Understanding Projects and Business Value

A temporary endeavor with a defined start and finish, undertaken to create a unique product, service, or result.

Routine activities within a company, such as customer service, cashier operations, or security, are continuous and recurring, without a defined end. They are not projects.

The value or outcome delivered by a project is distinct and not a mere repetition of existing products or services.

Companies undertake projects to develop new products, implement systems, or create strategies, ending once their objectives are achieved.

The initial development and creation of a new product or service is considered a project. It ends with the creation of a prototype or finalized model.

Once a unique product or service is finalized, routine operations take over for mass production and replication.

Projects are distinct, temporary endeavors focused on creating unique value, while routine operations involve continuous activities.

A project is concluded when its intended business value is delivered, such as a completed house construction or a finished product design.

A project initiated to ensure buildings are accessible to people with disabilities.

Companies constantly develop new products to maintain market leadership and capture a larger market share.

Advancements like artificial intelligence lead to new products, services, and strategies.

Projects initiated directly by stakeholders like financial institutions, board members, or clients.

Projects aimed at addressing societal problems like lack of access to clean water or disaster recovery.

Projects driven by environmental concerns, such as developing alternatives to plastic products or electric cars.

Projects triggered by a need to comply with legal requirements.

Changes in market conditions, such as demand shifts, economic recession, or new regulations.

A process of repeatedly creating the same product or service without significant changes or improvements. It focuses on efficiency and consistency.

A temporary endeavor with a defined start and end, aiming to create a unique outcome, product or service. It involves planning, execution and closure.

The process of analyzing and improving existing solutions to create new and enhanced versions. It involves innovation and value-added adjustments to existing designs or processes.

The process of making existing solutions uniquely suitable for a particular project by considering specific needs, requirements, and environments.

The moment when a project transitions from initial development into a repeatable process for large-scale production.

The assumption that every project is identical and can be replicated without considering specific needs and contexts.

No two projects are exactly alike, even if they appear similar. Each project has unique aspects that require tailored solutions, methodologies, and approaches.

The ability of a project to generate value through its results and outcomes.

A collection of standalone projects, programs, operations, and other works within an organization, all aimed at achieving strategic objectives.

The process of integrating all organizational efforts to achieve business goals defined through strategic management.

A dedicated office within an organization responsible for coordinating and supporting all project activities. It helps standardize processes, provide resources, and ensure alignment with strategic goals.

The PMO establishes and maintains consistent project management standards, methods, and best practices for all projects within the organization.

The PMO provides tools, templates, and guidance to project managers and teams to improve project efficiency.

The PMO prioritizes projects based on their importance to the organization's overall goals.

The PMO ensures that all projects comply with the organization's policies, standards, and legal requirements.

The PMO acts as a central repository for project knowledge, including policies, standards, and best practices.

Internal EEFs are organization-specific factors impacting projects within a company. They are unique to each organization, such as Vodafone's organizational culture, resource availability, and internal processes.

External EEFs influence all players in a particular industry, regardless of the company. They are external forces like market trends, regulations, and technological advancements impacting the telecom industry.

Project triggers are the reasons or events that initiate a project. These motivations can come from strategic plans, market demands, or opportunities to improve operations.

Strategic plans outline an organization's long-term goals, often including projects aligned with those objectives. These plans act as project initiators, starting projects when the plan is implemented.

Projects can be triggered by the need to respond to market changes or opportunities, such as competitor actions or new trends. These triggers are reactive and are often driven by external factors.

Projects can be triggered by a need to improve efficiency, reduce costs, enhance quality, or implement new technologies. These triggers are proactive and driven by internal motivations.

Projects can be triggered by new customer needs, changing regulations, or advancements in technology. These triggers are responsive and driven by external events.

Projects can be triggered by a desire to explore new markets, increase revenue, or gain a competitive advantage. These triggers are strategic and driven by organizational goals.

The value of a future amount of money in today's terms, considering inflation and time value of money.

The annual rate of growth an investment is expected to generate, expressed as a percentage.

A financial ratio that measures an investment's performance by dividing its net benefit by its cost.

A project's PV being greater than the initial investment, meaning it is expected to generate a profit.

A project's PV being equal to the initial investment, meaning it is expected to break even.

A project's PV being less than the initial investment, meaning it is expected to result in a loss.

The project with the highest IRR, representing the most promising opportunity.

The project with the highest ROI, representing the most significant opportunity.