Did you know that 9.9% of every dollar spent on projects is wasted due to poor project performance?
This startling statistic comes from research done by the Project Management Institute (PMI), published in their 2018 Pulse of the Profession® report. In a guest post on the Siemens Solid Edge blog, Michelle Boucher outlines some key reasons why a requirements management solution can help improve the performance of product development projects so that you can minimize or even avoid some of the challenges that contribute to wasted budget.
Requirements Management Is Critical to Project Success
When PMI dug deeper into the reasons for project failures, they found that the top three issues include changing priorities, changing objectives, and inaccurate requirements gathering. While these problems create substantial challenges, they can become easier to manage with improvements to requirements management. Requirements management has a significant impact on project performance. Getting it right can mean the difference between a successful new product development project or a failure.
New Ways of Working Are Needed
So how do these issues impact requirements management? The critical point is adapting to change, which companies must do to survive in today’s competitive global economy. For a new product development project, getting the design right starts with the requirements. However, markets are evolving so rapidly, no wonder there are changing priorities and objectives. Disruptive technologies are bringing new sources of innovation and changing how we do business. Alternative sources of funding like Kickstarter have lowered the barriers to entry for start-ups, and the internet and cloud technology have expanded companies’ global reach so that even small companies can operate like larger ones. Responding to these trends impacts requirements, but if you cannot adapt quickly, you risk losing market share. With today’s changing market dynamics, old ways of working may no longer be enough. You may need to find new ways of working to be competitive
For more information on requirements management, access the on demand webinar titled, Better Requirements Management to Save Your Bottom Line. (registration required).