How do you create a business case for product R&D?

1 Identify the problem and opportunity

The first step in creating a business case for product R&D is to identify the problem you are trying to solve and the opportunity you are pursuing. What is the pain point or gap in the market that your product R&D project addresses? How does it align with your organization's vision, mission, and goals? How does it benefit your customers, users, or partners? You need to clearly articulate the problem and opportunity statement, backed by data, research, and customer feedback, to show why your product R&D project is relevant and important.

2 Define the solution and objectives

The next step is to define the solution and objectives of your product R&D project. What is the product or service you are developing or improving? How does it solve the problem or seize the opportunity? What are the features, functions, and benefits of your solution? What are the measurable and specific objectives you want to achieve with your product R&D project, such as revenue, market share, customer satisfaction, or social impact? You need to describe the solution and objectives in a concise and compelling way, using prototypes, mockups, or demos if possible, to show how your product R&D project delivers value and meets expectations.

3 Analyze the market and competition

The third step is to analyze the market and competition for your product R&D project. Who are your target customers or users, and what are their needs, preferences, and behaviors? How big is the market potential, and what are the trends and drivers that affect it? Who are your competitors, and what are their strengths, weaknesses, opportunities, and threats? How does your product R&D project differentiate from or surpass the existing or alternative solutions in the market? You need to conduct a thorough market and competitive analysis, using data, research, and customer insights, to show how your product R&D project fits and stands out in the market.

4 Estimate the costs and benefits

The fourth step is to estimate the costs and benefits of your product R&D project. What are the resources, time, and money required to execute your product R&D project? What are the risks, challenges, and assumptions involved? What are the expected outcomes, returns, and impacts of your product R&D project? How do you measure and evaluate the success of your product R&D project? You need to provide a realistic and detailed cost-benefit analysis, using financial models, scenarios, and metrics, to show how your product R&D project is feasible and worthwhile.

5 Present the plan and timeline

The fifth step is to present the plan and timeline of your product R&D project. What are the key activities, milestones, and deliverables of your product R&D project? Who are the roles, responsibilities, and dependencies of your product R&D team and stakeholders? How do you communicate and collaborate with your product R&D team and stakeholders? How do you manage and mitigate the risks and issues of your product R&D project? You need to create a clear and comprehensive plan and timeline, using charts, diagrams, or tools, to show how your product R&D project is organized and executed.

6 Persuade and engage your audience

The final step is to persuade and engage your audience with your business case for product R&D. Who are the decision-makers, influencers, or supporters of your product R&D project, and what are their interests, concerns, and expectations? How do you tailor your business case for product R&D to suit your audience's needs and preferences? How do you use storytelling, evidence, and emotion to convince and inspire your audience? How do you address the questions, objections, or feedback of your audience? You need to use effective presentation and communication skills, such as clarity, simplicity, credibility, and passion, to show how your product R&D project is the best option and opportunity for your organization.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?