A new round of project management
starts when the company has decided to
implement a PSS. In this new round, where large budgets and markets are at stake, a
strict and well-documented project management approach should be followed. The
Prince2 project management method is recommended. PRINCE (Projects in Controlled
Environments) is a project management method covering the organisation,
management and control of projects originally developed as a UK Government
standard for IT project management.
The company should consider
a wide range of options for the commercialisation of the
Implement into the existing
business model –this is generally advisable if the PSS is an
extension of the current model.
Starting a New Venture –
Though the risks are high, beginning a new
venture of developing, marketing, and selling a PSS promises the highest
reward if a supporting business infrastructure exists in the company.
Strategic Alliance –
If two companies share mutual interests in a PSS and it
can be organised with clearly separate roles for both companies, they may
consider forming an alliance and profit- sharing. Through an alliance, firms
may either use each other’s manufacturing skills to take advantage of a
market opportunity, or one company may agree to market and sell
products manufactured by another.
Joint Venture – When
a company lacks essential competences or capacities
that are needed for the implementation of the PSS, a partner might be
searched for. When the company and its partner agree upon the PSS
business model, they may consider forming a third company as a joint
venture for the PSS. If the skills and resources of the participants are
complementary and both sides are able to deal diplomatically with the risks,
rewards and operation of the PSS, this far- reaching cooperation model
might prove an appealing option.
38: Overview of commercialization models – source www.100ventures.com
People determine the success
or failure of a project far more than processes or
technologies. A professional project management organisation may improve the overall
control structure and help to reduce the risks of commercial implementation of the PSS.
A Prince2 (or equivalent) Project Management approach which follows a transparent
‘step by step’ process is suggested.
Prince2 is a process-based
approach for project management providing an easily
tailored and scaleable method for the management of all types of projects.
Prince2 enables projects
38: Prince2 business model
Each process is defined
by Prince2 with its key inputs and outputs, together with the
specific objectives to be achieved and activities to be carried out.
The method describes how
a project is divided into manageable stages, enabling
efficient controls. Roles and responsibilities are described and are adaptable to suit the
size and complexity of the project and the skills of the organisation.
A Prince2 project is driven
by the project's business case, which describes the
organisation's justification, commitment and rationale for the deliverables or outcome.
The business case is regularly reviewed during the project to ensure the business
objectives (which often change during the lifecycle of the project) are met.
Prince2 is designed to provide
a common language across all the parties involved in a
project. Prince2 provides benefits to the organisation, as well as the managers and
directors of the project, through the controllable use of resources and the ability to
manage business and project risk more effectively.
Figure 39: Scoping: business –project and Prince2
An overview of the modules
of Prince2 is shown in the scheme below:
40: Overview of the modules of Prince2 project management approach