On optimizing the selection of business transformation projects

Abstract

To compete and thrive in a changing business environment, a business can adapt by initiating and successfully carrying out business transformation projects. In this paper we propose a methodology for the optimal selection of such transformational projects. We propose a two-stage methodology based on (1) correlation analytics for identifying key drivers of business performance and (2) advanced portfolio-optimization techniques for selecting optimal business-transformation portfolios in the face of resource constraints, budget constraints, and a rich variety of business rules. We illustrate our methodology through a case study from the electronics industry.