Opportunity research
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Finding an opportunity at the right time might be the key to success, therefore, it is a key activity in the management level to be proactive and look constantly for opportunities. Opportunities might come from different ways and it is a manager's task to allocate and distribute resources into new targets <ref>Unkown, ''entrepreneur.com'', (How to research a business oportunity), https://www.entrepreneur.com/article/42940.</ref>. | Finding an opportunity at the right time might be the key to success, therefore, it is a key activity in the management level to be proactive and look constantly for opportunities. Opportunities might come from different ways and it is a manager's task to allocate and distribute resources into new targets <ref>Unkown, ''entrepreneur.com'', (How to research a business oportunity), https://www.entrepreneur.com/article/42940.</ref>. | ||
| − | For this case, an opportunity is considered a positive outcome of a project, program or portfolio development considering its uniqueness and attractiveness to customers. The overall of the opportunity is that it brings more value to the project by improving it. In the business world, an opportunity means something that helps you to "stand out from the crowd"<ref>Stacy A. Goff, ''IPMA USA'', Revisiting Risks: Threats and Opportunities in Complex Projects.</ref> | + | For this case, an opportunity is considered a positive outcome of a project, program or portfolio development considering its uniqueness and attractiveness to customers. The overall of the opportunity is that it brings more value to the project by improving it. In the business world, an opportunity means something that helps you to "stand out from the crowd"<ref>Stacy A. Goff, ''IPMA USA'', Revisiting Risks: Threats and Opportunities in Complex Projects.</ref>. In the project management sector, the idea is the same but usually there is no crowd. It is how to improve a project so it gives either better results or more profit. |
This article is about the methodology of finding opportunities within the engineering/energy market. Project opportunities management is a set of techniques and tools to help a risk manager to identify and understand possible improvements to the project objectives <ref>Eric McConnell, ''My management guide'',Defining Threats And Taking Opportunities By Risk Management Strategy.</ref>.. | This article is about the methodology of finding opportunities within the engineering/energy market. Project opportunities management is a set of techniques and tools to help a risk manager to identify and understand possible improvements to the project objectives <ref>Eric McConnell, ''My management guide'',Defining Threats And Taking Opportunities By Risk Management Strategy.</ref>.. | ||
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Both opportunities and risks are included in the term uncertainties <ref>Agnar Johansen, Petter Eik-Andresen, Andreas Dypvik Landmark, | Both opportunities and risks are included in the term uncertainties <ref>Agnar Johansen, Petter Eik-Andresen, Andreas Dypvik Landmark, | ||
Anandasivakumar Ekambaram and Asbjørn Rolstadås, ''Administrative Sciences'',Value of Uncertainty: The Lost Opportunities in | Anandasivakumar Ekambaram and Asbjørn Rolstadås, ''Administrative Sciences'',Value of Uncertainty: The Lost Opportunities in | ||
| − | Large Projects.</ref> | + | Large Projects.</ref>. The term uncertainty is defined as: "an unintelligible expression without a straightforward description" <ref>Ricardo Antunes and Vicente Gonzalez, ''buildings'', (A Production Model for Construction: A Theoretical Framework), http://www.mdpi.com/2075-5309/5/1/209</ref>. In the project management sector, this means that a situation might affect either in a positive or negative way. Generally, uncertainty has negative connotation due to the fact that contractors, project managers and authorities want always that everything is clear and to control all the factors that might affect a project. |
| − | Several authors claim that opportunities should be dealt same way as risks with the same processes | + | Several authors claim that opportunities should be dealt same way as risks with the same processes<ref>PMBoK, A. Guide to the Project Management Body of Knowledge; Project Management Institute: Philadelphia,PA, USA, 2000.</ref>, therefore, it is suggested than an opportunity is a positive risk. |
Following the action and reaction principle, an opportunity produces a threat and a threat produces an opportunity. The aim of the risk managers is to find the opportunity in a risk. In recent studies[NORUEGOS], it is shown that most risk managers focus much more their efforts in identifying and mitigating risks rather than in finding opportunities. That is the reason why opportunities often un-exploited, not because they were dismissed, but because no one saw it on time. This issue gets bigger in large projects, when, even identifying the opportunity, the difficulty that generates convince the stakeholders, change the project, change contracts makes unworthy. | Following the action and reaction principle, an opportunity produces a threat and a threat produces an opportunity. The aim of the risk managers is to find the opportunity in a risk. In recent studies[NORUEGOS], it is shown that most risk managers focus much more their efforts in identifying and mitigating risks rather than in finding opportunities. That is the reason why opportunities often un-exploited, not because they were dismissed, but because no one saw it on time. This issue gets bigger in large projects, when, even identifying the opportunity, the difficulty that generates convince the stakeholders, change the project, change contracts makes unworthy. | ||
=Types of Opportunities= | =Types of Opportunities= | ||
| − | According to different authors | + | According to different authors <ref name="uncertainties">, opportunities can be classified according to for whom they are and in which level they are. That is the reason why what can be an opportunity for some group of people, it might be a threat for another. |
==Operational opportunities== | ==Operational opportunities== | ||
These are the lowest in a project scale and usually affect only the project, they affect the operation and daily activities of a project. These are the easiest to find and take advantage because they barely produce any risk or the risk is easily visible and avoidable. An example of these opportunities may be a variation of working plan. By re-arranging working schedules productivity can be improved. It is a task of project team and lower managers to identify them and apply them. | These are the lowest in a project scale and usually affect only the project, they affect the operation and daily activities of a project. These are the easiest to find and take advantage because they barely produce any risk or the risk is easily visible and avoidable. An example of these opportunities may be a variation of working plan. By re-arranging working schedules productivity can be improved. It is a task of project team and lower managers to identify them and apply them. | ||
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In theory, opportunities are to be taken almost always, however, in practice, projects and project managers fail to identify them and take use of them. Project analysis show that the number of threats is between eight to ten times higher than the number of opportunities found [CITAOS DE NORUEGOS CREO]. The reason of this, is because brainstorm usually focus more on how mitigate the risks and threats rather than in finding opportunities. This is due because every opportunity might come with more risks to mitigate and the present situation is assumed "favorable". | In theory, opportunities are to be taken almost always, however, in practice, projects and project managers fail to identify them and take use of them. Project analysis show that the number of threats is between eight to ten times higher than the number of opportunities found [CITAOS DE NORUEGOS CREO]. The reason of this, is because brainstorm usually focus more on how mitigate the risks and threats rather than in finding opportunities. This is due because every opportunity might come with more risks to mitigate and the present situation is assumed "favorable". | ||
==Missing opportunities due to stakeholders== | ==Missing opportunities due to stakeholders== | ||
| − | Not taking profit of a localized opportunity might be due stakeholder's conflict. Specially, in larger projects, when there are more stakeholders, finding common solutions that do not prejudice others might be a big challenge. In order to find common solutions for everyone, the terms of value and benefit described by | + | Not taking profit of a localized opportunity might be due stakeholder's conflict. Specially, in larger projects, when there are more stakeholders, finding common solutions that do not prejudice others might be a big challenge. In order to find common solutions for everyone, the terms of value and benefit described by <ref name="uncertainties"> should be explained. Value is referred to economical profit whereas benefit includes non-economical rewards. This takes into account the socio-economic analysis and private economic. A project can be beneficial but not valuable. In order to consider an opportunity, it is to be set in advance the possible value and benefit of the opportunity. What makes it even more difficult is that for what some might be a beneficial alternative, for others might be a threat or a non beneficial. When changing a project, program or portfolio, all parts need to agree. |
There are three groups of stakeholders to be taken into account during a project: Contractor, client and users. Each of them have different interests that might differ and contradict from the others. | There are three groups of stakeholders to be taken into account during a project: Contractor, client and users. Each of them have different interests that might differ and contradict from the others. | ||
===Contractor=== | ===Contractor=== | ||
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Support staff in order that they are willing to achieve success. During this stage, they take actions to reduce risks or threats and to add simplicity to the task. | Support staff in order that they are willing to achieve success. During this stage, they take actions to reduce risks or threats and to add simplicity to the task. | ||
=References= | =References= | ||
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Revision as of 00:27, 17 February 2018
Abstract
Finding an opportunity at the right time might be the key to success, therefore, it is a key activity in the management level to be proactive and look constantly for opportunities. Opportunities might come from different ways and it is a manager's task to allocate and distribute resources into new targets [1].
For this case, an opportunity is considered a positive outcome of a project, program or portfolio development considering its uniqueness and attractiveness to customers. The overall of the opportunity is that it brings more value to the project by improving it. In the business world, an opportunity means something that helps you to "stand out from the crowd"[2]. In the project management sector, the idea is the same but usually there is no crowd. It is how to improve a project so it gives either better results or more profit.
This article is about the methodology of finding opportunities within the engineering/energy market. Project opportunities management is a set of techniques and tools to help a risk manager to identify and understand possible improvements to the project objectives [3].. In following sections it will be explained how to asses different situations keeping in mind the opportunity research. Once identified the possible opportunities, how to estimate the profit and how to address resources to overtake competitors. Finally, it will be explained how opportunities can be converted into strengths.
Opportunities as Risks
Both opportunities and risks are included in the term uncertainties [4]. The term uncertainty is defined as: "an unintelligible expression without a straightforward description" [5]. In the project management sector, this means that a situation might affect either in a positive or negative way. Generally, uncertainty has negative connotation due to the fact that contractors, project managers and authorities want always that everything is clear and to control all the factors that might affect a project. Several authors claim that opportunities should be dealt same way as risks with the same processes[6], therefore, it is suggested than an opportunity is a positive risk.
Following the action and reaction principle, an opportunity produces a threat and a threat produces an opportunity. The aim of the risk managers is to find the opportunity in a risk. In recent studies[NORUEGOS], it is shown that most risk managers focus much more their efforts in identifying and mitigating risks rather than in finding opportunities. That is the reason why opportunities often un-exploited, not because they were dismissed, but because no one saw it on time. This issue gets bigger in large projects, when, even identifying the opportunity, the difficulty that generates convince the stakeholders, change the project, change contracts makes unworthy.
Types of Opportunities
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