Project Selection Under Uncertainty
Dynamically Allocating Resources to Maximize Value
Published on 31. January 2004
Book
Hardback
XI, 145 pages
978-1-4020-7703-6 (ISBN)
Description
Project Selection Under Uncertainty
is the result of a five-year research program on the selection of projects in New Product Development (NPD). Choosing the New Product Development portfolio is of critical importance in today's business environment. The NPD portfolio has considerable strategic effect on the "middle term" success of a business.
This book takes a step in developing a theory that addresses the need for quantitative prioritization criteria within the broader strategic context of the R&D portfolios. Its foundation lies in mathematical theory of resource-constrained optimization with the goal to maximize quantitative returns. The book seeks to broaden the portfolio discussion in two ways. First, simplified models - appropriate for the data-poor NPD context - are developed, which attempt to illuminate the structure of the choice problem and robust qualitative rules of thumb, rather than detailed algorithmic decision support. Such robust rules can be applied in the R&D environment of poor data availability. Second, the annual portfolio review is not the only important choice in resource allocation. In addition, the book discusses how ideas might be pre-screened as they emerge, and how projects should be prioritized once they are funded and ongoing.
This book takes a step in developing a theory that addresses the need for quantitative prioritization criteria within the broader strategic context of the R&D portfolios. Its foundation lies in mathematical theory of resource-constrained optimization with the goal to maximize quantitative returns. The book seeks to broaden the portfolio discussion in two ways. First, simplified models - appropriate for the data-poor NPD context - are developed, which attempt to illuminate the structure of the choice problem and robust qualitative rules of thumb, rather than detailed algorithmic decision support. Such robust rules can be applied in the R&D environment of poor data availability. Second, the annual portfolio review is not the only important choice in resource allocation. In addition, the book discusses how ideas might be pre-screened as they emerge, and how projects should be prioritized once they are funded and ongoing.
Reviews / Votes
From the reviews:
"This book is rooted in the mathematical theory of resource constrained optimization with the goal of maximization quantitative turns . . It attempts to broaden the portfolio discussion in two ways. First, simplified models appropriate for a new product development context are described where the lack of precise data is typical. Second, not only the annual portfolio review is discussed, but also what should be done with ideas as they emerge, and how projects should be prioritized once they are funded and ongoing." (Klaus Ehemann, Zentralblatt MATH, Vol. 1056 (7), 2005)
More details
Series
Edition
2004 ed.
Language
English
Place of publication
New York
United States
Target group
Professional and scholarly
Research
Product notice
sewn/stitched
Cloth over boards
Illustrations
XI, 145 p.
Dimensions
Height: 242 mm
Width: 164 mm
Thickness: 15 mm
Weight
413 gr
ISBN-13
978-1-4020-7703-6 (9781402077036)
DOI
10.1007/978-1-4419-9080-8
Schweitzer Classification
Other editions
Additional editions
Stylianos Kavadias | Christoph H. Loch
Project Selection Under Uncertainty
Dynamically Allocating Resources to Maximize Value
Book
09/2012
Springer
€106.99
Shipment within 7-9 days
Content
1. Introduction to the Portfolio Selection Problem.- 1 Introduction.- 2 Portfolio Selection: A Complex Task.- 3 Research Questions and Overview of this Book.- 2. What Has Been Done So Far?.- 1 Introduction.- 2 Operational Decisions.- 3 Strategie Decisions.- 4 Strategie Alignment of R&D: an Example.- 5 Implications for this Book.- 3. Dynamic Selection of NPD Programs.- 1 Introduction.- 2 Model Setup.- 3 Increasing Returns.- 4 Decreasing Returns.- 5 Decreasing Returns and Market Interactions.- 6 Decreasing Returns and Risk Aversion.- 7 Numerieal Example.- 8 n Product Lines and T Periods.- 9 Discussion and Conclusion.- 4. Applying Project Selection at Gemstone.- 1 Introduction.- 2 The Diamond Producer GemStone Inc..- 3 Selecting the Portfolio at GemStone.- 4 Discussion and Conclusion.- Admitting Projects One-By-One.- 1 Introduction.- 2 Model Setup.- 3 Optimal policy.- 4 Discussion and Conclusion.- Prioritizing Ongoing Projects.- 1 Introduction.- 2 Model and Optimal Sequencing Policy.- 3 Discussion and Examples.- 4 Conclusion.- What Have We Learned?.- References.- About the Authors.