Product Portfolio Management
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Transcript of Product Portfolio Management
GROUP WORK 1
GIOVANNI MARCO BARBERIOMARINA NACCARATO
General Content in Product Portfolio Management
Agenda
PPM Introduction
Strategic Portfolio Management
Tactic Portfolio Management
Methods
Approaches in PPM
Conclusion
Portfolio Management
“there are two ways to win at new products: doing project right and doing the right
project”R. Cooper
Project selection
Resource Allocation
Control of :
risk/return,
maintenance/growth,
short-term/long-term time spans
Benefits of PPM
Only the right project will be selected
The entire enterprise as a whole is taken
into accountThere could be several portfolio
Issue and risk in PPM
Product Portfolio Management is not just selection of project from a set of project
Divestiture decision is necessaryNo methods that helps this activity in PPM
Issue and risk in PPM
Cannibalization: The process by which a new product gains sales by diverting sales from an existing product.
Strategic Portfolio Management
How resources are split across different kinds of project.
Two strategic methods:1) Strategic Buckets2) Strategic Roadmaps
Strategic Bucket
Strategic Roadmap
It ensures that the scheduled development project portfolio really contributes to the business strategy and goals.
Two main strategic roadmap: Product Roadmap Technology Roadmap
Product Roadmap Technology Roadmap
Strategic Roadmap
Tactical Portfolio Management
Individual Projects – Priorities – Resources
Two elements need to work together:
Stage-Gate® Process
Portfolio Review
Stage-Gate® Process
Individual Process Go/Kill Decision
Resources AllocatedBy Senior Management
Portfolio Review
Holistic
All project in auction Right Priorities? Right Mix? Sufficiency? Allignment? Resource Adequacy?
By Senior Management
Portfolio Management Goals
Maximizing the value of the portfolio NPV, ECV, Scoring Model
Achieving balance in the portfolio Risk-Reward Bubble Diagram, Pie Charts
Picking the right number of projects Pipeline Gridlock, Bubble Diagrams
Ensuring portfolio sufficiency versus development goals
Methods: PLC (Product Lifecycle )
• Different trend
• Helps firm to optimize its resources
allocation
• Helps divestiture decision
BCG Matrix (Boston Consulting Group)
Bubble Diagram
Seven type: Risk/Reward Newness Ease/Attractive Cost/Timing Strategic/Benefit Cost/Benefit
Scoring Model Checklist Model
Project scored on a scale
The total is given from the sum of each score
Some questions could be weighted
Based upon answering of a set of question
Project must obtain a certain number of “yes” to be approved
Scoring Model and Checklist Model
Approaches in PPM
Two Fundamental Approaches in PPM
The Gates Dominate
The Portfolio Review
Dominate
The Gates Dominate
The Portfolio Review Dominate
All projects are up for auctionMust Do’s identifiedWon’t Do’s killedOther PrioritizedResources are allocated
CONCLUSION
PPM is a vital topic among leading firmsPPM is not only selectionProblem of cannibalizationTwo main phase: Strategic Portfolio
Management and Tactic Portfolio Management
Several methods but not too much indication about which one using