Project optimization system

• US 20050119959A1
• Filed: 12/12/2001
• Published: 06/02/2005
• Est. Priority Date: 12/12/2001
• Status: Abandoned Application

• Current Assignee: Square Halt Solutions Limited Liability Company (Intellectual Ventures LLC), Jeffrey Eder
• Original Assignee: Jeffrey Eder
• Inventors: Eder, Jeffrey Scott
• Application Number:
  US10/012,375
• Publication Number:
  US 20050119959A1
• Time in Patent Office: Days
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 10/04 Forecasting or optimisation specially adapted for administrative or management purposes, e.g. linear programming or "cutting stock problem" market predictions or forecasting for commercial activities G06Q30/0202
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

An automated system (100) and method for optimizing project risk and return from the perspective of the sponsor. The project, project features and feature options are defined using project design system and project financial system data. The expected project outputs are then mapped to matrices of value and risk for the sponsor. The system calculates a value for the project then identifies the mix of features and feature options that maximize expected project value from the perspective of the sponsor. The system also identifies the mix of features and feature options that maximize expected project value while minimizing project risk from other frames.

Claims

1. A computer readable medium having sequences of instructions stored therein, which when executed cause the processors in a plurality of computers that have been connected via a network to perform a project optimization method, comprising:

obtaining specifications for one or more projects and an organization ontology;

mapping the organization impact of specified project outputs using said ontology;

creating an organization optimization model using said impacts and ontology; and

simulating organization financial performance with said model to determine the optimal specification for the one or more projects.

2. The computer readable medium of claim 1 where the method further comprises identifying the optimal set of projects for the organization.

3. The computer readable medium of claim 1 where the project specification includes attributes from the group consisting of project budget, project design, project features, project operating factors, project outputs, the relationship between project features and the project budget and outputs and combinations thereof.

4. The computer readable medium of claim 3 where the project features encapsulate all the different options for completing the project including any options for implementing a project completion option at a future date.

5. The computer readable medium of claim 3 where the project budget includes project expenses and project capital requirements.

6. The computer readable medium of claim 1 where project specification data is obtained from the group consisting of design systems, project systems, simulation systems, basic financial system, advanced financial system, operating factor databases and combinations thereof.

7. The computer readable medium of claim 1 where the organization is a single product, a group of products, a division, a company, a multi-company corporation, a value chain, a government organization or a collaboration.

8. The computer readable medium of claim 7 where a collaboration is a joint effort between any combination of products, groups of products, divisions, companies, multi company corporations, value chains and government organizations.

9. The computer readable medium of claim 1 where an organization ontology comprises a common schema and the quantified inter-relationship between the elements, factors and risks that drive organization financial performance.

10. The computer readable medium of claim 9 where the elements are from the group consisting of alliances, brands, channels, customers, customer relationships, employees, equipment, knowledge, intellectual property, investors, partnerships, processes, products, quality, vendors, vendor relationships, visitors and combinations thereof.

11. The computer readable medium of claim 9 where the factors are from the group consisting of numerical indicators of conditions external to the organization, numerical indications of prices external to the organization, numerical indications of organization conditions compared to external expectations of organization condition, numerical indications of the organization performance compared to external expectations of organization performance and combinations thereof.

12. The computer readable medium of claim 9 where the risks are from the group consisting of contingent liabilities, event risks, variability risks, volatility and combinations thereof.

13. The computer readable medium of claim 9 where the common schema defines common attributes from the group consisting of data structure, organization designation, metadata standard and data dictionary.

14. The computer readable medium of claim 13 where the data dictionary defines standard data attributes from the group consisting of account numbers, components of value, currencies, elements of value, enterprise designations, external factors, organization designations, segments of value, risks, time periods, units of measure and combinations thereof.

15. The computer readable medium of claim 9 where the quantified inter-relationship between the elements, factors and risks is determined by segment of value and enterprise for aspects of organization financial performance.

16. The computer readable medium of claim 15 where the segments of value are from the group consisting of current operations, real options, derivatives, excess financial assets, market sentiment and combinations thereof.

17. The computer readable medium of claim 15 where an enterprise is a single product, a group of products, a division, a company or a government organization.

18. The computer readable medium of claim 15 where the aspects of organization financial performance are from the group consisting of revenue, expense, capital change, current operation returns, real option returns, derivative returns, excess financial asset returns, market sentiment returns, current operation risk, real option risk, derivative risk, excess financial asset risk, market sentiment risk, current operation value, real option value, derivative value, excess financial asset value, market sentiment value, organization returns, organization risk, organization value and combinations thereof.

19. The computer readable medium of claim 15 where the quantified interrelationship between elements, factors and aspects of financial performance is determined by a series of computations completed by algorithms from the group consisting of neural network;

regression, generalized additive;

support vector method, entropy minimization, generalized autoregressive conditional heteroskedasticity, wavelets, Markov, Bayesian, multivalent, multivariate adaptive regression splines, data envelopment analysis, path analysis and combinations thereof.

20. The computer readable medium of claim 13 where the metadata standard is an xml standard.

21. The computer readable medium of claim 1 where the optimization model is a multi-criteria optimization model or a single criteria optimization model.

22. The computer readable medium of claim 1 where optimal project specification is the specification that optimizes one or more aspects of organization financial performance from the group consisting of revenue, expense, capital change, current operation returns, real option returns, derivative returns, excess financial asset returns, market sentiment returns, current operation risk, real option risk, derivative risk, excess financial asset risk, market sentiment risk, current operation value, real option value, derivative value, excess financial asset value, market sentiment value, organization returns, organization risk and organization value.

23. The computer readable medium of claim 2 where optimal set of projects is the set that optimizes one or more aspects of organization financial performance from the group consisting of revenue, expense, capital change, current operation returns, real option returns, derivative returns, excess financial asset returns, market sentiment returns, current operation risk, real option risk, derivative risk, excess financial asset risk, market sentiment risk, current operation value, real option value, derivative value, excess financial asset value, market sentiment value, organization returns, organization risk and organization value.

24. The computer readable medium of claim 1 where simulations are completed using genetic algorithms or Monte Carlo simulations.

25. The computer readable medium of claim 2 where the method further comprises displaying the organization value, optimal project specifications, the optimal set of projects and combinations thereof using a paper document or electronic display.

26. A method for creating an organization value matrix that quantifies the contribution of elements of value to a value of an organization by segment of value and enterprise.

27. The method of claim 26 where the organization is a single product, a group of products, a division, a company, a multi-company corporation, a value chain, a government organization or a collaboration and a collaboration is a joint effort between any combination of products, groups of products, divisions, companies, multi company corporations, value chains and government organizations.

28. The method of claim 26 where the elements are from the group consisting of alliances, brands, buildings, cash, channels, customers, customer relationships, employees, employee relationships, equipment, knowledge, intellectual property, investors, inventory, partnerships, processes, products, quality, vendors, vendor relationships, visitors and combinations thereof.

29. The method of claim 26 where the segments of value are from the group consisting of current operations, real options, derivatives, excess financial assets, market sentiment and combinations thereof.

30. The method of claim 26 that also identifies the contribution of external factors to organization value by segment of value and enterprise where the external factors are from the group consisting of numerical indicators of conditions external to the organization, numerical indications of prices external to the organization, numerical indications of organization conditions compared to, external expectations of organization condition, numerical indications of the organization performance compared to external expectations of organization performance and combinations thereof.

31. An organization integration method, comprising:

developing an organization ontology, and

using said ontology to guide the integration of any combination of data, information and systems to support organization processing.

32. The method of claim 31 where an organization ontology comprises a common schema and the quantified inter-relationship between the elements, factors and risks that drive organization performance.

33. The method of claim 31 data are from the group consisting of:

transaction data, descriptive data, geospatial data, text data, linkage data, semantic data and combinations thereof.

34. The method of claim 31 wherein systems are from the group consisting of:

basic financial systems, advanced financial systems, web site management systems, operation management systems, supply chain management systems, risk management systems, customer relationship management systems, partner relationship management systems, channel management systems, knowledge management systems, visitor relationship management systems, intellectual property management systems, investor management systems, vendor management systems, alliance management systems, process management systems, brand management systems, workforce management systems, human resource management systems, email management systems, IT management systems, quality management systems, accounts receivable systems, accounts payable systems, capital asset systems, inventory systems, invoicing systems, payroll systems, purchasing systems, project management systems, design systems, simulation systems and combinations thereof.

35. A computer readable medium having sequences of instructions stored therein, which when executed cause the processor in a computer to perform an organization project method, comprising:

aggregating organization data in accordance with an xml schema,

using at least a portion of the data to create matrices of organization value and risk,

combining the quantified inter-relationship between the elements, factors and risks identified by the matrices of value and risk with the xml schema to form an ontology;

obtaining specifications for one or more projects,

mapping the organization impact of specified project outputs using said ontology,

creating an organization optimization model using said impacts and ontology; and

simulating organization financial performance with said model to determine the optimal specification for the one or more projects.