|
Abstract:
|
Effective management of the innovation project portfolio is increasingly important
to organizational survival. Large sums are invested in innovation projects, however
a significant proportion of these do not result in successful new products. Portfolio
Management (PM) methods aim to ensure that resources are most effectively
allocated among projects to ultimately improve success rates and increase the value
of the innovation portfolio to the organization. This paper presents the results of
research into innovation project PM practices and new product success levels. The
benchmarking study used a research survey to collect information about PM
methods, attitudes, satisfaction levels, portfolio performance and new product
success levels. The results show that PM practices in Australasia and North
America are surprisingly similar indicating that thefindings in one region are likely
to be relevant in the other. New product success measures correlated highly with
established PM processes in Australasia suggesting that improving PM practices
could boost innovation performance. The selection of the right number of projects
for organizational resources was confirmed as one of the biggest PM challenges.
Financial and strategic methods and criteria dominate PM decision-making,
however strategic methods and portfolio maps have the strongest positive influence
on portfolio performance measures. |
