ICT INNOVATION PROJECT MANAGEMENT
New Knowledge Areas in PMBOK
Malgorzata Pankowska
Information Systems Department, University of Economics, Bogucicka, Katowice, Poland
Keywords: PMBOK knowledge areas, Innovations, Sustainability, Durability in projects, Project environment.
Abstract: The main goal of the position paper is the proposal of the new knowledge areas for Project Management
Institute (PMI) method, which are different in comparison to that presented in PMBOK Guide version 4
th
.
The paper covers justification of the need to implement the five new knowledge areas i.e. sustainability,
project environment, financial analysis, innovations, marketing and events, because of the ICT (Information
Communication Technology) opportunities and strong strategic demands of the economy.
1 INTRODUCTION
The current economic downturn is an opportunity to
raise EU trend growth and make it more knowledge
driven. Innovation should be a key to sustaining long
term growth. The Programme Innovative Economy
is one of six national programmes under National
Strategic Reference Framework, which are co-
financed from EU resources (http://europa.eu.int).
This programme is directed to all entrepreneurs, who
want to implement innovative projects connected
with research and development of modern
technologies and implementation of ICTs.
Entrepreneurs wanting to be innovative or to
become beneficiaries of the Programme Innovative
Economy projects should at first recognize what
innovation is. According to Justesen (2004)
innovation is when knowledge from previously
separated domains is exchanged and combined in
new ways. Innovative practice is not merely about
getting new ideas and the creation of an invention,
but equally about the successful exploitation and
diffusion of the innovation. This definition emphases
an interdisciplinary approach to innovation
development as well as the necessity of practical
applicability of new solutions.
Tidd and Bessant (2009) argue that innovation is
driven by the ability to see connections and
opportunities and to take advantage of them. The
creativity in innovations adds value to the individual
and the community and is based upon perceiving
and capturing an opportunity. They consider four
types of innovations:
 Product innovation – changes in the goods
(products or services) that a business organization
offers;
 Process innovation – changes in the ways in
which they are created and delivered;
 Position innovation – changes in the context in
which the products and services are introduced;
 Paradigm innovation – changes in the underlying
mental models which frame what the business
organization does.
Zhao defined innovation as the specific tool of
entrepreneurship by which managers exploit change
as an opportunity for a different business or service.
Innovation has to address market needs, and requires
entrepreneurship as a dynamic process and a unique
event. (Zhao, 2006). Sundbo and Fuglsang (2006)
say that innovation can be perceived as a special
case of development, which is relevant to some
firms and organizations. Innovation is defined by
them as the successful introduction and development
of new products and processes that can be clearly
isolated and identified and which have a certain
degree of radicalism and novelty. Innovations are
less dependent on in-house specialized research and
development activities. The business environment is
more involved. Customers play a central role in the
innovation evaluation process. Market reputation
and political considerations are also a part of
innovation. Therefore innovation management is to
become the art of balancing different factors and
development against stability. According to Gaynor
(2002), innovation as a management discipline
involves focusing on the business organization’s
294
Pankowska M..
ICT INNOVATION PROJECT MANAGEMENT - New Knowledge Areas in PMBOK.
DOI: 10.5220/0003067102940299
In Proceedings of the International Conference on Knowledge Management and Information Sharing (KMIS-2010), pages 294-299
ISBN: 978-989-8425-30-0
Copyright
c
 2010 SCITEPRESS (Science and Technology Publications, Lda.)

mission, searching for unique opportunities,
determining whether they fit the organization’s
strategic direction, defining the measures for
success, and continually reassessing opportunities.
Innovation does not need to be a brilliant invention,
ingenious device, but it demands the utilization of a
unique opportunity and implementing the designs of
new products, new systems and new processes.
(Gaynor, 2002). Innovation is defined by the Oslo
Manual as “the implementation of a new or
significantly improved product (good or service), or
process, a new marketing method, or a new
organisational method in business practices,
workplace organisation or external relations”. (Oslo
Manual, 2005).
Innovations discussed by Schumpeter cover the
opening of a new market, the conquest of a new
source of supply of raw materials or semi-
manufactured goods, or the re-organization of an
industry. (Oslo Manual, 2005). Schumpeter
considers technological product innovation and
technological process innovation. A technological
product innovation is the implementation and
commercialisation of a product with improved
performance characteristics such as to deliver
objectively new or improved services to the
customer. A technological process innovation is the
implementation and adoption of new or significantly
improved production or delivery methods. It may
involve changes in equipment, human resources,
working methods or a combination of these.
Innovation management is the goal of any
organization in order to be competitive on the
market as well as it is an important subject of
research work. Roberts and Frohman model has six
stages and includes: recognition of the opportunity,
idea formulation, problem solving, prototype
solution, commercial development, technology
utilization and diffusion. (Gaynor, 2002). Roberts
and Frohman assume that innovation is a rational
process with some prescribed methodology. Such a
rational process requires a stable economic and
competitive system. Uncertainty and innovation are
synonymous at least in the early periods where
general rules of experimentation, work and conduct
do not apply. James Bryan Quinn considers the
innovation process as controlled chaos. (Gaynor,
2002). For him, the innovation process can be
initiated in two business environments: 1)
independent innovators having strong internal
motivation and no risk aversion working in the
garage 2) corporate innovators and competent
researchers conscious of the risk of undertaken
venture realizing the innovation project. For Van der
Ven the innovation is a repetition of convergent and
divergent thinking, so the innovation projects are not
very consistent from project start to finish and the
project outcomes are only partially stable and
consequent realization of the project goals. (Gaynor,
2002).
2 PMI MANAGEMENT METHOD
Project management is increasingly becoming a
profession. However, without project management
methods projects only seldom deliver satisfaction to
the involved stakeholders. Generally, methods can
be divided into universal methods (i.e. PRINCE2,
PMI method) and firm-oriented methods (i.e IBM
Rational). The PMI published on December 31,
2008 the 4
th
version of the PMBOK – Project
Management Body of Knowledge. According to
PMI, projects are a means to organize activities for
the achievement of the strategic plan goals, whether
the project team is employed by the organization or
is a contracted service provider. (A Guide, 2004).
Projects are authorized as a result of one or more
strategic considerations i.e. a market demand, an
organizational need, a customer request, a
technological advance or a legal requirement. ICT
projects can actually start in different part of the
organization. New technology or better use of
existing technology encourages changing work
practices. Intention to use different information or
distribute information in a different form leads to
innovative use of ICT. Improvement of products and
services by incorporating digitized information or
even new IT hardware ensures additional value for
customers.
PMI considers project management as the
application of knowledge, skills, tools and
techniques to project activities to meet project
requirements. Project management is accomplished
through the implementation and integration of the
project management processes. PMBOK Guide
version 4
th
cover five groups of processes: Initiating,
Planning, Execution, Monitoring & Control, and
Closing. The knowledge areas continue to be the
same nine as before, in earlier versions: Integration,
Scope, Time, Cost, Quality, Human Resources,
Communications, Risk, and Procurement or
Acquisitions. However, because of the rapid
development of ICT, as well as opportunities of
innovation development and focus on sustainability
and cost efficiency, the other knowledge dimensions
could be included in the PMI method.
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2.1 Sustainability as a New Knowledge
Area
The etymology of “sustainable” carries interesting
and important implications for the way the word is
used as it includes several contradictions. The word
“sustain” is derived form the Latin “sub-tenere”,
meaning “to uphold”. This carries a passive
connotation in it and gives the concept an image of
stability, persistence and balance. “Sustainable” is
used in a more active sense together with
“development”. Development means change,
progress and growth. Hence, ”sustainable
development” can refer to a process which is being
uphold or defended at the same time as it implies
movement and improvement. (Sunden and
Wicander, 2005). For Ahmed and Sundaram (2007)
sustainability is a commitment to a new way of
business activities that addresses balanced prosperity
of social, economic and environmental dimensions
of business. Sustainability as the simultaneous effort
of balancing economic, social and environmental
goals for a corporation is another metaphor for
describing corporate social responsibility, corporate
citizenship or ethical business conduct. (Bondy et
al., 2007). PRINCE2 describes a project as “A
temporary management environment created for the
purpose of delivering one or more business products
according to a specified Business Case”. (Hedeman
et al., 2005). This basic business requirement
(Business Case) must be set at the start of the
project. Regular checking of the basic business
requirements must take place as the project
progresses. The Business Case gives the framework
within which project stakeholders specify the
requirements and balance the ecological, social and
economic dimensions. Sustainability is the capacity
to ensure a desired level of outputs for an extended
period. It requires not only that a particular project
achieves its objectives during the project life but
also that the benefits it generated continue beyond
the time of the sponsoring. The Table 1 include
sustainability as a knowledge area and processes
suitable to this dimension.
Project management for sustainability needs to
concentrate more on change than stability of
environmental circumstances, meaning that existing
rules, customs, practices and rights are seen more as
the subject matter of the project to be influenced.
Equally, project management for sustainability must
recognize the limitations and the consequent need to
take advantage of existing social institutions and
structures that promote sustainability.
Table 1: Sustainability as a new knowledge area.
Project
Management
Process Groups for
sustainability as a
knowledge area
Sustainability of ecological,
social, economic and legal
environment
Proposed processes
Initiating Process
Group
Observation. Monitoring
Planning Process
Group
Identification of the
environment evaluation metrics.
Planning the environment
surveys.
Collecting declarations and
obligations
Executing Process
Group
Analysing the environment
before project’s start and
forecasting the environmental
needs
Monitoring &
Controlling Process
Group
Controlling the reliability of
analyses, forecasts and
performances
Closing Process
Group
Dissemination of the project
results in the Business Case
environment
2.2 Project Environment
Virtually all projects are planned and implemented
in a social, economic and environmental context and
have intended and unintended positive and negative
impacts. But, the project team should also consider
the project in the contexts created by other projects.
In the interest of project beneficiaries as well as
sponsors, a group of related projects can be managed
in a coordinated way to obtain benefits and control
products not available from managing projects
individually. Therefore, business organizations can
be responsible for management of multi-project,
programme, project portfolio, roll-out projects’
collection or large project. They consider an
environment of multiple concurrent projects in
which projects compete for the same set of scarce
resources. Projects are unique in that their
operational requirements and activity durations
differ. However, they share common characteristics
that enable their classification. So the realization of
each project in the project set is unique. (Cohen et
al., 2004). The Table 2 covers the main processes
for management of project environment.
Multi-project management is the management of
a group of projects that are not interrelated, but the
same staff and resources are used within the
projects. The development of common reporting
structures and of shared methods and techniques can
lead to better harmony between the projects and
corporate organization. (Hedeman et al., 2005). A
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programme is a temporary organizational structure
covering the projects sharing the same financial
resources and having the same goals. It is a
temporary management structure in between the
projects and programme sponsor (i.e. EU agencies)
in order to ensure that projects’ objectives involving
change are achieved in a structured manner.
Portfolio management covers the management of a
group of ICT projects that together supply new
capabilities that are necessary in order to achieve
one or more mutual corporate objectives. Projects
are prioritised and controlled by mutual agreement
for the corporate objectives to be achieved and for
the maximization of the portfolio value for the ICT
users. Roll-out projects set covers nearly similar
projects in the aspect of utilised resources, but
different from the point of implementation place, as
for example a series of ICT systems’ deployments.
Table 2: Project environment as a new knowledge area.
Project Management
Process Groups for
project environment
as a knowledge area
Project environment
Proposed processes
Initiating Process
Group
Identification, revealing and
specification of all the projects
connected together by the
subject, people and resources.
Analysis of realized and
commenced projects.
Planning Process
Group
Planning the utilization of
the knowledge from earlier
projects.
Planning other projects, taking
into account the status of the
commenced projects.
Executing Process
Group
Re-using the knowledge
and artifacts gathered in
earlier projects.
Supervision and monitoring of
other projects
Monitoring &
Controlling Process
Group
Controlling the honesty and
integrity of projects’
knowledge re-usage
Closing Process
Group
Updating the projects’
knowledge base.
Verification and validation of
artifacts gathered in project
knowledge base
A large project is a project that comprises a
number of part projects, each of which is controlled
as an individual project, with its own executives,
however, the outcome, what is delivered, is still a
complex product. The difference between a portfolio
of projects and a large project is that within a
portfolio of projects the various projects sometimes
deliver a solitary outcome and sometimes clusters of
a number of outcomes that can each provide the
organization with added value, whilst with a large
project one inseparable combined total outcome is
delivered. Management of project groups creates the
opportunities to search for unique knowledge,
determining the best practices, defining the measures
for success and continually reassessing the skill and
abilities. It enables to look for the future with the
knowledge of the past and with monitoring the
present.
2.3 Durability and Financial Analysis
In PMBOK, project cost management is primarily
concerned with the cost of resources needed to
complete schedule activities, but it should also
consider the effect of project decisions on the cost of
using, maintaining and supporting the product,
service, or result of the project. However, in the case
of all development projects, there is an inevitable
need to demonstrate that the project represents a
good investment and will deliver value for money
for those who are expected to finance it. Mostly, the
considerations cover analysis of demand for the
product and services, predicted cost and price
structures and the potential economic viability of the
proposal. Such investigations should seek to
evaluate the existence of alternative solutions which
may meet the desired objectives in a more cost-
effective or economic fashion. In some instances,
such studies may need to consider a range of options
in which investment costs and outcomes vary
considerably, thus allowing decision makers to
exercise choices in terms of value for money and in
terms of the level of investment in the context of
competing demands for scarce resources. Usually, in
the feasibility study or in business plan for the
project, economic analysis covers calculation of
economic performance indicators and interpretation
of results. The three basic economic performance
indicators i.e. ENPV, ERR, BCR must be calculated
for each project option. The financial analysis covers
the calculation of financial performance indicators
and interpretation of results. The financial ratios, on
the investment (FNPV/C, FRR/C) and on national
capital (FNPV/K, FRR/K) must be calculated for
each selected project option. (Florio, 2007). Project
durability continues to be one of the most difficult
aspect for most developers of sustainable ICT
projects. There is no standard or widely accepted
methodology for evaluating durability. In the
Programme Innovative Economy, the durability
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means that project beneficiaries should ensure the
utilization of the project effects according to the
specified strategic goals of project for an established
period of time. The Table 3 covers the main
processes for the finance and durability
management.
Table 3: Durability, economic and finance analysis as a
new knowledge area.
Project Management
Process Groups for
durability, economic
and finance analysis
as a knowledge area
Durability, economic and
finance analysis
Proposed processes
Initiating Process
Group
Observation.
Identification and
specification of the financial
support sources for the
beneficiaries.
Planning Process
Group
Resource planning and their
cost specification.
Project income, profits, and
economic and financial
indicators’ predictions.
Executing Process
Group
Monitoring &
Controlling Process
Group
Controlling the revenues and
expenditures during the
project.
Closing Process
Group
2.4 Innovations in Projects
Nowadays, innovation development is a managerial
process. As such, it includes the following activities:
 Searching – scanning the internal and external
environment for threats and opportunities for
change;
 Selecting – deciding which of the concepts and
inventions are valuable for further research and
development;
 Implementing – launching the research and
development of inventions, acquiring the knowledge
resources to enable the innovation;
 Executing the project under conditions of
uncertainty which require extensive problem-
solving;
 Deployment of the innovation and managing the
process by initial adoption;
 Sustaining adoption and use in the long term
through further prototyping and reinnovation;
 Learning and development of the innovation
knowledge base. (Tidd and Bessant, 2009).
Table 4 covers the main processes for management
of innovations.
Table 4: Innovations as a new knowledge area.
Project
Management
Process Groups for
innovations as a
knowledge area
Innovations
Proposed processes
Initiating Process
Group
Innovation conceptualization
Planning Process
Group
Innovations’ planning.
R&D planning. Project effect
implementation planning
Executing Process
Group
R&D realization.
Project results’ implementation
as prototypes or as pilot version
Monitoring &
Controlling Process
Group
Verification and validation of
innovations.
Closing Process
Group
Project results dissemination.
Preparation for the project
results’ commercialization
2.5 Marketing and Event Management
in Projects
Four principal factors govern how rapidly an
innovation will spread: 1) the number of users, 2)
the expected profitability of innovation 3) low
investment at start of deployment and 4) adaptability
and risk-proneness in the industry where the
innovation is introduced. (Gibson, 1998). Diffusion
of innovation demands communication through
which the potential adopting unit gains knowledge
about the innovation and the social system, which is
a group of organizations working together on the
commercialization of innovative effects. In PMI
method communication is focused on information
gathering and distribution for project management
support, but the additional knowledge area should
cover project effects’ marketing (i.e. pricing, placing
and promotion). The chosen target clients should be
informed or educated about the project and its
products. It includes advertising, Public Relations,
messaging, media connections and business event
management. (Bowdin et al., 2006). Business events
include conferences, exhibitions, incentive travel
and corporate events for presentation of innovative
products to an invited audience with the goal of
inducing a sale. Table 5 covers the main processes
for marketing and events for innovation diffusion.
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Table 5: Marketing and events as a new knowledge area.
Project Management
Process Groups for
marketing and events
as a knowledge area
Marketing and events
Proposed processes
Initiating Process
Group
Conceptualization of the
project results marketing
activities and events
Planning Process
Group
Planning the price, place,
promotion, events and people.
Estimation of events’ impact.
Executing Process
Group
Marketing activities.
Events implementation
Monitoring &
Controlling Process
Group
Controlling the expenditures
and evaluation of effects
Closing Process
Group
Events’ shutdown
3 CONCLUSIONS
Since the early 1990s, Europe has witnessed a rapid
development of projects and programmes to exploit
ICTs. Feasibility studies as well as business plans
for ICT projects usually cover considerations
concerning traditional PMI knowledge areas, but
also new knowledge dimensions are demanded there
i.e. innovation characteristics, sustainability and
durability problems, economic and financial
analysis, promotion and dissemination project
effects. Therefore, there is a strong need to include
these knowledge areas in a project management
method e.g. the PMI method.
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