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A study of the genesis, evaluation, selection, and termination of R&D projects / by Dale T. Gracyalny.

by Gracyalny, Dale T.

Research, Industrial -- Management

Strategic planning

v, 109 leaves : ill. ; 29 cm.

Introduction to R&D -- Strategic R&D planning -- Genesis of R&D projects -- Critical factors in selecting R&D projects -- R&D project selection & evaluation models -- R&D project decisions -- Conclusions.

In this master’s essay, various aspects of R&D project management and R&D decision making processes are critically examined as they relate to R&D project screening, selection, evaluation, and termination. Management science research literature is integrated with personal experience and insights from industrial research managers to operationally emphasize the advantages and limitations of R&D project selection models and the organizational decision processes in which they are employed. The purpose of this work is to examine the complexity of the R&D project selection process in order to heighten the awareness of R&D managers and other management professionals to the numerous factors that must be considered and the many techniques that can be used to select the most promising R&D projects.

Hopefully, these observations and results will be especially meaningful to R&D professionals seeking to select R&D projects in a time which combines intensified global competition with increasing corporate financial pressures. The challenge for R&D management is to select and commercialize the R&D projects that will produce the greatest positive effects on the profitability and competitive position of the firm, both in the near and long-terms. Only by stepping up attention to global markets and international technology growth can most technically-oriented corporations hope to remain competitive and profitable.

Therefore, possessing a global perspective is no longer a choice for R&D managers and their companies, but rather it has become a technological imperative. Furthermore, R&D must participate in shaping business strategy to achieve maximum return on R&D investment and long-term success for the company. In turn, strategic business units must assist in focusing strategy for R&D. Because of the inherent lack of specificity and the subjective nature of the available data, selecting new R&D projects is often viewed as a “black art”. Some of the R&D project selection and evaluation models can introduce more objective analysis into these technical, marketing, and manufacturing estimates to help clarify differences or similarities of opinion among the decision makers.

Regardless of the subjectivity involved in the selection decisions, establishment of relevant and consistent criteria is paramount to viable R&D project screening and selection processes. Such criteria must be based on the interests, capabilities, and risk attitude of the individual firm. R&D opportunities should be examined in precise terms – not necessarily in terms of dollars and cents, but certainly in terms of how the company can gain value in specific ways. While many researchers have analytically described the mechanics of the R&D project selection decision, most neglect the fact that the decisions are made by people functioning within organizational settings.

Effective R&D project management requires the management of those interpersonal and group dynamics that facilitate organizational integration. R&D management also needs a good understanding of the project’s priority, technology, and resource requirements. Further investigation is required to understand the human dynamics between the individuals and the corporate organizational units which drive the R&D project selection process. Additional study is also required to identify the interactions of critical R&D project success factors with the highly-charged decision processes leading to R&D project selection and ultimately, project termination.

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