Measuring Performance Indicators for R&D

Presented By: Arpana Masih

Agenda

R&D

Need and Benefits of

R&D Measurement

Performance Measurement

Indicators

Reference Framework

Common Key

Performance Indicators for R&D

Balanced Scorecard

KPI at Schneider Electric

Research and Development

According to the Organization for Economic Co-operation and Development, R&D refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge,

including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications."

Need and Benefits of R&D Measurement

Need

• Rising Costs• Dependence for Competitive Advantage

Benefits

• Empowerment and Creativity• Bottom Up and Top Down Integration• Project Prioritization• Benchmarking

Performance Measurement Indicators

Input- Example: quantity and quality of current expenses, investments, human resources, technologies

Process- Example : concept generation, product development, project selection, technology acquisition

Output- Example: patents, scientific publications, completed projects, new products developed

Outcomes- Example: average cost reductions, percentage of sales from new products, degree of product improvements

Reference Framework

Common KPI – R&D

# Time To Prepare Patent Claims 

$ Cost Savings Due To R&D 

$ Cost Per R&D Laboratory Surface 

% Staff With PhD Degrees 

# New Products Per Researcher & $ Cost Per

Researcher 

# First To Market Products  

# Products / Services Co-developed In Partnership

With Customers 

% Product Development Projects Completed 

# Patents Per Million Dollars Of R&D

Investment 

Balanced Scorecard

Customer • Match the customer needs & Provide value to the customer• Create the demand for a new product/process/technology• Improve customer satisfaction & product quality and features

Financial• Maximize shareholders wealth & Improve cost effectiveness• Source funds for continuous flow with minimum cost of capital• Run supporting businesses for R&D

Organizational Learning And Growth• Innovate & improve competitiveness & manufacturing process• Extend and intensify co-work done in R&D• Increase knowledge and learning

Internal Business • Persistent in project’s schedule and shorten lead time• Improve cost effectiveness & resource utilization• Identify different requirements of a supply chain

Schneider ElectricSpoke to: Mr. Sandesh Prabhu (Electronic Engineer) at Schneider Electric

Job Description: Designing Applications for Schneider (IOS Apps)

R & D Performance Indicators:

1) Values: P O S E

P- Passion

O-Open

S-Straight Forward

E-Effective

2) Ownership- Assign Timeline ( Team Work)

3) Leadership- Improvement of Existing module ( Efficiency)

4) Quality- No bugs

5) Sharing- GET assigned

Managers KPI is to drive team members to complete on time