New product portfolio selection using fuzzy logic

Abstract

Limited by the resources a company requires to strategically allocating resources in a set of new product projects. A portfolio management decision is usually made on the basis of product value, project risk and business strategies. Due to both the nature and timing of new product development, portfolio selection is associated with uncertainty and complexity, and conventional evaluation methods not can handle such decisions suitably and effectively. However, fuzzy logic is well suited for decision making with uncertainty. Thus, a method for portfolio selection decision using fuzzy logic is proposed. As an illustration, an IT new product portfolio selection in Taiwan's company is cited to demonstrate the evaluation procedure can be used in new product portfolio.