Product Portfolio Management

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Product Portfolio Management

  1. 1. General Content in ProductPortfolio ManagementGROUP WORK 1GIOVANNI MARCO BARBERIOMARINA NACCARATO
  2. 2. Agenda PPM Introduction Strategic Portfolio Management Tactic Portfolio Management Methods Approaches in PPM Conclusion
  3. 3. 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
  4. 4. Benefits of PPM Only the right project will be selected The entire enterprise as a whole is taken into account There could be several portfolio
  5. 5. Issue and risk in PPM Product Portfolio Management is not just selection of project from a set of project Divestiture decision is necessary No methods that helps this activity in PPM
  6. 6. Issue and risk in PPM Cannibalization: The process by which a new product gains sales by diverting sales from an existing product.
  7. 7. Strategic Portfolio Management How resources are split across different kinds of project. Two strategic methods: 1) Strategic Buckets 2) Strategic Roadmaps
  8. 8. Strategic Bucket
  9. 9. 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
  10. 10. Strategic RoadmapProduct Roadmap Technology Roadmap
  11. 11. Tactical Portfolio Management Individual Projects – Priorities – ResourcesTwo elements need to work together: Stage-Gate® Process Portfolio Review
  12. 12. Stage-Gate® Process Individual Process Resources Allocated Go/Kill Decision By Senior Management
  13. 13. Portfolio ReviewHolisticAll project in auction  Right Priorities?  Right Mix?  Sufficiency?  Allignment?  Resource Adequacy?By Senior Management
  14. 14. 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
  15. 15. Methods: PLC (Product Lifecycle )• Different trend• Helps firm to optimize its resources allocation• Helps divestiture decision
  16. 16. BCG Matrix (Boston Consulting Group)
  17. 17. Bubble Diagram Seven type:  Risk/Reward  Newness  Ease/Attractive  Cost/Timing  Strategic/Benefit  Cost/Benefit
  18. 18. Scoring Model and Checklist ModelScoring Model Checklist Model Project scored on a  Based upon answering scale of a set of question The total is given from  Project must obtain a the sum of each score certain number of “yes” to be approved Some questions could be weighted
  19. 19. Approaches in PPM Two Fundamental Approaches in PPMThe Gates The PortfolioDominate Review Dominate
  20. 20. The Gates Dominate
  21. 21. The Portfolio Review Dominate All projects are up for auction Must Do’s identified Won’t Do’s killed Other Prioritized Resources are allocated
  22. 22. CONCLUSION PPM is a vital topic among leading firms PPM is not only selection Problem of cannibalization Two main phase: Strategic Portfolio Management and Tactic Portfolio Management Several methods but not too much indication about which one using

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