Factors leading to The Increased Use of Project Management
1. Compression of the product life cycle
This refers to reduction of time used in the development of a product from the normal time. Due
to increased competition businesses have reduced the time period between the introduction of the
product to consumers and removal from the market. Project management has become essential in
ensuring that a business makes most of its new product before entry of another product into the
market. Product turnover has increased resulting in reduced time-to-market window which
requires careful management of resources. For instance, high tech companies such as Samsung
estimate that the life cycle of their product life cycle is only six months.
2. Global competition
Businesses are now outsourcing labor resulting to intensified competition. Internet had made it
possible for companies to outsource their workforce from any part of the world. Currently,
software development firms are using Turing which is a website which connects businesses to
some of the best talents globally at a lower cost.
3. Knowledge explosion
Refers to knowledge gained through technology. With proper project management and sufficient
budget, a project is able to use the latest advancements. For instance, the manufacture of electric
cars has undergone a lot of developments and with proper project management and a sufficient
budget, it’s possible to develop one of the most efficient electric cars.
4. Corporate downsizing
1. Compression of the product life cycle
This refers to reduction of time used in the development of a product from the normal time. Due
to increased competition businesses have reduced the time period between the introduction of the
product to consumers and removal from the market. Project management has become essential in
ensuring that a business makes most of its new product before entry of another product into the
market. Product turnover has increased resulting in reduced time-to-market window which
requires careful management of resources. For instance, high tech companies such as Samsung
estimate that the life cycle of their product life cycle is only six months.
2. Global competition
Businesses are now outsourcing labor resulting to intensified competition. Internet had made it
possible for companies to outsource their workforce from any part of the world. Currently,
software development firms are using Turing which is a website which connects businesses to
some of the best talents globally at a lower cost.
3. Knowledge explosion
Refers to knowledge gained through technology. With proper project management and sufficient
budget, a project is able to use the latest advancements. For instance, the manufacture of electric
cars has undergone a lot of developments and with proper project management and a sufficient
budget, it’s possible to develop one of the most efficient electric cars.
4. Corporate downsizing
