INTEGRATED MOTHOD FOR PROJECT PORTFOLIO SELECTION BASED ON INFORMATION ENTROPY

Project portfolio management has been considered as the bridge between enterprise strategic management and project management. Project portfolio management is about making strategic choices,. resource allocation. It focuses on project selection and chooses the right projects from the many opportunities the enterprises face. There are relative popularity of various portfolio selection methods-from financial methods to strategic approaches, bubble diagrams and scoring approaches. Popular methods are investigated and compared in this research. Although conceptually appealing and perhaps the most rigorous mathematically based portfolio models see more visibility in text books and journal articles than in corporate offices. The authors provide an integrated method for project portfolio selection based on information entropy. Besides combining several important methods and criteria, entropy weights acted as weight coefficients for evaluating criteria in order to avoid uncertainty and randomicity of subjective judgments. The method proposed in this paper provides a quantificational evaluation method for enterprises to select project and project portfolio.