The project concept: examples

In any case, the most important thing is to start right. The statement is quite true for the now popular project management. Where do I start the project? What is the concept of the project? Examples and theoretical basis for answering these questions are suggested in this article.

Project and product life cycle

The management of any project is strictly dependent on the stages of its life cycle.

Passing through certain phases of its development, the project is modified and requires all new forms of control and management. It is worth noting that the life cycle of the project does not coincide with the life cycle of the product, which is created in the process or the result of its implementation. The product begins its existence from the moment of creation of all its parts and their unification into a single object, which can be realized or used with advantage for the owner. In this case, the product can be created:

• As a result of the project (if one of its objectives);
• In the process of its implementation (if the product is one of the stages of achieving any of its goals);
• Before the start (if its existence is a prerequisite for the implementation of the project);
• After completion (if it is not the goal).

Thus, the "life lines" of a project and product may or may not overlap, but always depend on each other.

Phases of the life cycle of the project

The main stages are:

1. Initiation.
2. Development.
3. Realization.
4. Completion.

But this is not the only division. As part of the financial evaluation of projects, the three-stage life cycle of the project is most often used:

1. Pre-investment stage (justification of investments).
2. Investment stage (financing).
3. Post-investment (evaluation of the economic efficiency of the project).

There are more detailed and not so consistent structures of the life cycle of projects that managers use depending on the scale of the idea, the organizational structure of management in the company, the branch of economic activity. Anyway, the subject of our attention is the very beginning - the phase of initiation or, in other words, the concept of the project.

What is initiation?

Initiation, or development of the project concept, involves a whole complex of processes, which ultimately is determined by the manager, proceeding from various external and internal factors. Nevertheless, it is worthwhile to give a general list of questions on which it is necessary to seek answers at this stage:

1. What are the prerequisites for the realization of this particular project?
2. What confirms the need for its implementation?
3. What is the external environment of the idea?
4. What are the main objectives?
5. What is the degree of technical feasibility of the idea?
6. What are the enlarged financial conditions for the implementation of the idea?
7. Is there a clear understanding of the start time?

The plan of the project concept also includes the following main actions:

1. Determination of the main way of realization of the idea.
2. Appointment of those responsible for the implementation.
3. Determination of the number and composition of the project team.
4. Fixing expectations from stakeholders.
5. Formation of the enlarged list of processes.
6. Enlarged analysis of the resources needed to achieve the set goals.
7. Analysis of risks and assumptions.
8. Establish a general project management plan.
9. Authorization (launch).

The concept of the project as a result is reduced to the development of a charter, which includes all the issues and problems described above. The accuracy of the figures specified in such a document is often not more than 25%, nevertheless they are necessary for the initial launch of the project.

Development of statutes

Formation of the concept of the project is impossible without the process of developing a document declaring its existence and containing, in addition to the initial requirements and objectives, also the powers of the manager and the amount of resources allocated.

The project charter is clearly structured and should contain the following main sections:

1. List of main changes.

2. Approval sheet.

3. General narrative:

• Goals;
• Justification of expediency;
• Planned results;
• The final product or the final target;
• The main stages of implementation;
• Stakeholders of the project and their expectations;
• Risks, assumptions, limitations;
• Process control scheme and command.

4. Basic principles of work performance.

5. Related documents.

When drafting such a document, as a rule, they use the method of expert assessments, the main role in which the qualification of the project manager plays.

Identification of stakeholders

The creation of the concept of the project is significantly influenced by persons who are directly interested in the result. Determining the circle of such persons is necessary to assess the factors affecting the project. Within this stage, the objectives are coordinated with key beneficiaries, the definition of the roles of direct and indirect stakeholders, the assessment of risks and uncertainties associated with the inevitable conflict of interest, the development of a form for informing these people about the progress of the idea.

All information about the circle of persons thus defined is stored in the register of interested parties. This registry is accessible to the project manager and used by him to manage the zones and the degree of influence on the business processes and the team.

Approving the concept

Before approval, the concept is thoroughly tested and adjusted for all elements of its ramified structure: financing volumes, implementation methods, factors of influence, risks, etc. The concept of the project is approved only after agreement by all interested parties, including authorities and municipal structures.

Implementation of the concept

The concept of project development is being implemented by implementing a plan, which is also fixed in it. During the implementation of the idea, various changes occur, recorded and approved by management, which affect the final indicators. Monitoring these changes and quality control are perhaps the most important management processes in the implementation phase of the concept.

Example 1. The concept of a construction project

Development of the concept of a construction project necessarily includes:

• Analysis of the land plot;
• Constraints on building;
• Current state of the territory;
• Assessment of its development potential;
• Analysis of the real estate market (its capacity, segmentation);
• Identification of potential competitors;
• An estimation of dynamics, volumes of demand;
• Identification of potential buyers.

Specificity of the construction project can be considered the variability of the use of the existing land. Development evaluation here comes to the fore in the formation of the concept. To make the right choice, apply SWAT analysis, multifactor modeling and other tools.

After solving these priority tasks, the project charter is compiled, which, in addition to the above sections, necessarily contains:

• The concept of development (the main characteristics of the site, transport infrastructure, master plan, recommendations on architectural and planning solutions and building materials and the basics of land improvement);
• Marketing concept (pricing strategy, approximate sales / rental schedule, promotion strategy);
• Financial scheme (investment needs, profit forecast, approximate cash flow schedule).

Example 2. The concept of implementing an automation system

The development of the concept of the project for the introduction of an automated sales system for a bookshop should include the following specific sections:

• Evaluation of the online market of books by volume and cost of implementation.
• Determining the cost of the content of the online store.
• Identify the need for additional sales markets from an existing bookstore.

The concept of such modernization of the store will have several purposes: the creation of an online store, ensuring its operability and reaching a specific level of orders through a new Internet resource.

Such goals can be achieved by successively solving the following tasks:

• development of technical specifications;
• Work on the formation of an online store;
• The development of a scheme for delivering books from the publisher to buyers;
• advertising;
• The conclusion of contracts with online payment systems.

Example 3. The concept of production modernization

The concept of a project for introducing a new technology into an already existing production cycle is always developed taking into account the specifics of the enterprise and the conditions for its operation. Particular attention is paid to the following stages:

• Identification of the "vulnerable links" of the production chain (the introduction of a new technology should either replace problem areas, or not provoke their failure due to violation of the integrity of the work cycle).
• The development of a phased introduction of a new technology (the plan to include a new link in the production process is an important element in the implementation of the modernization project, since the imbalance between the actions of the team and production workers can nullify all the funds spent on rearmament).
• Evaluation of the potential of enterprise employees to manage and service new equipment.

Among the goals of such a project, as a rule, the characteristics of the renewed products are indicated by volume and speed of release.

Taking into account the above, it becomes clear that the project concept includes the main provisions regarding its content, economic benefits, feasibility and consequences. In this regard, the conceptual provisions of new ideas needed to develop or start a new business, it is necessary to structure, evaluate and agree before moving on to real changes and financial injections.