Project Selection Methods and Documents: Uber Driver App Analysis

This project analyzes the project selection methods and initial documents related to the Uber Driver App rebuild. It begins by outlining various project selection techniques including Net Present Value (NPV), Internal Rate of Return (IRR), scoring models, payback period, and benefit-cost ratio, ev...Read More

Project Selection Methods & Initial Documents
Uber Driver App
4/1/2019

Uber Driver App
Table of Contents
Introduction...........................................................................................................................................2
List & Details of Project Selection Methods..........................................................................................2
Net Present Value (NPV) & Internal Rate of Return (IRR)...............................................................2
Scoring Model...................................................................................................................................3
Payback Period..................................................................................................................................3
Benefit/Cost Ratio.............................................................................................................................3
Initial Process Groups and Initiation Documents...................................................................................4
Process Groups..................................................................................................................................4
Initial Project Documents..................................................................................................................5
Conclusion.............................................................................................................................................5
References.............................................................................................................................................6
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Uber Driver App
Introduction
There is a lot of competition in the business firms in the present times. It is required that the
organizations select the project that provides them with the maximum benefits. The
management adopts different techniques and methodologies to execute the process. There are
several methods designed to determine the projects to be selected and the order in which
these projects shall be undertaken.
The project selection is just the beginning of the process and it is required to execute and
manage the project to achieve its aims and goals. For this purpose, there are several project
management methods defined. One such method is the implementation of the guidelines
defined by Project Management Institute (PMI) in the Project Management Body of
Knowledge (PMBoK) methodology.
The document includes the project selection methods and initial documents for the Uber
Driver Application. Uber has decided to re-build its driver app to enhance the functionality of
the application along with the usability of the application (Madrigal, 2018).
List & Details of Project Selection Methods
Net Present Value (NPV) & Internal Rate of Return (IRR)
This is the method that is based on the selection of the projects on the basis of the benefits
ensured by the project. Net Present Value (NPV) of the project is calculated on the basis of
the cash inflow and outflow and it is the difference between these two values. The use of
current value is done to calculate NPV and for the project beneficial for the organization, the
value shall come out to be positive.
There are currently 3 million Uber Driver App users all across the globe. The feedback from
the users is taken to re-build the application. The changes that will be incorporated are based
on the user comments and feedback. Thus, the implementation of these changes will lead to
the streamlining of the application functionalities resulting in better coordination between the
app and the user. The overall performance will improve resulting in better revenues for the
organization. Therefore, the NPV for this project will be positive (Kashyap, 2018).
There is another method that is closed synced with the NPV method for project selection. The
Internal Rate of Return (IRR) is calculated on the basis of the NPV. The IRR is defined as the
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Uber Driver App
rate at which NPV is zero. This rate will also be higher for the Uber Driver App project and
the higher value of IR indicates enhanced profits and benefits.
Scoring Model
It is usually believed that profits are always calculated in the form of financial parameters.
However, there are other parameters that are also considered while selecting a project. The
method assigns a score to each of these parameters identified and the final score determines
the project to be preferred over the others.
The different parameters related with the Uber Driver App may include the usability of the
application for the end-user, performance of the application, productivity enhancement
through the application, and overall customer engagement. The re-building of the application
will show marked improvement in all of these areas. Therefore, the weights allotted to these
parameters will be high and the overall score obtained will also be high. Thus, the scoring
model would suggest that the Uber Driver App shall be selected.
Payback Period
There is certain time period that is involved in the projects before they provide the returns to
the organization. This timeframe is termed as the payback period which may vary from one
project to the other.
The entire functioning of the business operations rely on the Uber Application. The re-
building and launch of the changes in the application will immediately reflect the benefits
provided by the application (Lin, 2010). Thus, the payback period involved in the application
will be low. The business executives will be able to experience the return and profits in a
quick turnaround time which indicates that the project shall be selected.
Benefit/Cost Ratio
The final method that must be used for the purpose of project selection is the use of
Benefit/Cost Ratio and its measurement. The benefits associated with the project shall be
determined in terms of the tangible and intangible benefits. Similarly, the project costs shall
be identified in terms of the one-time, direct, and indirect costs. The ratio of the two must be
calculated to understand the overall value that the project may provide (Rouwendal, 2012).
In the case of Uber Driver App, there will be several costs that will be associated. These will
include the design and development costs, cost of the resources involved in the project,
deployment costs, training costs, cost of the tools & equipment, and maintenance costs. There
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Uber Driver App
will also be benefits achieved by the organization with increase in the revenues, expansion of
the customer base, and increase in the total number of rides in a day. The cost benefit ratio
suggests that the benefits will be higher. Thus, the project shall be selected by the
organization.
Initial Process Groups and Initiation Documents
Process Groups
PMBoK is a project management methodology in which there are several process groups
defined. These process groups provide guidelines for the entire project execution and
management. There is also a defined flow in which the guidelines under these process groups
shall be used.
The initial process groups that are involved are the initiation process group and the planning
process group. The initiation group is the one in which the preliminary project tasks and
activities shall be conducted. For the Uber Driver App, the process group shall comprise of
the project kick-off by analysing its business case. The project requirements and needs will
be clarified using the analysis. Also, there shall be detailed determination of the project
feasibility in terms of the application technical components; operational feasibility, economic
structure, etc. shall be done. The results of the feasibility analysis and study will provide the
idea on the execution of the project and the methodology to be adopted (Tavan & Hosseini,
2016).
The next process group involved will be the planning process group. The Uber Driver App
will be implemented on a large-scale and rolling out the changes after re-building the app
shall be adequately planned. The planning phase will involve the determination of the scope
for application re-building along with the roll out of the changes. There will also be
estimations made in the area of the schedule and overall budget. The project will be a large-
scale project and apart from Uber, there will be other stakeholders and resources involved.
The determination of these entities along with the methodology to manage them will be
determined in this phase. Also, the failure of the project will be the last thing in the minds of
the project management and the project team. However, there will be some risks that will
certainly emerge in the project. The risk management and planning processes will be
conducted in this phase of the project. The quality planning and assessment along with the
development of the communication plan will also be done.
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Uber Driver App
Initial Project Documents
Project Initiation Document (PID) will be the first document that will be prepared and
submitted. It will be a brief document covering the project title and its background. The
rationale for the project will also be covered in this document. The next will be the Project
Charter which will document the activities and results of these activities from the initiation
phase of the project. The approval from the project stakeholders will be given to mark the
formal project start-up (Bannazadeh, Zomorodian & Maghareh, 2013).
Another initiation document will be the Project Management Plan (PMP) or simply the
Project Plan. In this document, the detailed project planning information will be covered.
There will be several areas involved in the project and it will be essential to make sure that
planning and analysis of each of these areas is done so that the probability of project failures
is eliminated (Hairul Nizam Md Nasir, Sahibuddin, Ahmad & Sanim Mohd Fauzi, 2015). The
document will include the steps for planning the project schedule, budget, risks, and
communication. Also, the distribution and planning of the resources and stakeholders
involved will also be covered. The Uber Driver App will be required to be re-built and also
the roll-out of these changes will be necessary. The methodology involved behind both these
procedures will be included along with the detailed scope for both these areas of the project.
Conclusion
Uber Driver App is one of the projects that is a large-scale project and is also critical for the
associated organization. It is necessary that the project is successful and is carried out
efficiently. There are different project planning and management activities that are involved
that must be utilized in the execution of this project. The PMBoK methodology is such a
methodology defined for the purpose of project management. It shall be utilized to plan and
manage the different areas of the Uber Driver App project. Also, the project selection is one
of the initial activities for the organization. There are different methods defined for the
purpose of project selection that must be used. Some of these methods are payback period,
cost benefit ratio, net present value, and internal rate of return. Scoring model may also be
used as one of the methods.
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Uber Driver App
References
Bannazadeh, B., Zomorodian, Z., & Maghareh, M. (2013). Assessment of PMBOK Indexes
in Executive Projects. Journal Of Advanced Management Science, 265-268. doi:
10.12720/joams.1.3.265-268
Hairul Nizam Md Nasir, M., Sahibuddin, S., Ahmad, R., & Sanim Mohd Fauzi, S. (2015).
How the PMBOK Addresses Critical Success Factors for Software Projects: A Multi-
round Delphi Study. Journal Of Software, 10(11), 1283-1300. doi:
10.17706//jsw.10.11.1283-1300
Kashyap, R. (2018). The Economics of Enlightenment: Time Value of Knowledge and the
Net Present Value (NPV) of Knowledge Machines. SSRN Electronic Journal. doi:
10.2139/ssrn.3282967
Lin, H. (2010). Why Should Managers Like Payback Period?. SSRN Electronic Journal. doi:
10.2139/ssrn.1688730
Madrigal, A. (2018). 3 Million Uber Drivers Are About to Get a New Boss. Retrieved from
https://www.theatlantic.com/technology/archive/2018/04/uber-driver-app-revamp/
557117/
Rouwendal, J. (2012). Indirect Effects in Cost-Benefit Analysis. Journal Of Benefit-Cost
Analysis, 3(01), 1-27. doi: 10.1515/2152-2812.1046
Tavan, F., & Hosseini, M. (2016). Comparison and analysis of PMBOK 2013 and ISO
21500. Journal Of Project Management, (10), 27-34. doi: 10.5267/j.jpm.2017.1.002
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