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GGI 2000 SURVEY RESULTS
Preliminary
Findings
Preliminary results of
Goldense Group, Inc.’s (GGI) 2000 R&D Metrics Survey, performed in
cooperation with The Management Roundtable (MRT), are now available. The
final results will first be made public at MRT’s Portfolio Metrics
Conference "Linking Product Development to Corporate Profitability" to
be held in Chicago on November 1-3, 2000. The 2000 R&D Metrics Survey
consisted of twenty-eight questions focused on R&D portfolio management
and measurement.
The survey questionnaire was quantitative and
was targeted at advanced R&D practitioners. Many companies did not
participate as their processes were not mature enough to generate the
information sought in the questionnaire. As a result, one could say that
the one hundred twenty one survey respondents constituted a
self-selected sample of advanced R&D practitioners. Two-thirds of the
respondents were from public companies, the rest were from private
companies. Four out of five respondents replied from a profit center
perspective, one out of five from a cost center perspective. Fifty-five
percent came from companies with sales less than $250 million and 1000
employees, remaining respondents were from large companies. Most all
companies sell, develop, and manufacture in North America. Two out of
three companies sell globally, while one out of three develops and/or
manufactures globally. Over 90% of respondents were from general
management or R&D management positions. Over half of the replies were
from the aerospace, automotive, consumer products, durable goods,
electronics, industrial and medical products industries.
- 36% of all companies have a clearly defined set of
company-wide metrics that are used to manage the company. For these
companies, the average number of metrics in the set is 16. 50% of
all companies do not have a clear pre-defined set, but estimated
that about 30 metrics were used. 14% of companies cannot identify a
set of measures.
- 37% of all companies have a clearly defined set of R&D
metrics that are used to manage R&D. For these companies, the
average number of metrics in the set is 6. 38% of all companies do
not have a clear pre-defined set, but estimated that about 12
metrics were used. 25% of companies cannot identify a set of R&D
measures.
- There is no single predominant counting method used in
industry to determine the number of products in the company's
"released/active" or "backlog" product portfolios. There are at
least 6 counting methods in common use. Practices range from
counting every single SKU to counting only the number of high-level
product families the company supports.
- 32% of companies do not track product life cycles which
impedes their ability to dynamically manage product portfolios.
- 59% of companies that do track product life cycles report
exclusively decreasing product life cycles; i.e. no life cycles are
increasing. 4% of companies report exclusively increasing life
cycles! Product life cycles for the remaining companies are either
stable, or have both increasing and decreasing dynamics.
- There has been a 50% increase in the
past five years in the percent of company sales that are due to new
products, as measured by the "CYS/PDTPRITPNY" metric. This metric
was popularized by 3M in 1988 and is now calculated by about half of
all companies. In 1995, companies reported about 20% of their
revenues coming from new products developed in the prior 3-4 years.
In 1999, companies reported about 30% of revenues coming from new
products developed in the prior 3-4 years.
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