Measuring R&D in a multinational company

Abstract

This thesis has found out that if a company wants to optimize their R&D portfolio, the process must be conducted as a portfolio review. This is because there are interrelationships between projects, and there are needs to see the total mix of all the projects in the portfolio, which give maximal value and have strategic alignment. Optimal portfolios consist of optimal projects that fit together. There must be a common system, to have the same basis for discussions, and to be able to evaluate and prioritize across the different R&D portfolios. The model recommended is an evaluation card that consists of multiple evaluation areas with a set of associated statements. The statement that fit the most must be chosen. The card should be used as an information display, as basis for discussions, but with a total evaluation included, by use of a traffic-light system, to know where to start the discussion. The result of this thesis is an evaluation card adapted to Statoil, to be able to highlight what are important to them. In addition, a general model, with a step wise description of how a general company can proceed to find their optimal portfolio, is made. This model is named Mürer Stemland´s R&D portfolio optimization model.