How to Select the Portfolio of New Product Development Projects (original) (raw)
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A multi-criteria Approach to the Problem of Managing the new Product Development Project Portfolio
The management problem of the New Product Development Project Process (PDNP) is recurrent in the literature, as it reflects a question that exists in R&D companies, which is to decide which product p roject portfolio which will minimize the necessary development costs while maximizing the return for the organization. In this context, the present study aims to use two mu lti-criteria approaches-TOPSIS and PROMETHEE II-using the Analytic Hierarchy Process (AHP) method to establish, in a non-partial way, the weights and to determine which approach yields the best profit for NPDP, and raise the question of which approach is most appropriate for this problem. In addition, a practical example was proposed that shows the impact between the different orderings present in the work, to assist in achieving the goal. As a result, it was possible to obtain a study in which the non-compensatory approach is better for the practical example, making the present work the beginning of deeper studies on the subject.
Because they define not only projects for new products, but also revisions, updates, and decisions to discontinue products that are produced and sold, the management methods applied to the product portfolio are important elements for a good performance in the new product development. This paper aims to show the main methods large and medium-sized companies in the electronics, optical, and computer science sectors adopt for decision making involving the product portfolio. For such, a survey was conducted on a sample of 40 companies that operate in Brazil. Many of the firms follow an informal standard for such decision making. Among the formal methods used, the most present in the sectors surveyed were financial, market research, and mapping.
Product Portfolio Management: An Analysis of a Large Medical Device Company
IFIP Advances in Information and Communication Technology, 2013
This paper focuses on product portfolio management in a large multinational medical device organization. The contribution of this research is to provide insights into the nature, composition and decision making processes of product portfolios in a real world setting. The research is important because portfolio management decisions have a significant impact and influence the performance at each stage in the product life cycle. Results of the study indicate that portfolio management is a complex process in general but particularly challenging when dealing with technology development projects or innovative new products as unchartered waters are difficult to assess. We found that there are challenges with transparency and that stakeholders need fact based and information driven decisions. There is a need for better up front planning and systems to guide the process. Consistent criteria should be used to select and prioritize projects to facilitate better comparative ranking and allow for balanced portfolios, as well better resource distribution. However we also found that these criteria may change depending on the stage in the lifecycle.
Product Portfolio Management Best Practices For New Product Development: A Review Of Models
Foundations of Management
The survival of any industrial organization depends on whether producing goods or services hinge on how innovative they have become in managing their product portfolio to craft new products that changes with the ever-changing tastes and needs of their customers. This study delves in to the models and theories that drive product portfolio management practices in a way that they support the successes of new product development. Our review is based on selected studies at the frontier of product management, summarized, and compared based on authors experiences, subsisting models, and theories with the results purely based on qualitative rather than quantitative approaches. The essence is to explore possible new theory or model in this field of research.
A multi objective-BSC model for new product development project portfolio selection
Expert Systems with Applications, 2020
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A Methodology for Constructing and Evaluating Portfolios of R&D Projects
European Journal of Operational Research, 2006
We present a portfolio selection methodology that responds to three major goals that most R&D organizations are concerned with -- effectiveness, efficiency, and balance. The methodology uses a strategy-oriented, multi-criterion, evaluation model that integrates concepts from data envelopment analysis (DEA) and balanced scorecard (BSC). It is based on two subsequent phases. At the first phase individual R&D projects are evaluated and project performance indexes are generated (i.e. project-efficiency, project-balance, and project-risk). By setting bounds to these indexes projects are screened and a subset of candidate R&D projects is generated. At the second phase potential portfolios are constructed using a branch-and-bound procedure that takes into account multiple resource constraints. Other possible restricting considerations, such as, the distribution of the length of the projects in the portfolio, may also be considered. The potential portfolios are then evaluated and an integra...
A Theoretical Framework for Project Evaluation and Selection in New Product Management
New Product Development has become compulsion for every organization because of tremendous change in market situations and technologies, shortening product life cycles, increasing rate of change in customer needs/preferences and increasing global competition. For which every organization has to be unique and challenging and needs to develop new products continuously, faster with more value added into it. For this purpose successful identification of right set of projects for developing associated new product at right time is a major activity of Project Evaluation and Selection (PES) in New Product Management (NPM). Of all the decisions taken in case of New Product, PES is pivotal because of complexity raised due constraints like economical resources, financial and technical. From literature it is identified that decision making of PES phase would be involved with multiple evaluative dimensions such as Strategic fit, Portfolio-Innovation Balance, Cost-Benefit analysis, Risk-Uncertain...