“Why don’t we grow at the rate projected by our approved business cases?” It is a known best practice to use business cases as a means to evaluate potential investments or projects. I have blogged about how this can play a pivotal role in portfolio management, when it is done right. By using business case thinking… Read More When Business Cases Don’t Add Up
Business innovation as the growth option In today’s search for growth, most organizations realize the importance of developing new business. Without growth, there is very little room for development, and growing through acquisitions is at best imperfect, especially in terms of value creation. The main challenge of today’s enterprise is not whether to focus on both running the… Read More Three ways to ruin new business programs
The growing importance of innovation requires new ways to value the R&D asset and project portfolio. Novel tools offer the right combination of actual costs, risks, and business case forecasting for the CFO to do this. This leads to improved decision-making about innovation as investment. CEO’s and CTO’s agree with this view In a recent global… Read More Putting a value on innovation: the CFO perspective
Sometimes, it is comforting to see scientific confirmation for lessons learnt in practice. This happened for portfolio management in the March 2014 issue of the Journal of Product Innovation Management (JPIM), one of the most renown research journals in this domain. German researchers Behrens and Ernst found the best way to support “kill” decisions for… Read More Science update: how to kill bad projects
Servitization: from product to service business models My definition of service innovation is simple, it is the successful creation and adoption of new services. This definition includes the special case of servitization, where a company adds service propositions to its historical products portfolio. During the 1990’s, I worked in IBM, where the main innovation thrust… Read More Servitization: Bringing Services in the Innovation Portfolio
All PPM methods agree on the relevance of the business case Whether it is Stage-Gate, Prince II, or basically every alternative method, every project should have a business case to justify how it is expected to create value. It is my experience that too many Project Portfolio Management processes focus on project selection, not on selecting… Read More Select business cases in the portfolio
Net Present Value: indicator of value creation If you would ask me “What is wrong with Net Present Value?”, the easy answer would be: “Not much”. It is one of the best indicators of potential value creation. It nicely summarizes the consequences of an investment decision in terms of costs and benefits over time. If you are… Read More What’s wrong with NPV in portfolio management?