Challenges and Execution of Innovation Portfolio Management - Revision history

Tkokotas at 14:08, 18 December 2018

2018-12-18T14:08:47Z

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			''Developed by Stefan Schenk''


	'''''Article Type 1: Explanation and Illustration of a Method'''''		'''''Article Type 1: Explanation and Illustration of a Method'''''

Stefan.schenk at 19:48, 26 September 2016

2016-09-26T19:48:47Z

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	==== Tactical Resource Allocation ====		==== Tactical Resource Allocation ====
	Executing the strategic portfolio plan in an efficient way requires integrated planning, managing of project interdependencies, tactical resource allocation as well as distribution of hard- and soft-skills across the project requirements. Especially the tactical resource allocation is a critical capability to master the OIPM.		Executing the strategic portfolio plan in an efficient way requires integrated planning, managing of project interdependencies, tactical resource allocation as well as distribution of hard- and soft-skills across the project requirements. Especially the tactical resource allocation is a critical capability to master the OIPM.
	[[File:OIPM.jpg\|~~655px~~\|right\|thumb\|Figure 4: OIPM key sequence with iteration loop. (based on<ref name="smith" />)]]		[[File:OIPM.jpg\|800px\|right\|thumb\|Figure 4: OIPM key sequence with iteration loop. (based on<ref name="smith" />)]]

	As there occur numerous dynamic changes within the portfolio along with new interrelationships, a permanent high-quality OIPM is required to deliver project results and efficiency in doing so. As orientation the key sequence ''analyse'', ''involve'', ''align'' and ''execute'' can be taken as red line for the whole process, incorporating a mixture of analysis, IT processes and intense communication. It should be highlighted that this part of the IPM is the most people-driven process, making it also a very vulnerable one. In Figure 4 the key sequence is displayed together with a dynamic iteration loop . In order to achieve engagement and correlated with that motivation of all involved resource groups they should be taken into consideration during the build-up of the innovation project portfolio plan and the related resource allocation. This is an essential building brick for success, as the team is pressured with stressful deadlines, multiple simultaneous projects demanding multiple roles. Also should the amount of analysed data during the permanent reviewing of the ongoing process be kept at a reasonable level, meaning to keep the whole system agile instead of bureaucratic and sluggish.<ref name="smith" /><ref name="rui" />		As there occur numerous dynamic changes within the portfolio along with new interrelationships, a permanent high-quality OIPM is required to deliver project results and efficiency in doing so. As orientation the key sequence ''analyse'', ''involve'', ''align'' and ''execute'' can be taken as red line for the whole process, incorporating a mixture of analysis, IT processes and intense communication. It should be highlighted that this part of the IPM is the most people-driven process, making it also a very vulnerable one. In Figure 4 the key sequence is displayed together with a dynamic iteration loop . In order to achieve engagement and correlated with that motivation of all involved resource groups they should be taken into consideration during the build-up of the innovation project portfolio plan and the related resource allocation. This is an essential building brick for success, as the team is pressured with stressful deadlines, multiple simultaneous projects demanding multiple roles. Also should the amount of analysed data during the permanent reviewing of the ongoing process be kept at a reasonable level, meaning to keep the whole system agile instead of bureaucratic and sluggish.<ref name="smith" /><ref name="rui" />

Stefan.schenk at 19:41, 26 September 2016

2016-09-26T19:41:33Z

← Older revision		Revision as of 19:41, 26 September 2016
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	==== Tactical Resource Allocation ====		==== Tactical Resource Allocation ====
	Executing the strategic portfolio plan in an efficient way requires integrated planning, managing of project interdependencies, tactical resource allocation as well as distribution of hard- and soft-skills across the project requirements. Especially the tactical resource allocation is a critical capability to master the OIPM.		Executing the strategic portfolio plan in an efficient way requires integrated planning, managing of project interdependencies, tactical resource allocation as well as distribution of hard- and soft-skills across the project requirements. Especially the tactical resource allocation is a critical capability to master the OIPM.
	[[File:OIPM.jpg\|~~670px~~\|right\|thumb\|Figure 4: OIPM key sequence with iteration loop. (based on<ref name="smith" />)]]		[[File:OIPM.jpg\|655px\|right\|thumb\|Figure 4: OIPM key sequence with iteration loop. (based on<ref name="smith" />)]]

	As there occur numerous dynamic changes within the portfolio along with new interrelationships, a permanent high-quality OIPM is required to deliver project results and efficiency in doing so. As orientation the key sequence ''analyse'', ''involve'', ''align'' and ''execute'' can be taken as red line for the whole process, incorporating a mixture of analysis, IT processes and intense communication. It should be highlighted that this part of the IPM is the most people-driven process, making it also a very vulnerable one. In Figure 4 the key sequence is displayed together with a dynamic iteration loop . In order to achieve engagement and correlated with that motivation of all involved resource groups they should be taken into consideration during the build-up of the innovation project portfolio plan and the related resource allocation. This is an essential building brick for success, as the team is pressured with stressful deadlines, multiple simultaneous projects demanding multiple roles. Also should the amount of analysed data during the permanent reviewing of the ongoing process be kept at a reasonable level, meaning to keep the whole system agile instead of bureaucratic and sluggish.<ref name="smith" /><ref name="rui" />		As there occur numerous dynamic changes within the portfolio along with new interrelationships, a permanent high-quality OIPM is required to deliver project results and efficiency in doing so. As orientation the key sequence ''analyse'', ''involve'', ''align'' and ''execute'' can be taken as red line for the whole process, incorporating a mixture of analysis, IT processes and intense communication. It should be highlighted that this part of the IPM is the most people-driven process, making it also a very vulnerable one. In Figure 4 the key sequence is displayed together with a dynamic iteration loop . In order to achieve engagement and correlated with that motivation of all involved resource groups they should be taken into consideration during the build-up of the innovation project portfolio plan and the related resource allocation. This is an essential building brick for success, as the team is pressured with stressful deadlines, multiple simultaneous projects demanding multiple roles. Also should the amount of analysed data during the permanent reviewing of the ongoing process be kept at a reasonable level, meaning to keep the whole system agile instead of bureaucratic and sluggish.<ref name="smith" /><ref name="rui" />

Stefan.schenk at 19:39, 26 September 2016

2016-09-26T19:39:18Z

← Older revision		Revision as of 19:39, 26 September 2016
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	==== Tactical Resource Allocation ====		==== Tactical Resource Allocation ====
	Executing the strategic portfolio plan in an efficient way requires integrated planning, managing of project interdependencies, tactical resource allocation as well as distribution of hard- and soft-skills across the project requirements. Especially the tactical resource allocation is a critical capability to master the OIPM.		Executing the strategic portfolio plan in an efficient way requires integrated planning, managing of project interdependencies, tactical resource allocation as well as distribution of hard- and soft-skills across the project requirements. Especially the tactical resource allocation is a critical capability to master the OIPM.
	[[File:OIPM.jpg\|~~650px~~\|right\|thumb\|Figure 4: OIPM key sequence with iteration loop. (based on<ref name="smith" />)]]		[[File:OIPM.jpg\|670px\|right\|thumb\|Figure 4: OIPM key sequence with iteration loop. (based on<ref name="smith" />)]]

	As there occur numerous dynamic changes within the portfolio along with new interrelationships, a permanent high-quality OIPM is required to deliver project results and efficiency in doing so. As orientation the key sequence ''analyse'', ''involve'', ''align'' and ''execute'' can be taken as red line for the whole process, incorporating a mixture of analysis, IT processes and intense communication. It should be highlighted that this part of the IPM is the most people-driven process, making it also a very vulnerable one. In Figure 4 the key sequence is displayed together with a dynamic iteration loop . In order to achieve engagement and correlated with that motivation of all involved resource groups they should be taken into consideration during the build-up of the innovation project portfolio plan and the related resource allocation. This is an essential building brick for success, as the team is pressured with stressful deadlines, multiple simultaneous projects demanding multiple roles. Also should the amount of analysed data during the permanent reviewing of the ongoing process be kept at a reasonable level, meaning to keep the whole system agile instead of bureaucratic and sluggish.<ref name="smith" /><ref name="rui" />		As there occur numerous dynamic changes within the portfolio along with new interrelationships, a permanent high-quality OIPM is required to deliver project results and efficiency in doing so. As orientation the key sequence ''analyse'', ''involve'', ''align'' and ''execute'' can be taken as red line for the whole process, incorporating a mixture of analysis, IT processes and intense communication. It should be highlighted that this part of the IPM is the most people-driven process, making it also a very vulnerable one. In Figure 4 the key sequence is displayed together with a dynamic iteration loop . In order to achieve engagement and correlated with that motivation of all involved resource groups they should be taken into consideration during the build-up of the innovation project portfolio plan and the related resource allocation. This is an essential building brick for success, as the team is pressured with stressful deadlines, multiple simultaneous projects demanding multiple roles. Also should the amount of analysed data during the permanent reviewing of the ongoing process be kept at a reasonable level, meaning to keep the whole system agile instead of bureaucratic and sluggish.<ref name="smith" /><ref name="rui" />

Stefan.schenk at 19:37, 26 September 2016

2016-09-26T19:37:20Z

← Older revision		Revision as of 19:37, 26 September 2016
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	==== Tactical Resource Allocation ====		==== Tactical Resource Allocation ====
	Executing the strategic portfolio plan in an efficient way requires integrated planning, managing of project interdependencies, tactical resource allocation as well as distribution of hard- and soft-skills across the project requirements. Especially the tactical resource allocation is a critical capability to master the OIPM.		Executing the strategic portfolio plan in an efficient way requires integrated planning, managing of project interdependencies, tactical resource allocation as well as distribution of hard- and soft-skills across the project requirements. Especially the tactical resource allocation is a critical capability to master the OIPM.
	[[File:OIPM.jpg\|~~800px~~\|right\|thumb\|Figure 4: OIPM key sequence with iteration loop. (based on<ref name="smith" />)]]		[[File:OIPM.jpg\|650px\|right\|thumb\|Figure 4: OIPM key sequence with iteration loop. (based on<ref name="smith" />)]]

	As there occur numerous dynamic changes within the portfolio along with new interrelationships, a permanent high-quality OIPM is required to deliver project results and efficiency in doing so. As orientation the key sequence ''analyse'', ''involve'', ''align'' and ''execute'' can be taken as red line for the whole process, incorporating a mixture of analysis, IT processes and intense communication. It should be highlighted that this part of the IPM is the most people-driven process, making it also a very vulnerable one. In Figure 4 the key sequence is displayed together with a dynamic iteration loop . In order to achieve engagement and correlated with that motivation of all involved resource groups they should be taken into consideration during the build-up of the innovation project portfolio plan and the related resource allocation. This is an essential building brick for success, as the team is pressured with stressful deadlines, multiple simultaneous projects demanding multiple roles. Also should the amount of analysed data during the permanent reviewing of the ongoing process be kept at a reasonable level, meaning to keep the whole system agile instead of bureaucratic and sluggish.<ref name="smith" /><ref name="rui" />		As there occur numerous dynamic changes within the portfolio along with new interrelationships, a permanent high-quality OIPM is required to deliver project results and efficiency in doing so. As orientation the key sequence ''analyse'', ''involve'', ''align'' and ''execute'' can be taken as red line for the whole process, incorporating a mixture of analysis, IT processes and intense communication. It should be highlighted that this part of the IPM is the most people-driven process, making it also a very vulnerable one. In Figure 4 the key sequence is displayed together with a dynamic iteration loop . In order to achieve engagement and correlated with that motivation of all involved resource groups they should be taken into consideration during the build-up of the innovation project portfolio plan and the related resource allocation. This is an essential building brick for success, as the team is pressured with stressful deadlines, multiple simultaneous projects demanding multiple roles. Also should the amount of analysed data during the permanent reviewing of the ongoing process be kept at a reasonable level, meaning to keep the whole system agile instead of bureaucratic and sluggish.<ref name="smith" /><ref name="rui" />

Stefan.schenk at 19:26, 26 September 2016

2016-09-26T19:26:45Z

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	<ref name="gosenheimer">C. Gosenheimer, ''Project Prioritization - A Structured Approach To Working On What Matters Most'', ''Office of Quality Improvement - University of Wisconsin-Madison'',(2012). '''Summary:''' This paper is about how to prioritize and separate high priority projects from lower priority projects. It gives some good implications about prioritization in general as well as about scoring methods (matrices) for reaching a portfolio priority list.</ref>		<ref name="gosenheimer">C. Gosenheimer, ''Project Prioritization - A Structured Approach To Working On What Matters Most'', ''Office of Quality Improvement - University of Wisconsin-Madison'',(2012). '''Summary:''' This paper is about how to prioritize and separate high priority projects from lower priority projects. It gives some good implications about prioritization in general as well as about scoring methods (matrices) for reaching a portfolio priority list.</ref>

	<ref name="		<ref name="business">''Definition: Resource', (Business Dictionary, 2016), http://www.businessdictionary.com/definition/resource.html#ixzz4KvG19p3i. '''Summary:''' Business Dictionary online encyclopedia. Definition on the meaning of a resource.</ref>
			</references>

Stefan.schenk at 17:29, 26 September 2016

2016-09-26T17:29:47Z

Stefan.schenk at 17:22, 26 September 2016

2016-09-26T17:22:23Z

← Older revision		Revision as of 17:22, 26 September 2016
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	The combination of different approaches via an interactive, computer-based [https://en.wikipedia.org/wiki/Decision_support_system ''Decision Support System (DSS)''] is also a possibility, giving decision makers the possibility of simulating different scenarios in an user-friendly way or prioritize concerning special goals (e.g. main focus on strategic alignment<ref name="kipper" />). The most suppressing fact of most research approaches is their extreme mathematical complexity, making the assistance of an expert decision analyst necessary for a "normal" manager to use such a system.<ref name="henriksen" />		The combination of different approaches via an interactive, computer-based [https://en.wikipedia.org/wiki/Decision_support_system ''Decision Support System (DSS)''] is also a possibility, giving decision makers the possibility of simulating different scenarios in an user-friendly way or prioritize concerning special goals (e.g. main focus on strategic alignment<ref name="kipper" />). The most suppressing fact of most research approaches is their extreme mathematical complexity, making the assistance of an expert decision analyst necessary for a "normal" manager to use such a system.<ref name="henriksen" />

	The most common way, and also the most reasonable way concerning the macro-perspective and dimension of this article, are scoring methods. They enable the deciders to quickly find the projects with the highest merit without being completely dependent on early estimates. There exist many indicators which possibly can be applied in the scoring model. The identification, emphasis and number of such success factors for an innovation is a very demanding task making it part of big research efforts over the last decades. Depending on the competitive structure of a market, each industry is confronted with a particular array of challenges, which are not relevant at all to other industries. Consequently there exists a particular set of scoring criteria which have to be applied for the decision process, unique to each firm.<ref name="juliana" />. A good "basic" set of reasonable criteria to build a scoring model around are 'benefits', 'cost', 'risk', 'market share', 'technical feasibility' and 'margin', covering the most important aspects to consider.<ref name="blumhorst" />		The most common way, and also the most reasonable way concerning the macro-perspective and dimension of this article, are scoring methods. They enable the deciders to quickly find the projects with the highest merit without being completely dependent on early estimates. There exist many indicators which possibly can be applied in the scoring model. The identification, emphasis and number of such success factors for an innovation is a very demanding task making it part of big research efforts over the last decades. Depending on the competitive structure of a market, each industry is confronted with a particular array of challenges, which are not relevant at all to other industries. Consequently there exists a particular set of scoring criteria which have to be applied for the decision process, unique to each firm.<ref name="juliana" />. A good "basic" set of reasonable criteria to build a scoring model around are ''benefits'', ''cost'', ''risk'', ''market share'', ''technical feasibility'' and ''margin'', covering the most important aspects to consider.<ref name="blumhorst" />

	If a less detailed, rather fast overview of the potential of projects is demanded, different analytical tools with different approaches and focus areas can be used. Examples are the [https://en.wikipedia.org/wiki/Growth%E2%80%93share_matrix ''Boston Consulting Group Growth-share Matrix (BCG Matrix)''] and the [https://en.wikipedia.org/wiki/G._E._multi_factoral_analysis ''McKinsey Matrix'']. These tools are mainly focusing on two, maximum three indicators in order to facilitate a depiction of the analysis. So the BCG Matrix uses relative market share and industry growth rate in a four-cell matrix as success determinants, whereas the McKinsey Matrix focuses on competitive position of a company and industry attractiveness within a nine-cell matrix. These tools however have to be used carefully as they cannot capture the complexity of a innovation portfolio decision process. So criticism of the matrices addresses among others the difficulties of measuring the chosen indicators, a lack of market structure consideration, the high uncertainty and the approach of viewing the portfolio as a closed system.<ref name="juliana" />		If a less detailed, rather fast overview of the potential of projects is demanded, different analytical tools with different approaches and focus areas can be used. Examples are the [https://en.wikipedia.org/wiki/Growth%E2%80%93share_matrix ''Boston Consulting Group Growth-share Matrix (BCG Matrix)''] and the [https://en.wikipedia.org/wiki/G._E._multi_factoral_analysis ''McKinsey Matrix'']. These tools are mainly focusing on two, maximum three indicators in order to facilitate a depiction of the analysis. So the BCG Matrix uses relative market share and industry growth rate in a four-cell matrix as success determinants, whereas the McKinsey Matrix focuses on competitive position of a company and industry attractiveness within a nine-cell matrix. These tools however have to be used carefully as they cannot capture the complexity of a innovation portfolio decision process. So criticism of the matrices addresses among others the difficulties of measuring the chosen indicators, a lack of market structure consideration, the high uncertainty and the approach of viewing the portfolio as a closed system.<ref name="juliana" />
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	<ref name="gosenheimer">C. Gosenheimer, ''Project Prioritization - A Structured Approach To Working On What Matters Most'', ''Office of Quality Improvement - University of Wisconsin-Madison'',(2012). '''Summary:''' This paper is about how to prioritize and separate high priority projects from lower priority projects. It gives some good implications about prioritization in general as well as about scoring methods (matrices) for reaching a portfolio priority list.</ref>		<ref name="gosenheimer">C. Gosenheimer, ''Project Prioritization - A Structured Approach To Working On What Matters Most'', ''Office of Quality Improvement - University of Wisconsin-Madison'',(2012). '''Summary:''' This paper is about how to prioritize and separate high priority projects from lower priority projects. It gives some good implications about prioritization in general as well as about scoring methods (matrices) for reaching a portfolio priority list.</ref>

	<ref name="business">''Definition: Resource', (Business Dictionary, 2016), http://www.businessdictionary.com/definition/resource.html#ixzz4KvG19p3i. '''Summary:''' Business Dictionary online encyclopedia. Definition of a resource.</ref>		<ref name="
	~~</references>~~

Stefan.schenk at 17:21, 26 September 2016

2016-09-26T17:21:33Z

Show changes

Stefan.schenk at 21:25, 25 September 2016

2016-09-25T21:25:35Z

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	== Limitations and Future Research ==		== Limitations and Future Research ==
	After having read the above article, it gets obvious that the ~~field~~ of PPM and IPM in particular are relatively young disciplines. Consequently there neither exists a scientifically reliable and proven approach for the whole IPM process, nor a set of specifically tailored tools for the most efficient execution of the process. It is so far rather an accumulation of existing ideas and tools from similar disciplines which are put together to form one framework in the context of IPM. Especially the efficient and effective management of the complexity arising from the multi-project setup and its countless interdependencies is a huge challenge, which is not solved out so far. If this is facilitated together with a permanent linkage between nominal strategy definition and innovation project portfolio execution, IPM can contribute to companies' innovation portfolio success without any doubt. Due to the currently low maturity level however it is recommended for companies willing to introduce an IPM system to start as simple as possible and further develop the approach over time.<ref name="scott" /> Another limitation of the presented approach is the assumption to relate resources solely to human resources. In reality resources, which need to be managed within an innovation portfolio, can exemplarily also compromise information, expertise or facilities.<ref name="business" /> This fact further complicates the management process.		After having read the above article, it gets obvious that the fields of PPM and IPM in particular are relatively young disciplines. Consequently there neither exists a scientifically reliable and proven approach for the whole IPM process, nor a set of specifically tailored tools for the most efficient execution of the process. It is so far rather an accumulation of existing ideas and tools from similar disciplines which are put together to form one framework in the context of IPM. Especially the efficient and effective management of the complexity arising from the multi-project setup and its countless interdependencies is a huge challenge, which is not solved out so far. If this is facilitated together with a permanent linkage between nominal strategy definition and innovation project portfolio execution, IPM can contribute to companies' innovation portfolio success without any doubt. Due to the currently low maturity level however it is recommended for companies willing to introduce an IPM system to start as simple as possible and further develop the approach over time.<ref name="scott" /> Another limitation of the presented approach is the assumption to relate resources solely to human resources. In reality resources, which need to be managed within an innovation portfolio, can exemplarily also compromise information, expertise or facilities.<ref name="business" /> This fact further complicates the management process.

	Various potentials for improvement of the methodic through further future research work have been identified. In the author's opinion research should mainly focus on the following areas:		Various potentials for improvement of the methodic through further future research work have been identified. In the author's opinion research should mainly focus on the following areas:

← Older revision		Revision as of 17:29, 26 September 2016
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	=== Operational Innovation Portfolio Management (OIPM) ===		=== Operational Innovation Portfolio Management (OIPM) ===
	The main purpose of the OIPM process an efficient execution of the strategic portfolio decisions along with a cyclic review and adjustment process on the tactical level, which is elaborated more deeply in the following two ~~subchapters~~.		The main purpose of the OIPM process an efficient execution of the strategic portfolio decisions along with a cyclic review and adjustment process on the tactical level, which is elaborated more deeply in the following two sections.
	==== Tactical Resource Allocation ====		==== Tactical Resource Allocation ====
	Executing the strategic portfolio plan in an efficient way requires integrated planning, managing of project interdependencies, tactical resource allocation as well as distribution of hard- and soft-skills across the project requirements. Especially the tactical resource allocation is a critical capability to master the OIPM.		Executing the strategic portfolio plan in an efficient way requires integrated planning, managing of project interdependencies, tactical resource allocation as well as distribution of hard- and soft-skills across the project requirements. Especially the tactical resource allocation is a critical capability to master the OIPM.
	[[File:OIPM.jpg\|800px\|right\|thumb\|Figure 4: OIPM key sequence with iteration loop. (based on<ref name="smith" />)]]		[[File:OIPM.jpg\|800px\|right\|thumb\|Figure 4: OIPM key sequence with iteration loop. (based on<ref name="smith" />)]]

	As there occur numerous dynamic changes within the portfolio along with new interrelationships, a permanent high-quality OIPM is required to deliver project results and efficiency in doing so. As orientation the key sequence "analyse", "involve", "align" and "execute" can be taken as red line for the whole process, incorporating a mixture of analysis, IT processes and intense communication. It should be highlighted that this part of the IPM is the most people-driven process, making it also a very vulnerable one. In Figure 4 the key sequence is displayed together with a dynamic iteration loop . In order to achieve engagement and correlated with that motivation of all involved resource groups they should be taken into consideration during the build-up of the innovation project portfolio plan and the related resource allocation. This is an essential building brick for success, as the team is pressured with stressful deadlines, multiple simultaneous projects demanding multiple roles. Also should the amount of analysed data during the permanent reviewing of the ongoing process be kept at a reasonable level, meaning to keep the whole system agile instead of bureaucratic and sluggish.<ref name="smith" /><ref name="rui" />		As there occur numerous dynamic changes within the portfolio along with new interrelationships, a permanent high-quality OIPM is required to deliver project results and efficiency in doing so. As orientation the key sequence ''analyse'', ''involve'', ''align'' and ''execute'' can be taken as red line for the whole process, incorporating a mixture of analysis, IT processes and intense communication. It should be highlighted that this part of the IPM is the most people-driven process, making it also a very vulnerable one. In Figure 4 the key sequence is displayed together with a dynamic iteration loop . In order to achieve engagement and correlated with that motivation of all involved resource groups they should be taken into consideration during the build-up of the innovation project portfolio plan and the related resource allocation. This is an essential building brick for success, as the team is pressured with stressful deadlines, multiple simultaneous projects demanding multiple roles. Also should the amount of analysed data during the permanent reviewing of the ongoing process be kept at a reasonable level, meaning to keep the whole system agile instead of bureaucratic and sluggish.<ref name="smith" /><ref name="rui" />

	As the PPM systematic is more dealing with managerial and organizational aspects, research attempted to tackle the challenge of resource allocation in a more elaborated and systematic way by applying techniques previously suggested for multi-project settings. Examples are the [http://staff.aub.edu.lb/~ay11/Priority%20Rules_IJPE2010.pdf ''Resource Constrained Multi-Project Scheduling Problem (RCMPSP)''], [https://en.wikipedia.org/wiki/Agile_management ''Agile''] and [https://en.wikipedia.org/wiki/Critical_chain_project_management ''Critical Chain Approaches'']. In Table 1 the main strengths and weaknesses are displayed. If more detailed knowledge of the methods in this context is required, further reading can be found in the linked scientific papers within Table 1. However, even if the transformation of these multi-project setting techniques can help during the resource allocation to a certain degree, their meaningfulness is limited due to the highly dynamic environment and the dependency complexity between the innovation projects.		As the PPM systematic is more dealing with managerial and organizational aspects, research attempted to tackle the challenge of resource allocation in a more elaborated and systematic way by applying techniques previously suggested for multi-project settings. Examples are the [http://staff.aub.edu.lb/~ay11/Priority%20Rules_IJPE2010.pdf ''Resource Constrained Multi-Project Scheduling Problem (RCMPSP)''], [https://en.wikipedia.org/wiki/Agile_management ''Agile''] and [https://en.wikipedia.org/wiki/Critical_chain_project_management ''Critical Chain Approaches'']. In Table 1 the main strengths and weaknesses are displayed. If more detailed knowledge of the methods in this context is required, further reading can be found in the linked scientific papers within Table 1. However, even if the transformation of these multi-project setting techniques can help during the resource allocation to a certain degree, their meaningfulness is limited due to the highly dynamic environment and the dependency complexity between the innovation projects.
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	The high complexity of project portfolio resource allocation originates from various reasons. The most important ones are:<ref name="rui" />		The high complexity of project portfolio resource allocation originates from various reasons. The most important ones are:<ref name="rui" />
	* Dynamic scope changes: The innovation projects' scope usually changes during the development cycle ("scope creep")		* ''Dynamic scope changes'': The innovation projects' scope usually changes during the development cycle ("scope creep")
	* Innovation risk: The nature of innovation always incorporates a certain degree of uncertainty.		* ''Innovation risk'': The nature of innovation always incorporates a certain degree of uncertainty.
	* Complexity of inter- and intra-project technical dependencies: Changes occuring in an innovation project propagate to other portfolio projects due to complex technical dependencies among them.		* ''Complexity of inter- and intra-project technical dependencies'': Changes occuring in an innovation project propagate to other portfolio projects due to complex technical dependencies among them.
	* Resource management inefficiency: Real resource availability is smaller than officially estimated by the OIPM due to distractions from daily work.		* ''Resource management inefficiency'': Real resource availability is smaller than officially estimated by the OIPM due to distractions from daily work.
	* Lack of reliable resource information: The assumption of perfect availability of project and program level information is not given in the real world.		* ''Lack of reliable resource information'': The assumption of perfect availability of project and program level information is not given in the real world.

	==== Cyclic Review and Adjustment Process ====		==== Cyclic Review and Adjustment Process ====
	OPM reviews on the tactical level, taking place at an appropriate frequency for the related industry and product development cycles, have to be based on what is important quantitatively and qualitatively. During the cyclic reviews the project plan is permanently adjusted ~~concerning~~ to resource availability and optimization potentials. Parallel to that there also takes place a continuous revision process from the OIPM to the SIPM, ensuring a permanent supply with information within the whole IPM system (see Figure 2).		OPM reviews on the tactical level, taking place at an appropriate frequency for the related industry and product development cycles, have to be based on what is important quantitatively and qualitatively. During the cyclic reviews the project plan is permanently adjusted in regard to resource availability and optimization potentials. Parallel to that there also takes place a continuous revision process from the OIPM to the SIPM, ensuring a permanent supply with information within the whole IPM system (see Figure 2).

	Overall the systematic with the SIPM, the OIPM and the permanent reviewing, revising and information processes, give the IPM extreme high flexibility and the ability to answer rapid to any changing conditions. Also the gap between intended strategy and operations is narrowed.<ref name="smith" />		Overall the systematic with the SIPM, the OIPM and the permanent reviewing, revising and information processes, give the IPM extreme high flexibility and the ability to answer rapid to any changing conditions. Also the gap between intended strategy and operations is narrowed.<ref name="smith" />

	== Limitations and Future Research ==		== Limitations and Future Research ==
	~~After having read the above article, it gets obvious~~ that the fields of PPM and IPM in particular are relatively young disciplines. ~~Consequently there~~ neither exists a scientifically reliable and proven approach for the whole IPM process, nor a set of specifically tailored tools for the most efficient execution of the process. It is so far rather an accumulation of existing ideas and tools from similar disciplines which are put together to form one framework in the context of IPM. Especially the efficient and effective management of the complexity arising from the multi-project setup and its countless interdependencies is a huge challenge, which is not solved out so far. If this is facilitated together with a permanent linkage between nominal strategy definition and innovation project portfolio execution, IPM can contribute to companies' innovation portfolio success without any doubt. Due to the currently low maturity level however it is recommended for companies willing to introduce an IPM system to start as simple as possible and further develop the approach over time.<ref name="scott" /> Another limitation of the presented approach is the assumption to relate resources solely to human resources. In reality resources, which need to be managed within an innovation portfolio, can exemplarily also compromise information, expertise or facilities.<ref name="business" /> This fact further complicates the management process.		The study of related literature reveals that the fields of PPM and IPM in particular are relatively young disciplines. There neither exists a scientifically reliable and proven approach for the whole IPM process, nor a set of specifically tailored tools for the most efficient execution of the process. It is so far rather an accumulation of existing ideas and tools from similar disciplines which are put together to form one framework in the context of IPM. Especially the efficient and effective management of the complexity arising from the multi-project setup and its countless interdependencies is a huge challenge, which is not solved out so far. If this is facilitated together with a permanent linkage between nominal strategy definition and innovation project portfolio execution, IPM can contribute to companies' innovation portfolio success without any doubt. Due to the currently low maturity level however it is recommended for companies willing to introduce an IPM system to start as simple as possible and further develop the approach over time.<ref name="scott" /> Another limitation of the presented approach is the assumption to relate resources solely to human resources. In reality resources, which need to be managed within an innovation portfolio, can exemplarily also compromise information, expertise or facilities.<ref name="business" /> This fact further complicates the management process.

	Various potentials for improvement of the methodic through further ~~future~~ research ~~work~~ have been identified. In the author's opinion research should mainly focus on the following areas:		Various potentials for improvement of the methodic through further research have been identified. In the author's opinion research should mainly focus on the following areas:

	* Research on risk management and the associated success in an innovation project portfolio context is very sacre. The knowledge in that field should be further deepened as it can contribute critically to successful IPM. It supports the alignment as well as redistribution of resources between projects~~, enhancing~~ portfolio transparency. Also a portfolio-wide risk management is capable to identify in multiple projects simultaneously arising risks, which gives the possibility to consolidate activities and prevent double-work. Thus possible failure can be avoided and the possibility of project success is increased. ~~On the other hand~~ it has to be considered how complex and expensive the implementation of such a kind of system is.<ref name="JULIANE" />		* Research on risk management and the associated success in an innovation project portfolio context is very sacre. The knowledge in that field should be further deepened as it can contribute critically to successful IPM. It supports the alignment as well as redistribution of resources between projects and enhances portfolio transparency. Also a portfolio-wide risk management is capable to identify in multiple projects simultaneously arising risks, which gives the possibility to consolidate activities and prevent double-work. Thus possible failure can be avoided and the possibility of project success is increased. However, it has to be considered how complex and expensive the implementation of such a kind of system is.<ref name="JULIANE" />

	* So far there exists the PPM standard approach utilized to gain oversight over the innovation projects. This means the focus lies hereby on project selection and prioritization , without giving any contribution to the management of resources among the projects within the portfolio. The latter one is currently tried to be solved out in research by usage of multi-project management tools, as already described above. So there exist two approaches to handle the overall strategic and operational IPM challenge. They are not contradictory, but at the same time they cannot be combined in a way to design an effective coordination of all resourcing decisions. This lack of an integrated process clarifies the necessity of a reconceptualised management process designed for IPM.<ref name="rui" />		* So far there exists the PPM standard approach utilized to gain oversight over the innovation projects. This means the focus lies hereby on project selection and prioritization , without giving any contribution to the management of resources among the projects within the portfolio. The latter one is currently tried to be solved out in research by usage of multi-project management tools, as already described above. So there exist two approaches to handle the overall strategic and operational IPM challenge. They are not contradictory, but at the same time they cannot be combined in a way to design an effective coordination of all resourcing decisions. This lack of an integrated process clarifies the necessity of a reconceptualised management process designed for IPM.<ref name="rui" />