Portfolio management for the commercialization of advancedtechnologies

摘要

This paper describes the validation of one aspect of the valuecreation model (VCM) that Lucent's Advanced Technology (AT) group hasdeveloped and applied to research driven innovation projects. Thisaspect is the rate/productivity metric (RPM) that is used to quantifyand understand the expected present value of financial return of eachproject. The RPM includes estimates of the future dollar returns alongwith the risk associated with these returns thereby enabling thecalculation of an expected value of returns. Uniform use of this metricallows management to analyze the collection of projects uniformly as aportfolio system which aids in the decision making purposes