Revenues in Project Management – Definition and Meaning
In the context of project management, revenues refer to the income or financial benefit generated directly or indirectly through the implementation and completion of a project. It is used to assess the financial profitability and economic success of a project, particularly in projects with commercial objectives. Revenues may result from product sales, service delivery, or license fees.
Example, best practice, and further information
In a product development project, the revenue would be the sales generated from bringing the newly developed product to market. A best practice is to estimate potential revenues during the planning phase based on market research and realistic forecasts and to incorporate it into project evaluation. This aligns with cost-benefit analyses in the PMBOK Guide and agile, value-driven approaches. Considering revenue helps justify project investment and maximize return on investment (ROI).
