Multicriteria methodology and hierarchical innovation in the energy sector

Abstract

Purpose – The purpose of this paper is to state a hierarchy methodology to select the most promising innovative projects, based on the processes defined by the successful Project Management Institute. Design/methodology/approach – Open innovation is a new option for companies to acquire knowledge; however, in a changing and global market, it is necessary to define and select properly the proposals to be financially supported. A proven multicriteria decision methodology (MCDM) is recommended in this case to hierarchize alternatives. Moreover, analytical hierarchy process (AHP) has been considered in this study as a proven and simple MCDM. Findings – AHP has been demonstrated as a suitable option to evaluate innovative project proposals, thanks to its integration with the Project Management Institute methodology. A process example has been included to demonstrate its application. Research limitations/implications – Innovative projects and project proposal selection have always implied subjective criteria. Moreover, some of the processes defined in the methodology were not well defined in the project proposal. Practical implications – The management of a project portfolio in a rational way would help decision makers to fund the most promising projects/alternatives under consideration. In this way, the inherent risk of R&D projects would be minimized. Originality/value – The management of a portfolio of innovative proposals is less often addressed in the literature. This paper focuses on the hybridization of the criteria and processes described in the PMBOK Guide and an MCDM.