Innovation Project Risk Analytics: A Preliminary Finding

OVERVIEW:

This article explores the importance of risk analytics in improving decision-making for high-stakes new product development projects. It discusses the challenges of quantifying risks to inform executive decisions and introduces the Risk Analytics Maturity Model (RAMM) to help organizations assess and enhance their risk analytics practices.

Through surveys and interviews with R&D leaders from various sectors, the article identifies a common shortfall in the timely and effective use of risk analytics, which often leads to unforeseen challenges late in the project cycle. The findings highlight that while some organizations excel in integrating risk analytics, most do not fully utilize these tools due to cultural and training deficiencies, lack of leadership support, and organizational resistance.

The article concludes that successful risk management requires robust analytics tools, a supportive culture, and strong leadership committed to data-driven decision-making to navigate the complexities of new product development.