IMPORTANCE OF BUSINESS MODEL

The Importance of Business Models to the Process of Project Management



The Importance of Business Models to the Process of Project Management

Introduction

Many businesses presume that accomplishment is determined mainly by their manufactured goods and service offerings, how sound they meet customer requirements, and on the competence and efficiency of their operations. Today's accelerated altering and multifaceted environment, the Business Model, is becoming equally important and debatable indivisible from the product and operational strategies of a business and in shaping how it accomplishes success. A successful business model for project management provides the competitive advantage that will set it separately from others and achieve its best in class. The quantity of effort put into the plan and execution of a business model in the process does not matter there is always room for improvement.

Business model defines that how a business created and what it will deliver. It enhances the value in terms of economic, social, and geographical. This gives broad level of formal and informal methods to the process of management. It is important to implement in project management. Whenever a project is started it should be assemble with a business model (Afuah, 2003, p.212). It describes the project architecture. This project architecture defines value creation, planning, path and completion of the project. Business model differentiate projects from other works. It gives guidelines and path way to manage the project effectively and efficiently.

Business model is significant in project management to execute the plan successfully. The model brings innovation in the process of the project. Projects are typically implementation oriented so; business model makes possible (Hill, Jones, 2007, p.284).

Project management process is significant for businesses the pathway is made in that way so; it could be easier for everyone to follow it. The smallest task in the project management process can be made useful by using conventional business model. The project management is usually associated with planning and implemented change in an organization.

The Importance of Business Models in Phases of Project Management

A project is a combination of activities that clearly define the starting point and ending point. Project management is the execution of business process. In generating plan and controlling a project, the business needs to create a model that describes the complexity of the project and time required to achieve the goal. The business model is significant to check the progress along with actual proceeds (Harold, 2009, p.526). The model makes an outline that defines complexity objective, uniqueness, and uncertainty of the project. A classification of a process could act as a valuable input to project management. If a business model resulted in a process, explanation then this could be used as the base of the project management. The project management process consists of five phases. These phases are important to align with the business model.

Project Conception and Initiation

The idea is carefully examined by the help of business model and indicates what is beneficial for the organization. This business model helps taking a decision that if the ...