Bubble Diagram - Revision history

Tkokotas at 11:35, 20 December 2018

2018-12-20T11:35:52Z

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			''Developed by Peter Busk''


	The [http://en.wikipedia.org/wiki/Bubble_chart Bubble Chart] is used as a visual tool to support the decision making in [http://en.wikipedia.org/wiki/Project_portfolio_management Project Portfolio Management]. The chart is much similar to the regular xy-[http://en.wikipedia.org/wiki/Scatter_plot scatter-plot], however including the variables size and colour, the user can get up to four dimensions of data in an easily understandable two-dimensional chart. In the most popular version the horizontal axis represents the [http://en.wikipedia.org/wiki/Net_present_value Net Present Value] over a period of time and the vertical axis represents the probability of success.		The [http://en.wikipedia.org/wiki/Bubble_chart Bubble Chart] is used as a visual tool to support the decision making in [http://en.wikipedia.org/wiki/Project_portfolio_management Project Portfolio Management]. The chart is much similar to the regular xy-[http://en.wikipedia.org/wiki/Scatter_plot scatter-plot], however including the variables size and colour, the user can get up to four dimensions of data in an easily understandable two-dimensional chart. In the most popular version the horizontal axis represents the [http://en.wikipedia.org/wiki/Net_present_value Net Present Value] over a period of time and the vertical axis represents the probability of success.
	A Study has shown that more than 40 % of examined companies use this method, although only 5-8 % use it as the dominant tool. <ref name="Class">Cooper, R.G., Edgett, S., Kleinschmidt, E. Portfolio management for new product development: results of an industry practices study 31(4), p 361–380, October 2001 </ref> If this picture is representative is however not evident. The article aims to provide a clear overview trough a description of the tool and its uses in practice and further raises the question if a tool as simplistic as the bubble chart can add real support to the decision making in Project Portfolio Management?		A Study has shown that more than 40 % of examined companies use this method, although only 5-8 % use it as the dominant tool. <ref name="Class">Cooper, R.G., Edgett, S., Kleinschmidt, E. Portfolio management for new product development: results of an industry practices study 31(4), p 361–380, October 2001 </ref> If this picture is representative is however not evident. The article aims to provide a clear overview trough a description of the tool and its uses in practice and further raises the question if a tool as simplistic as the bubble chart can add real support to the decision making in Project Portfolio Management?

Tallimac: /* Alternatives */

2014-12-01T22:48:32Z

Alternatives

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	It can be discussed if a margin of 28 % is a lot or not. Looking at the result in practice, the 28 % margin in the pharmaceutical industry can easily mean the difference of a billion dollars. Looking at it from the opposite perspective, a margin of 28 % is not that big, if it is taken into consideration that this is the difference between the most complicated and the most simple method. The result in itself is also an estimate, as forecasts rarely fit perfectly.		It can be discussed if a margin of 28 % is a lot or not. Looking at the result in practice, the 28 % margin in the pharmaceutical industry can easily mean the difference of a billion dollars. Looking at it from the opposite perspective, a margin of 28 % is not that big, if it is taken into consideration that this is the difference between the most complicated and the most simple method. The result in itself is also an estimate, as forecasts rarely fit perfectly.

	=Alternatives=		==Alternatives==
	Is is a bit hard to substitute a chart, bubble or regular, as it is one of the most dominate ways to visual data.		Is is a bit hard to substitute a chart, bubble or regular, as it is one of the most dominate ways to visual data.
	One alternative could be using a scoring model. Many different scoring models have been developed to fit the specific company. In comparison to the BC this method can take many aspects into consideration. It simple exist of for example 20 questions/criteria that should be ranked from 1-5 on how well they fit. This will hereafter yield the project score that can be used for comparison <ref name="Class"></ref>. The problem with this method is that the score itself does not tell why it has the score that is has. So after looking at the project score, the user only have a vague idea of why this project is good. The scoring model should not be used as a alternative but rather with the BC to get the best possible data. <br><br>		One alternative could be using a scoring model. Many different scoring models have been developed to fit the specific company. In comparison to the BC this method can take many aspects into consideration. It simple exist of for example 20 questions/criteria that should be ranked from 1-5 on how well they fit. This will hereafter yield the project score that can be used for comparison <ref name="Class"></ref>. The problem with this method is that the score itself does not tell why it has the score that is has. So after looking at the project score, the user only have a vague idea of why this project is good. The scoring model should not be used as a alternative but rather with the BC to get the best possible data. <br><br>

Tallimac: /* Discussion */

2014-12-01T22:48:17Z

Discussion

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	</ol>		</ol>

	==Discussion==		=Discussion=
	The axes and therefore the use of the BCs can vary a lot as seen in the table in the previous section. But the level of detail can also vary. If the axes on the BC are not defined in numbers, but rather just called low-high, the requirements for upstream processes have changed. Instead of having any calculation, a little portfolio board with experience would be able to make a BC rather fast based on gut-feeling and experience from earlier projects.		The axes and therefore the use of the BCs can vary a lot as seen in the table in the previous section. But the level of detail can also vary. If the axes on the BC are not defined in numbers, but rather just called low-high, the requirements for upstream processes have changed. Instead of having any calculation, a little portfolio board with experience would be able to make a BC rather fast based on gut-feeling and experience from earlier projects.

Tallimac: /* Dsiclaimer for bias information */

2014-12-01T22:42:45Z

Dsiclaimer for bias information

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	It is very important to understand the limitations of this tool as the comparability of different types of projects can be very low. At the same time it cannot show dependencies and is not a dynamic tool, but a "snapshot overview" of the information that is available today. As it is a tool for visualization it excel as one of the best but at the same time one can argue that the Bubble Chart is only as good as the information which is put into it. It should therefore never stand alone but synergies with other tools for example a scoring model.		It is very important to understand the limitations of this tool as the comparability of different types of projects can be very low. At the same time it cannot show dependencies and is not a dynamic tool, but a "snapshot overview" of the information that is available today. As it is a tool for visualization it excel as one of the best but at the same time one can argue that the Bubble Chart is only as good as the information which is put into it. It should therefore never stand alone but synergies with other tools for example a scoring model.

	===~~Dsiclaimer~~ for bias information===		===Disclaimer for bias information===
	This articles is based upon s much scientific literature as possible. <br>		This articles is based upon s much scientific literature as possible. <br>
	However much of the information comes from 7 articles published by the same authors: Cooper, R.G., Edgett, S., Kleinschmidt in the years 1997-2001.		However much of the information comes from 7 articles published by the same authors: Cooper, R.G., Edgett, S., Kleinschmidt in the years 1997-2001.

Tallimac: /* Dsiclaimer for bias information */

2014-12-01T22:42:36Z

Dsiclaimer for bias information

← Older revision		Revision as of 22:42, 1 December 2014
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	It is very important to understand the limitations of this tool as the comparability of different types of projects can be very low. At the same time it cannot show dependencies and is not a dynamic tool, but a "snapshot overview" of the information that is available today. As it is a tool for visualization it excel as one of the best but at the same time one can argue that the Bubble Chart is only as good as the information which is put into it. It should therefore never stand alone but synergies with other tools for example a scoring model.		It is very important to understand the limitations of this tool as the comparability of different types of projects can be very low. At the same time it cannot show dependencies and is not a dynamic tool, but a "snapshot overview" of the information that is available today. As it is a tool for visualization it excel as one of the best but at the same time one can argue that the Bubble Chart is only as good as the information which is put into it. It should therefore never stand alone but synergies with other tools for example a scoring model.

	==Dsiclaimer for bias information==		===Dsiclaimer for bias information===
	This articles is based upon s much scientific literature as possible. <br>		This articles is based upon s much scientific literature as possible. <br>
	However much of the information comes from 7 articles published by the same authors: Cooper, R.G., Edgett, S., Kleinschmidt in the years 1997-2001.		However much of the information comes from 7 articles published by the same authors: Cooper, R.G., Edgett, S., Kleinschmidt in the years 1997-2001.

Tallimac at 22:42, 1 December 2014

2014-12-01T22:42:19Z

← Older revision		Revision as of 22:42, 1 December 2014
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	The [http://en.wikipedia.org/wiki/Bubble_chart Bubble Chart] is used as a visual tool to support the decision making in [http://en.wikipedia.org/wiki/Project_portfolio_management Project Portfolio Management]. The chart is much similar to the regular xy-[http://en.wikipedia.org/wiki/Scatter_plot scatter-plot], however including the variables size and colour, the user can get up to four dimensions of data in an easily understandable two-dimensional chart. In the most popular version the horizontal axis represents the [http://en.wikipedia.org/wiki/Net_present_value Net Present Value] over a period of time and the vertical axis represents the probability of success.		The [http://en.wikipedia.org/wiki/Bubble_chart Bubble Chart] is used as a visual tool to support the decision making in [http://en.wikipedia.org/wiki/Project_portfolio_management Project Portfolio Management]. The chart is much similar to the regular xy-[http://en.wikipedia.org/wiki/Scatter_plot scatter-plot], however including the variables size and colour, the user can get up to four dimensions of data in an easily understandable two-dimensional chart. In the most popular version the horizontal axis represents the [http://en.wikipedia.org/wiki/Net_present_value Net Present Value] over a period of time and the vertical axis represents the probability of success.
	A Study has shown that more than 40 % of examined companies use this method, although only 5-8 % use it as the dominant tool. <ref name="Class"> ~~Portfolio management for new product development: results of an industry practices study~~ Cooper, R.G., Edgett, S., Kleinschmidt, E. 31(4), p 361–380, October 2001 </ref> If this picture is representative is however not evident. The article aims to provide a clear overview trough a description of the tool and its uses in practice and further raises the question if a tool as simplistic as the bubble chart can add real support to the decision making in Project Portfolio Management?		A Study has shown that more than 40 % of examined companies use this method, although only 5-8 % use it as the dominant tool. <ref name="Class">Cooper, R.G., Edgett, S., Kleinschmidt, E. Portfolio management for new product development: results of an industry practices study 31(4), p 361–380, October 2001 </ref> If this picture is representative is however not evident. The article aims to provide a clear overview trough a description of the tool and its uses in practice and further raises the question if a tool as simplistic as the bubble chart can add real support to the decision making in Project Portfolio Management?
	A short comparison of the Bubble Chart to alternative tools as the scoring model and [http://en.wikipedia.org/wiki/Decision_tree decision trees] is done.		A short comparison of the Bubble Chart to alternative tools as the scoring model and [http://en.wikipedia.org/wiki/Decision_tree decision trees] is done.

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	In order to manage all these parameter and always be one step ahead of competitors, few errors can be made. One way to make sure this happens is to make use of Portfolio Management. There are many aspects to Portfolio management and many definitions can be found in the literature. The benefits of Portfolio Management are also somewhat dependent on in which area of business it is applied <ref name="Cooper1999"></ref>. This article will be scoped around Project Portfolio Management (PPM).		In order to manage all these parameter and always be one step ahead of competitors, few errors can be made. One way to make sure this happens is to make use of Portfolio Management. There are many aspects to Portfolio management and many definitions can be found in the literature. The benefits of Portfolio Management are also somewhat dependent on in which area of business it is applied <ref name="Cooper1999"></ref>. This article will be scoped around Project Portfolio Management (PPM).
	Cooper et al. (1999) argues that from a company perspective PPM is all about how to invest money in order to make more money <ref name="Cooper1999">~~New Product Portfolio Management: Practices and Performance~~ Cooper, R.G., Edgett, S., Kleinschmidt, E. 16(4) p333–351, July 1999</ref>, and such optimization is sometimes also referred to as Project Portfolio Optimization (PPO). Choosing the right projects and building the best portfolio is however much more complicated than selecting the most profitable projects, based on a simple cost-benefit analysis, as the most profitable projects do not necessarily create the most profitable business. PPM is about prioritizing some projects over others to balance the portfolio in regards to for example risk and/or resource allocation. This makes sure that the portfolio is in balance with the values and believes of the company as well as fits the current and future market.		Cooper et al. (1999) argues that from a company perspective PPM is all about how to invest money in order to make more money <ref name="Cooper1999">Cooper, R.G., Edgett, S., Kleinschmidt, E. New Product Portfolio Management: Practices and Performance 16(4) p333–351, July 1999</ref>, and such optimization is sometimes also referred to as Project Portfolio Optimization (PPO). Choosing the right projects and building the best portfolio is however much more complicated than selecting the most profitable projects, based on a simple cost-benefit analysis, as the most profitable projects do not necessarily create the most profitable business. PPM is about prioritizing some projects over others to balance the portfolio in regards to for example risk and/or resource allocation. This makes sure that the portfolio is in balance with the values and believes of the company as well as fits the current and future market.

	One of the most important trades of PPM is the assistance to the decision makers in making the right strategic choices. It is of greatest importance that all projects, small as big, are aligned internally and do not counter work, but instead support the overall corporate strategy <ref name="Class"></ref>.		One of the most important trades of PPM is the assistance to the decision makers in making the right strategic choices. It is of greatest importance that all projects, small as big, are aligned internally and do not counter work, but instead support the overall corporate strategy <ref name="Class"></ref>.
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	The axes and therefore the use of the BCs can vary a lot as seen in the table in the previous section. But the level of detail can also vary. If the axes on the BC are not defined in numbers, but rather just called low-high, the requirements for upstream processes have changed. Instead of having any calculation, a little portfolio board with experience would be able to make a BC rather fast based on gut-feeling and experience from earlier projects.		The axes and therefore the use of the BCs can vary a lot as seen in the table in the previous section. But the level of detail can also vary. If the axes on the BC are not defined in numbers, but rather just called low-high, the requirements for upstream processes have changed. Instead of having any calculation, a little portfolio board with experience would be able to make a BC rather fast based on gut-feeling and experience from earlier projects.

	Blau et al. (2004) examines the effect of a Bubble Chart compared to a computational decision support system in the pharmaceutical industry <ref name="Blau"> ~~Managing a portfolio of interdependent new product candidates in the pharmaceutical industry~~ Blau, G.E., Pekny, J.F., Varma, V.A., Bunch, P.R. 31, p 227–245, 2004 </ref>. Even though a setup of highly inter-dependent data was used, the multi-criteria genetic algorithm only yielded a result 28 % better (with the same level of risk) than with the conventional bubble chart approach. This emphasizes two important points:		Blau et al. (2004) examines the effect of a Bubble Chart compared to a computational decision support system in the pharmaceutical industry <ref name="Blau">Blau, G.E., Pekny, J.F., Varma, V.A., Bunch, P.R. Managing a portfolio of interdependent new product candidates in the pharmaceutical industry 31, p 227–245, 2004 </ref>. Even though a setup of highly inter-dependent data was used, the multi-criteria genetic algorithm only yielded a result 28 % better (with the same level of risk) than with the conventional bubble chart approach. This emphasizes two important points:
	<ol start="1">		<ol start="1">
	<li>The bigger the investment, the more data-analysis should be made in order to not loose millions</li>		<li>The bigger the investment, the more data-analysis should be made in order to not loose millions</li>

Tallimac: /* Conclusion */

2014-12-01T22:25:10Z

Conclusion

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	Looking at the benefits and disadvantages, it is evident that if the upstream processes already exist, this tool will add value to the user.		Looking at the benefits and disadvantages, it is evident that if the upstream processes already exist, this tool will add value to the user.
	The BC should be continuously used as a tool to get clearer overview, and to help managers balance the portfolio.		The BC should be continuously used as a tool to get clearer overview, and to help managers balance the portfolio.
	It is very important to understand the limitations of this tool as the comparability of different types of projects can be very low. At the same time it cannot show dependencies and is not a dynamic tool, but a "snapshot overview" of the information that is available today. As it is a tool for visualization it excel as one of the best but at the same time one can argue that the Bubble Chart is only as good as the information which is put into it. ~~<br>~~		It is very important to understand the limitations of this tool as the comparability of different types of projects can be very low. At the same time it cannot show dependencies and is not a dynamic tool, but a "snapshot overview" of the information that is available today. As it is a tool for visualization it excel as one of the best but at the same time one can argue that the Bubble Chart is only as good as the information which is put into it. It should therefore never stand alone but synergies with other tools for example a scoring model.
	It should therefore never stand alone but synergies with other tools for example a scoring model.

	==Dsiclaimer for bias information==		==Dsiclaimer for bias information==

Tallimac: /* Dsiclaimer for bias information */

2014-12-01T22:24:38Z

Dsiclaimer for bias information

← Older revision		Revision as of 22:24, 1 December 2014
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	==Dsiclaimer for bias information==		==Dsiclaimer for bias information==
	This articles is based upon s much scientific literature as possible. However much of the information comes from ~~the~~ 7 articles published by Cooper, R.G., Edgett, S., Kleinschmidt in the years 1997-2001.		This articles is based upon s much scientific literature as possible. <br>
			However much of the information comes from 7 articles published by the same authors: Cooper, R.G., Edgett, S., Kleinschmidt in the years 1997-2001.

	=References=		=References=

Tallimac: /* Conclusion */

2014-12-01T22:23:17Z

Conclusion

← Older revision		Revision as of 22:23, 1 December 2014
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	It is very important to understand the limitations of this tool as the comparability of different types of projects can be very low. At the same time it cannot show dependencies and is not a dynamic tool, but a "snapshot overview" of the information that is available today. As it is a tool for visualization it excel as one of the best but at the same time one can argue that the Bubble Chart is only as good as the information which is put into it. <br>		It is very important to understand the limitations of this tool as the comparability of different types of projects can be very low. At the same time it cannot show dependencies and is not a dynamic tool, but a "snapshot overview" of the information that is available today. As it is a tool for visualization it excel as one of the best but at the same time one can argue that the Bubble Chart is only as good as the information which is put into it. <br>
	It should therefore never stand alone but synergies with other tools for example a scoring model.		It should therefore never stand alone but synergies with other tools for example a scoring model.

			==Dsiclaimer for bias information==
			This articles is based upon s much scientific literature as possible. However much of the information comes from the 7 articles published by Cooper, R.G., Edgett, S., Kleinschmidt in the years 1997-2001.

	=References=		=References=

Tallimac at 22:17, 1 December 2014

2014-12-01T22:17:29Z

← Older revision		Revision as of 22:17, 1 December 2014
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	The [http://en.wikipedia.org/wiki/Bubble_chart Bubble Chart] is used as a visual tool to support the decision making in [http://en.wikipedia.org/wiki/Project_portfolio_management Project Portfolio Management]. The chart is much similar to the regular xy-[http://en.wikipedia.org/wiki/Scatter_plot scatter-plot], however including the variables size and colour, the user can get up to four dimensions of data in an easily understandable two-dimensional chart. In the most popular version the horizontal axis represents the [http://en.wikipedia.org/wiki/Net_present_value Net Present Value] over a period of time and the vertical axis represents the probability of success.		The [http://en.wikipedia.org/wiki/Bubble_chart Bubble Chart] is used as a visual tool to support the decision making in [http://en.wikipedia.org/wiki/Project_portfolio_management Project Portfolio Management]. The chart is much similar to the regular xy-[http://en.wikipedia.org/wiki/Scatter_plot scatter-plot], however including the variables size and colour, the user can get up to four dimensions of data in an easily understandable two-dimensional chart. In the most popular version the horizontal axis represents the [http://en.wikipedia.org/wiki/Net_present_value Net Present Value] over a period of time and the vertical axis represents the probability of success.
	A Study has shown that more than 40 % of examined companies use this method, although only 5-8 % use it as the dominant tool. <ref name="Class"> Portfolio management for new product development: results of an industry practices study Cooper, R.G., Edgett, S., Kleinschmidt, E. 31(4), p 361–380, October 2001 </ref> If this picture is representative is however not evident. The article aims to provide a clear overview trough a description of the tool and its uses in practice and further raises the question if a tool as simplistic as the bubble chart can add real support to the decision making in Project Portfolio Management?		A Study has shown that more than 40 % of examined companies use this method, although only 5-8 % use it as the dominant tool. <ref name="Class"> Portfolio management for new product development: results of an industry practices study Cooper, R.G., Edgett, S., Kleinschmidt, E. 31(4), p 361–380, October 2001 </ref> If this picture is representative is however not evident. The article aims to provide a clear overview trough a description of the tool and its uses in practice and further raises the question if a tool as simplistic as the bubble chart can add real support to the decision making in Project Portfolio Management?
	A short comparison of the Bubble Chart to ~~alternatives~~ tools ~~such~~ as [http://en.wikipedia.org/wiki/Decision_tree decision trees] ~~and scoring models are~~ done.		A short comparison of the Bubble Chart to alternative tools as the scoring model and [http://en.wikipedia.org/wiki/Decision_tree decision trees] is done.

	=Introduction to Portfolio Management=		=Introduction to Portfolio Management=