Despite the fact that innovation portfolio management is an important driver of innovation excellence, it has been relatively overlooked by many companies. Yet, by employing it, firms may realize shorter and leaner innovation processes, thereby strengthening their competitive position. This article explains the key steps that managers can take to implement or enhance their organizations' innova...

We propose a new multiple-benchmark tracking-error model for portfolio selection problem. The tracking error of a portfolio from a set of benchmark portfolios is defined as the difference between its return and the highest return from the set of benchmarks. We derive closedform solution of our portfolio strategy, whose main component is the sum of the benchmark portfolios weighted by their resp...

This paper derives in closed form the optimal dynamic portfolio policy when trading is costly and security returns are predictable by signals with different mean-reversion speeds. The optimal updated portfolio is a linear combination of the existing portfolio, the optimal portfolio absent trading costs, and the optimal portfolio based on future expected returns and transaction costs. Predictors...

In the current practice of industrial research and development (R&D) management tools are playing an increasing important role. The growing need for alignment of R&D with business objectives, market-driven strategies and investment risk reduction are the drivers for employing portfolio management techniques. This paper proposes use of a financial portfolio management approach as a tool enabling...

Portfolio management is one of the most important areas of research in financial engineering. This paper is concerned with multi period decision problem for financial asset allocation when the rate of borrowing is greater than the rate of lending. Transaction costs as a source of concern for portfolio managers is also considered in this paper. The proposed method of this paper is formulated in ...

Enterprise executives frequently face the challenge of making decisions under conditions of significant uncertainty when dealing with IT investments, IT project management and realization of intangible organizational benefits enabled by IT. A suitable methodology for accurately estimating the current financial standing of each project in a portfolio of IT projects over the full project lifecycl...

As enterprises continue searching for ways to strengthen the linkage between business models and IT, the enterprise software portfolio offers a crystallization of business processes whose cost-effort metrics, such as Function Point (FP) counting method, have been well defined over the past 25 years of custom software development history. A medium-sized manufacturing company has a portfolio aver...

The management of information technology (IT) as a business has become a crucial factor in today’s complex and dynamic environments. Many firms thus have implemented IT portfolio and enterprise architecture (EA) management practices, and academic research has paid increasing attention to these concepts. However, their integration seems poorly substantiated; this article therefore seeks to answe...

Recent advances in modern finance theory and decision science are being utilized in a more systematic fashion by the upstream petroleum industry. Corporate planning groups as well as business units in oil companies are increasingly applying techniques such as decision analysis, simulation, portfolio management, and real options analysis to improve the overall decision making and capital allocat...