Assignment Overview and Requirements
Use the information provided, for PV and Risk, in order to complete the tables of
data for each scenario.
Discuss the calculations in detail. Describe what the difference between each type
of financial tool is (NPV, PI, ECV….), how it’s calculated, and the strengths and
weaknesses of each tool.
In depth Discussion on relevance of the four (4) scenarios – discuss what each
scenario is, and how each scenario builds and improves upon the previous, as well
as why such evolution is important in go/kill decision gates. Think real-world…
In depth discussion on important sections from the text – where did you gain the
technical skills, reasoning skills, and overall background knowledge required for this
assignment (include proper citations, page numbers, etc. according to APA
Each scenario has a specific outcome. Discuss the similarities and differences in
those outcomes. How do the outcomes differ from your predictions? How are the
outcomes similar to what you predicted?
Discuss Risk – what factors play into Risk of technical success and failure, as well as
commercial success and commercial failure? Discuss how risk can be understood
and why it’s important to understand risk. Use data and other appropriate sources.
Focus on differences in Scenario 3 and Scenario 4.
Describe, in detail, whether this analysis outcome is the only information needed in
order to properly select a project in the Go-to-Development gate.
Cite three sources that review financial analysis as a means for go/kill decision
Compare and contrast each of the scenarios and provide a final suggestion on the
type of analysis that should be completed AND what the decision is for each project.
You are the senior manager in charge of innovation at your company. Over the past several years you
company has done, only OKAY, in terms of developing a new-product development portfolio. After
attending Trine University Innovation Days and listening to students discuss the importance of several
strategies in selecting profitable projects through managing resources and making tough decisions on what
projects live and what projects die, you have decided to take this approach to developing your company’s
After reviewing these strategies for new-product development with your director of R&D, he has decided to
provide you with the necessary budget and man-power to revolutionize your company’s new product
portfolio. However, he noticed several interesting analysis tools based on your review of the Innovation
Days, and has tasked you and your team with presenting four (4) scenarios for his review before moving
forward with the go/kill decision point.
GE 5113 Midterm Assignment Spring 2016
As luck would have it, your team has passed through Discovery and Scoping, and in the second screen you
have already narrowed the number of projects to nine (9). You are in Stage Two (2): Building the business
case. The scenarios your director has provided you are as follows:
Scenario 1 – NPV, Business as Usual
Eliminate the Negative Projects
The team has been working throughout the Pre-development stage in order to get an understanding
of the present value of each of the (9) projects by understanding market pricing and the position
within the market of each of the prospective projects, among other things. This analysis has given
the team accurate information surrounding the overall development costs and costs to
commercialize for each project as well. As a part of your normal business strategy, prepare a report
analyzing the net present value of each project, rank those projects, and provide a Go/Kill
recommendation for each.