A Sugeno ANFIS Model Based on Fuzzy Factor Analysis for IS/IT Project Portfolio Risk Prediction
DOI:
https://doi.org/10.32890/jict2024.23.2.1Keywords:
IS/IT project portfolio Management, Overall Portfolio Risk, Strategic alignment, Fuzzy Factor Analysis, Sugeno ANFISAbstract
Risk inherence jeopardises Information System (IS) and Information Technology (IT) Project Portfolio Management (PPM) to realise the
strategic objectives. Previous studies have mainly provided Artificial Intelligence (AI) and statistical models to predict the overall risk
of IS/IT project portfolio, whereas neuro-fuzzy models were rarely used. This paper proposes a Sugeno Adaptive Neuro-Fuzzy Inference
System (ANFIS) model based on Fuzzy Factor Analysis (FFA) named ANFIS-OPR to predict the overall risk of IS/IT project portfolio from
historical IS/IT project risk data. The ANFIS-OPR inputs are the relevant factor loadings resulting from the FFA application on the IS/IT projects risks set to cope with the curse of dimensionality. Then, the Sugeno ANFIS model is adopted to give strategic interpretability to the predicted IS/IT project portfolio overall risk by implementing the IS/IT Project Management Office (PMO) expert knowledge, represented by fuzzy rules, on the relationship between IS/IT project portfolio strategic alignment and the IS/IT projects risks. The ANFISOPR outputs are the predicted Overall Portfolio Risk (OPR) and Root Mean Square Error (RMSE). The paper also presents an IS/IT PMO case study that shows the proposed ANFIS-OPR efficacy, which predicted the OPR values closely to the OPR estimates with an accepted RMSE of 0.108. The proposed ANFIS-OPR is a novel intelligent decision-making tool that enables the IS/IT PMO to monitor the OPR, considering its linkage with strategic alignment; thus, contingency plans can be carried out appropriately while ensuring that the IS/IT project portfolio is strategically aligned.
References
Abdul Mokhtar, S., Wan Ishak, W. H., & Md Norwawi, N. (2016). Modeling reservoir water release decision using adaptive neuro-fuzzy inference system. Journal of Information and Communication Technology, 15(2). https://doi.org/10.32890/ jict2016.15.2.7
Asemi, A. (2023). A Novel Combined Investment Recommender System Using Adaptive Neuro-Fuzzy Inference System [védés előtt]. PhD thesis, Budapesti Corvinus Egyetem, Közgazdasági és Gazdaságinformatikai Doktori Iskola. https://phd.lib.uni-corvinus.hu/1310/
Axelos. (2011). Management of Portfolios. TSO.
Axelos. (2017). Managing successful projects with PRINCE2 (6th ed.). TSO.
Babu, Ch. R., Rao, D. S., Ravi, T., & Gopi, G. (2018). Performance assessment of neuro fuzzy-based image fusion of satellite images. International Journal of Advanced Technology and Engineering Exploration, 5(40), 43–49. https://doi.org/10.19101/IJATEE.2018.539005
Bai, L., Liu, J., Huang, N., Zheng, K., & Hao, T. (2022). Critical interactive risks in project portfolios from the life cycle perspective. Asia-Pacific Journal of Operational Research, 39(06), 2250007. https://doi.org/10.1142/S0217595922500075
Baradaran, V., & Ghorbani, E. (2020). Development of fuzzy exploratory factor analysis for designing an e-learning service quality assessment model. International Journal of Fuzzy Systems, 22(6), 1772–1785. https://doi.org/10.1007/s40815-020-00901-1
Barlybayev, A., Zhetkenbay, L., Karimov, D., & Yergesh, B. (2023). Development neuro-fuzzy model to predict the stocks of Journal of ICT, 23, No. 2 (April) 2024, pp: 139-companies in the electric vehicle industry. Eastern-European Journal of Enterprise Technologies, 4, 72–87. https://doi.org/10.15587/1729-4061.2023.281138
Bilgin, G., Dikmen, I., Birgonul, M. T., & Ozorhon, B. (2023). A decision support system for project portfolio management in construction companies. International Journal of Information Technology & Decision Making, 22(02), 705–735. https://doi.org/10.1142/S0219622022500821
Bui, D. T., Panahi, M., Shahabi, H., Singh, V. P., Shirzadi, A., Chapi, K., Khosravi, K., Chen, W., Panahi, S., Li, S., & Ahmad, B. B. (2018). Novel hybrid evolutionary algorithms for spatial prediction of floods. Scientific Reports, 8(1), Article 1. https://doi.org/10.1038/s41598-018-33755-7
Capelli, P., Ielasi, F., & Russo, A. (2021). Forecasting volatility by integrating financial risk with environmental, social, and governance risk. Corporate Social Responsibility and Environmental Management, 28(5), 1483–1495. https://doi.org/10.1002/csr.2180
Diaz, R., Smith, K., Landaeta, R., & Padovano, A. (2020). Shipbuilding supply chain framework and digital transformation: A project portfolios risk evaluation. Procedia Manufacturing, 42, 173–180. https://doi.org/10.1016/j.promfg.2020.02.067
Dehghanpour, S., & Esfahanipour, A. (2018). Dynamic portfolio insurance strategy: A robust machine learning approach. Journal of Information and Telecommunication, 2(4), 392-410. http://10.1080/24751839.2018.1431447
Du, K.-L., & Swamy, M. N. S. (2014). Neural Networks and Statistical Learning. Springer. https://doi.org/10.1007/978-1-4471-5571-
Gheibi, M., Moezzi, R., Taghavian, H., Wacławek, S., Emrani, N., Mohtasham, M., Khaleghiabbasabadi, M., Koci, J., Yeap, C. S. Y., & Cyrus, J. (2023). A risk-based soft sensor for failure rate monitoring in water distribution network via adaptive neuro-fuzzy interference systems. Scientific Reports, 13(1), Article 1. https://doi.org/10.1038/s41598-023-38620-w
Goli, A., Khademi Zare, H., Tavakkoli-Moghaddam, R., & Sadeghieh, A. (2019). Hybrid artificial intelligence and robust optimisation for a multi-objective product portfolio problem Case study: The dairy products industry. Computers & Industrial Engineering, 137, 106090. https://doi.org/10.1016/j.cie.2019.106090
Graupe, D. (2007). Principles of artificial neural networks (2nd ed). World Scientific. Journal of ICT, 23, No. 2 (April) 2024, pp: 139-
Hessami, F. (2018). Business risk evaluation and management of Iranian commercial insurance companies. Management Science Letters, 8(2), 91–102. https://doi.org/10.5267/j. msl.2017.12.003
Huang, Y., Capretz, L. F., & Ho, D. (2021). Machine learning for stock prediction based on fundamental analysis. 2021 IEEE Symposium Series on Computational Intelligence (SSCI), 01-10. https://doi.org/10.1109/SSCI50451.2021.9660134
Jang, J.-S. (1993). ANFIS Adaptive-network-based fuzzy inference system. Systems, Man and Cybernetics, IEEE Transactions On, 23, 665–685. https://doi.org/10.1109/21.256541
Jöreskog, K. G. (1967). Some contributions to maximum likelihood factor analysis. Psychometrika, 32(4), 443–482. https://doi.org/10.1007/BF02289658
Suresh, K., Karthik, S., & Hanumanthappa, M. (2020). Design an efficient disease monitoring system for Paddy Leaves based on big data mining. Inteligencia Artificial, 23(65), 8699. https://doi.org/10.4114/intartif.vol23iss65pp86-99
Kassim, S., Hasan, H., Mohd Ismon, A., & Muhammad Asri, F. (2013). Parameter estimation in factor analysis: Maximum likelihood versus principal component. AIP Conference Proceedings, 1522(1), 1293–1299. https://doi.org/10.1063/1.4801279
Kaynak, S., Evirgen, H., & Kaynak, B. (2014). Adaptive neuro-fuzzy inference system in predicting the success of students in a particular course. International Journal of Computer Theory and Engineering, 7(1), 34–39. https://doi.org/10.7763/ IJCTE.2015.V7.926
Keneni, B. M., Kaur, D., Al Bataineh, A., Devabhaktuni, V. K., Javaid, A. Y., Zaientz, J. D., & Marinier, R. P. (2019). Evolving rule-based explainable artificial intelligence for unmanned aerial vehicles. IEEE Access, 7, 17001–17016. https://doi.org/10.1109/ACCESS.2019.2893141
Kim, Y. J., Cho, S.-H., & Sharma, B. P. (2021). Constructing efficient portfolios of low-carbon technologies. Renewable and Sustainable Energy Reviews. 150, 111515. https://doi.org/10.1016/j.rser.2021.111515.
Liliana, D. Y., Basaruddin, T., Widyanto, M. R., & Oriza, I. I. D. (2019). High-level fuzzy linguistic features of facial components in human emotion recognition. Journal of Information and Communication Technology, 19(1), 103–129. https://doi.org/10.32890/jict2020.19.1.5 Journal of ICT, 23, No. 2 (April) 2024, pp: 139-
Li, D., Liu, S., Liu, R., Li, C., & Zhang, Y. (2018). A haze prediction algorithm based on PCA-BP neural network. In C. Li & S. Mao (Eds.), Wireless Internet (pp. 451–460). Springer International Publishing. https://doi.org/10.1007/978-3-319-90802-1_40
Li, R., Yang, N., Zhang, Y., & Liu, H. (2020). Risk propagation and mitigation of design change for complex product development (CPD) projects based on multilayer network theory. Computers & Industrial Engineering, 142, 106370. https://doi.org/10.1016/j.cie.2020.106370
Liu, Y. (2019). Novel volatility forecasting using deep learning– Long Short Term Memory Recurrent Neural Networks. Expert Systems with Applications, 132, 99–109. https://doi.org/10.1016/j.eswa.2019.04.038
Li, J., Yuan, Y., Ruan, T., Chen, J., & Luo, X. (2021). A proportional-integral-derivative-incorporated stochastic gradient descent-based latent factor analysis model. Neurocomputing, 427, 29–39. https://doi.org/10.1016/j.neucom.2020.11.029
Malaysha, S., Awad, M., & Hadrob, R. (2022). Classification and prediction of low-density lipoprotein cholesterol LDL-C in the Palestinian patients using machine learning techniques. International Journal of Intelligent Engineering and Systems, 15(1), 453–463. https://doi.org/10.22266/ijies2022.0228.41
Mamat, R. C., Ramli, A., Samad, A. M., Kasa, A., Razali, S. F. M., & Omar, M. B. H. C. (2021). Artificial neural networks in slope of road embankment stability applications: A review and future perspectives. International Journal of Advanced Technology and Engineering Exploration, 8(75), 304–319. https://doi.org/10.19101/IJATEE.2020.762127
Mamdani, E. H., & Assilian, S. (1975). An experiment in linguistic synthesis with a fuzzy logic controller. International Journal of Man-Machine Studies, 7(1), 1–13. https://doi.org/10.1016/ S0020-7373(75)80002-2
Markowitz, H. (1952). Portfolio selection. The Journal of Finance, 7(1), 77–91. https://doi.org/10.1111/j.1540-6261.1952.tb01525.x
Mercurio, P. J., Wu, Y., & Xie, H. (2020). An entropy-based approach to portfolio optimisation. entropy, 22(3), 332. http://dx.doi. org/10.3390/e22030332
Micán, C., Fernandes, G., Araújo, M. (2022). Disclosing the tacit links between risk and success in organisational development project portfolios. Sustainability, 14(9), Article 9. https://doi.org/10.3390/su14095235 Journal of ICT, 23, No. 2 (April) 2024, pp: 139-
Micán, C., Fernandes, G., Araújo, M. (2023). Modeling the risk of an organisational development portfolio. Procedia Computer Science. 219, 1930–1937. https://doi.org/10.1016/j. procs.2023.01.492
Mohanta, B., Nanda, P., & Patnaik, S. (2020). Management of VUCA (Volatility, Uncertainty, Complexity and Ambiguity) using machine learning techniques in Industry 4.0 paradigm. In S. Patnaik (Ed.), New Paradigm of Industry 4.0: Internet of Things, Big Data & Cyber-Physical Systems (pp. 1–24). Springer International Publishing. https://doi.org/10.1007/978-3-030-25778-1_1
Monteiro, R., De Luca, F., Galasso, C., & De Risi, R. (2022). Editorial: Natural-hazard risk assessment in developing countries. Frontiers in Built Environment. 8(1005562). http://10.3389/ fbuil.2022.1005562
Mubarak, S. M. J., Crampton, A., Carter, J., & Parkinson, S. (2022). Robust data expansion for optimised modeling using adaptive neuro-fuzzy inference systems. Expert Systems with Applications, 189, 116138. https://doi.org/10.1016/j. eswa.2021.116138
Nakamori, Y., Sato, K., & Watada, J. (1997). Factor space model for fuzzy data. Journal of Japan Society for Fuzzy Theory and Systems, 9(1), 99–107. https://doi.org/10.3156/jfuzzy.9.1_99
Neumeier, A., Radszuwill, S., & Garizy, T. Z. (2018). Modeling project criticality in IT project portfolios. International Journal of Project Management, 36(6), 833–844. https://doi.org/10.1016/j.ijproman.2018.04.005
Omar, M., Che Mamat, R., Abdul Rasam, A. R., Ramli, A., & Samad, A. M. (2021). Artificial intelligence application for predicting slope stability on soft ground: A comparative study. International Journal of Advanced Technology and Engineering Exploration, 8, 362–370. https://doi.org/10.19101/IJATEE.2020.762139 Paulino, Ã. de C., Guimarães, L. N. F., & Shiguemori, E. H. (2019). Hybrid adaptive computational intelligence-based multisensor data fusion applied to real-time UAV autonomous navigation. Inteligencia Artificial, 22(63), 162–195. https://doi.org/10.4114/intartif.vol22iss63pp162-195
Project Management Institute. (2017). The standard for portfolio management (4th ed.). PMI.
Ponsard, C., Germeau, F., Ospina, G., Bitter, J., Mende, H., Vossen, R., & Schmitt, R. (2019). A two-phased risk management Journal of ICT, 23, No. 2 (April) 2024, pp: 139-framework targeting SMEs project portfolios: Proceedings of the 9th International Conference on Simulation and Modelling Methodologies, Technologies and Applications, 406–413. https://doi.org/10.5220/0008119704060413
Sorzano, C. O. S., Vargas, J., & Montano, A. P. (2014). A survey of dimensionality reduction techniques (arXiv:1403.2877). arXiv. https://doi.org/10.48550/arXiv.1403.2877
Serrano-Gomez, L., & Munoz-Hernandez, J. I. (2019). Monte Carlo approach to fuzzy AHP risk analysis in renewable energy construction projects. PLOS ONE, 14(6), e0215943. https://doi.org/10.1371/journal.pone.0215943
Shalev-Shwartz, S., & Ben-David, S. (2014). Understanding machine learning: From theory to algorithms. Cambridge University Press.
Sharma, J., Bhagawati, A. J., & Chutia, R. (2013). Fuzzy logic-based odour classification system in electronic nose. International Journal of Computer Applications, 78(15), 18.
Shokry, A., & Espuña, A. (2018). The ordinary kriging in multivariate dynamic modelling and multistep-ahead prediction. In A. Friedl, J. J. Klemeš, S. Radl, P. S. Varbanov, & T. Wallek (Eds.), Computer Aided Chemical Engineering (Vol. 43, pp. 265–270). Elsevier. https://doi.org/10.1016/B978-0-444-64235-6.50047-4
Soroush, E., Mesbah, M., Hajilary, N., & Rezakazemi, M. (2019). ANFIS modeling for prediction of CO2 solubility in potassium and sodium-based amino acid Salt solutions. Journal of Environmental Chemical Engineering, 7(1), 102925. https://doi.org/10.1016/j.jece.2019.102925
Takagi, T., & Sugeno, M. (1985). Fuzzy identification of systems and its applications to modeling and control. IEEE Transactions on Systems, Man, and Cybernetics, 15(1), 116-132. https://10.1109/TSMC.1985.6313399
Tiruneh, G. G., Fayek, A. R., & Sumati, V. (2020). Neuro-fuzzy systems in construction engineering and management research. Automation in Construction, 119, 103348. https://doi.org/10.1016/j.autcon.2020.103348
Tzeng, G. H, Jen, W., & Hu, K. C. (2002). Fuzzy factor analysis for selecting service quality factors-a case of the service quality of city bus service. International Journal of Fuzzy Systems, 4(4), 911-921.
Utama, W. P., Chan, A. P. C., Zahoor, H., Gao, R., & Jumas, D. Y. (2019), “Making decision toward overseas construction Journal of ICT, 23, No. 2 (April) 2024, pp: 139-projects: An application based on adaptive neuro fuzzy system”, Engineering. Construction and Architectural Management, 26(2), 285-302. https://doi.org/10.1108/ECAM-01-2018-0016
Wang, Z., Chen, L., Song, S., Cong, P. X., & Ruan, Q. (2020). Automatic cyber security risk assessment based on fuzzy fractional ordinary differential equations. Alexandria Engineering Journal, 59(4), 2725–2731. https://doi.org/10.1016/j.aej.2020.05.014
Yousofi Tezerjan, M., Safi Samghabadi, A., & Memariani, A. (2021). ARF: A hybrid model for credit scoring in complex systems. Expert Systems with Applications, 185, 115634. https://doi.org/10.1016/j.eswa.2021.115634
Zadeh, L. A. (1965). Fuzzy sets. Information and Control, 8(3), 338–353. https://doi.org/10.1016/S0019-9958(65)90241-X
Zhang, J. (2020). Investment risk model based on intelligent fuzzy neural network and VaR. Journal of Computational and Applied Mathematics, 371, 112707. https://doi.org/10.1016/j. cam.2019.112707
Zou, X., Yang, Q., Hu, Q., & Yao, T. (2019). Project portfolio risk prediction and analysis using the random walk method, Proceedings of the 8th International Conference on Operations Research and Enterprise Systems, 285–291. https://doi.org/10.5220/0007357202850291
Published
Issue
Section
License
Copyright (c) 2024 Journal of Information and Communication Technology

This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
Research impact
Harvested 2026-09-06Counts differ between services because each indexes a different body of literature. None of them is the whole picture.
2002 - 2020






















