Basic project-oriented models of consulting oriented companies

Basic project-oriented models of consulting oriented companies

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Published in PM World Today – July 2009 (Vol XI, Issue VII) PM World Today is a free monthly eJournal - Subscriptions available at http://www.pmworldtoday.net Page 1 PW WORLD TODAY – FEATURED PAPER – JULY 2009 Basic project-oriented models of consulting company activities By Dmitry Sadkov and Grigory Tsipes IBS, Moscow, Russia Abstract The first Russian consulting companies emerged in mid-1990s and grew out of IT compa- nies, which had been spontaneously developing as project-oriented companies. Yet we had to make quite a long and complicated journey from realizing the usefulness of project man- agement to applying it efficiently in the consulting business. All of our company's operations are carried out in projects - marketing, presale, commercial projects and investment. Various combinations and sequences of such projects make up the following three basic operational cycles of the company - the product cycle, the customer cycle, and the development cycle. The model based on these cycles combined with the time dimension gives a clear view of the business efficiency. Other important points of the paper are the flat organizational structure as one of the most convenient platforms for forming project teams and the three-level budget structure based on individual project budgets. Keywords Project-oriented company, product cycle, customer cycle, development cycle, flat organiza- tional structure 1. Brief overview of the history of consulting business in Russia The first Russian consulting companies emerged in mid-1990s and grew out of IT compa- nies. IT companies are interested in the consulting market due to several main reasons. First, IT services are mainly ordered by top managers who are not ready to use only the lan- guage of IT solutions and prefer the language of business; and appropriate competencies are required in order to build efficient relationships with them. Second, any service company naturally wants to expand its competencies and provide a customer with a comprehensive range of professional services from business consulting to implementation of applications and hardware supplies. It is also worth bearing in mind what 'the best international practice' means. As Russian IT companies look at the practice and trends of their colleagues abroad, they see that players in the west provide a combined mix of IT and consulting services. There is a good deal of major professional players, both western and Russian, already pre- sent in the Russian management consulting market. IT companies do not seek to gain a competitive edge over them; they just want to complement their portfolios with something that those portfolios lacked in order to maximize the efficiency of IT solutions. For example,
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Published in PM World Today – July 2009 (Vol XI, Issue VII) PM World Today is a free monthly eJournal - Subscriptions available at http://www.pmworldtoday.net Page 2 someone who is essentially clueless about financial management can implement an ERP
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 14

Basic project-oriented models of consulting oriented companies

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online