Innovation, Advanced Development, IP, & Competency Metrics Augment Traditional R&D Metrics
NEEDHAM, Mass. — (BUSINESS WIRE) — July 19, 2011 — The "Innovation Era" is causing tangible changes to R&D and Product Development measurement dashboards. Small amounts are being shaved off traditional new product budgets and are being reallocated to advanced projects believed to have a higher return on innovation. These reallocations often result in double-digit increases in the budgets for highly innovative and advanced products. As a result, measures are now needed to understand the efficacy and effectiveness of changes in the allocation of R&D spending. As pure innovation plays often take more time to get to market, it is becoming increasingly challenging to find metrics that capture the essence of this additional risk to determine if it is resulting in premiums in the marketplace.
At the same time, patents and other forms of intellectual property are becoming more important. The ability to monetize IP has increased significantly. In the next decade, the ability to transact an IP sale will begin to rival the ability to transact a product sale. Business and product plans will evolve to weight products and their IP equally as potential revenue and profit streams from any given R&D investment. Product development professionals will work in a highly concurrent fashion with their IP counterparts. These often separate organizations will become much more integrated.
Underpinning this all is the ever growing importance of maintaining core and functional competencies. With global knowledge doubling just about every year for the last twenty years, keeping staff current on the skills of today while building new skills for the not-very-distant future is now a necessity. Human resource management practices are changing to facilitate the active management of competencies, historically a touchy subject. Competency measurement is growing.
These macro trends are changing the constructs of R&D-Product Development metrics and dashboards. Frameworks of the future will need to be more robust in their ability to capture results over longer time periods, to capture results that are not measured by the sale of products, and to capture results originating from flatter knowledge-based organizations.
The 13th R&D-Product Development Metrics Summit, consisting of three seminars and a workshop, will get your business to the future faster. Notable Companies and Senior Executives are already moving ahead. The Summit will be led by Bradford L. Goldense NPDP, CMfgE, CPIM, CCP.
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