A model for selecting a new product development project portfolio

Abstract

The key to enhancing competitiveness of enterprises is new product development (NPD). The screening of potential NPD project portfolios to gain competitive advantage has become the main concern of product managers. However, the most difficult problem with portfolio decisions is the fuzziness of the related information. Therefore, this study proposes a product portfolio selection model (PPSM) to help enterprises focus on the most feasible NPD project portfolio. PPSM utilizes fuzzy-gate (FG) to control and kill inferior NPD projects to avoid possible future sunk costs. Furthermore, PPSM can select better NPD projects to maximize portfolio synergy, hence, increasing the flexibility of planning and deployment of enterprises resources. A projector firm is used to illustrate the application of the proposed PPSM model.