The research and development (R&D) team plays an important role in the company’s growth. That said, the R&D department should be able to function smoothly, without creating a lot of overhead costs for the business. It means the R&D function should be able to do more with less.
Project portfolio management or PPM within the R&D function becomes all the more important for business growth. PPM within the R&D function enables you to use the right tools and procedures that bridge the gap between the investment in research spending and the revenues generated through it.
Optimize resource allocation
Good project portfolio management enables you to make optimal use of the resources for your R&D projects. Given that budgets for R&D projects aren’t big, it is important to make the most of available resources to get results and PPM can help you with it. PPM allows you to organize all your resources and initiate activities that improve the overall performance. With PPM, your teams will be able to manage the resources better to meet the business’ goals.
Create a balance
Project portfolio management can be used to create a balance between innovative and risky projects and tried-and-tested programs that guarantee results. It is one of the most difficult tasks for a project manager, but using the right PPM tools and procedures can make it easier to strike the right balance. Before initiating a project, however, it is important that the business operations and the R&D heads come to an understanding about the ideal risk and returns balance.
Budgeting and performance
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