An Introduction to R&D Portfolio Decision Analysis
Published Online: 15 FEB 2011
Copyright © 2010 John Wiley & Sons, Inc. All rights reserved.
Wiley Encyclopedia of Operations Research and Management Science
How to Cite
Duncan, K. J. and Merrick, J. R. 2011. An Introduction to R&D Portfolio Decision Analysis. Wiley Encyclopedia of Operations Research and Management Science. .
- Published Online: 15 FEB 2011
A portfolio is a purposeful combination of items. For research and development (R&D) portfolios these items are technologies, projects, or products. Companies have widely varying practices for portfolio selection. This article examines existing literature to determine the key characteristics of a good portfolio and how decision analysis is used to find one. The approach needs to handle multiple objectives, account for project interactions, and address the social aspect of decision making. The resulting portfolio should be aligned with business strategy, balanced, and maximize value. The article introduces general concepts that have been used to select portfolios and reviews specific applications.
- Boolean logic;
- multiattribute utility theory;