How Company X Can Improve Their Controlling Practices Within R&D Projects
Latva-Kiskola, Niko (2025)
2025
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202504146387
https://urn.fi/URN:NBN:fi:amk-202504146387
Tiivistelmä
This thesis examines the implementation of controls on research and development (R&D) projects in a rapidly expanding technology company, Company X. Despite the firm's strong innovative culture, reactive budgeting, inconsistent documentation, and limited financial controls have hampered project transparency and risk management. Drawing on Business Process Management (BPM) principles and the Internal Control Theory (COSO 2013) framework, this study proposes a structured yet flexible controlling system that balances iterative design freedom with timely cost monitoring.
Qualitative data from semi-structured interviews and internal case studies revealed that late finance involvement and insufficient mid-project checkpoints frequently resulted in overspending and scope creep. In response, an iterative design of the controlling framework was created, including specific milestones, short sign-off procedures for significant design changes, and technical evaluations. Continuous feedback loops with project managers, R&D staff, and finance personnel confirmed the need for minimal but strategically placed administrative steps to ensure that new rules did not stifle creative pivots.
The final R&D Controlling Framework includes standardized checkpoints—Concept Lock, Mid-Development Check, and Validation Gate—where project costs and scope are formally reviewed and approved. It consists of a Change Request (CR) form for significant design or budget changes, a Technical Evaluation form, a RACI chart to define roles, and suggestions for integrations within their ERP system.
By combining the cyclical improvement of BPM with the proactive risk detection of internal controls, this thesis provides an implementable "R&D Controlling Framework" that balances cost discipline and innovation. Future research could look into further automation through deeper ERP integration or adapting the framework to other domains, preserving the continuous, data-driven project management culture as Company X grows.
Qualitative data from semi-structured interviews and internal case studies revealed that late finance involvement and insufficient mid-project checkpoints frequently resulted in overspending and scope creep. In response, an iterative design of the controlling framework was created, including specific milestones, short sign-off procedures for significant design changes, and technical evaluations. Continuous feedback loops with project managers, R&D staff, and finance personnel confirmed the need for minimal but strategically placed administrative steps to ensure that new rules did not stifle creative pivots.
The final R&D Controlling Framework includes standardized checkpoints—Concept Lock, Mid-Development Check, and Validation Gate—where project costs and scope are formally reviewed and approved. It consists of a Change Request (CR) form for significant design or budget changes, a Technical Evaluation form, a RACI chart to define roles, and suggestions for integrations within their ERP system.
By combining the cyclical improvement of BPM with the proactive risk detection of internal controls, this thesis provides an implementable "R&D Controlling Framework" that balances cost discipline and innovation. Future research could look into further automation through deeper ERP integration or adapting the framework to other domains, preserving the continuous, data-driven project management culture as Company X grows.