Risk-Based ROI, Capital Budgeting, and Portfolio Optimization in the Department of Defense https://www.dau.edu
Portfolio Analysis software products and solutions. The authors used Risk Simulator to develop portfolio models. These models were populated with relevant data and then run through an appropriate number of simulation iterations to assess candidate projects with respect to risk and Expected Military Value. The examples and models used in this paper discuss Portfolio Management Analysis (PMA) during various stages of project management and systems engineering. The goal for PMA is realized after the entire project design infrastructure is implemented and the end users’ instruments are provided for implementation. The authors’ intent was to identify “approaches and tools to incorporate PMA net-centric strategies to meet warfghter and business operations requirements, while continuing to maintain current levels of service, ensuring conservation of manpower and meeting infrastructure resource requirements” (Sidiropoulos, Sidiropoulou, & Lalagas, 2014).
Flynn and Field (2006) looked at quantitative measures that were under development to assess the Department of the Navy (DON)’s portfolio of acquisitions to improve business practices through better analytical tools and models. The authors found that the DON’s time would be better served by shifting its attention from analyzing individual acquisition programs (now studied exhaustively) to analyzing a portfolio of systems as a whole. This approach is similar to the methodology employed as a best practice in the private sector. According to the research, this high-level
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Defense ARJ, January 2020, Vol. 27No. 1 : 60-107
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