Estimating the Value of a Collection of Internal R&D Projects


A Large Athletic Shoe Maker


This athletic shoe maker invests in many R&D projects, to create new technologies for shoes and shoe manufacturing. Some ofthese projects depend on the success of other projects. As with any R&D, often a particular project will fail to achieve its goals, and often a successful project will only achieve partial success. Given the interdependencies—and the inherent uncertainty in customer demand for the end products—what is the value of the network of R&D? How can this company communicateto investors and other stakeholders the value of the R&D?


Create a Monte Carlo simulation to estimate the value of the network of R&D projects, and the uncertainty associated with that value. Visualize the results of the simulation in an interactive application.