Innovation Project Portfolio Management: the case of Philips Research

Project Portfolio Management (PPM) has emerged as a central tool of multi-project governance in modern organizations. Increasingly, PPM approaches are being applied not only to "regular" projects, but also to innovation projects and innovation management. Companies strive to achieve their strategic goals and maximize their investments in innovation by improving their organizational innovation capabilities and project management. The paper presents a case study of project portfolio management at Philips Research, a research unit of Royal Philips Electronics Inc., a multinational electronics company. We examine the initial conditions and main motivation to implement PPM; then we study characteristics and specifics of managing a portfolio of innovation and research projects in Philips Research. Further, we elaborate on the future prospects of PPM in the organization.