A Project Classification System for R&D Portfolio Management in the Oil and Gas Sector

Properly selecting technology development projects is critical for a sustainable competitive advantage. Strategic buckets and adequate prioritization tools need to be crafted by the business environment. The literature on R&D portfolio management has evolved in the last decades, but still, it does not tackle some specificities of innovation dynamics in Complex Product Systems (CoPS). The research objective is to develop a project classification system for R&D portfolio management in CoPS, using Oil and Gas projects as case studies. The research method uses Design Science Research applied in projects from an R&D portfolio of a Brazilian Oil and Gas owner. The proposed method combined elements from the diamond model to innovation, product and technology development management tools, and strategic systems development, emphasizing the appropriate balance between technology-push and demand-pull in CoPS innovation dynamics. The method comprises a unique set of strategic buckets, a customized version of the diamond model considering uncertainties for CoPS and commercial development for Oil and Gas, and a set of evaluation tools recommended for each strategic bucket. The research contributes to CoPS R&D portfolio management, especially in the Oil and Gas sector.