What is scoring model in SAP PPM-PFM - Portfolio Management?

SAP Term: scoring model

• Component: PPM-PFM

• Component Name: Portfolio Management

• Description: A method used to maximize the value of a portfolio against one or more business objectives. The result is a ranked list of portfolio items or initiatives that can be used for making decisions in a portfolio review.

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• Key Concepts: 
  A scoring model is a tool used in SAP Portfolio Management to evaluate and prioritize projects. It is based on a set of criteria that are weighted according to their importance. The criteria can be financial, strategic, or operational. The scoring model assigns a score to each project based on how well it meets the criteria. The higher the score, the higher the priority of the project.
  
  How to use it: 
  To use a scoring model, first define the criteria that will be used to evaluate projects. These criteria should be based on the organization’s goals and objectives. Then assign weights to each criterion according to its importance. Finally, use the scoring model to evaluate each project and assign it a score. The projects with the highest scores will be given the highest priority.
  
  Tips & Tricks: 
  When creating a scoring model, it is important to consider all of the criteria that are relevant to the organization’s goals and objectives. It is also important to ensure that all of the criteria are weighted appropriately so that they accurately reflect their importance.
  
  Related Information: 
  SAP Portfolio Management also includes other tools such as portfolio optimization and resource allocation that can be used in conjunction with scoring models to help organizations prioritize projects and allocate resources effectively.