Market Research:The technique is basically used to gather data for new product or services demand forecasting.It is based on models or ideas presented to possible clients for impending market assessmentor evaluation. Its several techniques of using panel groups, focus groups, consumer panels,perceptual mappings, and preference mapping, is good for gauging customers as well asconsumers and competitors perceptions, but has the disadvantages from far assuring thatresults assessment are indeed real-life reality.Portfolio Matrices:Most companies use this method for new product planning. One of its popular practices such asbubble diagrams is used to display 3D/4D parameter values. Most techniques have to be usedin combination with other tool, and have little theoretical support, and mislead decision makersin profit maximization.Comparative Approaches:Techniques include Q-sort, the AHP or Analytic Hierarchy Process (AHP), the pair-wisecomparison, and Data Envelopment Analysis. Different objectives weights are defined, andalternatives compared to determine their contributions to these objectives, and project benefitmeasurement computation and organized for decision-making based on a comparative scale.Some advantages of the method is its guidance provision in selecting projects; its quantitative,qualitative and judgment criteria. One if its biggest disadvantage is its creates a very large datafor comparisons, making them difficult to use in large portfolios analysis; and the process isrepeated anytime there is an additional project or deletion of a project in the portfolio.
Scoring Models:Morris and Pinto (2010) referenced Martino (1995) saying the models is used for decisioncriteria such as cost, available workforce, technical success probability to specify projectdesirability. The models are based on some format of mathematical programming that supportthe project optimization process and interaction. Some techniques select candidate projects thatprovide maximum benefits. The good thing about scoring models is that it is easy to use; theaddition or delete of any projects does not require recalculation of the value or weight of other projects. Scoring models are probably the easiest to use of all the models, and they can beused in the combined measurement of both quantity and quality scoring.Optimization Models:The models are based on some format of mathematical programming, to support processoptimization and sensitivity analysis; include project interactions. It is not used generally inpractice to the need to collect bulky input data, and has no ability to include risk, and modelcomplexity. However, the model can be used to calculate project benefit values.Portfolio Decision Support Systems:These are characteristically based on mathematical optimisation approach that selects aportfolio from a listing of candidate projects that provides maximum overall benefit. If the modelis combined with interactive display of results, it provides decision makers the ability to adjusttheir portfolio based on nonquantifiable judgments.