Unravelling the routines in new product development portfolio management.

Product innovation is a key driver of growth. One of the biggest challenges facing an organisation in managing product innovation is determining the most promising new product development (NPD) projects from the many ideas generated. This selection process is known as NPD portfolio management, which is a strategic decision-making process. Despite its significance in terms of management practice, portfolio management is still not well understood, either by practitioners or academics. For example, much of what has been written focuses mainly on individual project selection rather than managing the entire process; at the same time, it is unclear how to manage the link between the portfolio decisions and business strategy. A systematic review was carried out of the different streams of literature addressing portfolio management, strategic decision-making, the strategy process and organisational routines. The review showed that the theoretical perspective of organisational routines has not been adopted in previous studies of portfolio decision-making. This is a significant omission, as organisational routines constitute an important theoretical perspective, able to uncover not only the formal but also the informal ways in which portfolio decisions are made. Based on the gaps identified in the systematic literature review, three research questions were adopted: 1) How is new product development portfolio management conducted?; 2) What organisational routines can be identified in the new product development portfolio management in companies?; 3) Is the company’s espoused business strategy considered in the new product development portfolio management (as evidenced in routines)? These questions were addressed by case study research conducted in four manufacturing firms based in Indonesia, from the cosmetics, food, consumer and automotive sectors. The study focused on how the firms conduct portfolio management. It used multiple sources of data: semi-structured interviews with directors and managers; inspection of portfolio management process documentation; attendance at a product development meeting; and a simulation exercise which involved observing the approach managers took in selecting a product portfolio. The findings show that across the four companies, a total of 12 routines could be identified that are connected to portfolio management. These routines were termed a ‘palette’ of routines connected to portfolio management, from which the routines relevant to a particular organisation can be selected. Further analysis refined these 12 routines into eight key routines. Five of the eight routines were identified to be ‘core’ (Market and Industry Analysis, Concept Selection and Development, Build Business Case, Portfolio Management Review and Product Development), as all four case companies used them. Two additional routines were found to be ‘essential’ (Business Planning and Project Prioritisation); one is ‘optional’ (New Product Research). While in the literature, portfolio management is centred solely upon making decisions about which projects will be selected, the palette of routines unveils the entire process of portfolio management as more wide-reaching and complex. Surprisingly, the study also discovered that a linkage between the routines and business strategy – something that the literature claims is missing – existed in all four case companies (albeit in largely informal routines rather than as part of formal processes). From a practical point of view, the study generated a generic framework for portfolio management. This enables a company to build its portfolio management on the seven routines that were identified as “core” and “essential”, supplemented with an extra routine if required, depending on the business strategy. This framework can help managers to design an effective NPD portfolio management process. Overall, portfolio management is an under-researched area, despite its strategic importance. This study has demonstrated that portfolio management is wider-reaching that previously thought; it is dependent on both formal processes but also undocumented routines, and it links much more closely to company strategy than previously thought. However, more research is needed.PhD in Leadership and Managemen

Department of Homeland Security Science and Technology Directorate: Developing Technology to Protect America

In response to a congressional mandate and in consultation with Department of Homeland Security's (DHS) Science and Technology Directorate (S&T), the National Academy conducted a review of S&T's effectiveness and efficiency in addressing homeland security needs. This review included a particular focus that identified any unnecessary duplication of effort, and opportunity costs arising from an emphasis on homeland security-related research. Under the direction of the National Academy Panel, the study team reviewed a wide variety of documents related to S&T and homeland security-related research in general. The team also conducted interviews with more than 200 individuals, including S&T officials and staff, officials from other DHS component agencies, other federal agencies engaged in homeland security-related research, and experts from outside government in science policy, homeland security-related research and other scientific fields.Key FindingsThe results of this effort indicated that S&T faces a significant challenge in marshaling the resources of multiple federal agencies to work together to develop a homeland security-related strategic plan for all agencies. Yet the importance of this role should not be underestimated. The very process of working across agencies to develop and align the federal homeland security research enterprise around a forward-focused plan is critical to ensuring that future efforts support a common vision and goals, and that the metrics by which to measure national progress, and make changes as needed, are in place

A methodology for the selection of new technologies in the aviation industry

The purpose of this report is to present a technology selection methodology to quantify both tangible and intangible benefits of certain technology alternatives within a fuzzy environment. Specifically, it describes an application of the theory of fuzzy sets to hierarchical structural analysis and economic evaluations for utilisation in the industry. The report proposes a complete methodology to accurately select new technologies. A computer based prototype model has been developed to handle the more complex fuzzy calculations. Decision-makers are only required to express their opinions on comparative importance of various factors in linguistic terms rather than exact numerical values. These linguistic variable scales, such as ‘very high’, ‘high’, ‘medium’, ‘low’ and ‘very low’, are then converted into fuzzy numbers, since it becomes more meaningful to quantify a subjective measurement into a range rather than in an exact value. By aggregating the hierarchy, the preferential weight of each alternative technology is found, which is called fuzzy appropriate index. The fuzzy appropriate indices of different technologies are then ranked and preferential ranking orders of technologies are found. From the economic evaluation perspective, a fuzzy cash flow analysis is employed. This deals quantitatively with imprecision or uncertainties, as the cash flows are modelled as triangular fuzzy numbers which represent ‘the most likely possible value’, ‘the most pessimistic value’ and ‘the most optimistic value’. By using this methodology, the ambiguities involved in the assessment data can be effectively represented and processed to assure a more convincing and effective decision- making process when selecting new technologies in which to invest. The prototype model was validated with a case study within the aviation industry that ensured it was properly configured to meet the

Exploring the impact of technological competence development on speed and NPD program performance

With growing levels of competition across industries, technological competence is increasingly viewed as crucial for businesses to maintain their long-term competitive advantage. Although there are many theoretical arguments about how firms' competences can yield competitive advantage and performance improvement, we have a limited understanding of where the capabilities originate in the context of NPD or what kind of product portfolios, internal climate and strategic alignment are required to build them. Moreover, empirical evidence for technological competence development is limited and comes primarily from case studies, anecdotal evidence, and management impressions. Accordingly, this research addresses these gaps by presenting and testing a conceptual model of technological competence development in NPD. This study makes advances in applying a dynamic capability approach to technological competence development in NPD, and investigates the impact of innovative climate, technological alignment, and project portfolio management on technological competence development as well as NPD speed. Moreover, the factors that might influence NPD program performance are also investigated. The analysis, based on data collected from 164 firms, shows that a firm's innovative climate, technological alignment and portfolio management are positively associated with technological competence development. While technological alignment was found to be negatively related to NPD speed, portfolio management and technological competence development were found to have positive effects on speed. However, innovative climate had no significant impact on speed. Moreover, technological competence development and portfolio management were found to be positively related to NPD program performance. Finally, the authors found no support for the relationship between speed and NPD program performance

Selecting projects in a portfolio using risk and ranking

There are three dimensions in project management: time, cost and performance. Risk is a characteristic related to the previous dimensions and their relationships. A risk equation is proposed based on the nature of the uncertainty associated to each dimension as well as the relationship between the uncertainties. A ranking equation that is able to prioritise projects is proposed and discussed. The problem solved here is which projects to select in a given portfolio of projects. The model is implemented in a group decision support system (GDSS) which can guide decisionmakers in their decision process. However, the system is not intended as a substitution of the decisionmaker task, but merely as an aid. The methodology used is analysis of the equations proposed and trial and error based on examples. This paper’s main contribution is the risk equation and the ranking equation

Towards Research Excellence for Development: The Research Quality plus (RQ+) Assessment Instrument

This document presents a framework and practical guidelines for assessing the quality of research for development. Referred to as the "RQ+"1 assessment instrument, it serves as a tool to guide the work of external evaluators hired by IDRC as part of the External Review process for prospectusbased programs."RQ+" is based on the premise that a credible, balanced and comprehensive assessment of the quality of research for development requires the consideration of elements beyond the research outputs only, or the use of conventional metrics. These additional elements include important aspects of the research process related to design, execution and the sharing of findings. For this reason, RQ+ indicates an approach that straddles output and research project assessment

Developing and applying an integrated modular design methodology within a SME

Modularity within a product can bring advantages to the design process by facilitating enhanced design reuse, reduced lead times, decreased cost and higher levels of quality. While the benefits of modularity are becoming increasingly better known, at present it is usually left to the designers themselves to introduce modularity into products. Studies into modularity have shown that byimplementing 'formal' methods, further benefits can be made in terms of time, cost, quality and performance. Current approaches that have been proposed for the formal development of modular design methodologies fail to accurately represent knowledge that is inherently produced during design projects and fail to consider design from the different viewpoints of the development process. This work, built on previous work on modularity and design for reuse, aims to develop an integrated design methodology that will optimise the modules created through the design process and allow for modularity to be 'built-in' to product development from the initial stages. The methodology andassociated tools have been developed to provide an easy-to-use approach to modularity that has support for design rationales and company knowledge that aid in effective design decision making. The methodology, named GeMoCURE, provides an integrated total solution to modular design based on reuse of proven physical and knowledge modules. Its incremental nature allows for the optimalstructure to be maintained as the design progresses. A special focus has been on the application of this approach for Small to Medium Enterprises (SMEs), which are typically challenged by a lack of design human resources and expertise

Optimal Portfolio Management in Alaska: A Case Study on Risk Characteristics of Environmental Consulting Companies

A Project Submitted in Partial Fulfillment of the Requirements for the Degree of MASTER OF SCIENCE in Project ManagementSharp declines in global oil prices have led to a marked contraction in Alaska’s natural resource dependent economy. This, coupled with record the State’s budgetary shortfalls and a decrease in incoming federal dollars, has created a climate where environmental consulting companies must accept riskier projects to balance portfolio growth and security. As a result, companies must adopt a risk-based portfolio management approach as both a high level strategy and a core management practice. It is important to specifically identify projects best suited for an organization’s tolerance for risk based off of the supply and demand of the industry in rapidly changing economic conditions. Therefore, the aims of this project report are to help environmental consulting companies identify risk characteristics and manage their portfolio, as well as develop a tool to guide decision-making and selecting projects best suited for a companies’ portfolio strategy. The results of this research may provide Alaska based environmental companies with a clear understanding of the types of projects that offer both development and financial security for an organization. This research paper will present the methodology, results, and an environmental consulting portfolio management tool.Title Page / Table of Contents / List of Exhibits / Abstract / Introduction / Background / Literature Review / Project Methodology / Research Methodology / Presentation and Analysis of Data from Survey / Data Validation From Survey / Conclusion / Recommendation / Project Conclusion / Recommendations for Further Research / References / Appendi