May 16, 2024 Transforming the $20 Trillion Project Economy

Project-driven businesses waste trillions due to outdated tools. Project Business Systems are a game-changer for project business leaders.

Projects are the lifeblood of businesses across numerous industries. From engineering and construction to energy, pharmaceuticals, and aerospace, to capital project divisions of large enterprises, project-driven organizations play a crucial role in driving innovation, growth, and economic development. Yet, despite their significance, a staggering 91.5% of projects are plagued by delays or budget overruns, highlighting a problem that has persisted for decades.

The Massive Project Business Problem

Project-oriented economic activity is forecasted to exceed $20 trillion by 2027, encompassing a vast array of industries and companies, which we can refer to as project business. That means that if 91.5% of projects are late or over budget, hundreds of billions or even trillions of dollars are wasted in our economy each year due to poor project business management. This issue impacts virtually every company on the planet, either directly or indirectly.

Why the Lack of a Solution

Given the size of this problem, why hasn’t it been fixed? As we dig deeper into the issue, we find that the challenge lies in the lack of adequate technology available to project-driven organizations. For years, many of these businesses have relied on outdated tools such as spreadsheets, antiquated standalone desktop applications, and literally paper-based processes to manage their operations. These silos of processes and data not only hamper efficiency but also limit visibility, control, and decision-making capabilities.

It’s a situation that would be deemed unacceptable in any other industry. While the problems of visibility and control exist everywhere, they are marginal in other industries because proper technologies are employed. For example, Enterprise Resource Planning (ERP) systems revolutionized corporate financial management with verified process controls and reporting. Manufacturing Resource Planning (MRP) systems transformed manufacturing operations with real-time visibility and control. Even Customer Relationship Management (CRM) systems provide systemized tracking of customer relationship events.

The same type of system has not existed for project businesses, and they have been grappling with this status quo for far too long. The time has come for a paradigm shift – a new approach that reimagines the problem from the perspective of project business leaders.

Enter Project Business Systems

Project Business Systems (PBS) are comprehensive business solutions designed specifically for the unique needs of project-driven organizations. Much like how ERPs, MRPs, and CRMs manage the processes and data in their respective fields, PBS aims to streamline and optimize project operations from start to finish. By doing so, it eliminates the silos of processes and data that plague these organizations.

By providing a holistic view of projects, resources, and finances, PBS empowers project business leaders with the visibility and control they need to drive success. The system governs the processes around projects, which produces reliable data to manage projects better. With real-time insights and analytics, organizations can make informed decisions, identify risks early, and proactively address issues before they escalate.

The Impact of a Project Business System Paradigm

PBS offers tangible operational results that can transform the fate of project-driven organizations. By maximizing efficiency, minimizing costs, and optimizing resource allocation, PBS has the potential to turn the tide on the 91.5% of projects that currently face challenges. This improvement would have a profound impact on the performance of these businesses.

The implications of adopting PBS extend far beyond individual companies. With the project-oriented economy playing a pivotal role in driving global growth, the widespread adoption of PBS has the potential to unleash trillions of dollars back into the economy.

In essence, PBS represents a transformative opportunity to redefine the way project-driven organizations operate, unlocking new levels of efficiency, productivity, and profitability. By embracing this paradigm shift, businesses can position themselves for long-term success in an increasingly competitive landscape.

Matt Mong is the Chief Category Officer for Adeaca. His role is to promote the idea of project business and the product category of project business systems in the market in an effort to change the conversation about how projects are managed. He coined the term Project Business Automation and was the impetus of a Now Tech report from Forrester on PBA and the benefits to project organizations. He has been featured in various articles and podcasts related to improving project management with the right business technology.

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