RD World: Simulation-Based Analysis of RD Enterprises

摘要

Modern industrial, scientific and military organizations depend heavily on research and development to providernfuture strategic advantage. Viewed from an input-output perspective, R&D invests resources (funding, people, time)rnto create value (new products, new capabilities), with the goal of maximizing value in the shortest time possible. Ofrncourse, this is challenging, since R&D decision-making is inherently fraught with uncertainty, including uncertainrnproject outcomes and changing market conditions. This paper describes the use of organizational simulation tornanalyze and improve R&D decision-making. In particular, an options-based framework is used to valuate R&Drnprojects for purposes of project selection and portfolio management. Specific attention is paid to the problem ofrnallocating funds across a multi-stage R&D process.