Dr.

Anitha Lourdu James

Associate Professor
College of Business and Economics
Wolkite University
What is Project Identification?

Collecting, processing and analyzing data on

problems/needs of communities
The data provides a basis for the next or
second stage of the project cycle.
Project Identification ….
Review of secondary data
Look at books, survey reports/research papers,
publications, media reports, internet etc.
Are the facts accurate?
Are the facts supported by evidence?
Is the information up-to-date?
Example: census report, the district statistical
abstracts
Project Identification …
Collecting and analyzing primary
information
Interviews
Community mapping
Focus Group Discussions
Observation
Other methods
Project identification…
Clear project identification allows to
answer questions like:
a)How do the projects come about?
b)Where do projects come from?
c)Why are projects where they are?
Approaches to project
identification
There are two major approaches to project
identification

(a) Top-down approach

(b) Bottom-up approach
Top-Down Approach
Projects are identified based on demands
from beyond the community.
This may include directives from:
international conventions (e.g., Kyoto Protocol)
international institutions or NGOs that have
determined particular priorities and thus
projects
national policy makers identifying projects that
pertain to national plans.
Top-down approaches to project
identification
1. The household (socio-economic) survey
Studies on social and economic situations of a
given area
e.g. climate, geographical set-up, economic activities,
political set up, education system, culture, diet, social
services, physical infrastructure etc.
Uses questionnaires, interviews,
documentation, and direct observation.
Data is collected, processed and analyzed and
projects are then identified
Top-down approaches to project
identification
2. Rapid appraisal
Method collects and assesses data quickly
using any data collection techniques.
Primary purpose is to acquire the information
in the shortest time possible and it lowers the
cost.
 It
is rapid because investigation, assessment
and identification of projects are done at the
same time.
Cont.….
Rapid appraisal uses the following data
collection techniques:
Analysis of secondary data sources
Interviews
Direct observation at site
Visualization of resources like social
organizational maps and time series maps.
Top-down approaches to project
identification
3. Needs Assessment Survey (NAS)
Also referred to as situation analysis:
It involves:-
 Fact finding about problems or needs in a
given area or community.
 Finding out what is lacking in a given area or

community.
 Investigating a situation in a given area.
Cont.….
NAS is carried out to:
Find out the problem in a given community
so as to identify the most appropriate solution
(s)/project (s) to solve the problem (s) in
question.
Analyze the causes of the problems and seek
likely solutions to the problems leading to
project identification.
Advantages of Top-Down
Approach
It may be a rapid response to disasters like
floods because there is limited time and
chance to consult the beneficiaries.
It can be effective in providing important
public goods like education, health, roads etc.
It can contribute to wider national or
international objectives and goals and
therefore potentially be part of a wider
benefit
Limitations of Top-Down Approach
Does not help in modifying strongly established ideas
and beliefs of people.
Assumes external individuals know better than the
beneficiaries of the service.
Communities have little say in planning process
rendering approach devoid of human resource
development.
Community develops dependency syndrome on
outside assistance and does not exploit their own
potential.
The development workers become stumbling blocks
to people-led development
tendency to impose their own biases, etc. on people
Bottom-Up Approach

In this approach community/beneficiaries

are encouraged to identify and plan the
projects themselves with or without
outsiders.
External agents have only facilitating
roles
Bottom-up approaches to project
identification
1. Animation
1. Process of stimulating people to become more
aware and conscious of problems they suffer
from.
to gain confidence in their ability to deal with these
problems and take initiatives to improve situation.
2. It makes the community better understand and
be prepared to overcome its problems and
take decisions with full responsibility.
3. Carried out by animators / helpers / change
agents
Bottom-up approaches to project
identification
2. Facilitation/Community action
an attempt to assist people to get over
problems by training them in certain skills,
providing them with the needed information,
linking them up with relevant organizations to
improve access to the needed resources etc.
Bottom-up approaches to project
identification
3. Participatory Appraisal
Project identification should be participatory,
and should involve local communities in
identifying and prioritizing their needs.
The views of the communities should be
considered during the screening and selection
of various project proposals and the selection
of the preferred proposals for implementation.
Cont…
Participatory appraisal (PA) enable people to
express and analyze the realities of their lives
and conditions, to plan for themselves what
action to take, and to monitor and evaluate
the results.
The key to PA is that the only external
involvement is in facilitation.
The communities themselves determine the
issues, priorities and courses of action.
Advantages of Bottom-Up
Approach
Interveners accomplish more with limited
resources since people tend to safeguard what
they have provided for themselves.
Develops people’s capacity to identify problems
and needs and to seek possible solutions to them.
Provides opportunities of educating people.
Helps people to work as a team and develop a
“WE” attitude - makes project progressive and
sustainable.
Resources are effectively managed; dependence
reduces, there is increased equity, initiative,
accountability, financial and economic discipline.
Limitations of Bottom-Up
Approach
Not always effective for projects that require
urgency to implement
Time-consuming and requires patience and
tolerance.
People sometimes dislike approach because they
do not want to take responsibility for action.
The agency using this approach is never in control
and cannot guarantee the results it would want.
The priorities of communities may not fit with
national or international priorities that seek to
have a broader impact
The screening process of projects
Is the technology appropriate to the project’s
objectives or local capabilities?
Is the risk involved manageable?
Is the demand for the expected outputs
adequate?
The screening process of projects
Will the supply of raw materials adequate?
Is the design in agreement with the
institutional and managerial capabilities
available?
Will the recurrent costs be adequately met
given the available financial resources?
Is there adequate commitment by the
intended beneficiaries and support from
government authorities?
The screening process of projects
Is the project has negative effects on the
environment? And if yes, can the effects be
mitigated?
Is the project culturally acceptable by the
community?
Is the project sustainable?
Project Formulation / Design
Involves analysing the information from the
identification stage in detail to formulate a
project document.
Stakeholders analysis
Research
Problem analysis
The economic, financial, social, ecological are
analysed and the results documented.
These dimensions are summarized into a
project write up or proposal.
The problem statement
The process of project identification ends with the
formulation of a problem statement.
It takes the form of:
 Listing all the problems in the area
 Prioritizing the problems and selecting core major
problems.
 Finding out the root causes of the problems.
 Sitting the likely effects of the problems on the
community.
 Suggesting the probable solutions to the problems.
 Identifying the (projects) from the solutions.
Essential characteristics of projects
For projects to be properly conceived, the
characteristics below must be clearly defined:
Objectives
Expected outputs
Intended beneficiaries
Planned lifespan
Extended outcome of the project
Principal stakeholders
Financial plan and source of financing
Feasibility
All projects are feasible given unlimited
resources and infinite time.
Unfortunately, most projects must be
developed within a tight budget and with time
constraints (scarce resources!).
This means that assessing project feasibility
is a required activity for all information
systems projects and is a potentially large
undertaking.
It requires evaluating a wide range of factors.
Feasibility
Most feasibility factors are represented by
the following categories.
Economic
Technical
Operational
Scheduling
Legal and contractual
Political
Economic
Assessing economic feasibility is to identify
the financial benefits and costs associated
with the project.
It is often referred to as cost-benefit analysis.
Tangible benefits which refers to items that
can be measured in dollars and with certainty
reduced personnel expenses, lower transaction
costs, or higher profit margins
Economic
Most tangible benefits will fit within the
these categories:
Cost reduction and avoidance
Error reduction
Increased flexibility
Increased speed of activity
Improvement of management planning and
control
Opening new markets and increasing sales
opportunities
Economic
Intangible benefits refer to items that cannot
be easily measured in dollars or with
certainty.
E.g., improvement of employee morale,
reduction of waste creation or resource
consumption.
After determining project benefits, project
costs must be identified.
Economic
Tangible costs- hardware costs, labor costs,
and operational costs.
Intangible costs- employee morale,
operational inefficiency.
Recurring costs-ongoing evolution and use of
system
Technical Feasibility
Its purpose is to gain an understanding of the
organizations ability to construct the proposed system.
Should include an assessment of the development
group’s understanding of the possible target and
operating environments to be used, as well as system
size, complexity, and the group’s experience with
similar systems.
It is important in this step to assess the risk involved
in the project.
Risks need to be managed to be minimized; identifying
potential risks early in a project is important.
Technical Feasibility
Consequences of not assessing risks:
Failure to attain expected benefits from the
project.
Inaccurate project cost estimates
Inaccurate project duration estimates
Failure to achieve adequate system
performance levels
Failure to adequately integrate the new system
with existing hardware, software, or
organizational procedures.
Operational Feasibility
Its purpose is to gain an understanding of the degree
to which the proposed system will likely solve
problems or take advantage of the opportunities in
project identification study.
Includes justifying the project on the basis of being
consistent with or necessary for accomplishing the
plan.
Also should include an analysis of how the proposed
system will affect organizational structures and
procedures.
Systems with widespread impact on organization’s
structure or procedures are typically riskier projects.
Legal and Contractual Feasibility
Assessing potential legal and contractual
ramifications due to construction of a system
It is necessary to look at:
 Copyright
 Labor laws

 Antitrust legislations

 Foreign trade regulations

 Financial reporting standards

 Current or pending contractual obligations

Political Feasibility
Attempt to gain an understanding of how key
stakeholders within the organization view the
proposed system
It can affect the distribution of information
within an organization thus affecting the
distribution of power
Those feeling threatened that they may lose
power can take steps to block, disrupt or
change the focus of the project.
Environmental issues

The environmental impact of the project

should also be assessed.
The project should be environment friendly