activities beyond minimal updates?
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Study Notes
The Initiation Phase
- The first decision in a project is whether it should be started.
- Different options or “paths” should be considered before launch.
- The Business Case is developed to evaluate various approaches for the project.
The Business Case
- A Business Case presents options to project sponsors for approval.
- It includes:
- Description of opportunities
- Possible solutions/alternatives
- Benefit, cost, and risk analysis for alternatives
- Recommended solution and implementation process
- Project requirements
- A short implementation plan
- Estimated costs can be tangible (e.g., higher expenses) or intangible (e.g., increased risk).
- Estimated benefits include tangible (e.g., increased sales) and intangible (e.g., improved brand recognition).
Developing Options
- A case study by Deco Productions presented three launch options:
- Soft product launch: Minimal promotion relying on word-of-mouth.
- Moderate product launch: Soft launch plus extra promotion through existing channels.
- Full product launch: Moderate launch plus promotional video and trade show materials.
Estimating Costs
- Cost estimates are rough and include:
- Required budget (e.g., salaries, materials).
- Risk of delay in product readiness.
- Cost estimates for Deco Productions' options:
- Soft launch: $10,000, 1% risk of delay.
- Moderate launch: $25,000, 5% risk of delay.
- Full launch: $60,000, 10% risk of delay.
Estimating Benefits
- Benefits estimations are also rough, focusing on:
- Increase in market share.
- Increase in brand recognition.
- Benefits estimates for each option:
- Soft launch: No increase in market share or brand recognition.
- Moderate launch: 3% market share increase, moderate brand recognition.
- Full launch: 6% market share increase, significant brand recognition.
Selecting the Option
- The final decision involves key stakeholders, including the Project Manager and Project Sponsor.
- For the case study, Option C (Full Product Launch) was selected due to its potential for higher market share and brand recognition.
Launching the Project
- The Project Charter is created to officially announce the project and authorize the Project Manager.
- Project Charters should contain:
- Project goals and objectives.
- Project budget.
- Identification of stakeholders and sponsors.
- Key project milestones.
- Overall project risks.
Project Charter Example
- Project Name: DCV4Launch—DecoCam V4 Product Launch
- Project Budget: $60,000
- Key Stakeholders include Vice-Presidents of various departments and the CEO.
- Project Milestones establish timeline for project approval, completion of trade show materials, and final project completion.
Kickoff Meeting
- A kickoff meeting is necessary to bring together key stakeholders, allowing for interaction and addressing concerns before entering the Planning Phase.
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Description
This quiz tests your understanding of the initiation phase of project management, specifically focusing on the development of a Business Case. You will explore various options, their benefits, costs, and the recommended solutions for project approval. Assess your knowledge of project launch strategies and implementation planning.
