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UNCERTAINTY MANAGEMENT IN PRODUCT DEVELOPMENT PORTFOLIOS: THE IMPACT OF GLOBAL SUSTAINABILITY AGENDAS

Published online by Cambridge University Press:  19 June 2023

Andy Mattulat Filipovic ,
Torgeir Welo ,
Pelle Lundquist Willumsen  and
Josef Oehmen
Andy Mattulat Filipovic*
Affiliation:
Department of Mechanical and Industrial Engineering, Norwegian University of Science and Technology; Department of Technology, Management and Economics, Technical University of Denmark
Torgeir Welo
Affiliation:
Department of Mechanical and Industrial Engineering, Norwegian University of Science and Technology;
Pelle Lundquist Willumsen
Affiliation:
Department of Technology, Management and Economics, Technical University of Denmark
Josef Oehmen
Affiliation:
Department of Technology, Management and Economics, Technical University of Denmark
*
Filipovic, Andy Mattulat, NTNU, Denmark, filipovic.a.mattulat@ntnu.no

Abstract

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Increased focus on sustainability significantly impacts product development portfolio management in organizations. This paper focuses on the significant unaccommodated uncertainty caused by the green transition for current mid- and long-term portfolio management processes. These uncertainties arise in areas such as the regulatory environment, market demands, and technical capabilities. This paper makes four contributions: First, current product portfolio management literature is mostly employing deterministic practices. Uncertainties are incompletely addressed, and current methods fail to address the deep uncertainties of the green transition. Second, building a literature-based conceptual framework of the sources of uncertainty in 6 areas: Business Models, Technology, Regulation and Legislation, Finance and Insurance, Market and Consumer, and Organizational Context. Third, preliminary empirical evidence supports the usefulness of our model for product development portfolio management. Fourth, concluding with a suggested empirical research agenda to develop a deeper understanding of challenges towards method and theory development to support the green transition on the portfolio management level.

Keywords

Portfolio managementUncertaintySustainabilityGreen transition
Type
Article
Information
Proceedings of the Design Society , Volume 3: ICED23 , July 2023 , pp. 3681 - 3690
Creative Commons
Creative Common License - CCCreative Common License - BYCreative Common License - NCCreative Common License - ND
This is an Open Access article, distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives licence (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is unaltered and is properly cited. The written permission of Cambridge University Press must be obtained for commercial re-use or in order to create a derivative work.
Copyright
The Author(s), 2023. Published by Cambridge University Press

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