Implementation
For Piper Industries, there are a number of projects that could increase the profitability of the company and continue the business. However, the Stargazer project has the highest potential for the creation of new business and increased profitability due to a number of reasons. As described within the project descriptions, the company has already invested significant assets into the creation of these new widgets; the company has spent $450,000 on the project as it is, and it only requires a similar investment to bring it to market.
While expensive, this project is innovative in its form, and if delivered properly, can open up new markets and business for the organization. No other such project exists on the marketplace, and by being the first company to bring such a widget to market, Piper Industries can establish itself as a leader within the industry and attract new customers. Furthermore, this can open up new markets and allow Piper to monopolize this new market, as there are no current competitors in this space.
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Although there are risks to the delivery of the project based on a concise time-table, the risk that this project brings is outweighed by the tremendous benefits that it brings to the organization. The product is set to have a seven year life-span, which is cheaper for the company than developing derivative product lines every two years as proposed in project Juniper.
Furthermore, the project is forecast to bring a total of $1.6 million dollars in profit, which will allow the company to continue and improve its current product lines in order to dominate this new market space.
Five Phases
In any project, there are a number of phases that the product goes through before it is fully implemented and completed. A project must be conceived, defined, launched, controlled, and closed before it is deemed successful (Weiss, 1992).
At the start, a project must be conceived and analyzed for its viability. During this stage, the idea is carefully examined in order to identify whether this project is beneficial to the company and whether the organization can realistically complete it in a reasonable amount of time.
The definition stage of the project involves the creation of a concrete plan for the vision of the project, its implementation, budget, schedule, and deliverables. During this phase, the project is divided into a number of smaller projects that work to the completion of the overall product.
At the launch phase, the work is begun and carefully followed by the proper personnel. This phase goes hand in hand with the performance and control phase, as project managers due their part to ensure that the project follows the estimated projection in the project plan. As such, managers keep the project and track and due what they can to ensure that work is completed promptly.
At the closing phase of the project, the project is completed and given to the client for review. If the client approves and accepts the outcome of the project, then the project is deemed a success. An evaluation is undergone by management to identify the strengths and weaknesses of the project, as well as create new efficiencies within the general mechanics of all future project. By applying these lessons from the project, a company is able to improve its methodology and save on costs in the long-term.
Key Deliverables
There are a number of key deliverable targets that must be met for this project to be successful. The research and development must be able to develop a working prototype of the widget in order for marketing to develop an adequate plan for the sale of the product. This would involve the creation of a marketing plan targeting strategic consumers and businesses that would be highly interested in such a product, as well as identifying converting factors for consumers that are ‘on the fence’ about the product.
Most importantly, the project must be completed on time for the widget to remain profitable. Although there is significant risk due to the untested nature of the project, without a timely delivery of the product, there will be little business and consumer interest in the widget itself. Furthermore, timely delivery will ensure that the company will have the leadership in the market, and that the product will be able to live out its 7 year product life.
Furthermore, the product must meet its return on investment forecast in order for the product to be a viable part of the company’s sales strategy. This means the delivery of a ROI of $300,000 in the first year, $550,000 in the second year, and $750,000 in the third year (University of Phoenix, 2012). Since the project was selected based on this ability to acquire a significant return on investment, the company is undertaking a massive risk if the project is unable to meet these investment deliverables.
- University of Phoenix. (2012). Project Management eMail.
- Weiss, J. W. (1992). Five-phase Project Management: a practical planning and implementation guide. Basic Books.
