All about Business and management

July 4, 2007

Network project

Filed under: Business management — Jagdish Hiray @ 4:26 pm

            A Network project is a project in which organization structure is centered on core driving organization, supported by networked peripheral organizations for other competencies needed for project. Due to advances in telecommunication, wide spread of Internet infrastructure and outsourcing, implementation of project in ‘Network’ model is very common and has significant impact on organizational development. 

            Network project offers many appealing advantages. Due to globalization and competition in different sectors of industry, organizations with specialized skills and expertise are available across globe. This gives opportunity to organization to concentrate and focus on its core specialized area and outsourced other work. For example, an organization can concentrate and spend to develop specifications, design a product and out source other project functions such as advertisement, marketing to other competitive specialized firms. By doing so organization gets cost effective solution provider and saves time to hire and form specialized groups within organization. This can also reduce critical path in project life cycle and hence product development cycle. This model also offers organization, choice to have multiple groups of same expertise to come up with different solution. This allows different group work in parallel and hence can reduce product development cycle. Network project model also increases competition among organizations and hence offers competitive package to core organization. Network project model therefore has strong potential for cost effective solution, reduced project cycle (critical path), create innovative products/solutions and early readiness to market product. Network project allows networked organization to function independently and gives opportunity to produce best results. Outsourcing of software project is best example of Network project; virtual teams spread across globe execute software project.                        

                   However, Network project model requires strong cooperation and coordination between networked organizations. Delay in once commitment can cause, delay in other stages of project. Due to nature of project model, where team from different organization with different cultures is involved, project management process has to be very robust and solid and needs close monitoring at each stage of project. Therefore strong leadership skills and ability to take strategic decision is must to manage these projects. Network project is collaborative team effort, crosses organizational boundaries and is one of challenging model of project implementation.


1 Comment »

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    Comment by seo specialist in bangladesh — August 8, 2014 @ 7:43 pm | Reply

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