Aligning innovation and project management by the value index

Abstract

A successful innovation process requires effective controlling and alignment with Project Management (PM). Technical indicators of project status, based on scope, quality, time and costs usually do not suffice to support decisions at the strategic level of innovation. An integrated indicator, named the Value Index (VI), is proposed to support an aligned controlling in the innovation process. Several applications are discussed: single/multiple projects, bounded costs project portfolio selection, trade-off analysis, optimisation of project targets, risk analysis in single/multiple projects, scenario simulation, project supply chain and make-or-buy decisions. A proposal for practical applications to a manufacturer of digital printing equipment is introduced. © 2008, Inderscience Publishers.