Panel Session: How R&D Creates Value
Alan Epstein, PhD, Vice President Technology & Environment, Pratt & Whitney
Clifford Spiro, PhD, Cliff Spiro Consulting Group LLC
Anne Marie Knott, PhD, Professor of Strategy, Olin Business School, Washington University
R&D is often challenged to demonstrate the tangible value it delivers to the enterprise. This seemingly simple task can in fact be very difficult. Many metrics are employed including metrics on historical performance as well as real-time and forward-looking metrics. Measures such as percent of revenue from new product sales, margin achievement on new product sales, portfolio value, ratio of products launched to projects launched, spend as a percentage of sales, etc. are utilized, but in many cases fail to develop the required credibility in how R&D is perceived. Part of the challenge comes from the fact that in many companies, R&D wears many hats. Panelists discuss the many roles R&D plays and attendees benefit from the insights and experience they bring in demonstrating the total value that R&D delivers to the enterprise.