This calls for the need to define the requirements that must be taken into account when dealing with publicly funded innovation projects in order to ensure that the benefits of the project are realised. The BRM framework was broken down in assessing its role in publicly funded innovation in ensuring the achievement of project benefits.
INTRODUCTION
- Chapter overview
- South Africa overview
- Background to the research problem
- Problem Statement
- Research Question
- Research Aim
- Research Objectives
- Research Preposition
- Research Methods
- Limitations
- Structure of the research report
Therefore, there is a need to develop a BRM framework for measuring innovation in the public sector. The study also focused exclusively on publicly funded innovation projects to the exclusion of privately funded innovation projects.
LITERATURE REVIEW
Introduction
Definition of Benefits
Benefits can be further categorized according to efficiency (which seeks to reduce the cost of carrying out a particular process without changing the nature of the project) and performance (how to do things differently to achieve better results (Bennington & Baccarin, 2004). The hierarchy shows how benefits can be structured within projects with a focus on achieving the organizational vision of the strategy.
Benefits Realisation Management
It is critical that the identification of benefits takes place during the initial phase of the project lifecycle and that it is not treated as a separate activity within the project (Walters, Scott & Mars, 2019). The use of the BRM framework assists the user in identifying, developing, delivering and sustaining planned benefits resulting from the project results (Project Management Institute, 2018).
Project defined
In addition, another important aspect of benefit management is managing the drawbacks, which are negative consequences that often arise from the project (United Kingdom Infrastructure and Projects Authority, 2017; Project Management Institute, 2018). Disadvantages of projects can get in the way of the realization of any benefits and as a result additional costs can arise in the project (Fox, 2008).
Project management overview
To deliver project benefits, a management process requires the involvement of a close working relationship between project management and line management functions (Cooke-Davies, 2002). In addition to these five levels, there are critical success factors for project management, namely senior management support. Organizational project management (OPM) is concerned with the integration of all project management related activities and their role in a project (Muller, Drouin & Sankaran, 2019).
Project success defined
Project success can be improved through the combination of the project management and benefits management process (Zwikael, 2016). Success criteria form part of the input to the management system that leads to project success and indicate how project success should be measured (Santos et al., 2014). Project success is not the same as project performance, based on the fact that the success can be measured until a project is in completion and performance can be measured during the life cycle of the project (Cooke-Davies, 2002).
Importance of Value
Value creation focuses on project outcomes and overall success is more focused on benefits, impact on stakeholders within the project (Laursen & Svejvig, 2016). The management of value results begins in the front phase and continues throughout the project life cycle activities (Fuentes, Smith & Davies, 2019). The realization of value can be uncertain, it can only be assessed after the project has been fully implemented, and the value of the innovation provides different types of benefits for different stakeholders (Organization for Economic Cooperation and Development, 2018).
Return on investment as an evaluation tool
Organizations face challenges in creating value outcomes and this is one of the discussions that have been going on for many years with the intention of maximizing the benefits for a wide range of stakeholders (Fuentes, Smith & Davies, 2019) . Emphasis on value has been a long-standing debate, understood as a social construction that was constantly contested among project stakeholders (Green & Sergeeva, 2019). Page | 27 benefits and costs in a project, it has been used to communicate and compare achieved benefits (Kousky et al., 2019).
Definition of business strategy
Globally, government is demanding evidence of return on investment in research that delivers benefits beyond academia (Heyers et al., 2019).
The role of project governance
The role of program and portfolio management
Page | 30 Portfolio management supports the management process to ensure the achievement of organizational strategy (Too & Weaver, 2014). Organizations cope with performance pressures and use project portfolio management to increase performance (Muller, Martinsuo & Blomquist, 2008). Program and portfolio management is used to reduce costs that may be incurred during the process of converting inputs into outputs using projects (Blomquist & Muller, 2006).
Project portfolio selection methods
Project portfolio frameworks for decision making have traditionally been used for the selection and allocation of resources for R&D projects (Blomquist & Muller, 2006). The project portfolio evaluation process should take into account criteria factors and key performance indicators developed as determinants of project success (Costantino, Gravio & Nonino, 2015). The selection of the project portfolio should be done in accordance with the strategic business objectives of the company and such main objectives are the identification, ranking, prioritization, selection and authorization of projects (Costantino, Gravio & Nonino, 2015).
The role of the project management office
However, project selection has decision-making levels based on project funding, which can be either a higher level dealing with general budget allocations or a lower level dealing with project management, specific functions and process (Pantelias et al., 2009). Project portfolio controls can provide an overview of the expected results on an individual project and risk analysis (Costantino, Gravio & Nonino, 2015). Project selection requires a formalized structured process that must be transparent and consistent (Liu et al., 2019).
Innovation defined
Empirical measurement of innovation can be done by assessing inputs (R&D; innovation expenditure and venture capital). Innovation can be successful or unsuccessful based on its output, Cozijnsen and Vrakking defined successful innovation as "the degree to which innovation meets market requirements". Stakeholders can be identified as a group or individual that has (directly or indirectly) in the achievement of the organization's goals, and their activities must be considered or understood by project managers (Balta et al., 2015).
The need for research and development
Publicly funded R&D projects face challenges such as increasing pressure to demonstrate the value of research project results (Procca, 2008). There are uncertainties associated with R&D results and little control over how innovation should unfold (Plank & Doblinger, 2018). Technological uncertainty can be categorized into different levels in terms of required innovation, time to design stability and technical skills (Procca, 2008).
Conclusion
Page | 36 has become important for modern economies through their market creation to ensure that there is a high degree of innovation opportunities that later contributes to economic growth (Kong-Rae, 2014).
RESEARCH METHODOLOGY
- Introduction
- Research design and methodology
- Sampling
- Data collection
- Semi-structured interviews
- Study population
- Department publications
- Data analysis
- Validity and reliability
- Ethical consideration
- Limitations
- Conclusion
The study used a probability sampling approach to select research participants. Ethics refers to “principles or rules of conduct that dictate what is actually acceptable or permissible within a profession” (O'Leary, 2010: 41). Due to time constraints, the number of study participants was limited to only seven.
DATA ANALYSIS AND DISCUSSION
Introduction
Overview of the case
Page | 46 As shown in figure 13, projects in DSI's organizational structure are largely carried out by the deputy directors, with the support of senior officials, namely directors and senior directors. Deputy directors are mainly involved in the actual implementation of projects, supported by senior management. However, the role of senior management is mainly to oversee the implementation of projects in line with the organizational strategy.
Theme one: Nature of projects undertaken by the DSI
It should also be noted that directors often appear to be involved in the implementation of projects. While the results of the interview sessions show that 86% (6 respondents) indicated that the benefits are clearly defined during the project planning/conceptualization, structured according to the project plan and milestones, while 14% (1 respondent) of the respondents indicated that they not clearly define benefits at the planning stage, but should only assess them at the completion of the project. One approach to including project benefits is to define them early in the project and include them in the business case, as this is important for the realization of the benefits during project implementation (Keeys & Huemann, 2017).
Theme two: Factors that need to be present when using benefits management48
Respondent no. 2 has shown that "the projects were made in support of the steering committee and the advisory committee. 6 indicated that "value creation can be measured through the use of project results (deliverables) in accordance with the solution derived from the project". Respondent no. 4 indicated that "the benefits of the project were seen when new skill sets developed were being used in the industry".
Theme Four: Relationship between benefit realisation management framework
Respondent no.1 said that “the management of benefits, project team is involved over the project life cycle (innovation value chain). Respondent no.5 said that "project benefits are managed through the use of continuous performance monitoring and evaluations". 6 and 7 agreed that "project benefits are managed through the impact assessment during the course of the project".
Discussion of findings
The study assessed the application of ROI in determining its role in realizing project benefits. The research showed that project benefits can be achieved through the realization of positive change and improvement realized by the stakeholders. For the DSI projects, the research found that value creation was measured by assessing the project's impact on stakeholders.
Conclusion
Introduction to the chapter
Research objectives
- Relationship between benefit realisation management framework and
The study found that these factors contributed to the realization of the benefits because of their underlying impact on project outcomes. In elaborating the methodology, the research showed that the DSI measures project benefits using subjective indicators. The study argues that using these methods to identify project benefits typically looks beyond the traditional iron triangle.
Research Question
This then requires that there be alignment between benefits and business strategy as part of ensuring that benefits are achieved. To make more impact on organizational strategy, projects should be used to implement business strategy. Page | 67 The research report therefore responded to the research question and achieved the research objective of the study.
Major findings
The implementation of BRM cannot be done without the harmonization between the business organizational strategy and the projects. To enable the project to meet its strategic objectives, project benefits must be an integral part of the business strategy, so such alignment is essential. The study proved that business strategy alignment has an influential role towards realizing benefits as projects are used to implement strategies.
Further Discussion and Implication
Page | 68 also showed that project management as an effective tool applied to project execution is not a standardized methodology as project managers tend to rely heavily on past exposure to project implementation. Inadequate use of the BRM framework tends to result in projects being financially supported and completed without impact on stakeholders. In addition to the BRM framework, the study found that the complexity of innovation projects can be well managed using the BRM framework.
Conclusion
Recommendation
The impact of project management and benefit management practices on project success: towards the development of a project benefit management framework. A method for evaluating the efficiency of project management in the implementation of industrial projects. Investments in project management pay off: a case study-based analysis of the relationship between the costs and benefits of project management.
