Bubble diagram in portfolio management - Revision history

Tkokotas at 13:07, 18 December 2018

2018-12-18T13:07:56Z

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			''Developed by Marco Carloni''


	The '''bubble diagram''' or '''bubble chart (BC)''' is a graphing technique used in project portfolio management to making decision, especially to display balance in new product project portfolios.		The '''bubble diagram''' or '''bubble chart (BC)''' is a graphing technique used in project portfolio management to making decision, especially to display balance in new product project portfolios.
	These visual representation is an adaptation of the four quadrant[https://en.wikipedia.org/w/index.php?title=Special:CreateAccount&returnto=Growth%E2%80%93share+matrix BCG] (star; cash cow; dog; wildcat) diagrams developed in 1970 by Bruce D. Handerson as strategy models <ref name="handerson" />.		These visual representation is an adaptation of the four quadrant[https://en.wikipedia.org/w/index.php?title=Special:CreateAccount&returnto=Growth%E2%80%93share+matrix BCG] (star; cash cow; dog; wildcat) diagrams developed in 1970 by Bruce D. Handerson as strategy models <ref name="handerson" />.

Marcocarloni: /* Bubble diagram */

2016-09-26T14:07:33Z

Bubble diagram

← Older revision		Revision as of 14:07, 26 September 2016
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	Bubble charts are useful graphs for comparing the relationships between data objects in more than 2 numeric-data dimensions: the X-axis data, the Y-axis data, and the other data represented by the bubble size, color and shape.		Bubble charts are useful graphs for comparing the relationships between data objects in more than 2 numeric-data dimensions: the X-axis data, the Y-axis data, and the other data represented by the bubble size, color and shape.
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			As will be highlighted in the next chapters, visual charting techniques in portfolio management projects (as bubble diagram) are employed in order to display balance and reach the right mix of projects in new product project portfolios.

	In order to avoid misleading charts, is important to understand the relationship between the bubble size and the data represented by the size. In the common case of circular bubbles, if the data is proportional to the radius, the data will be altered since the bubble area grows exponentially as the square of the radius (<math> Area = \pi* r^{2}</math>). For a better representation of the data, bubble data should be represented directly by the area using the circumference of the circle, in this case the bubble grows linearly in relationship to the diameter (<math>circumference =\pi*diameter</math>).		In order to avoid misleading charts, is important to understand the relationship between the bubble size and the data represented by the size. In the common case of circular bubbles, if the data is proportional to the radius, the data will be altered since the bubble area grows exponentially as the square of the radius (<math> Area = \pi* r^{2}</math>). For a better representation of the data, bubble data should be represented directly by the area using the circumference of the circle, in this case the bubble grows linearly in relationship to the diameter (<math>circumference =\pi*diameter</math>).
	However, sometimes if one wants to exaggerate the differences or a more easily contrast between two projects, could be useful represent the data proportional to the radius. <ref name="coo5" />		However, sometimes if one wants to exaggerate the differences or a more easily contrast between two projects, could be useful represent the data proportional to the radius. <ref name="coo5" />

	As will be highlighted in the next chapters, visual charting techniques in portfolio management projects (as bubble diagram) are employed in order to display balance and reach the right mix of projects in new product project portfolios.
	The most widely used and highly popular bubble diagram in portfolio management is the one that displays project risk (probability of success) on y axis and reward on X axis as shown in[[Media:BC3.PNG \| Fig.2]].		The most widely used and highly popular bubble diagram in portfolio management is the one that displays project risk (probability of success) on y axis and reward on X axis as shown in[[Media:BC3.PNG \| Fig.2]].

Marcocarloni: /* Bubble diagram */

2016-09-26T13:57:52Z

Bubble diagram

← Older revision		Revision as of 13:57, 26 September 2016
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	However, sometimes if one wants to exaggerate the differences or a more easily contrast between two projects, could be useful represent the data proportional to the radius. <ref name="coo5" />		However, sometimes if one wants to exaggerate the differences or a more easily contrast between two projects, could be useful represent the data proportional to the radius. <ref name="coo5" />

	As ~~has been~~ highlighted in the ~~summery before~~, visual charting techniques in portfolio management projects, as bubble diagram, are employed in order to display balance in new product project portfolios.		As will be highlighted in the next chapters, visual charting techniques in portfolio management projects (as bubble diagram) are employed in order to display balance and reach the right mix of projects in new product project portfolios.
	The most widely used and highly popular bubble diagram in portfolio management is the one that displays project risk (probability of success) on y axis and reward on X axis as shown in[[Media:BC3.PNG \| Fig.2]].		The most widely used and highly popular bubble diagram in portfolio management is the one that displays project risk (probability of success) on y axis and reward on X axis as shown in[[Media:BC3.PNG \| Fig.2]].

Marcocarloni: /* Introduction to visual tools and portfolio management */

2016-09-26T13:52:37Z

Introduction to visual tools and portfolio management

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	The emphasis of portfolio management is on ensuring that each project contributes to the overall organizational success. <ref name="edg1" />		The emphasis of portfolio management is on ensuring that each project contributes to the overall organizational success. <ref name="edg1" />

	To achieve this success, many different tools and methods are used. Below the main goals settled by using portfolio management are listed and the importance of the bubble charts to reach few of them is highlighted <ref name="coo4" /> :		To achieve this success, many different tools and methods are used.
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			Below the main goals settled by using portfolio management are listed and the importance of the bubble charts to reach few of them is highlighted <ref name="coo4" /> :

	* Maximize the value of the portfolio for a given resource expenditure.		* Maximize the value of the portfolio for a given resource expenditure.
	* Maintain the competitive position of the business.		* Maintain the competitive position of the business.
	* Balance choosing the right mix of projects : for this point, the use of bubble diagram and other visual tools is important in order to reach the best results.		* Balance choosing the right mix of projects : for this point, the use of bubble diagram and other visual tools is important in order to reach the best results.
	* Achieving a strategically aligned portfolio : ~~Also~~ for this goal, the bubble chart results really useful.		* Achieving a strategically aligned portfolio : also for this goal, the bubble chart results really useful.
	* Achieving the right number of projects for the limited resources available.		* Achieving the right number of projects for the limited resources available.

Marcocarloni at 13:47, 26 September 2016

2016-09-26T13:47:34Z

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	* Brief description of other visual tools and differences from bubble chart		* Brief description of other visual tools and differences from bubble chart
	* Different methods as the financial methods, strategic methods and scoring model. <ref name="coo2" />		* Different methods as the financial methods, strategic methods and scoring model. <ref name="coo2" />
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	At last the advantages and the disadvantages of this method will be analyzed and then will be discussed if actually can give a real help to the decision making in portfolio Management.		At last the advantages and the disadvantages of this method will be analyzed and then will be discussed if actually can give a real help to the decision making in portfolio Management.

Marcocarloni at 13:46, 26 September 2016

2016-09-26T13:46:58Z

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	This method is widely used by the companies even if just a small percentage use it as the dominant.		This method is widely used by the companies even if just a small percentage use it as the dominant.
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	The most popular chart is the risk-reward which shows the probability of success on the vertical axis and the [https://en.wikipedia.org/wiki/Net_present_value NPV] ( Net Present Value) over a period of time on the horizontal axis.<ref name="coo1" />. For this chart, four different categories will be analyzed : Pearls, Oysters, Bread & Butter and White Elephants.		The most popular chart is the risk-reward which shows the probability of success on the vertical axis and the [https://en.wikipedia.org/wiki/Net_present_value NPV] ( Net Present Value) over a period of time on the horizontal axis.<ref name="coo1" />. For this chart, four different categories will be analyzed : Pearls, Oysters, Bread & Butter and White Elephants.
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Marcocarloni at 13:46, 26 September 2016

2016-09-26T13:46:07Z

← Older revision		Revision as of 13:46, 26 September 2016
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	The '''bubble diagram''' or '''bubble chart (BC)''' is a graphing technique used in project portfolio management to making decision, especially to display balance in new product project portfolios.		The '''bubble diagram''' or '''bubble chart (BC)''' is a graphing technique used in project portfolio management to making decision, especially to display balance in new product project portfolios.
	These visual representation is an adaptation of the four quadrant BCG (star; cash cow; dog; wildcat) diagrams developed in 1970 by Bruce D. Handerson as strategy models <ref name="handerson" />.		These visual representation is an adaptation of the four quadrant[https://en.wikipedia.org/w/index.php?title=Special:CreateAccount&returnto=Growth%E2%80%93share+matrix BCG] (star; cash cow; dog; wildcat) diagrams developed in 1970 by Bruce D. Handerson as strategy models <ref name="handerson" />.

	The diagram is a variant of the regular x-y plot, where circle or ellipse are used instead the single points, and extra information are provided by varying the shape, the size and the colour. Furthermore the chart can usually be divided in four section to facilitate recognition of different situations.		The diagram is a variant of the regular x-y plot, where circle or ellipse are used instead the single points, and extra information are provided by varying the shape, the size and the colour. Furthermore the chart can usually be divided in four section to facilitate recognition of different situations.

Marcocarloni at 18:43, 25 September 2016

2016-09-25T18:43:36Z

← Older revision		Revision as of 18:43, 25 September 2016
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	* Brief description of other visual tools and differences from bubble chart		* Brief description of other visual tools and differences from bubble chart
	* Different methods as the financial methods, strategic methods and scoring model. <ref name="coo2" />		* Different methods as the financial methods, strategic methods and scoring model. <ref name="coo2" />
			<br>
			<br>
	At last the advantages and the disadvantages of this method will be analyzed and then will be discussed if actually can give a real help to the decision making in portfolio Management.		At last the advantages and the disadvantages of this method will be analyzed and then will be discussed if actually can give a real help to the decision making in portfolio Management.

Marcocarloni at 18:39, 25 September 2016

2016-09-25T18:39:00Z

← Older revision		Revision as of 18:39, 25 September 2016
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	Besides timing, the different project types is another big concern.		Besides timing, the different project types is another big concern.
	How is possible to check the amount of resources spent on development of new products versus product renewals (improvements and replacements), or product extensions, or product maintenance? Here another visual tool is used : '''pie charts''' are easily understandable and fast interpretation, moreover they effectively capture the spending split across project types. Furthermore the pie charts are used also to displaying market segments, product lines and technologies.		How is possible to check the amount of resources spent on development of new products versus product renewals (improvements and replacements), or product extensions, or product maintenance? Here another visual tool is used : '''pie charts''' are easily understandable and fast interpretation, moreover they effectively capture the spending split across project types. Furthermore the pie charts are used also to displaying market segments, product lines and technologies.
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Marcocarloni at 18:38, 25 September 2016

2016-09-25T18:38:39Z

← Older revision		Revision as of 18:38, 25 September 2016
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	Besides timing, the different project types is another big concern.		Besides timing, the different project types is another big concern.
	How is possible to check the amount of resources spent on development of new products versus product renewals (improvements and replacements), or product extensions, or product maintenance? Here another visual tool is used : '''pie charts''' are easily understandable and fast interpretation, moreover they effectively capture the spending split across project types. Furthermore the pie charts are used also to displaying market segments, product lines and technologies.		How is possible to check the amount of resources spent on development of new products versus product renewals (improvements and replacements), or product extensions, or product maintenance? Here another visual tool is used : '''pie charts''' are easily understandable and fast interpretation, moreover they effectively capture the spending split across project types. Furthermore the pie charts are used also to displaying market segments, product lines and technologies.
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