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Maximizing Product Development Value - Realizing Value from New Products and Portfolios |
White Paper by Jim Brown, President of Tech-Clarity Inc.
Many companies fail at the very core of the portfolio management problem—identifying and achieving value from their projects" Brown addresses this important issue by focusing on how companies can improve returns on their investment in R&D and new product development by focusing on the economic value returned by projects and portfolios. He draws on the experience at companies like HP, Weyerhaeuser and Boeing and how these companies employ value-based management processes and systems to support strategic project decision-making. Brown emphasizes the need to consider the impact of uncertainty on future value, citing, "By focusing attention on the risks that have the largest impact on the value of the project, companies can better allocate their time and resources to the issues that matter the most.
The limits of scoring rule.
Scoring rules are a very powerful
tool and many companies use them in to support New Product
Development. Like many powerful tools, they are often applied in
places where they do not really apply—the proverbial hammer looking
for a nail. Used in inappropriate ways, they lead to increased cost,
bureaucracy and ultimately the tool itself is rejected.