Question
You are the senior manager in charge of innovation at your company. Over the past several years you company has done, only OKAY, in terms
You are the senior manager in charge of innovation at your company. Over the past several years you company has done, only OKAY, in terms of developing a new-product development portfolio. After attending Trine University Innovation Days and listening to students discuss the importance of several strategies in selecting profitable projects through managing resources and making tough decisions on what projects live and what projects die, you have decided to take this approach to developing your companys portfolio.
After reviewing these strategies for new-product development with your director of R&D, he has decided to provide you with the necessary budget and man-power to revolutionize your companys new product portfolio. However, he noticed several interesting analysis tools based on your review of the Innovation Days, and has tasked you and your team with presenting four (4) scenarios for his review before moving forward with the go/kill decision point.
As luck would have it, your team has passed through Discovery and Scoping, and in the second screen you have already narrowed the number of projects to nine (9). You are in Stage Two (2): Building the business case. The scenarios your director has provided you are as follows:
Scenario 1 NPV, Business as Usual
Eliminate the Negative Projects
The team has been working throughout the Pre-development stage in order to get an understanding of the present value of each of the (9) projects by understanding market pricing and the position within the market of each of the prospective projects, among other things. This analysis has given the team accurate information surrounding the overall development costs and costs to commercialize for each project as well. As a part of your normal business strategy, prepare a report analyzing the net present value of each project, rank those projects, and provide a Go/Kill recommendation for each
The value for the box is given in the black table
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