Project Management Institute defines business value as the net quantifiable benefits derived from a business endeavour. In this article, I want to talk about Business Value Creation for Projects. Follow me as we look at that together in this article.
The benefits may be tangible, intangible or both. in this article, I want to look at how projects can enable business value creation generally. Follow me as we are going to look at that together in this article.
In business analysis, the business value is considered the return, in the form of elements such as time, money, goods, or intangibles in return for something exchanged.
Business Value in a project refers to the benefits that the results of a specific project provide to its stakeholders. The benefits from projects may be tangible, intangible or both.
Examples of tangible elements include Monetary assets, stockholder equity, utility, fixtures, tools and market share among others.
Intangible assets include goodwill, brand recognition, public benefit, trademark, strategic alignments and reputation among others.
Organisation leaders initiate projects in response to factors acting upon their organisation. There are fundamental categories for these factors, which illustrate the context of a project. Here are some :
#1 Meeting requirements
Projects might be initiated in order to meet regulatory, legal or social requirements among others. The government may come up with policies or requirements that they have to fulfil before they are allowed to produce a particular product or service.
#2 Stakeholders requests
At times , the project might be executed in order to satisfy stakeholders requirements. It is a common saying that organisations embark on projects in order to meet the needs of stakeholders. It is also a common belief that a project that failed to meet the needs of stakeholders is already a failed project.
#3 Implement strategies
At times, projects are also introduced in order to implement or change business or technological strategies. Most times , you may want to move from analogue to digital ways of doing things. This might warrant initiating projects in order to achieve such laudable objectives.
#4 fixing
Most times as well, project night be initiated in order to put things in order. You might want to create, improve or fix products, processes or services as well. It is not every project that are meant to create something new. Some might be done to correct errors as well.
These factors influence an organisation’s ongoing operations and business strategies. Leaders respond to these factors in order to keep the organisation viable.
The project provides the means for organisations to successfully make the changes necessary to deal with these factors. These factors ultimately should link to the strategic objectives of the organisation and the business value of each projects.
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