Dynamic Portfolio Management for New Product Development: Companies can use a Value Based Scorecard, developed using proven, research-based criteria, to select and prioritize NPD projects effectively. Issue 3 (4th May 2023)

• Record Type: Journal Article
• Authors: Cooper, Robert G.; Sommer, Anita F.
• Is Part Of: Research technology management. Volume 66:Issue 3(2023)
• Page Start: 19
• Page End: 31
• Publication Date: 2023-05-04
• Subjects: Portfolio management -- New product development -- Project selection -- Value-based scorecards -- Strategic buckets; Research, Industrial -- Management -- Periodicals; New products -- Management -- Periodicals; 658.57
• DOI: 10.1080/08956308.2023.2183004
• Languages: English
• ISSNs: 0895-6308

Abstract

Abstract : Overview: Effective portfolio management is vital to maximizing the value of the business' new product development (NPD) portfolio; it is also one of the weakest facets of NPD. Ongoing evaluation tends to be backward looking and process focused, and business cases are not updated with real time and more reliable data. A dynamic portfolio management approach is one solution, including the use of the Productivity Index (PI). Building in multiple iterations to get updated and robust data improves estimates of financial value and the PI. And since the value of a project depends on many factors, we present a multidimensional Value Based Scorecard that we developed using proven, research-based criteria, that companies can use to select and prioritize NPD projects effectively.