A financial viability plan to consolidate a R&D department’s structure.
A group of companies that was expanding in the medical device sector used its corporate strategic plan to create a R&D department to develop new products to take to market.
The department was financed by a contribution from the annual corporate budgets.
In recent years the department had cut by half the number of projects that were going to market.
We analysed the current situation and confirmed that the department lacked strategic alignment with the company and the market.
We proposed two lines of work: the corporate line and the secondary line. The corporate line was the main route for research and development. The secondary line was used as the route for the development of non-core-business projects that were still of clear interest to the market.
We created a preliminary business case and thereafter defined a five-year finance plan for the department.
We defined the department’s main financing model based on the company’s core projects and we aligned the department’s strategy.
We defined a supplementary finance model by setting up a new outward-looking workflow that was capable of identifying needs arising from the main line of work.