1. Chapter 2 Needs Identification1 1 1 1

2. Learning Objectives Review the project life cycle identifying needs
proposing a solution
performing the project
terminating the project
Focus on needs identification
Identify needs and select projects
Develop RFPs
The proposal solicitation process 2 2 2 2 2

3. Real World Example Vignette: Successful Messaging Services in Poland
Polska Telefonia Cyfrowa (PTC) is Poland’s leading wireless services provider, and maintains Era, the largest mobile network in Poland.
Powered by Sun Internet Mail Services (SIMS), PTC introduced Eranet, a messaging system designed to notify mobile subscribers by cell phone text messages when they have new .
Expanded offerings to customers by delivering two-way SMS services.
A detailed needs assessment was a key to its success
Sun Services helped to map out requirements for the Eranet project from the beginning and remained involved at every stage.
They developed an implementation plan, first determining needs and then designing effective solutions.
Project was completed in just 12 months – 50% earlier than anticipated.
With the implementation of the new Sun software, PTC was able to grow its subscriber base by approximately 80 percent in one year, with the anticipation of further growth. 3 3 3 3 3

4. Real World Example Vignette: Red Light, Green Light
Catherine Aczel Boivie joined Pacific Blue Cross in 2003 as VP of Information Technology.
She and the CEO agreed on two principles:
(1) Technology has no value alone, and
(2) technology management needs to focus on enabling business as opposed to operations.
Pacific Blue Cross created a Balanced Scorecard that displays and measures the organization’s performance from six perspectives: qualitative, quantitative, infrastructure, clients, people, and community-related goals.
She introduced the project management office (PMO) function.
Traffic Light Report: allows PMO to report project status
In the 2nd year, she introduced a gating process
Boivie is confident that the project management processes she put in place will help ensure advancing business goals, on time and within budget. 4 4 4 4 4

5. Needs Identification It is the initial phase of the project lifecycle
Starts with recognition of a need, problem, or opportunity
Ends with the issuance of a request for proposal (RFP)
Customer identifies a need, a problem, or an opportunity for a better way of doing something
Sees benefit in undertaking a project to result in improvement 5

6. Needs Identification (Cont.)
Prior to preparing an RFP:
Recognize a need, problem, or opportunity
Clearly define the problem or need
Quantify the problem
Determine the budget
Select the project(s) with the greatest benefit for the cost expended 6

7. Project Selection
Involves evaluating various needs or opportunities, and then deciding which of these should move forward as a project to be implemented
Steps in project selection:
Develop a set of criteria against which each opportunity will be evaluated
List the assumptions
Gather data and information for each opportunity
Evaluate each opportunity against the criteria 7

8. Project Selection (Cont.)
Group consensus lead to better quality decision and higher acceptance of the decision
Effective approach – selection committee to develop a set of evaluation criteria
In most cases selection based on a combination of quantitative and qualitative evaluation 8

9. Preparing a Request for Proposal
State, comprehensively and in detail, what is required, from the customer’s point of view
Enable contractors or a project team to understand what the customer expects so that they can prepare a thorough proposal
The need may be communicated informally—and sometimes only orally 9 10 10 6 10

10. Preparing a Request for Proposal (Cont.)
Guidelines for drafting a formal RFP to external contractors:
statement of work (SOW)
customer requirements
deliverables
customer-supplied items
approvals required by the customer
type of contract 10 11 11 7 11

11. Preparing a Request for Proposal (Cont.)
the payment terms
the required schedule for completion
instructions for the format and content of the contractor proposals
due date for proposals
evaluation criteria
occasionally will indicate the funds the customer has available 11 14 14 8 14

12. Soliciting Proposals Methods:
Identify a selected group of contractors in advance and sending each an RFP
Advertise in certain business newspapers
Process considered a competitive situation 12 17 17 9 17

13. Soliciting Proposals (Cont.)
Don’t provide information that is not provided to all contractors
May hold a bidders’ meeting to explain the RFP and answer questions
Not all use RFP 13 18 18 10 18