We are project business experts at Adeaca. What do we mean by “Project Business” and how is that different than project management? The point of this article is to properly define project business and demonstrate why it’s an important concept to improve business results.
Defining Project Business
If delivering projects, whether externally or internally, is an important part of your business, it’s critical to focus on managing the business of those projects. Project business is the management and governance of project processes from beginning to end. Project business management brings together the operational and financial components of running projects into one discipline. In project business, not only do you need to manage the project schedule and resources, but also the budget and costs simultaneously.
Who does Project Business?
Regardless of the industry you are in, project business is applicable when projects matter to your business. It is simply the percentage or degree of project business that varies.
Many companies operate the majority of their business in projects, including architecture, engineering & construction, project-based (ETO) manufacturing, aerospace and defense, professional services, and many others. These companies are typically referred to as project-based, and they provide their products and services to their customer directly through projects. For these types of companies, delivering projects to their customers is their bread and butter.
However, for other types of companies including retail, distribution, pharma, manufacturing, and others, the need to manage project business exists as well. Not only that, but these projects need to be integrated with the rest of the business as far as costs and the value delivered. Almost every mid to large enterprise has this need. Many of these companies have project-based divisions or significant capital projects that require project business management.
Whether you’re running projects for your customers or managing projects internally, if you have a project with a budget, you are managing a project business.
The Difference Between Project Management and Project Business
Don’t get project business management and project management confused. Project management is a sub-discipline of project business. Project management is the application of knowledge, skills, tools, and techniques to manage the operational side of projects. Project business, however, focuses on the business side of those projects and brings project operations together with project financials and project and portfolio analysis. Project business is more than just project management, resource management or cost management by themselves. It’s about managing all the project processes and business requirements in an integrated fashion.
Challenges of Project Business
To manage major projects today, many companies use multiple tools that are poorly designed to support how the business actually works. It’s not unusual for these companies to employ 10 to 15 different applications.
Oftentimes, companies manage their projects in silos, independent and disconnected from one another. Project schedules are managed in one application and costs and revenue in another. The most widely used project tool today is Excel. This lack of process and information integration means data are not shared and project processes are not synchronized.
This fragmented environment of disparate systems makes it difficult to run a stable and profitable project business because these tools don’t support the project in its entirety. As a result, there’s an increase in risk and cost, which ultimately leads to poor project and business performance.
The Solution: Project Business Automation
Project Business Automation is a new category of business systems designed specifically for any company who considers projects an important part of their business. Recognized by Forrester as the new paradigm for projects, PBA is revolutionizing how projects get done. PBA is the only solution available that puts projects front and center, integrating the business and operational aspects of projects together in real time.
Rethink how you support your business processes with technology. Download the Project Business Automation Blueprint: The definitive guide to a creating a comprehensive business system for your company.