Technology portfolio management: optimizing interdependent projects over multiple time periods
By M. Dickinson, A. Thornton, S. Graves. IEEE Trans. Engineering Management, 2001
331 citations recorded by the source corpus.
In order to maintain competitiveness, companies need to continually invest in technology projects. However, resource limitations require an organization to strategically allocate resources to a subset of possible projects. A variety of tools and methods can be used to select the optimal set of technology projects. However, these methods are only applicable when projects are independent and are evaluated in a common funding cycle. When projects are interdependent, the complexity of optimizing even a moderate number of projects over a small number of objectives and constraints can become overwhelming. This paper presents a model developed for the Boeing Company, Seattle, WA, USA, to optimize a portfolio of product development improvement projects. Using a dependency matrix, which quantifies the interdependencies between projects, a nonlinear, integer program model was developed to optimize project selection. The model also balances risk, overall objectives and the cost and benefit of the entire portfolio. Once the optimum strategy is identified, the model enables the team to quickly quantify and evaluate small changes to the portfolio.
Subfields: Management of Technology and Innovation, Safety, Risk, Reliability and Quality
View Paper: https://www.semanticscholar.org/paper/b16dd5b6fcde6f320de9a8a217e35cfed9ffdfa9
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In Management of Technology and Innovation
Citations in the corpus
- A Knowledge Accessing Theory of Strategic Alliances (2004, background): “[11] The problem is well known in the technology management field; both Boeing and Xerox have examined the problem of defining optimal technology portfolios in the face of complementary, overlapping development projects (Dickinson et al., 2001; Loutfy and Belkhir, 2001).”
- The impact of project portfolio management on information technology projects (2005, background): “dominate the literature ([ 9 ] [10] [11]), namely (1) defining goals and objectives, i.e.”
- Design Structure Matrix Extensions and Innovations: A Survey and New Opportunities (2016, neutral): “, [63]).”
- A fuzzy set approach for R&D portfolio selection using a real options valuation model (2007, background): “[12] proposed the concept of dependency matrix representing complex dependencies between projects and developed an optimal portfolio model over multiple time periods.”