Project Business - A Main Driver for Innovation

There is an interesting observation I made at several places:

Project business is the driving force behind development in many economies. How that?

Developed economies

In developed economies, project business is an obvious innovation driver. It allows the large, mostly slower players, such as big corporations, to buy in the agility and preparedness to go for cutting-edge solutions, that is a common characteristic of small and often much younger companies. Their own business decisions are rather driven by a tendency of adopting late: too many jobs and other assets would otherwise be at stake.

And then, there is this topic of management attention: Fast developing technologies require a lot of that, which in large organizations is the scarcest resource of all, which is consumed by many other requirements, such as legal, social, environmental, etc. Handing work to project supply networks with contractors, subcontractors, among them many small companies and even freelancing solopreneurs, is a way to reduce the dependency of innovation from management attention. 

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Mega projects would not be possible without complex project supply networks. However, the same is also true for all forms of development and implementation projects: Without business connectivities to contractors, it is impossible to do them.

Emerging economies

In emerging economies, there may not be many corporations with big names utilizing Project Supply Networks with contractors and subcontractors. However, many of these economies are successful in building business with customers in industrialized countries as elements of an extended workbench.

As vendors in projects, they do not only benefit from lower costs but also from cultural diversity, that allows for different responses to challenges. And from the hunger for success of their management and staff.

Why the Project Business Foundation?

Traditional project management associations such as PMI and IPMA (unfortunately) do not address project business, however it is the lifeblood of the global project economy.

Project customers and vendors need a place for exchange and for professional growth. Learning by trial and error, as it happens today, is too expensive and leaves stakeholders often dissatisfied. 

In order to become more successful, we must all learn to place completing over competing and turn contract parties in project business into project partners. We must nourish the skills and competencies and develop the business spirit that makes us and our partners in project business successful.

Kind regards,

Oliver F. Lehmann, MSc, ACE, PMP
President Project Business Foundation

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