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R&D Metrics For Manufacturers: Measuring Your Productivity

Benchmarking, Performance Metrics, Measures, KPIs ...

April 3, 2014

Description: This presentation is post great recession update of the original Lorman presentation
delivered on August 12, 2009.

Globalization, business alliances, open innovation, and improved organic innovation initiatives to gain strategic advantage in this era of global competition are driving significant changes in measurement practices for innovative functions. The depth of the recent recession augmented the rate of change.

GGI's 2013 findings indicate that there is now a clear industry-wide focus for R&D metrics to address business results. That has not always been the case. GGI has been tracking the R&D and Product Development metrics used by industry for twenty-five years, and regularly for the past fifteen years. "Business results" does not equate to conservative portfolios either. There are also more risk monies being spent. But, a host of newly developed processes to oversee risky and exploratory activities keeps the business focus and is causing a need for new metrics. The sand box definitely shrunk in the past five years. The entire portfolio is receiving increased scrutiny.

Finally, intellectual property is increasingly being used as a revenue and profit generation tool; and, as a revenue and profit protection tool.

In summary, R&D productivity improvements are being driven by a combination of "business environment" factors and the "maturation of the monetizable IP marketplace." Existing metrics are being elevated or demoted to support today's needs and opportunities. New metrics are being created to measure R&D areas that have not previously existed, or were not previously of a size or importance that warranted corporate measurement.

I. R&D Management Evolution & Revolution

  • A. Timeline 1940-2025
  • B. Best Practice Process Execution

II. Emergent Innovation-Age R&D Metrics

  • A. Vitality Index
  • B. A Metric For The Hockey Stick and The Chasm
  • C. Return-On-Innovation
  • D. Research & Development Effectiveness Index
  • E. Advanced Development Return-On-Innovation
  • F. Applied Research Return-On-Innovation
  • G. Case Study: A Top 10 Global Innovator
  • H. Return-On-Capital

III. State-Of-The-Industry R&D Metrics Practices In 2013

  • A. Top Twenty-Five Corporate R&D Measures in 2013
  • B. Top-Twenty Five Comparison Pre-Recession 2008 to Post-Recession 2013
  • C. Continuing Commercialization Issues
  • D. R&D Metrics Penetration Changes 1998-2013
  • E. R&D Metrics Penetration In The Coming Decade

IV. Recommendations

  • A. Effectiveness Metrics Outperform Efficiency/Productivity Metrics In Value Generation
  • B. Sigma-Level Portfolio & Pipeline Control That Maximizes Business Value

PURCHASE AUDIO CONFERENCE FROM LORMAN: R&D Metrics for Manufacturers

The entire audio conference and associated presentation may be purchased directly from Lorman Education Services. By using this link to purchase, you will receive a 20% discount.

PURCHASE SLIDE DECK FROM GGI: R&D Metrics for Manufacturers

If you would like to purchase the slide deck, please visit the Technical Papers Section of our store and look for product T97.


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