9. Innovation Strategy as Project Portfolio Management

The chapter delves into the strategic importance of Project Portfolio Management (PPM) in innovation strategy, highlighting the need for disciplined PPM to avoid overloading R&D portfolios with unstrategic projects. It emphasizes the categorization of projects based on risk, size, and scope, and discusses the evaluation process using tools like Stage-Gate systems and financial methods such as Net Present Value (NPV) and Expected Commercial Value (ECV). The chapter also explores optimization methods and multicriteria approaches to project selection, underscoring the need for a balanced use of both financial and qualitative criteria. Additionally, it highlights best practices in PPM, including the importance of clear rules, combining hard and soft elements, and considering opportunity costs. The chapter concludes by emphasizing the need for a rigorous and strategic approach to PPM to ensure the successful execution of innovation strategies.