New product development project portfolio selection based on strategic fit

Focusing on characteristics of new product development projects, this paper investigates project portfolio selection considering consistency between projects and enterprise strategy, and interdependency among projects. Firstly, the concept of strategic fit was proposed to describe the consistency degree and formulated; then the strategic fit was integrated into project portfolio selection model. Considering the effect of the strategic fit on combinational revenues, this paper improves traditional methods that only took interdependencies into account. A model was proposed to optimize project selection based on strategic fit, and an improved simulated annealing algorithm was designed from the variable neighborhood construction to solve the model. Lastly, an example of an automobile company was adopted to illustrate its application, which verified reasonability of the proposed methods.