Corporate Business Life Cycle

Policy Planning

Needs Identification

Project Conception

Realization

ProductRe|irement in Service V

Feasibility Acquisition Operations

Retirement

The goal of any computer-based system is to provide assistance in meeting an organizational goal or objective, to support a business goal, and/or to develop a product that is sold to generate business revenue. Computer-based systems are more than software. Building quality software requires that hardware, people, data, documentation, and procedures be accounted for somewhere within the development life

A project manager must be able to define criteria for project selection. There will always be more projects than resources to adequately execute those projects. One of the key topics in this chapter is the definition of those criteria and taking them into a model structure for decision.

The ability to analyze a portfolio of projects and select the "best" one based on all known information is a skill that all project managers need to possess. Portfolio management looks at projects from the point of view of a return on investment based on what an organization feels is an effective internal rate of return. This financial view of selecting projects is appropriate for any size of organization, in any stage of maturity. It levels projects to a common comparative measure: money.

Understanding basic financial ratios for project analysis is part of evaluating projects for selection and existing projects within an ongoing portfolio. In this chapter, we will review the major ratios with respect to the DuPont financial analysis model. Detailed information is in Appendix C, "Creating the Business Plan."

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Project Management Made Easy

Project Management Made Easy

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.

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