Bubble Diagram
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| + | =Abstract= | ||
| + | ''I am not really sure how it going to be written yet, so this “abstract” will be fairly loose.'' | ||
| + | |||
| + | The article will be a critical view on bubble chart (and maybe strategic bucket method) as visual tools in decision making regarding portfolio management. | ||
| + | |||
| + | The article will start with outlining the importance of portfolio management thereby meaning the alignment of projects to support the corporate strategy and selection of best projects. | ||
| + | Thereafter an in-depth description of the model(s) and different varieties thereof will be given. | ||
| + | If appropriate, a little look will be taken at the history, and why this method (these methods) was developed. (Feedback wanted – include both models or just the bubble chart) | ||
| + | |||
| + | The main part of the article will have to do with the implementation and use of this method (these methods) in organisations. What are the strengths and weaknesses, and especially what are the common pitfalls. | ||
| + | This will lead to a more general discussion of with a comparison to alternative models that exist and that maybe should be used instead of. | ||
| + | |||
| + | =Background= | ||
A Bubble Diagram or bubble chart is a 2 dimensional chart where bubbles representing for example projects are portrayed. | A Bubble Diagram or bubble chart is a 2 dimensional chart where bubbles representing for example projects are portrayed. | ||
The horizontal axis often represents NPV, net present value/the size of the rewards of the project. | The horizontal axis often represents NPV, net present value/the size of the rewards of the project. | ||
| Line 6: | Line 19: | ||
This combined gives the user the opportunity to observe 4 dimensional problem in 2 dimensions. This feature is what makes the bubble diagram different from many other tools as it provides much data in a very simple manner | This combined gives the user the opportunity to observe 4 dimensional problem in 2 dimensions. This feature is what makes the bubble diagram different from many other tools as it provides much data in a very simple manner | ||
| − | = | + | ===What is and How to cope with ineffective portfolio management?=== |
| − | + | ||
| − | =What is and How to cope with ineffective portfolio management?= | + | |
PM is to align strategy with the crating of new products or projects | PM is to align strategy with the crating of new products or projects | ||
Larger companies often experience a gap between corporate strategy and the actual performance | Larger companies often experience a gap between corporate strategy and the actual performance | ||
=What is a bubble diagram?= | =What is a bubble diagram?= | ||
A bubble diagram is a 2x2 matrix often with chance of success on one axis and the reward on the other. The size of the bubble then represent the resource cost. | A bubble diagram is a 2x2 matrix often with chance of success on one axis and the reward on the other. The size of the bubble then represent the resource cost. | ||
| − | + | ===history=== | |
| − | ==history== | + | |
| − | + | ||
==What is the abundance of it?== | ==What is the abundance of it?== | ||
Used by 41 % only 8 % use it as their dominant tool. | Used by 41 % only 8 % use it as their dominant tool. | ||
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The important step in this phase is to figure how this should be used. The upstream processes needs to be in order so the necessary numbers are available for as a source for the diagram | The important step in this phase is to figure how this should be used. The upstream processes needs to be in order so the necessary numbers are available for as a source for the diagram | ||
| − | =The use of bubble diagram in the organisation= | + | ==The use of bubble diagram in the organisation== |
| − | ==What are the benefits?== | + | ===What are the benefits?=== |
…to come | …to come | ||
| − | ==What are the pitfalls?== | + | ===What are the pitfalls?=== |
…to come | …to come | ||
| Line 39: | Line 48: | ||
Is the benefit worth the time used for this? | Is the benefit worth the time used for this? | ||
| − | =Additional reading= | + | ==Additional reading== |
| − | =Bibliography= | + | ==Bibliography== |
Revision as of 22:28, 16 November 2014
Contents |
Abstract
I am not really sure how it going to be written yet, so this “abstract” will be fairly loose.
The article will be a critical view on bubble chart (and maybe strategic bucket method) as visual tools in decision making regarding portfolio management.
The article will start with outlining the importance of portfolio management thereby meaning the alignment of projects to support the corporate strategy and selection of best projects. Thereafter an in-depth description of the model(s) and different varieties thereof will be given. If appropriate, a little look will be taken at the history, and why this method (these methods) was developed. (Feedback wanted – include both models or just the bubble chart)
The main part of the article will have to do with the implementation and use of this method (these methods) in organisations. What are the strengths and weaknesses, and especially what are the common pitfalls. This will lead to a more general discussion of with a comparison to alternative models that exist and that maybe should be used instead of.
Background
A Bubble Diagram or bubble chart is a 2 dimensional chart where bubbles representing for example projects are portrayed. The horizontal axis often represents NPV, net present value/the size of the rewards of the project. The vertical axis represents the chance of success. The interesting part is the actual bubbles that can vary in several ways. Typically the size of the bubble will represent the resources needed in order to complete the this project. The bubble can in the same time also vary in color which represents a strategic goals, or department etc. This combined gives the user the opportunity to observe 4 dimensional problem in 2 dimensions. This feature is what makes the bubble diagram different from many other tools as it provides much data in a very simple manner
What is and How to cope with ineffective portfolio management?
PM is to align strategy with the crating of new products or projects Larger companies often experience a gap between corporate strategy and the actual performance
What is a bubble diagram?
A bubble diagram is a 2x2 matrix often with chance of success on one axis and the reward on the other. The size of the bubble then represent the resource cost.
history
What is the abundance of it?
Used by 41 % only 8 % use it as their dominant tool. It should maybe not stand alone as it is Supporting tool and cannot by itself alignment strategy.
Developments and implementation!
The important step in this phase is to figure how this should be used. The upstream processes needs to be in order so the necessary numbers are available for as a source for the diagram
The use of bubble diagram in the organisation
What are the benefits?
…to come
What are the pitfalls?
…to come
Discussion and comparison to alternatives
The bubble diagram is just one of the options that a company can use. The scoring models seem more popular as it takes several more aspects into account. However the bubble diagram gives a nice and visual representation that cannot be found anywhere else
Conclusion
Is it too hyped? Is the benefit worth the time used for this?
