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 company's 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 company's 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 - ECV PI, Understanding The Expected Commercial Value
$25M Budget
Your director is interested in understanding the expected commercial value method and how it might impact investment decisions.
He also wants to maximize the bang for buck so he has asked you to add the expected commercial value and ECV PI to your analysis.
You are able to do this because your team has worked hard to understand the likelihood of commercial and technical success in each project.
Prepare a report analyzing the ECV PI of each project, rank those projects, and provide a Go/Kill recommendation for each, maintaining your $25M development budget. Maximize the ECV of your portfolio using this method.