PPM (Project Portfolio Management)

1. PPM: Project Portfolio Management for Achieving Strategic Objectives

    flowchart LR
    A["Managing individual projects"] -- "Integrating projects into a strategy-driven portfolio" --> B["PPM (Project Portfolio Management)"]
  

Core: A management framework that manages a company’s entire set of projects as a single portfolio to maximize business value and minimize risk.

Characteristics:
(Prioritization and resource allocation) Optimizes project prioritization and resource allocation.
(Enterprise investment efficiency) Manages IT investment efficiency from an enterprise-wide perspective, beyond individual projects.

2. PPM Management Framework and Performance Mechanism

A. Project Portfolio Matrix

(Strategic placement of projects based on risk and profitability)

    flowchart TD
    ROOT["Project Matrix"]
    
    Q1["Low risk - high return<br/>(Pearl)"]
    Q2["High risk - high return<br/>(Oyster)"]
    Q3["Low risk - low return<br/>(Bread & Butter)"]
    Q4["High risk - low return<br/>(White Elephant)"]

    ROOT --> Q1 & Q2 & Q3 & Q4

    style ROOT fill:#1E3A5F,color:#fff
  

• Pearl: Core strategic projects that are priority investment targets.
• Oyster: Projects for pioneering new markets, invested in incrementally.
• White Elephant: Candidates for discontinuation or restructuring.

B. Investment Allocation Strategy Mechanism

(A performance-based resource allocation and feedback framework)

    flowchart LR
    subgraph A["Project Selection"]
        A1["Strategic fit analysis"]
    end

    subgraph TRANS["Transformation Strategy"]
        direction TB
        T1["Portfolio evaluation"]
        T2["Resource allocation adjustment"]
    end

    subgraph B["Target Framework"]
        B1["Maximizing investment value"]
    end

    A -- "Strategic alignment and evaluation" --> TRANS
    TRANS --> B
  

3. Expected Effects and Applications