Resource Capacity Planning - Financial Budgeting

Resource Capacity Planning
Resource Capacity Planning enables you to model the supply of generic resources from business units and the demand for those generic resources by projects. This in turn defines the resource constraints for portfolio
selection and helping you to maximize utilization of your NPD resources.
This is top-down approach to resource planning. Planning the supply and demand of generic resources (Scientist, Technician, Marketing Lead, etc.), rather than the named resource (Bill Smith, Sue Jones, etc) enables you to achieve the goal of understanding overall resource constraints and costs, without having to track named resources at a detailed level. This often achieves about 80% of the value of doing resource management with only 20% of the effort.
Please refer to our Resource Management and Tracking process area for our bottom-up "named" resource management capabilities that complement Resource Capacity Planning

Financial Budgeting, Revenue Forecasting and Tracking
Many organizations struggle to combine their annual budgeting cycles and capital approval process with their strategic planning and portfolio management process. At best, the result is a lot of extra work trying to reconcile budgets with portfolio decisions and strategic roadmaps. At worst, this disconnect leads to funds being misallocated to low priority initiatives, rather than being focused on projects that strategic goals of the organization
IFT’s financial management process enables organizations to easily and seamlessly integrate their budgeting, allocations and capital approvals processes with strategic planning and portfolio management. The result is a single system for NPD financial management – providing the tools and data to support the differing needs of everyone involved in R&D budget monitoring and control. That means a lot less time trying to reconcile data, and a lot more time for optimizing your financial spend.

IFT’s Solution

Resource Capacity Planning

Identify all available generic resources across organizational groups to support innovation

Identify generic resource needs by project and to support steady-state business

Calculate project resource costs based on resource rating models

Visualize the variance between generic resource supply and demand and modify your portfolio investment plan to meet resource constraints

Plan future resource requirements based on your strategic roadmaps

Perform scenario analysis and simulations on resource requirements according to different investment scenarios and different levels of available resources

Capture and analyze actual compared to planned resource allocation to portfolio projects, through data provided by our time tracking capability

Financial Budgeting, Revenue Forecasting and Tracking

Assign financial budgets to business units, integrated with strategic bucket funding

Identify revenue and profitability targets by business unit or product lines in multiple currencies

Assign project costs, revenues and profits to business units based on definable allocation methods, and cross charging

Forecast cash flows based on actual product data

Track actual costs of projects and products and allocated cost to business units

Use visual dashboards to review and predict financial performance

Based on Best Practices from

Next Generation Product Development - McGrath

Example Solution Capabilities

Financial Planning & Budgeting - Cost and revenue

Related NPD Processes