Why are Projects Initiated

Why are Projects Initiated

We are professionals who participate in many projects throughout our professional careers. We are usually assigned to projects with a defined scope. It is expected that the project will be completed on time and within budget. Have you ever wondered why projects are initiated by organizations? There are seven common reasons. We’ll go over each one and show you examples of projects that are related to them. Market Demand: This is the sum of all the potential customers (market participants), for a product or service. It generally leads to new projects to address the needs of a particular customer segment. In recent years, car makers have begun to make smaller cars for women customers. Below are some examples of these car models and their makers: Nissan Micra
Toyota Yaris
Honda Fit
Fiat 500L

These cars can be produced by projects that were initiated due to market demand. Projects to meet a business need or strategic opportunity: Organizations may initiate projects to fulfill a business need or to obtain a strategic opportunity. Unilever might start a product development project to become the “World’s largest FMCG provider” for a particular product group. There might also be a business need for a new project. Let’s say that a company was approving its processes using a paper sign-off chain that traveled across the company. An organization might initiate an approval system development project in order to streamline approvals and save time. Social Need: New projects may be initiated if there are social needs. UNICEF is an international organization that aims to improve the education and life chances of children around the world. UNICEF’s example of a project initiated due to a social need is if it builds 10 regional schools in the Middle East. Environmental Consideration: Most companies consider environmental considerations important. Consumers have become more selective and responsive in recent years when it comes to “green” products. Companies had to pay more attention to environmental issues and produce more environmentally friendly products. These environmental considerations could be the reason for new projects being initiated in companies. Below is an Apple ad that shows how they use 100% renewable energy to power their data centers. Customer Request: This is the most common way to start projects, especially for vendors. Let’s consider the vendor perspective. Customers may ask you to create a custom software solution for their business needs. A company might ask you to build its website. Your customer might view this project as a business necessity. However, your company sees it as a customer request. Technological Advance: Companies may initiate new projects in order to be more technologically advanced than their competitors. Remember the introduction of Gmail to the IT world. It was an email provider, just like its competitors in the beginning. They were the first to enter the market with at least 2GB of mailbox capacity, and this number is growing every day. Their competitors only offered 250MBs of storage when they launched their e-mail service. This technologylo

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