In R&D, not all projects that originate in research are developed into products and services and finally appear on “the shelf”. Instead, a company needs to explore a variety of new technologies and projects before it can choose the ones that will make it to the market. A technological assumption can be wrong, or a project can die because of both internal and external factors, such as a change in the competitive landscape.
Research portfolio management enables the process of R&D projects selection, helps managers formulate the rules for selection and promotion of the right projects and helps engineers identify unsuccessful projects at early stages, when the costs are lower.
Understanding the portfolio management process will enable you to focus the resources on value projects, which will contribute to the revenue generation. When implemented correctly, a portfolio creation process boosts the innovative potential of your company, while highlighting the core expertise of your business.