The Boston Matrix is a model which helps businesses analyse their portfolio of businesses and brands. Portfolio management - selecting the right new product development projects and properly managing your resources - is a key element of the new product development system. Strategic Portfolio Management is the next big opportunity to achieve and sustain competitive advantage. Strategy 2 Market This team, which might be called the Product Committee, meets regularly to manage the product pipeline and make decisions about the product portfolio. During the past 20 years companies have greatly improved processes and systems for managing the “operational” aspects of project/portfolio management (PPM) –budgeting, project management, resource planning, and phase gate processes.. Strategic portfolio management, while practiced for many years by leading companies in … Project portfolio management refers to the centralized management of one or more project portfolios to achieve strategic objectives. The investor who follows an active portfolio management strategy buys and sells stocks in an attempt to outperform a specific index, such as the Standard & … Portfolio management has been embraced by the pharmaceutical and biotech industries because of the unique characteristics of drug development, huge investments, long development timelines, extremely high risk, and need for several products in the pipeline. This program will equip you to think like the CEO of your product or service, all in a flexible, online format. product portfolio management: an important bu siness strategy Mishelle DOORASAMY Durban University of Technology, Depart ment of Financial A ccounting, Durban, S outh Africa Connecting your product strategy to actual resources is what turns a plan into reality, but the process for managing this gets increasingly more complex as your product portfolio grows in size. Imagine adapting to the changing world of work , realizing agile at scale , creating a culture of innovation , and making the product shift . As an outgrowth of the diversification trend in U.S. corporations, in which companies are expanding their product lines and entering new businesses, portfolio models have gained wider acceptance. It helps the team share learnings. Lean Portfolio Management. Make sure that each brand has a well-defined role or set of roles to play in each product-market context that it … It encourages ideas. 1. As your clients’ buying habits, expectations and perceptions of value rapidly evolve, your approach to product and offerings management must keep pace. Portfolio and Therapeutic Area Strategy Developing an approach that maximizes the impact of a portfolio of products requires a deep understanding of the dynamics of both the disease area and the industry as a whole. Information and technology are obviously key to any PPM strategy, but they are the tools, not the goal. Product managers at technology service providers are challenged to update their product portfolios to remain aligned to the needs of a rapidly evolving market.Current and prospective customers too often seek the latest digital technologies that merely hold the promise of improving organizational processes. To be successful, Strategic Portfolio Management must be built on top of a robust enterprise project management system that the organization is trained to use and actually finds indispensable for day-to-day management. In product management, strategy is not a “one and done” deliverable. It is recommended that structured, modern decision-making methods should be employed in the industry to minimize the decision bias and investment risks. Product Strategy offers a cradle-to-grave approach for managing and optimizing the life of a product or service. to sell new products in new markets. The concept of IT portfolio management ITPM is relatively new, compared to portfolio management in the context of finance, new product development NPD, and research and development R&D. As a result, we developed a brand consolidation strategy and deployment plan that identified an actionable plan to retire ~49% of product families and rebrand another 18%. Track and drive portfolio changes that are consistent with a company’s financial objectives. Product management can be hard enough, but when you scale beyond more than one product, product portfolio management is a critical tool to prioritise between multiple products, ensure resources are assigned to the right products, and that you have a pipeline of new product … It is your route to getting strategy implementation closer to the financial goals you have formulated. In product portfolio management there is an assumption that a company has an existing set of products. Strategy # 4. Products are the source of revenue and therefore excellence in Product Portfolio Management is directly related to the value creation potential of the company. Product-portfolio management is a decisive element for the good performance of new product development and compliance with business objectives because it not only defines new product projects but also defines revisions, updates, and even decisions regarding the discontinuation of products that are produced and commercialized. By Don Creswell, SmartOrg. With a portfolio strategic management plan, a portfolio is aligned to the organizational strategy and objectives for the organization unit, corporate, or department level, according to its management objectives, organizational benefits, allocation of funds, prioritization, performance expectations, requirements, dependencies, and risks. Key Features of Selerant’s PPM Solution Portfolio Management. As opposed to specific products you can build, help your team come up with more ideas to solve problems for your market. The Lean Portfolio Management competency aligns strategy and execution by applying Lean and systems thinking approaches to strategy and investment funding, Agile portfolio operations, and governance. But in the world of project portfolio management (PPfM), the goal is doing the right projects at the right time, and with this, aligning projects with strategy, rationing resources, and building synergies between projects. This post explains how you can effectively apply it to manage a portfolio of digital products. A major concern in managing projects and programs is doing projects right. Planview is uniquely positioned to help organizations navigate strategy to delivery transformation by providing the full spectrum of enterprise Portfolio Management and Work Management solutions. Great product managers engage in strategic thinking and execution every day – from the identification of lucrative market opportunities to the development of the product portfolio […] Gathered from my book, Brand Portfolio Strategy, here are 10 guidelines that point toward the creation of a cohesive, effective, well-defined brand portfolio strategy. The product portfolio matrix is a handy tool that helps you make the right product portfolio decisions. Learn to develop a strategic mindset that anchors product strategy as the pathway to growth. We help you set the strategy that determines investment allocation across functional areas and brings products and services to market. Product portfolio analysis is the systematic screening of your products such that you know what your most viable options are. Diversification: It involves moving into new market with new products i.e. This strategy is often more risky since the firm decides to make unfamiliar products for the unfamiliar markets simultaneously. Project portfolio management users often focus on the IT platform, but it’s important to see the bigger picture. 708.829.7470 | Email Us! The Boston Matrix is a popular tool used in marketing and business strategy. Strategically manage your product portfolio to make the right investment decisions, optimize the value of your portfolio, and allocate the use of resources. Nor is it something that is addressed only during planning season or each time the roadmap is updated. A business with a range of products has a portfolio of products. Why Every Organization Should Use the Product Portfolio Management Strategy 1. An optimized portfolio strategy and appropriate drug portfolio management methodology are the major must-have components and enablers of the commercial success of any pharma company. From strategic planning and portfolio management through agile, front-line execution, we work with you to create a world-class product management capability. Take a more comprehensive view of the solutions your company can offer. Product development is not automatically successful, in spite of the common customer base. What is the learning experience? The number may be small or large, but each brand, product, and product line has an impact on the external market view of the others and on the internal resources available to the others. ... To make sure your products and service keep pace you need a product management strategy built for today’s dynamic business environment. It is one of the seven core competencies of the Lean Enterprise, each of which is essential to achieving Business Agility. To ensure that all projects and programs are aligned with the portfolio strategy. 2. This week’s module is about portfolio management, which covers how to implement your innovation strategy. A product portfolio roadmap is used to set the the strategy and timeline for all product efforts across an entire group or a set of products in an organization. Strategy& analysed each product line within the portfolio with the goal of minimising redundancy and overlap while maintaining functional coverage of market needs. It is a way to bridge the gap between strategy and implementation and ensures that an organization can leverage its project selection and execution successfully. It will ensure that there is a good balance of your whole portfolio allowing you … Developing and maintaining a balanced product portfolio that is aligned to the company strategy is key to the survival of product-based companies. 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