<p>Organizational researchers have long considered innovation a critical activity. While insightful regarding the nature of the innovation process and the rewards and risk associated with innovation, prior work has neglected the perspective that innovations function within a firm's wider product portfolio. This perspective enables assessment of when innovations truly generate value for firms and the mechanisms through which it does so. I propose a general theory for how innovation creates new value for a firm and apply this theory to understanding how new value from innovation is reflected in the changes it manifests in the diversity of a firm's product portfolio.</p><p>This dissertation addresses these issues by examining how innovation introductions drive two types of changes in the firm's portfolio - product portfolio and within-brand portfolio diversification - and how those changes influence the new value firms will capture. In addition, I examine the degree to which these outcomes are contingent upon the characteristics of the innovation itself. Thus, I address the inherent interdependencies in managing innovations while still capturing the influence of individual innovation characteristics. </p><p>The importance of this topic lies in both theory and practice. Theoretically, this work sheds light on the degree to which innovation value is a function of the value accrued to the innovation itself and its interdependency with the firm's overall product and brand portfolios. Practically, understanding how the new value from innovation incorporates the effect of the innovation on the firm's portfolio enables firms to grasp how decisions they make regarding innovation pipelines and in managing their overall portfolio influences their expected success.</p> / Dissertation

Several environmental issues are incrementing systematically, and many of them are linked to manufacturing activities. To mitigate these issues, it is necessary to develop sustainability solutions in the early stages of the innovation process, where there is room for creativity and innovation. The integration of sustainability at the strategic level of the company, where the essential decisions, the strategic plan, and the portfolio are developed, might ensure the implementation of sustainability aspects in products and services. Many companies develop product portfolios to organize and offer services, products, technologies and operations following the company strategy and targets. The portfolio components are assessed and selected using evaluation criteria. The most common criteria include: cost, quality, risk, revenue, time and market position. Usually sustainability is not included in the portfolio evaluation criteria. The aim of this research is to obtain a better understanding of how sustainability can be integrated in the product portfolio development of manufacturing companies. The main research targets are to: 1) define sustainability product portfolio based on a comprehension of the academic and industry perspectives, 2) identify how companies currently implement sustainability in their portfolio, 3) determine which evaluation criteria and tools are used for portfolio development and 4) how the product portfolio is developed, implemented and managed. A systematic literature review was performed to understand the state of the art about sustainability product portfolio. The literature review results supported the development of semi-structure interviews with companies and field experts. The interviews outcome provided a better understanding of the industry perspective. Afterwards, a workshop helped to understand what aspects are more significant for the portfolio evaluation criteria. Finally, a strategic sustainability assessment tool SLCA 2.0 was used to assess a technology product portfolio of a specific industry case. The results from the studies created a foundation to: a) determine the state of art of the sustainability product portfolio field and its relevance for integration and implementation of sustainability in the early stages of the product innovation process, b) define the concept of sustainability product portfolio, c) have a better understanding of the setting and the application of the portfolio evaluation criteria and how to include sustainability in the evaluation, d) identify key factors to integrate and implement sustainability in the product portfolio, e) apply and test a tool for assessing a technology portfolio from a sustainability perspective and f) create a prototype of a model to develop  the product portfolio with a strategic sustainability perspective. This research provides a knowledge foundation of how sustainability can be integrated in product portfolio. In future research a model will be developed to support companies of how to include a strategic sustainability perspective into their product portfolio to enhance development of more sustainable solutions. / <p>Contact the author to receive a pdf of the full thesis (papers included): dcv@bth.se or telephone +46455385569</p>

O presente estudo analisou os diversos fatores que influenciam a tomada de decisões na gestão de rentabilidade do portfolio de produtos em empresas de bens de consumo, investigando os aspectos lógicos e comportamentais de liderança que influenciam este processo decisório para ao final do estudo propor um conjunto de diretrizes com oito etapas e vinte e cinco elementos específicos, que devem ser considerados na estruturação do processo decisório relacionado a uma gestão ativa da rentabilidade do portfólio de produtos em empresas de bens de consumo. Esta abordagem de gestão ativa proposta pelas diretrizes orienta o processo de decisão para identificar os desvios e buscar as causas dos problemas, atuando assim de forma mais estruturante e menos paliativa na gestão de rentabilidade do portfolio de produtos. As diretrizes propostas visam guiar as organizações de bens de consumo a adequarem suas práticas de gestão do portfolio de produtos com maior ciência sobre as variáveis que impactam o processo decisório quando se trata da gestão de rentabilidade em questão, envolvendo os aspectos quantitativos e qualitativos e suas inerentes complexidades, principalmente quando há neste processo de gestão diversos produtos, agentes e interesses distintos envolvidos. Como método, este estudo partiu da análise de um caso prático vivenciado pelo autor, para então explorar a teoria e posteriormente retornar à prática realizando três pesquisas de campo, iniciando com um estudo de caso único e seguido por outras duas pesquisas utilizando entrevistas em profundidade com gestores de produtos de outras empresas e especialistas no tema. / The present study analyzed the various factors that influence decision-making in the profitability management of the product portfolio in consumer goods companies, investigating the logical and behavioral aspects of leadership that influence this decision process to then at end of the study propose a set of guidelines with eight steps and twenty-five specific elements which should be considered in the structuring of the decision-making process related to an active profitability management of the product portfolio in consumer goods companies. This active management approach proposed by the guidelines guides the decision process to identify the deviations and to pursue the causes of the problems, thus acting in a more structuring and less palliative way in profitability management of the product portfolio. The proposed guidelines aim to guide consumer goods organizations to adapt their product portfolio management practices with greater knowledge about the variables that impact the decision-making process when it comes to the profitability management in question, involving the quantitative and qualitative aspects and their inherent complexities, especially when there are several products, agents and interests involved in this management process. As a method, this study started with the analysis of a practical case experienced by the author, to then explore the theory and then return to practice by performing three field surveys, starting with a single case study followed by two other surveys using in-depth interviews with product managers from other companies and experts in the subject.

Despite documented benefits, the processes described in the new product development literature often prove difficult to follow in practice. A principal source of such difficulties is the phenomenon of fire fighting the unplanned allocation of resources to fix problems discovered late in a product's development cycle. While it has been widely criticized, fire fighting is a common occurrence in many product development organizations. To understand both its existence and persistence, in this article I develop a formal model of fire fighting in a multi-project development environment. The major contributions of this analysis are to suggest that: (1) fire fighting can be a self-reinforcing phenomenon; and (2) multi-project development systems are far more susceptible to this dynamic than is currently appreciated. These insights suggest that many of the current methods for aggregate resource and product portfolio planning, while necessary, are not sufficient to prevent fire fighting and the consequent low performance. / MIT Center for Innovation in Product Development under NSF Cooperative Agreement Number EEC-9529140, the Harley-Davidson Motor Company and the Ford Motor Company

O presente estudo analisou os diversos fatores que influenciam a tomada de decisões na gestão de rentabilidade do portfolio de produtos em empresas de bens de consumo, investigando os aspectos lógicos e comportamentais de liderança que influenciam este processo decisório para ao final do estudo propor um conjunto de diretrizes com oito etapas e vinte e cinco elementos específicos, que devem ser considerados na estruturação do processo decisório relacionado a uma gestão ativa da rentabilidade do portfólio de produtos em empresas de bens de consumo. Esta abordagem de gestão ativa proposta pelas diretrizes orienta o processo de decisão para identificar os desvios e buscar as causas dos problemas, atuando assim de forma mais estruturante e menos paliativa na gestão de rentabilidade do portfolio de produtos. As diretrizes propostas visam guiar as organizações de bens de consumo a adequarem suas práticas de gestão do portfolio de produtos com maior ciência sobre as variáveis que impactam o processo decisório quando se trata da gestão de rentabilidade em questão, envolvendo os aspectos quantitativos e qualitativos e suas inerentes complexidades, principalmente quando há neste processo de gestão diversos produtos, agentes e interesses distintos envolvidos. Como método, este estudo partiu da análise de um caso prático vivenciado pelo autor, para então explorar a teoria e posteriormente retornar à prática realizando três pesquisas de campo, iniciando com um estudo de caso único e seguido por outras duas pesquisas utilizando entrevistas em profundidade com gestores de produtos de outras empresas e especialistas no tema. / The present study analyzed the various factors that influence decision-making in the profitability management of the product portfolio in consumer goods companies, investigating the logical and behavioral aspects of leadership that influence this decision process to then at end of the study propose a set of guidelines with eight steps and twenty-five specific elements which should be considered in the structuring of the decision-making process related to an active profitability management of the product portfolio in consumer goods companies. This active management approach proposed by the guidelines guides the decision process to identify the deviations and to pursue the causes of the problems, thus acting in a more structuring and less palliative way in profitability management of the product portfolio. The proposed guidelines aim to guide consumer goods organizations to adapt their product portfolio management practices with greater knowledge about the variables that impact the decision-making process when it comes to the profitability management in question, involving the quantitative and qualitative aspects and their inherent complexities, especially when there are several products, agents and interests involved in this management process. As a method, this study started with the analysis of a practical case experienced by the author, to then explore the theory and then return to practice by performing three field surveys, starting with a single case study followed by two other surveys using in-depth interviews with product managers from other companies and experts in the subject.

Companies invest their resources into different products. That constellation of products, how they interact with each other, and how they are positioned defines the company's Product Portfolio. Moreover, that constellation of products is critical for the company's financial success. The Product Portfolio evaluation is essential to assess if the company's resources are invested in the most efficient way or if there could be some optimizations that would improve the results. A key outcome is that in order to optimize the Product Portfolio, a company must first evaluate and characterize that portfolio. This work aims to define a methodology for holistically evaluating a company's portfolio by analyzing different parameters. This new methodology will be used in an example market. In this work, we ran the evaluation in the cloud computing market, a new market that is still growing but with few remarkable players that account for more than 50% of the market's total revenues. In the analysis of the cloud computing market and the main suppliers in the market, we will apply the suggested methodology. That would enable to summarize the main characteristics of the leading players' portfolios and provide optimization recommendations that would improve the portfolios' quality and ultimately the results of those companies.

Customer-centric business approaches have been theorized over the last decades (Sheth, Sisodia and Sharma, 2000; Sheth, Sethia and Srinivas, 2011; Rajagopal, 2020). However, the active usage of customer input for a successful product portfolio strategy is widespread but not yet fully implemented (Cooper, Edgett and Kleinschmidt, 2002). The co-creation aspects of having two equal partners in performing the product portfolio structuring task is a key issue for managers (Rajagopal, 2020). The aim is to find how customer input can be used as an important influencing factor for the product portfolio strategy. This aim is achieved through an analysis of the most commonly used influencing factors and the expert's assessment of information gathering procedures and their categorisation, supported by the Edvardsson et al. (2012) framework. Furthermore, a framework by Voss (2012) is examined regarding customer integration into project portfolio management to investigated possible additions. As an appropriate method, an exploratory approach with a single case study and semi-structured interviews of experts of the field is selected. The primary data of this case study is compared with a structured literature review, which consists of the latest theories on customer integration into the product portfolio strategy. Four major results are found. First, product portfolio strategy is mainly driven by financial input and not yet by customer input. Second, customer input should be collected through multiple channels. Thirdly, customer input is assessed as being a useful factor for the product portfolio strategy. Fourths the execution of input gathering is currently performed more towards past performances than for future-oriented input as needs and wishes for the product portfolio structuring. Finally, managerial implications with a method is provided for the collection, storage, analysis and distribution of customer input. In conclusion, the implementation fidelity of the future related customer input is not yet performed but desired. The approach of input collection from customers is considered to be valuable, however a suitable method is needed. Furthermore, two new connections can be made for the structuring phase of Voss’s framework and avenues for future research of the customer input integration are presented. / Över de senaste årtiondena har det teoretiserats kring affärmodeller koncentrerade kring konsumenterna (Sheth, Sisodia och Sharma, 2000; Sheth, Sethia och Srinivas, 2011; Rajagopal, 2020). Idèn att använda konsumenternas åsikter för att utveckla strategier kring sortimentet är välkänd, men ännu inte helt implementerad (Cooper, Edgett and Kleinschmidt, 2002). Frågorna kring hur två affärspartners tillsammans ska strukturera sina sortiment är av stor vikt för chefer (Rajagopal, 2020). Målet är att undersöka hur konsumenternas feedback kan användas för att påverka strategin avseende sortimentet. Detta uppnås genom en analys av de vanligaste fallen där kunderna påverkat strategin, samt utlåtanden från experter om insamling av information. Vidare undersöks ett ramverk från Voss (2012) vars syfte är att involvera kunderna i utformningen av sortimentet. En fallstudie samt öppna intervjufrågor till experter inom ämnet lade grunden till detta. Den viktigaste datan från studien jämfördes med aktuella teorier kring integration av kunder i utvecklingen av sortimentet. Resultatet visade framför allt fyra tydliga samband. Det första var att strategier kring sortiment framför allt drivs av finansiella faktorer, och inte konsumentkritik. Det andra var att feedback från kunderna borde samlas in från flera olika kanaler. Det tredje var att kundernas kritik värderades högt i utformningen av sortimentet, och det fjärde var att insamlingen av kritik från kunderna ofta fokuserar på utvärdering av tidigare sortiment, istället för att ta in önskemål från kunder om ändringar av sortimentet. Slutligen tillhandahålls en metod för insamling, förvaring, analys och distribution av kundernas kritik. Sammanfattningsvis är exaktheten för insamling av framtidsorienterad kritik ännu inte bra nog, men värderad högt. Att jobba tillsammans med kunderna anses mer värdefullt, speciellt när en lämplig metod är tillgänglig. Dessutom kan två nya kopplingar göras för strukturen i Voss's ramverk, och tillvägagångssätt för framtida forskning på konsumentkritik presenteras.

Abstract The main objective of this study is to clarify the current challenges and preconditions relating to product portfolio management (PPM) and widen the PPM framework over horizontal and vertical portfolios, including a related governance model, strategic performance management and the PPM process. This study analyses comprehensively the current PPM literature and the relevant practices of 10 case companies representing business areas such as hardware (HW), software (SW) and Services. This study approaches PPM from a more comprehensive viewpoint as all product life cycle phases and product structure levels are not covered well in this context by the earlier literature. The principal results of this study involve revealing the need for a new PPM governance model including strategic targets, KPIs and the PPM process according to vertical and horizontal portfolios. The created PPM framework clarifies the strategic role of PPM in cross-functional analysis and decision making for commercial and technical portfolios. The role and the impact of strategic PPM have been further enhanced by positioning the PPM process on the level of other business processes. The created PPM framework enhances the collaboration between business and engineering teams. The managerial implications include the potential preconditions of clarifying the dynamic and active role of PPM at the level of other business processes. The findings can aid business managers in understanding PPM as an entity that has a role in managing the entire product portfolio and its renewal based on strategic performance measures over horizontal and vertical portfolios according to cross-functional governance bodies. This highlights the criticality of managing all items both in commercial and technical portfolios. The role of other business processes should be highly operational by executing product development, marketing and sales, delivery and care activities according to PPM decisions. The primary role of PPM should be active management of the entire product portfolio over product life cycle phases and product structure levels, instead of merely focusing on new product development, to ensure product portfolio renewal. / Tiivistelmä Tämä tutkimus selventää tuoteportfolion hallintaan liittyviä edellytyksiä ja haasteita, sekä laajentaa tuoteportfolion hallintamallia, suorituskyvyn johtamista ja prosessia horisontaalisesti ja vertikaalisesti. Tuoteportfolion hallintaa on lähestytty kattavasti analysoimalla nykyistä kirjallisuutta, sekä kymmenen kohdeyrityksen käytänteitä nykytila-analyysin keinoin. Kohdeyritykset edustavat useita liiketoiminta- ja tuotealueita kattaen laitteiston, ohjelmiston ja palvelut. Tämä tutkimus lähestyy tuoteportfolion hallintaa laajemmalta katsantokannalta kuin nykyinen kirjallisuus joka ei kata kaikkia tuotteen elinkaaren vaiheita ja tuoterakennetasoja. Tämän väitöstutkimuksen tärkeimmät tulokset liittyvät uuden tuoteportfolion hallintamallin tarpeellisuuden esille tuomiseen, sisältäen tuoteportfolion strategiset tavoitteet, suorituskykymittarit ja hallintaprosessin perustuen vertikaalisiin ja horisontaalisiin tuoteportfolioihin. Luotu viitekehys selkeyttää tuoteportfolion hallinnan strategista roolia organisaatiorajat ja liiketoimintaprosessit ylittävässä analyysissa ja päätöksenteossa liittyen kaupallisiin ja teknisiin tuoteportfolioihin. Strategisen tuoteportfolion hallinnan roolia ja merkitystä on erityisesti korostettu nostamalla tuoteportfolion hallintaprosessi muiden liiketoimintaprosessien tasolle. Tässä tutkimuksessa luotu tuoteportfolion hallinnan viitekehys vahvistaa yhteistyötä liiketoiminnanjohto- ja insinööritiimien välillä kaikilla organisaatiotasoilla. Työn kontribuutiot yritysjohdolle korostavat tuoteportfolion hallintaprosessin keskitettyä, dynaamista ja aktiivista roolia johtaa yrityksen kaupallisia ja teknisiä nimikkeitä horisontaalisesti ja vertikaalisesti kokonaisuutena perustuen strategisiin suorituskykymittareihin. Tuoteportfolion hallinta yli horisontaalisten ja vertikaalisten portfolioiden mahdollistaa tuoteportfolion uudistumisen yli kaikkien elinkaarivaiheiden ja tuoterakennetasojen. Muiden liiketoimintaprosessien roolin tulisi olla selkeästi operatiivinen toteuttaen tuotekehitykseen, markkinointiin, myyntiin, tilaamiseen, hankintaan, toimittamiseen ja huoltoon liittyviä tehtäviä perustuen strategisiin tuoteportfolion hallinnan tavoitteisiin ja suorituskykymittareihin.

Submitted by JOSIANE SANTOS DE OLIVEIRA (josianeso) on 2018-04-26T16:40:35Z No. of bitstreams: 1 Jayme Diego Silva Peixoto_.pdf: 3682873 bytes, checksum: e3f3b08ba12067f318cd31d90d3ae999 (MD5) / Made available in DSpace on 2018-04-26T16:40:35Z (GMT). No. of bitstreams: 1 Jayme Diego Silva Peixoto_.pdf: 3682873 bytes, checksum: e3f3b08ba12067f318cd31d90d3ae999 (MD5) Previous issue date: 2018-02-26 / CAPES - Coordenação de Aperfeiçoamento de Pessoal de Nível Superior / A Gestão de Portfólio de Produtos tem atraído de maneira crescente o interesse de empresas e pesquisadores. Os esforços de pesquisa, por meio de evidências empíricas, indicam a necessidade de ampliação da aplicação de métodos formais para a Gestão de Portfólio de Produtos nas empresas. No entanto, são escassos os estudos na literatura que tratam de métodos direcionados à Revisão do Portfólio de Produtos. Pode-se observar nas publicações atuais, que questões conceituais e terminológicas acerca da Gestão de Portfólio de Produtos requerem atenção de pesquisadores. Portanto, é necessário identificar nos métodos para a Gestão de Portfólio de Produtos oportunidades para melhorar os resultados nas empresas. Para o desenvolvimento desta pesquisa utilizou-se a Design Science Research como abordagem metodológica. Este trabalho propõe um método financeiro de Revisão do Portfólio de Produtos, denominado Financial Method for the Product Portfolio Review, FMPPR, como parte integrante da Gestão de Portfólio de Produtos. Na elaboração do método proposto, foram avaliadas as relações da revisão do Portfólio de Produtos com a operação da empresa, com mercado consumidor e com o Processo de Desenvolvimento de Produtos. Finalmente, o método proposto foi aplicado em um ambiente empresarial para verificação de sua funcionalidade. Os resultados foram submetidos à análise de um grupo focal, que validou os avanços realizados propondo ajustes para a geração do artefato final desta dissertação. / Product Portfolio Management has increasingly attracted the interest of companies and researchers. The research efforts, through empirical evidence, indicate the need to extend the application of formal methods for the Product Portfolio Management in companies. However, there are scarce studies in the literature about methods directed to Product Portfolio Review. It can be observed in current publications that conceptual and terminological questions about Product Portfolio Management require the attention of researchers. Therefore, it is necessary to identify in the methods for the Product Portfolio Management opportunities to improve the results of the companies. For the development of this research, Design Science Research was used as a methodological approach. This project proposes a Financial Method for the Product Portfolio Review, called FMPPR as an integral part of Product Portfolio Management. In the elaboration of the proposed method, the relations between the Product Portfolio Review, the operation of the company, the consumer market and the Product Development Process were evaluated. Finally, the proposed method was applied in an enterprise environment to verify its functionality. The results were submitted to the analysis of a focal group, which validated the advances made proposing adjustments for the generation of the final artifact of this dissertation.

The rapidly evolving global market scenario raised multiple challenges for an organization such as: change in customer needs and lifestyle, increased competition, compulsion to enter into new markets, pursue to innovate and so on, which raises an additional challenge for organization to sustain and succeed. In order to meet these multiple challenges, continuous New Product Development (NPD) turns out to be one of the essential tasks for any organization to improve market share, profitability and to succeed. In this scenario, a new product portfolio with best mix of new projects that ensures strategic alignment, balance of portfolio and improves organizations’ potential gain is compulsion. However, From the literature, it is observed that, ‘As nearly half of initial NPD ideas occur informally or without a specific goal, even a best performing organization requires a major improvement in the decision making process of Project Evaluation and Selection (PES)’. This emphasizes the significance of decision on Project Evaluation and Selection (PES) of NPD. Additionally, huge investments and resources need to be employed based on decision that is taken at PES phase of NPD. Thus PES turns out to be a crucial and essential phase of New Product Process (NPP). All these stated aspects of this challenging and crucial strategic decision of PES provoke for the requirement of an efficient management system and decision making model. In the literature the management system and decision making processes for formulation of portfolio is termed as “New Product Portfolio Management (NPPM)”. Though various researchers have been focusing on this particular issue of improving NPPM Performance, from the analysis of literature, to the best of our knowledge, it is observed that no one has identified or considered an exhaustive list of possible evaluative dimensions while taking the decision on PES of NPPM (PES-NPPM). This thesis makes an attempt to address this research gap, and the scope of this study is pertained to three sectors of manufacturing industry, namely, Automotive, Electronics and Machine Tools. Accordingly, the main objective of this thesis is “ In order to achieve this particular objective the following sub-objectives, methodologies, and analysis are carried out. For this purpose, first and foremost analysis of literature on PES is carried out. Accordingly, five evaluative dimensions are identified for PES-NPPM and they are: (i) Strategic Fit; (ii) Portfolio-Innovation Balance; (iii) Risk-Uncertainty Estimation; (iv) Cost-Revenue Estimation and (v) Optimized Resource Allocation. Furthermore, it is observed that, there is no study considering all the five evaluative dimensions simultaneously for PES-NPPM either to analyze their impact on performance of NPPM or to develop a decision making model. Thus, we are addressing a new problem configuration in the area of PES-NPPM. Additionally, though the requirements of multi-criteria models for PES-NPPM is discussed both in academic and practioners points of view, the real demonstration of the applicability of multi-criteria models are given a scant treatment in the literature. . By the end of the achieving this objective, we identified five distinct evaluative dimensions which are used in different combinations for PES-NPPM. Further, for measuring each of these five evaluative dimensions, we identified 23, 11, 15, 10, and 18 measurement variables respectively. Based on the evaluative dimensions considered in this study, a framework work is proposed for PES-NPPM. Due to the limitation of empirical evidences on considering the identified evaluative dimensions and respective measurement variables towards the proposed initial framework for PES-NPPM, another exploratory study: a case study method is carried out. In addition to the process of triangulation, the case study approach is carried out to understand (a) significance and nature of the identified measurement variables of all the five evaluative dimensions for PES-NPPM, and (b) real-life practices in decision making process of PES-NPPM and to identify the requirements of decision making tools. Accordingly, 12 case studies (4 each) from three manufacturing sectors, considered in this study, are conducted. Further, 12 case study reports are prepared and inferences are drawn. The inferences drawn are verified by conducting an individual brain-storming session with 3 academicians and 4 practitioners. The detailed analysis of the 12 case study reports endorsed the necessity of considering all the five identified evaluative dimensions in the proposed framework for PES-NPPM. In addition, the case study analysis revealed some of the variables originally considered for measuring the evaluative dimensions are not really the measurement variables, whereas those variables are expected to impact the decision making environment of PES-NPPM (or) NPPM Performance. Further those non-measurement variables are classified into (a) Characteristic Variables of PES-NPPM, and (b) Moderating variables for NPPM. Based on this, case study analysis identified 8 characteristic variables and 8 moderating variables. This specific observation resulted to analyze further the existing literature in order to identify if there exist any additional variables which impact decision making environment of PES-NPPM (or) NPPM Performance. Thus, from the analysis of literature and case study analysis 17 characteristic variable and 13 moderating variables are identified. Additionally, For this purpose, Partial Least Square – Path Modeling (PLS-PM) (or) regression analysis is conducted depending upon type of variables with 104 observations (representing 34, 39, and 31 observations of the three sectors respectively) to analyze the relationships between characteristic and moderating variables on decision-making environment of PES-NPPM and NPPM Performance respectively. From case study analysis, it is observed that the decision making tool required should provide: (a) ability to incorporate judgmental scores along with financial and other quantitative metrics, (b) ability to attain a balance of portfolio and consider interactions among project, and (c) ability to provide alternatives and rank the alternatives. In addition to the observation drawn from the case study analysis on the need of MCDM based tool(s), analysis of the literature is carried out to verify the same. As this problem scenario considers both quantitative and qualitative data for the development of a decision making tool, an appropriate technique/methodology needs to be employed. Based on analysis of literature and the case study reports, this study proposes an integrated Data Envelopment Analysis and Balanced Scorecard (DEA-BSC) model for individual PES. Further, the proposed DEA-BSC model is extended for evaluation of new product portfolio. In the process of formulation of new product portfolio, first, every new product project is evaluated with the proposed integrated DEA-BSC model. Second, an algorithm is designed to generate alternate portfolios with the selected set of efficient new product projects. Then, DEA-BSC model is employed to evaluate the generated portfolios. At this step, an accumulation functions are proposed which considers interactions among projects. These accumulation functions determine the overall input and output of the portfolio along with interactions involved. Accordingly, the proposed integrated DEA-BSC model for portfolio evaluation is expected to result in a balanced portfolio with profitable new product projects. In addition, the workability of the proposed integrated DEA-BSC model is demonstrated by developing a suitable numerical example. Finally, a sensitivity analysis is carried out on proposed DEA-BSC model to analyze the robustness of the results. In summary, this thesis examined a problem of decision making of NPPM. Further, this problem was retained with main focus on PES phase. Accordingly, the major contributions of this thesis are as follows: Identified an exhaustive lists of evaluative dimensions: (i) Strategic Fit; (ii) Portfolio-Innovation Balance; (iii) Risk-Uncertainty Estimation; (iv) Cost-Revenue Estimation and (v) Optimized Resource Allocation. Also identified the significance of these five dimensions in case of PES-NPPM. In addition, all the five evaluative dimensions are considered simultaneously for development of a multi criteria decision making tool for PES-NPPM. Identified the required measurement variables for each of the evaluative dimensions, considered in this study, that are essential for PES, and analyzed their influence on performance of NPPM. Identified and analyzed characteristic and moderating variables that influence decision making environment of PES-NPPM and performance of NPPM respectively. Identified the requirements of a decision making tool for PES-NPPM and developed an integrated DEA-BSC model for PES. To the best of our knowledge, the proposed integrated DEA-BSC model is considered to be the first hybrid model applied to PES-NPPM. Furthermore for implementing the proposed DEA-BSC model, an algorithm is proposed in this study and this is expected to assist decision maker for selecting the right set of projects for new product portfolio with higher development potential, profitability and minimize the associated risk. Identified possible project interactions caused due to external or internal factors and accordingly proposed an accumulation function to capture these interactions. Proposed an algorithm for formulation of new product portfolio and accordingly proposed a detail step-by-step procedure for implementation of the proposed integrated DEA-BSC model. Though this study analyzes the impact of characteristic variables on decision-making environment of PES-NPPM, we limit to link this impact to DEA-BSC Model. In this study, an attempt is made to capture the moderating effect on NPPM Performance, but this study limits to link this moderating effect in proposed DEA-BSC model. Finally, the validation of the workability of proposed DEA-BSC model is limited to the numerical example considered in the study and not to the real-life problems scenarios.