Analysis and Design of a Project Portfolio Management System

Abstract

The paramount importance of project portfolios for business drives managers to search for highly efficient support tools to overcome complex challenges of their management. A major tradeoff is to acquire tools able to produce a convenient portfolio project prioritization process, on which business investments are decided. However, by using existing Project Portfolio Management Systems (PPMS), many concurrent projects in a portfolio are usually prioritized and planned in the upstream life-cycle phases according to financial criteria, and overlooking the portfolio alignment to enterprise strategies and the availability of resources, although their importance. In this paper, we propose a conceptual formalization of PPMS with respect to a double portfolio prioritization process that performs two levels of selections according to both: i.) Strategy alignment, including returns on investment, size, and total cost; and ii.) Execution capability, as the organization should be able to manage and deliver the selected projects' outcomes. The advantage of our PPMS framework is twofold. First, it is useful to be customized by designers to fit organization needs. Second it is built with respect to the double prioritization phase process, as an end-to-end process that guarantees optimal portfolios generation. Further, the proposed PPMS system and its identified functionalities are validated through an implementation of a prototype tool.

Strategic Innovation, Foresight and the Deployment of Project Portfolio Management under Mid-Range Planning Conditions in Medium-Sized Firms

“…The PMI advocates for continuous improvement through the use of maturity assessment and improvement plans to improve the level of PPM maturity, which is also an opportunity within SME operations to review the ability of the firm not just to implement projects but also to improve manager foresight by drawing on the lessons learned from projects and the use of PPM in strategic planning. Maturity in a PPM context reflects well on the level of strategic maturity of the firm, the ability of management to plan, and the level of strategic innovation the firm undertakes [45,46]. This concept is summarized in Figure 1.…”

Formation of a portfolio of energy saving projects at metallurgical enterprise

“…При цьому одним з найбільш важливих і складних етапів управління потоками ресурсів портфеля проєктів є їх оптимізація [6]. Оптимізація ресурсів підприємства в процесі управління проєктами полягає у виборі показників, що відображають ефективність, системи вимірників споживаних ресурсів і способів оптимізації (варіантів рішень при управлінні ресурсними потоками).…”

Planning resource allocation for husbandry management by portfolio optimization

“…This is due to the quantified approach, which the portfolio theory applies for the general case of decision-making in investment and resource allocation. Examples of such applications one can find for the cases: management sciences ( Levy and Lim, 1994 ); product portfolio management ( Doorasamy, 2015 ); marketing ( Brown, 2010 ); environmental sciences ( Matthies et al., 2019 ); climate change ( Crowe and Parker, 2008 ); environmental policy ( Antal, 2008 ); energy policy ( deLlano-Paz et al., 2017 ); water management (Marinoni et al., 2008); water planning ( Beuhler, 2006 ); fish population ( DuFour et al., 2015 ); real estate portfolio management ( Souza, 2014 ); agricultural sciences ( Barkley and Hanawa, 2008 ); portfolio for biodiversity ( Figge, 2004 ); agronomy ( Radulescu et al., 2014 ); health care ( Fagefors and Lantz, 2021 ); project portfolio management ( El Hannach et al., 2019 ). The portfolio approach is applied also for inventory management and the risk is formalized in probabilistic forms ( Zhi et al., 2021 ).…”