Augeo : Solutions for Research and Development


Research and Development

Managing R&D projects

Research and Development (R&D) and product innovation are a fundamental competitive differentiator and a key component for the growth of the company.

With the tightening economic conditions over the last few years, R&D has become vital for companies to maintain their leadership by bringing innovative new products to the market. The ability to choose the right projects and the investments needed is what differentiates the company from its competitors.

This ability to choose the right projects faces specific challenges related to the R&D and new product innovation sector. Some of the underlying information of the project is based on future market events, this information can change and affect the decision making process. For a portfolio of such projects this creates a dynamic decision making environment. In addition to this more dynamic decision making environment, the resources needed for such projects tend to be unique and / or limited, giving even less flexibility in the resource allocations to each of the projects

The Operational efficiency of R&D teams

The ability to choose the right projects is followed closely by the ability to choose the right resources. Shareholder value and doing more with less mean limited R&D and related resources like technology and marketing, making it even more important to be operationally efficient.

This increased pressure on the optimal use of available resources make the consequences of investing in the wrong projects even more evident. To properly and efficiently allocate these resources and ensure that the projects are delivered within the timelines agreed upon becomes key to the organization.

Development and bringing to market new products

Shorter product life cycles together with faster moving and more uncertain markets has forced R&D departments to be more reactive, flexible and pragmatic.

The project selection process has had to integrate more market based selection criteria into its decision making process. Creating the link between the business strategy of the company and the project portfolio is the objective.

Measuring the performance of R&D activities

Maximising financial return, R&D productivity and achieving financial goals have become key management tasks for portfolio management. Managed like a profit center similar to other departments in the company, the R&D management needs to prioritize its teams on those projects that offer the best financial returns, whilst terminating those that do not.

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