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Top three(3) differences across three(3) different project types, a must know!

Last week we wrote in our blog about the three different project types and how it is important to identify your project type before you begin. This piece we will identify the three most important differences across these three different project types. Understanding the basic differences will help you to configure your project processes and project management software tool for successful project execution.

 

Project Attribute Revenue Projects or External Projects Internal Projects NPD(New Product Development) Project
Funding & Sponsor Funding for this   is done by external source in form of customer purchase order or work order This is funded   internally from the budget of CIO (if its IT deployment or similar) or CEO   approval capital expansion budget or sometimes by the sponsoring department   etc This is also   funded internally from the Product Development budget or sometimes internal   subsidiaries fund it based on the market potential or the product
Functional Scope & Requirements Owner This is driven by   the external customer & is the final approver. This is driven by   internal customers like each sponsoring department. The general purpose is   improve the operational efficiency of the department or the organization. This is   essentially driven by the market need & articulated by the sales &   marketing department. The needs can change very rapidly based on the market   conditions
Success Criteria These project are   generally done for the purpose of profit & this becomes one of the key   parameters to be tracked during the project life cycle. Other parameters to   be tracked is Customer Satisfaction Index on the basis of quality &   schedule Success for these   projects is hard to quantify & mostly qualitative in nature  but IRR (internal rate of return) is often   used as a criteria for approval & for measurement. Success for these   project could be “Reduced transaction time from 30 mins to 10 mins” or   increase capacity from 30 units to 60 units per hour” or ”reduced business   risk by 90% by building disaster recovery management” Success for these   projects are measured by the increase in organization revenue due to the   product being sold in the market. This is mostly quantitative in nature.   Success is often measured as the revenue contribution % upto 5 years from the   product launch date.

Needless to say that there are many other differences but the larger point is that these different types of project need different mindset, skill-set, different processes and different software configuration to achieve optimum results. While this may well be the subject of another blog, we will discuss as to how these project types are related in a chain like manner in our next blog.

About the Blog: The blog is written by internal marketing team of ProductDossier based on their experience dealing with different types of projects for different customers. ProductDossier flagship product, TouchBase is an enterprise software product platform combining the essential functionality of CRM, Project Management, Business Process Management & Financial Systems in an integrated manner. TouchBase is built to manage different projects types as mentioned above. http://www.productdossier.com

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