Consulting center project eng version http eacea ec

Consulting center project eng. version http: //eacea. ec. europa. eu/llp/funding/2012/call_jean_monnet_ action_ka 1_2012_en. php Link for discussion http: //www. slideshare. net/wrike/projectmanagement-20 -1884020 SPECIALTIES OF INNOVATIVE PROJECTS

The innovative project in essence is the project investment, characterized by long term, high degree of uncertainty of the future results, and also high degree of linkage of great amount of material and financial assets in the course of realization.

The innovative project has following features: high degree of uncertainty of forthcoming expenses, short terms of achievement of the scheduled purposes, high level of influence of future incomes on reliability of preliminary financial and economic estimations application of additional criteria of project estimation and selection great degree it is necessary to consider time factor; high probability of reception of unexpected by-product results of research which can have commercial value.

Thus, the innovative project as set of the interconnected purposes, problems and plans of their realization, owing to the features requires more detailed study of all project stages, an operational administration, the strict control over its realisation.

INNOVATIVE PROJECT SUBSTANTIALLY IS INVESTMENT PROJECT WITH FOLLOWING FEATURES: Long-term, high level of uncertainty of future results, high level of material and financial costs High level of uncertainty leads to impossibility to evaluate future expenses and revenues, what adversely affect the credibility of preliminary financial analysis and suppose using of additional criteria of evaluating and selection In innovative project development it is important to take into account time factor During innovative project realization it is great probability of unexpected spin-offs, which will have a commercial validity

INNOVATIVE PROJECT LIFE CYCLE 1. 2. 3. Pre-investment phase Investment phase Operational phase

PRE-INVESTMENT PHASE 1. Identification of recourses for investment 2. Feasibility Study: analyzing of project alternatives and its preliminary selection 3. Pre-Feasibility Study: preliminary technical – economical substantiation 4. Business Planning 5. Appraisal Report: report of investment capabilities

INVESTMENT PHASE 1. Negotiating & Contacting 2. Engineering Design 3. Construction 4. Pre-production Marketing 5. Training

OPERATIONAL PHASE 1. Commissioning & Start 2. Replacement 3. Expansion & Innovation

PROCESS OF INNOVATION (EXAMPLE) Opportunity created by consumer demand Quality Variety Convenience Freezer packs Health Product response Home freezer (Quality and convenience) Microwave oven (convenience) Opportunity created by technology Ready-prepared meals Exotic dishes Special dietary meals

THE CYCLE OF INNOVATION Discovery of invention Opportunities Needs and Demands Product development Exploitation New environment

THE MAIN PARTICIPANTS OF INNOVATIVE PROJECT Client – future owner and user of project results (legal entities, individuals) Investor - legal entities, individuals who invest money (client and investor may coincide). Project designer – project developer Supplier – organization which provide maintenance (material and technical support) Project manager - legal entity which is responsible for the project development and realization; Project team, created for project work period

INNOVATIVE PROJECTS FORM ZONES OF INFLUENCE Project is closely related to the scientific and technical support and know –how involvement – zone of innovations Project joins knowledge and experience in certain idea realization which forms zone of project realization, where is made decisions on project development and realization Project is oriented on the legislative and legal bases, which form project legal zone Project joins knowledge and experience on project development and form zone of project development where project documentation is developed and which is closely correlated to material resources and economy, forming zone of purchase and deliveries.

INNOVATIVE PROJECTS FORM ZONES OF INFLUENCE Project joins knowledge and experience on building, forming zone of building and land use (building and constructions) Project joins engineering knowledge and experience, forming zone of engineering, engaged in technological process oriented on concrete production - forming of production zone. Pre-investment phase of project development is connected with external environment and business sphere, and finally when we get final product project is closely connected with market zone. Project financing forms financial zone of the project oriented on the investment market.

STAGES OF PROJECT CREATION AND REALIZATION 1. 2. 3. 4. 5. 6. 7. 8. Forming of investment intention (idea) Research of investment resources and facilities Technical –economical substantiation of the project Preparation of contractual documentation Preparation of project documentation Operational works (building); Exploitation of the object; Monitoring of economic indices

SOURCES OF IDEAS FOR INNOVATIVE PRODUCTS The process of innovation and product improvement is vital for the survival of companies that sell products or those that pure service. For the most part invention is relatively rare, whereas innovation through continuous improvement is much more common. If companies are to survive continuous product improvement and creation of new products one might ask if there are ways by which the process of innovation can be stimulated and what direction it should take

SOURCES OF IDEAS FOR INNOVATIVE PRODUCTS Technological trend forecasting: past and present trends in specific aspects of product’s performance are extrapolated to see what future developments might be possible and the likely timescale in which they might occur Market forecasting: looks at how demand for new goods and services is likely to develop in the future. BUT! Technology trends tend to be governed by physical laws and break thoughts so tend to settle into a measurable pattern of progress. Market are not so predicable

ON MARKET FORECASTING INFLUENCE: Fashion, taste and national culture Trends in works and leisure pattern Amounts of personal disposable income Issues of public concern: health, pollution etc. The emergence of new or rival technologies Politically impose constraints: tariff barriers, export of defense-related materials