Value Road Mapping Process - Revision history

Dirkjan at 20:04, 27 August 2020

2020-08-27T20:04:57Z

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2020-08-27T19:22:21Z

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Dirkjan: Created page with "A process to create a value roadmap in a cross functional team. '''VRM Process''' ..."

2020-08-25T08:08:54Z

Created page with "A process to create a value roadmap in a cross functional team. '''VRM Process''' <html> <img src="/static/files/MBI/Module%204/valueroadmapping.gif" width="600" /> </html>..."

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A process to create a value roadmap in a cross functional team.

'''VRM Process'''
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<img src="/static/files/MBI/Module%204/valueroadmapping.gif" width="600" />
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Eigth process stages:
# Define strategic framework, vision, scenario
## It is important to define the strategic framework/ vision/scenario that governs the technology exploitation,including any overall assumptions, boundaries and constraints that apply.
## Step 1 is typically done in the preparation phase, before the value roadmap workshop takes place. Steps 2-5 are usually carried out in the value roadmapping workshop itself.
# Map technology developments and investment milestones
## Mapping in terms of the technical capabilities that will be achieved at key milestones, including TRLs, together with any knowledge of competing and complementary technologies. The results are captured in the technology research and technology programs layer of the VRM architecture.
# Define value streams
## The goal is to identify specific sources of potential future revenue and value, articulated as clearly as possible.
## Participants are encouraged to forecast or estimate revenue/value for each opportunity.
### Traditional methods for estimating value can be used (such as NPV), although their limitations should be acknowledged, especially for long-term technology developments.
### In such situations a rough estimate of the scale of revenue may be more appropriate, with justification (for example conservative logarithmic scale: >£1M, >£IOM, >£IOOM. >£1.000M).
### If opportunities are prioritized and value estimated, the decision tree/options methods can be used to aggregate the various value contributions, including dependencies and estimates of likelihoods, to give a single financial measure of value.
### The value "fingerprint" associated with a technology development project may be useful in understanding the scale of potential value
# Map market and business trends and drivers
## Participants are requested to map the market and business trends and drivers that infiuence the prioritized value opportunities.
### These are typically social, economic, environmental, techtiological and political drivers,
### knowledge about potential customer needs and competitors
### the milestones and goals of the technology.
# Map barriers and enablers
## The technical and nontechnical barriers and enablers associated with developing and exploiting the technology are mapped, together with the associated and complementary assets and actions.
# Review project plan and VRM
## Typically focuses on the key strategic business drivers (e.g., using ROl, DCF estimates or SWOT analysis) of the respective firm. It is important to have these drivers defined by the decision makers.
# Present visualization
## A "first-cut" value roadmap will be dense, complex and fragmented, with gaps and data of varying quality. Further effort will be required to tidy up the roadmap
## This detailed "rich picture" VRM can be considered as a database, containing relevant information at a fairly high level of granularity but it is not the main medium of communication.
## Communication roadmaps need to be developed (suitable for presentations). For example, elevator pitch roadmaps or templates
# Maintain VRM as a process
## The VRM and associated documentation should be maintained on an ongoing basis, preferably as part of a core business process (e.g.,
project management, new product development, research management, and strategic planning/budgeting).

Value roadmaps are a way to explore and improve the value of technology projects at an early stage, linking current investments and decisions to longer-term business outcomes (75). An important element that distinguishes VRM from other approaches:

* The participatory workshop approach,
* Bringing together a multidisciplinary team of both technology developers as well as decision makers/investors.
* Engaging theright participants is a key success factor,
* Including a healthy mix of technical and commercial functionsand external '''challenging" perspectives (e.g., other markets and technologies).
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