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Case Studies

Product & Innovation

Portfolio management and optimization strategy at a global heavy manufacturing company

A global, heavy manufacturing company struggled with inefficient R&D. Applied Value developed a 6-dimensional framework to evaluate R&D and technology projects focusing on impact, risk, and ROI.


A global heavy manufacturing company had no holistic portfolio management, R&D resource allocation process, or means for tracking ROI. Applied Value was asked to establish a formalized and data-driven approach for prioritizing projects and improving engineering’s ROI through prioritized resourcing decisions. The client also asked AV to establish effective budget allocation for a new product development group.


Applied Value developed a 6-dimensional framework to evaluate R&D and IT projects for impact, risk, and ROI. The available project information was consolidated into a single master tool including resource requirements, status, and timeline by projects. The missing data points (i.e., technical risk, strategic impact, etc.) were gathered through workshops and mapped to the overall portfolio. AV developed a scoresheet along various dimensions to provide strategic input to leadership and enable data-driven decision making and prioritization.


AV’s approach provided a consolidated view of both current and planned projects. Based on our model, AV also supported the upcoming annual budget process by suggesting the most efficient use of resources. The client was able to increase their IRR by 40%.


IRR increase

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