Consequently, a new body of knowledge was evolved, which came to be known as Project Management. Over the years, the science of Project Management has developed enormously and many scholars and practitioners have introduced various tools and techniques to enrich it. Internet, computers, project management software etc have enhanced the pace of development of project management.
Successful completion of project on time with the use of limited resources and minimum cost is the main objective of project management. But, project management in modern times is no longer possible by paying attention towards resources, cost and time alone. The project managers are forced to look beyond time, cost and resources. The traditional tools and techniques such as Gantt chart, PERT/CPM networks became powerless and attainment of project objective remained a dream for the competent project managers. A careful analysis has been made in various areas of project management and finally reached a way-out that project managers need to have a check on the rapidly changing environment in which the project needs to be materialized
Every project is carried out in a set of complex factors. The totality of all such factors is known as project environment. Time, organizational factors, legal system, political system, technology structure, economic system, socio-cultural system are some of the factors in the project environment. All these factors are likely to affect projects and the success depends upon how the project manager and his team respond and adapt to the changes. The basic principles of the project management still remain effective in any contexts regardless of size and time. But the resources, budgets, methods, and tools of the project depend upon the environment. If today's projects are managed by the tools of the past, the probability of failing the project is very high. That does not mean that traditional tools are ineffective in the modern times. Thus, before implementing the tools, they must be made adaptable to the changed resources, budgets. The need for a rethinking about project management in the business context was aroused because of the following reasons:
1. Compression of the product life cycle
Today, speed has become one of the important competitive edges of firms. Products with long life cycle are rarely seen in the market. Three decades back, products with 10 to 15 years life cycle could be seen. But, products having average life cycle with 1 to 3 years alone are capturing the market today. "A common rule of thumb in the world of high-tech product development
is that a six-month project delay can result in a 33 percent loss in product revenue share". (Harold Kerzner, Applied Project Management (New York: John Wiley & Sons, 2000, chapter 1