Premium
R & D and the company's requirements
Author(s) -
Hubert J. M.
Publication year - 1970
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/j.1467-9310.1970.tb01195.x
Subject(s) - compromise , portfolio , selection (genetic algorithm) , investment (military) , business , term (time) , project portfolio management , economics , operations research , marketing , management , finance , computer science , engineering , project management , political science , physics , quantum mechanics , artificial intelligence , politics , law
Numerous models have been put forward in the literature for the selection and evaluation of projects, many of which are based on optimizing the return on investment by the company in R & D projects. This is a noble aim but in practice the financial data available are often of dubious accuracy and so many other factors are involved in actually adopting a portfolio of selected projects that project selection often becomes a theoretical exercise. It is suggested that the selection of projects is in essence the adoption of a strategy which is within the policy and long‐term aims of the company and also within the policy and scientific development of the R & D part of the company. Such a strategy is usually sub‐optimum for both the company and the R & D division, as it is a compromise between a desire for high pay‐back investments by the company and the maintenance of a scientifically balanced R & D involving some long‐term, unknown return, investments. A method is currently being experimented with by Unilever Research which illustrates where conflicts arise between the policy of the main company and that of research, and assists management in arriving at a strategy which most closely fulfils the needs of both policies. Both the concept of the method and its practical use are described in this paper.