Application of R&D portfolio analysis at a De Beers business unit

Abstract

This paper describes the use of an 'action based research' process to manage the implementation of a portfolio analysis system. The implementation was conducted at a technology division of a diamond mining company. Two iterations of this process are described including the selection of portfolio analysis tools. All of the stages of the first iteration are discussed focussing on the use of reflection and subsequent action in refining the implementation. A key issue in the second iteration namely the use of real options valuation is examined. Lessons learnt in the implementation are discussed.