Business control

Case | Improve follow-up R&D investments.

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PROBLEM

The follow-up of R&D investments within a large technology company used to be organized in a fragmented and inconsistent manner. It was difficult to compare the various R&D investments with each other. Often, this resulted in R&D investments in projects with too little return or in projects that did not align with the company strategy. In addition, R&D projects were hardly cancelled once started. The management wished to implement a process that allowed and guaranteed a consistent follow-up and comparison of R&D investments. For this, they contacted horsum.

RESULTS

  • Design of a “New Product Screening”-tool which had to be completed for every new R&D investment. The input for this tool comes from various stakeholders involved in the R&D investment (the sales, R&D, marketing, product management and finance department). This information had to be frequently updated during the product development. 

  • The screening tool identified various financial, operational, qualitative and strategic parameters which have to allow the management to take the right decisions (start, continue or cancel an R&D investment).

  • The availability of one screening tool now results in less discussions about the figures, parameters and added value of each R&D investment.

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