The second step for project identification is development of project ideas. The projects really begin as ideas. The project ideas need to be developed. The source for project ideas can be:
- Situation Survey
- Internal Sources
- External Sources
- Situation Survey: The situation survey involves the survey of current situation in the environment. The different changes are studied and identified. Changed already under way are detected. The changes that are found in environment may be political-legal, economic, socio-cultural and technological.
- Internal Sources:
- Corporate vision, mission, objectives, strategies and plans provide ideas for projects.
- Management efforts to overcome problems or identify opportunities can suddenly provide new ideas for projects.
- Suggestions made by research and development department, committees, task forces, work teams and quality circles can provide useful ideas for projects.
- External Sources:
- Needs and requirements of project clients are an important source of project ideas.
- Outside consultants and experts can provide promising ideas for new projects. So can research laboratories.
- Technological developments and competitor's activities provide new project ideas.
- Legal provisions can also be the source of project ideas.
- Politicians identify projects to serve the interest of their constituencies. Most government-financed road projects in Nepal are the brainchild of politicians.
- Donor agencies identify project ideas that fit-in with their aid priorities.
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