1. PMNote.com
Where are project requirements from?
1
Where are project requirements from? PMNote.com

2. Business Philosophy
Business Philosophy
One of the important of business philosophy is how to make the most profit. This
is the source of the equation below, which are directly related to projects within
the company.
Market Size (MS) x Market Share (MS) x Margin of Sales (MS) = Money
(MS)3 = $$$
Market Size Market Share Margin of Sales
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Where are project requirements from? PMNote.com

3. How to Increase Market Size
The principle to expand the size of the market is innovation in the new product or
service. In short term, it can be done by
Increase products and services variation
Improve packaging and repackaging of products
Product Variation
To expand customer base
Repackaging
To attract more customers
Market Size Market Share Margin of Sales
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Where are project requirements from? PMNote.com

4. How to Increase Market Size (cont)
Strategies used to maximize the short-term market is not sustainable because competitors
can imitate or pursue to keep up easily. So prepare to expand the size of the market in the
long run it is necessary. A popular method used is called Breakthrough, which aims to
develop a leap of goods or services.
Breakthrough is necessary to rely on
Information Technology, for instance:
Computer-aided Design (CAD)
Breakthrough Computer-aided Manufacturing (CAM)
Intelligent phone Computer-aided Engineering (CAE)
Product Lifecycle Management (PLM)
Product Knowledge Management (PKM)
Market Size Market Share Margin of Sales
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Where are project requirements from? PMNote.com

5. How to Increase Market Share
In addition to expanding the market's size, executives need to focus on the
expansion of market share as well.
Current Future
Market Size 1 Billion $ 1.5 Billion $
Market Share 5% = 50 Million $ 6% = 90 Million $
In the case we can increase both Market Size and Market Share, our sale
revenues will grow even bigger. From the example above, it grows from 50 to 90
million dollar.
Market Size Market Share Margin of Sales
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Where are project requirements from? PMNote.com

6. How to Increase Market Share (cont)
Ways to increase Market Share are as follows:
Always, improve the quality of our products and services.
Reduce the time from product design to the release (fast time to market).
Plan marketing and distribution strategies.
Increase distribution channels.
Market Size Market Share Margin of Sales
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Where are project requirements from? PMNote.com

7. How to Increase Margin of Sales
Although executives are successful in expanding the size of the market and
expand market share. If the goods or services of those businesses have higher
production costs, this results in competitive disadvantage in selling price and
difficulty in achieving the business objective.
Therefore, executives need to find ways of increasing the Margin of Sales. It can
be done by:
reduce costs in manufacturing and distribution
streamline the process of supply chain management
Market Size Market Share Margin of Sales
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Where are project requirements from? PMNote.com

8. Project Requirements
Project Requirements
From principles to increase revenue for the business, it can be seen that almost
all points can be extended to various projects, such as a project to develop a
new product or a project to enhance the existing product.
The business objectives will be expanded to detail the objectives of the project
and the project requirements finally.
(MC)3 = $$$
Business Objectives
Operational Objectives
Project Objectives/Requirements
Statement of Work
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Where are project requirements from? PMNote.com