Just give it a thought, how to create and maintain a global innovation project portfolio. The following could be a start on creating a strategic framework.
Value maximization of the Innovation portfolio: Define assessment process and confirm filtering and prioritization criteria to allocate innovation resources to maximize the value of the portfolio via key objective such as profitability, ROI and acceptable risk.
Balance of the Innovation portfolio: Achieve a desired balance of projects via parameters such as risk versus return; short-term versus long-term; and across various markets, business arenas and technologies.
Business Strategy Alignment: Ensure that the portfolio of projects reflects the company´s innovation strategy and that the breakdown of spending aligns with company´s strategic priorities. Support individual Innovation teams creating their product strategy’s in line with the overall company´s strategy.
Pipeline Balance: Obtain the right number of projects to achieve the best balance between the pipeline resources demand and the resources available. The goal is to avoid pipeline gridlock at any given time.
Sufficiency: Ensure the growth goals set out in the product innovation strategy are achievable given the projects currently underway. Typically this is conducted via a financial analysis of the pipeline´s potential future value.
Consistency across the company: Ensure a consistent approach to all projects, programs and portfolios increasing efficiency and effectiveness. Promote an organizational culture of continuous improvement, winning brand strategy and market leadership in new product development.
Marketing and commercialization: Support the creation and execution of the marketing and commercialization plan for new products and existing product enhancements.
Market intelligence: Monitoring the market, especially new trends by conducting robust analysis of market data. Identifying new opportunities, while taking into account product portfolio strength and weaknesses.