IT Portfolio Management Step-by-Step: Unlocking the Business Value of Technology

4.2. IT DISCOVERY PORTFOLIO

Overview

For many companies, research and development occasionally develops, matures, and commercializes solutions. The front end of research and development traditionally has not been an area that is always closely aligned to a company's business and strategic objectives, therefore it has not produced a continuous and consistent stream of new value-added solutions. The fuzzy front end defines solutions that have high levels of technical and market uncertainty and are at a low technology readiness level (technology readiness level is defined in this chapter). Three important definitions within the fuzzy front end are:

1. Opportunity: a business or technology gap that a company or individual acknowledges between the current situation and an envisioned future in order to capture competitive advantage, respond to a threat, solve a problem, or ameliorate a difficulty.

2. Idea: the most embryonic form of a new solution or service. It often consists of a high-level view of the problem's preliminary solution identified by the opportunity.

3. Concept: has a well-defined form including both a written and a visual description including its primary feature and customer benefits combinedwith a broad understanding of the technology needed.^[]

   ^[] Paul Belliveau, Abbie Griffen, and Stephen Somermeyer, The PDMA Toolbook for New Product Development, Chapter 1, John Wiley & Sons, April 2002.

Many companies still determine which fuzzy front-end initiatives to fund based solely on ...