THE MODIFIED RANK-RESOURCE METHOD OF EVALUATING NEW PRODUCT PROJECTS IN THE PORTFOLIO MANAGEMENT PROCESS IN PRE-MARKET PHASES
THE MODIFIED RANK-RESOURCE METHOD OF EVALUATING NEW PRODUCT PROJECTS IN THE PORTFOLIO MANAGEMENT PROCESS IN PRE-MARKET PHASES

Summary/Abstract: The success level in new products development is significantly dependent on the degreeof competence of the company, firstly in the implementation of a new product developmentprocess (NPDP), and secondly in the proper evaluation and selection of new productdesign concepts (executing the right project). In particular, the second area of competenceis related to the issues of portfolio management in the area of new product development.This is conceptual and methodic paper and has its backgrounds in strategic management concepts and applications, financial portfolio management, and relates closely to new productdevelopment research. The aim of the article is to present methods for valuing new productprojects in the new product development process, as well as to propose a new method foroptimizing the value of the new product project portfolio. Methodological and researchlimitations identified in this work result from time or information availability. They mayalso be related to the adopted quantitative and qualitative variables and the complexity ofthe proposed method.The basic problem formulated here concerns how to effectively allocate availableresources to achieve the goals set for the new product. The article presents a rank-resource method of new product project evaluation, to achieve optimal portfolio ofnew product projects management NPPM, in terms of value in the pre-market lifecycle phases.

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