Research Summaries

Back Study Return on Investment

Fiscal Year 2020
Division Research & Sponsored Programs
Department NPS Naval Research Program
Investigator(s) Mun, Johnathan C.
Sponsor NPS Naval Research Program (Navy)
Summary Return on investment (ROI) is a critical measure in showcasing if a project, program, research, and learning programs show promise. Specifically, if a program's benefit outweighs its cost. This study will be, as requested by the sponsor, focused on showing ROI from Navy Annual Studies Program in support of Fleet, OPNAV, and SECNAV. The analysis is meant to support and inform Echelon I and Echelon II decisions. The motivation for an ROI analysis stems from the significant pressure that is usually applied to research, study, and learning programs to show return on investment. This indicates closer scrutiny on the funding required in the areas of study and learning programs and value needs to be demonstrated. In this research, we propose utilizing multiple approaches with a focus on decision analytics and decision theory such as Monte Carlo risk simulation, stochastic predictive and forecasting methods, discounted cash flow modeling to develop ROI, applied statistics to determine the effects and ROI metrics, and portfolio optimization to perform study program selection given some limited budgetary and scheduling constraints. The methodology will include feedback from the sponsor as well as access to any data sources that may become available. The targets will include successful research as well as unsuccessful research, pending the availability of data, and will attempt to relate to specific funding ROI as requested by SECNAV. Deliverables will include a written report and an Excel model template that showcases the methodology to be employed, as well as some sample data or actual sponsor provided data, culminating in a set of actionable results.
Keywords
Publications Publications, theses (not shown) and data repositories will be added to the portal record when information is available in FAIRS and brought back to the portal
Data Publications, theses (not shown) and data repositories will be added to the portal record when information is available in FAIRS and brought back to the portal