Friday, 6 November 2015

PROJECT DEVELOPMENT SYSTEM





PRODEVSYS


( PROJECT   DEVELOPMENT   SYSTEM )












A CONCEPT NOTE

by

Hemen Parekh

Mumbai

20TH  JULY 2004

www.B2BmessageBlaster.com

-------------------------------------------------------------------------------------------------



Marketing of Project Development Systems

A Concept Note



BACKGROUND


G O I  has opened up the economy under its liberalization-program. 

This process is irreversible and will gain momentum in the coming years

A key structural feature of this new policy, is PRIVATIZATION, in all sectors of the Economy.  This will be particularly so in the areas of :


-      Infrastructure  Development



Road / Transport / Rail / Air / Telecom / Power / Ports / Airports / Cross-country pipe lines / Bridges / Tunnels / Dams / Jetty etc.




-      Property  Development



Townships / Mass Housing / Commercial Complexes / Sports Stadium / Convention Centres / Holiday Resorts etc



-      Industrial  Structures



Process Plants / Manufacturing Plants / Industrial Estates etc.




Development of these sectors is vital to rapid growth of economy.

Central/State Govts. have no funds to spare for these projects.  Hence private-sector participation on a big-scale is inevitable.

Even foreign parties will be encouraged to enter these areas by forming joint-ventures with Indian Partners.

Any Industrial Group wanting to grow rapidly must exploit this opportunity.
  
This must be done quickly before the field gets crowded with competition.

Timely action is the essence.

A major part of Infrastructure/Property Development Projects consists of :

-  System Design / Engineering / Technology

-  Construction ( leaving out equipment-supply )


It takes many years to build-up expertise / human assets / plant & machinery assets to become a major Property Development Company.

This is, therefore the single – biggest hurdle for anyone wanting to be a key player in this sector.

It is, therefore, in the light of the foregoing observations that I have developed a concept called,

P R O D E V S Y S

                                      Project Development System




CONCEPT

PRODEVSYS  is a concept under which a company interested to make rapid strides in Project  Development shall develop an EXPERT SYSTEM.

This system shall, broadly cover following modules :

·        TECHNOLOGY

·        FINANCE

·        MARKETING

·        PROJECT IDENTIFICATION / EXECUTION

·        LEGAL MATTERS

·        LAND ACQUISITION

·        CENTRAL GOVT. / STATE GOVT. LIAISON


                                    PRODEVSYS


PROJECT MANAGEMENT
EXPERTISE SYSTEM
                   
 


MARKETING
EXPERTISE
SYSTEM
BRAND –
SELLING

TECHNOLOGY
ASSIMILA –
TION
EXPERTISE
SYSTEM


FINANCING
EXPERTISE
SYSTEM







Each of the above-mentioned departments ( of the company ) will compromise of a few EXPERTS ( and a few supporting staff ).

The idea is to have a (manpower-wise) lean organisation, heavily dependent on computerized, networked EXPERT – SYSTEMS and a very efficient telecom system.




The central idea behind an EXPERT – SYSTEM  based  organisation is that the organisation itself shall not :


-   Engage in actual construction

-   Develop System-Designs or Construction-Methods, on its own
    ( i.e. Technology  - Development )

    But it will have a huge computerized library of such systems / methods
    

-   Engage in Architectural designs or Structural designs

-   Own / operate assets such as Construction – Machinery


The organisations, shall enter into “Project-wise”  technical collaborations or joint –ventures with overseas ( or even Indian ) companies to execute the Projects

These companies will be selected on the basis of their perceived “Expertise” in that particular field of construction.
 
These tie ups will be aimed at “tapping”  from abroad ( or from within the country), the most appropriate “Technologies” needed for the execution of a given project.


The main MODUS OPERANDS  of this Organisation will be : 


            OUT  -  SOURCING / SUB  -  CONTRACTING








THE THEME


The THEME will be :

Do not duplicate within the organisation, the Skills and the Expertise and the Experience which other organisations have already built-up over years.

Let us HIRE these Skills / Expertise  / Experience in the execution of our projects.

The only skills that we shall develop " In-house ", are the skills to :


-      *    Identify the best vendor / supplier of such skills


-      *         Frame the “ Scope of work ” sand “ Terms of Reference ”,
to  enable such outside expert-organisations to submit their detailed offers

         


-      *      Study / analyse / interpret the offers

-      *     Negotiate the “ Contracts / Commercial Terms "

-     *     Monitor the performance of the contractors and motivate them to excel



And such “ Out – Sourcing” shall not be confined only the actual  “Construction” but shall encompass :


-      “  Financing ” contracts

-      “  Marketing ” contracts

-      “ System Design ” contracts

-      “ Detailed Engineering ” contracts

-      “ Procurement ” contracts  
   
“   " Architectural / Structural / Monitoring ” contracts
-              
      ( i.e. Project Management  Contracts )


 “ Operating ” contracts

          ( to manage the property after Commissioning )







The EXPERT Organisation will , by itself, not undertake / manage any activities

By definition, it will only,


Manage the “ Managers ” of various activities.


It will actually Orchestrate / Coordinate / Synthesize /
Blend / Amalgamate the efforts of a large number of

SPECIALIST  COMPANIES ,

each of which is  “ Expert ” at some specific aspect of the
Project.

So the CORE – COMPETENCE of our company will be to 

- “ Manage ” a number of such Expert Companies,

– and through them, 

their respective professional technologies – be these expertise at ,


-        Raising “ Finances ”

-      “ Marketing ” the concept of the project

-      “ Designing ”

-      " Constructing ”  etc.
-       
It is only such an  approach that can catapult a company in
the BIG – LEAGUE within a short – span of time and with
minimum of resources.





















RESOURCES

Manpower


I have earlier said that there will be only 6 / 8 departments .

And may be 60/80 persons altogether ( half of whom will be
Experts in some or other field )


Space


To begin with an office – space of 10,000 sq - ft should  suffice
to kick-off the operations


Equipment


These will be largely office- automation equipment such as

-       Computer Systems
-       Telecom  Systems / Modems
-       Audio / Video equipment
-       Photocopying equipment  
-       Software packages.
-       Library ( Books / CDs )

-                

Finance


Here again the idea would be to deploy a bare minimum of
“own” funds.

Fund shall be raised from “ Investors ” as

*   Down Payment

*  Progress Payments


as each project advances.

.




FUNDS

The funds shall be raised by giving-out “ Franchises “, for operating of :


-      Convention Centres

-      Theatres / Cable TV Services

-      Amusement Parks

-      Exhibition Halls

-      Restaurants / Hotels

-      Transport Systems ( for township )

-      Educational Institutes

-      Telecom Services

-      Shopping Centres

-      Banking Premises

etc.

It is envisaged that the “ Investors ” and the “ Franchises ”
shall be two separate sets of people.

For certain projects, it should be possible to float widely
held, public – limited companies and raise funds from


-      NRIs
-      Overseas Mutual Funds
-      Public at large







ORGANISATION

         

PRODEVSYS EXPERT COMPANY


FUNDS

FRANCHISES

     EXTERNAL EXPERT SERVICE – SUPPLIERS

                                       
           NRI
SYSTEM DESIGN

MUTUAL FUND
ENGINEERING

PUBLIC DEPOSIT
CONSTRUCTION
PROJECT MANAGEMENT
PUBLIC EQUITY

                             

 



ADVANCE
FROM INVESTORS

OPERATING
RUNNING THE PROJECT







The PRODEVSYS Company shall primarily focus on the DEVELOPMENTAL aspect.

As far as “Execution” aspect is concerned, the emphasis shall be on the

  Management of Execution , rather than the execution itself.

Over a period of time, PRODEVSYS must come to be recognized as a BRAND which is synonymous with property-development projects.

It will undertake such projects, not only on its own but also on behalf of others, who do not have the necessary expertise to get into this business.


For such individuals or Corporate, PRODEVSYS will provide a TOTAL TURNKEY solution.

In fact, a time shall and come when PRODEVSYS can been seen as

A Solution in Search of a Problem


Over the last 3 years, we have seen that hundreds of companies have gone to public and raised thousands of crore of rupees from the market.

Almost anybody has been able to raise funds in the market. So apparently there is no dearth of funds.

But whereas any number of companies have been able to raise funds, very few have been able to put-up their projects in time, largely due to lack of expertise in

“ Project Planning & Project Management ”


This is where the USP of PRODEVSYS comes in, viz :


PROJECT PLANNING  /  PROJECT MANAGEMENT


But it is not merely another Project – Consultancy or a Project Design Organisation , undertaking such assignments on behalf of “Clients” and earning a meager fee , employing hundreds of engineers.













COMPARATIVE SCENARIOS


Project Consultancy   Vs   Project Development
-----------------------------------------------------------------------------------

The following tabulation will clearly bring-out the differences :


PARAMATER
A TYPICAL
ENGINEERING
CONSULTANCY CO. WORKING FOR OTHERS
PRODEVSYS
( DEVELOPING

  IT'S OWN     PROPERTY)
1
Conceptualising

X
ü   
2
Project Identification

X
ü   
3
All Permissions

X
ü   
4
Land Acquisition

X
ü   
5
Funding

X
ü   
6
Technology / Engineering
ü   
To be sub –
contracted
7
Construction
Sometimes own
Mostly given out
ü   
8
Marketing
Tender based
Aggressive, Concept-based Brand Selling
9
Planning / Mobilising


X
10
Procurement
Rarely-mostly
done by client
To be sub -
contracted
11
Project Execution
Own team
To be sub –
contracted
12
Implementation / Commi –
ssioning
By self
To be sub –
contracted
13
Operating
X
To be sub –
contracted
14
Franchising

Not Applicable
ü   
15
Equity base

Small
       Small


16


Asset base




Small


        Small
17
Manpower

Large
Small
18
Equipment

Nil
Nil
19
Working Capital

Nil
Large
20
Profit Margin

Low
High



No comments:

Post a Comment