Why understanding Project Management is important

In this blog post we’ll be looking into why understanding Project Management as a way of getting work done is important in both the public and private sector.

First we will look into what the definition of a project is before understanding why project management is beneficial. A project is defined as a complex, non routine, one time effort limited by time, budget, resources and performance specifications. Examples of projects a business can conduct include the development of a new product or software or the construction of a new building or bridge. Examples of projects we take on in our everyday can include organizing a party or renovating your house. All of these projects have the same characteristics that define a project such as a goal, a budget and a timeline.

Any project that is undertaken goes through the project life cycle. Step 1 is known as Defining, Step 2 is Planning, Step 3 is Executing and Step 4 is Delivering

Understanding project management helps to ensure that any project you undertake both in the public and private sector are successful projects. Now that we understand what a project is we will investigate what the benefits of project management are. In an article by projectcentral.com it lists the 5 benefits of project management as:

  • Project Management improves productivity and reduces costs and workload
  • Project Management improves collaboration
  • Project Management improves customer satisfaction
  • Project Management helps you improve your performance
  • Project Management helps with problem resolution

Project management is important for all scales and levels of businesses, by using Amazon as an example we’ll take a look at how project management helps ensure a company runs efficiently. Amazon is the largest online retailer in the world and according to statista.com in 2019, Amazon made a net profit of 11.59 billion US dollars. Over the years Amazon has taken on both small scale and large scale projects for their company. In 2005 Amazon launched amazon prime which is a subscription program that users pay for premium services that amazon offers, these include free and quick shipping on products, savings and discounts on products and access to amazon prime video which is a streaming service; and as of December 2019 there are around 112 million people in the US with an amazon prime subscription. Amazon is an example of a company that understand project management and have used this management to ensure all projects that they have undertaken have proved successful. They recognized that customers were willing to pay more for quicker delivery and are quoted saying “Our vision was that fast delivery should be an everyday experience—rather than an occasional indulgence, and many sceptics thought we were crazy.” By using the example of amazon prime and applying it to the project life cycle we can see how amazon prime has become so successful

1.Defining: Amazon sees customers are willing to pay a premium price for benefits to their services

2.Planning: Amazon decides to plan to launch amazon prime within the US before seeing if there is potential to launch this service globally. They plan their marketing strategy and the benefits they’ll offer.

3. Executing: Amazon announces and launches its service

4.Delivering: Amazon provides members of amazon prime with fast and cheap shipping and as begins to develop more benefits for members as well as planning a new project to launch the service in other countries.

From this example of launching Amazon prime we can see that amazon have continued to undertake new projects and has used the information they have on what their customers want and implement them into new projects.

Businesses of all sizes should utilize project management to ensure their business can implement new projects effectively while also improving their performance and customer satisfaction.

References:

What Are the Benefits of Project Management to Your Organization?

https://www.statista.com/statistics/266288/annual-et-income-of-amazoncom/#:~:text=In%202019%2C%20online%20retail%20platform,than%20280.5%20billion%20U.S.%20dollars.

https://www.aboutamazon.co.uk/innovation/amazon-prime#:~:text=In%202007%2C%20Amazon%20launched%20Amazon,sceptics%20thought%20we%20were%20crazy.

https://pattern.com/blog/amazon-prime-a-timeline-from-2005-to-2020/

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