It goes without saying that unless the project is technically sound, it will end in failure. Whether the project involves rolling out a new financial service product or building a power station, the technology must be in place or be developed as the work proceeds. The mechanisms by which these technical requirements are implemented have to be firmed up at a very early stage after a rigorous risk assessment of all the realistically available options. Each option may then be subjected to a separate feasibility study and investment appraisal. Alternatives to be considered may include:
• Should in-house or external design, manufacture or installation be used?
• Should existing facilities be used or should new ones be acquired?
• Should one's own management team be used or should specialist project managers be appointed?
• Should existing components (or documents) be incorporated?
• What is the anticipated life of the end product (deliverable) and how soon must it be updated?
• Are materials available on a long-term basis and what alternatives can be substituted?
• What is the nature and size of the market and can this market be expanded?
These and many more technical questions have to be asked and assessed before a decision can be made to proceed with the project. The financial implications of these factors can then be fed into the overall investment appraisal which includes the commercial and financing and environmental considerations.
Was this article helpful?
What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.