Product Portfolio Management                   Andrew Reback           Group Product Manager, Intuit       QuickBooks Indu...
Personal Context2                       Copyright 2003 Andrew Reback
Introduction    How do you manage and prioritize between multiple projects?       •   Highest revenue       •   ROI       ...
What is a product portfolio?    •   An approach and a visualization        1. Assess and represent product attributes     ...
One model    • Need to balance current investments:      – Near and longer term product deliverables      – Risk – revenue...
Product Portfolio Template                                                                                                ...
Attributes for Risk (x)              Project Risk                                Market Risk                      Total Ri...
Attributes for Risk (x)    Product   Time to          Need for        Infrastructure   Market Risk -           Overall Ris...
Sample Product Portfolio - Fiscal Year 1 State                                                                            ...
Sample Product Portfolio - Fiscal Year 1 State                                                                            ...
Sample Product Portfolio - Fiscal Year 1 State                                                                            ...
Sample Product Portfolio - Balanced Proposal                                                                              ...
6 Easy Pieces     1.   Define key product/project attributes reflective of business          requirements     2.   Define ...
What it is not     • The answer to all PM problems     • Still need         –   Smart people         –   To define appropr...
Future Opportunities     • Long-term financial assessment       – Success metrics and performance against         expectat...
Why use portfolio management?     • Benefits     • Risks of not using a portfolio approach16                              ...
Product Portfolio Management                 Andrew Reback            Group Product Manager, Intuit        QuickBooks Indu...
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Product Portfolio Management

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Product Portfolio Management by
Andrew Reback at SVPMA Monthly Event July 2003

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Product Portfolio Management

  1. 1. Product Portfolio Management Andrew Reback Group Product Manager, Intuit QuickBooks Industry-Specific Solutions Silicon Valley Product Management Association Presentation 9 July 2003 All Contents Copyright 2003 by Andrew Reback1 Copyright 2003 Andrew Reback
  2. 2. Personal Context2 Copyright 2003 Andrew Reback
  3. 3. Introduction How do you manage and prioritize between multiple projects? • Highest revenue • ROI • Nearest term deliverables • Strongest advocate • Executive mandate • Randomly • Prioritize? Product portfolio management balances funding and resources for projects to achieve the business’s near and long term objectives3 Copyright 2003 Andrew Reback
  4. 4. What is a product portfolio? • An approach and a visualization 1. Assess and represent product attributes 2. More objectively and effectively balance products/project investment 3. Against both short and long term business needs4 Copyright 2003 Andrew Reback
  5. 5. One model • Need to balance current investments: – Near and longer term product deliverables – Risk – revenue, market, and development5 Copyright 2003 Andrew Reback
  6. 6. Product Portfolio Template Portfolio Higher Revenue Template In the portfolio, the X-axis (risk or other) and Y-axis (revenue or profitability or Incremental Direct Revenue Opportunity contribution) should be specific to your business needs. Lower Revenue Lower Risk Market or Project Risk Higher Risk Mature Product Maturity New Offerings6 Copyright 2003 Andrew Reback
  7. 7. Attributes for Risk (x) Project Risk Market Risk Total Risk Value Product Time to Dependence Potential Current Risk of low Market (1, on new partner competition market technology solution in market (1, adoption (1, 3, 5) (1, 3, 5) available (1, 3, 5) 3, 5) 3, 5) A 1 3 5 3 5 17 B 3 1 3 3 1 11 C 5 1 1 3 3 13 D 3 5 3 1 3 15 E 3 5 5 1 1 15 F 5 3 3 5 3 197 Copyright 2003 Andrew Reback
  8. 8. Attributes for Risk (x) Product Time to Need for Infrastructure Market Risk - Overall Risk Market new subject + other Competitive threat Level (L, M, H) (<1yr, 1-2yrs, matter changes 2+ yrs) expertise (L, required (L, M, H) M, H) A 1yr L H L M B 2yr L L L L C 1yr M M M M D 2yr M M M M E 3yr H L M M F 1yr H M H H8 Copyright 2003 Andrew Reback
  9. 9. Sample Product Portfolio - Fiscal Year 1 State Portfolio Product Higher 7Revenue Representation Product 3 Product 2 Product 4 Product A portfolio with many projects 6 Product under consideration, many 5 insufficiently staffed leads to a significant amount of inappropriately directed cost and effort. Product Circle size = approximate allocated 7 resources. 0.25"sq= x PD resources Incremental Direct Revenue Opportunity Product 1 Green = fully staffed Yellow = understaffed Red = not staffed LowerRevenue Lower Risk Market or Project Risk Higher Risk Mature Product Maturity New Offerings9 Copyright 2003 Andrew Reback
  10. 10. Sample Product Portfolio - Fiscal Year 1 State Product 7 Higher Portfolio Revenue Product Representation 3 Product 2 Product 4 Product 6 Product 5 Resource shift to greater business opportunities Product Goal is to shift resources 7 to projects which will Incremental Direct Revenue Opportunity Product 1 address BOTH near and longer term business objectives Lower Revenue Lower Risk Market or Project Risk Higher Risk Mature Product Maturity New Offerings10 Copyright 2003 Andrew Reback
  11. 11. Sample Product Portfolio - Fiscal Year 1 State Product Portfolio Higher 7Revenue Product Representation 3 Product 2 Product 4 Product 6 Product For higher risk 5 Skunk-works, special projects, offerings with lower other investigation Resource shift to greater potential revenue, or business opportunities longer term opportunities with unknown revenue potential, potential for alternate delivery Incremental Direct Revenue Opportunity Partner solutions Product 1 vehicles LowerRevenue Lower Risk Market or Project Risk Higher Risk Mature Product Maturity New Offerings11 Copyright 2003 Andrew Reback
  12. 12. Sample Product Portfolio - Balanced Proposal Product Higher 7Revenue Product A Balanced 3 Portfolio Product 2 Skunk-works, special projects, Product 6 other investigation Funding and resource allocation should be inline with both short and longer term business objectives. Incremental Direct Revenue Opportunity Partner solutions Product 1 LowerRevenue Lower Risk Market or Project Risk Higher Risk12 Mature Product Maturity New Offerings Copyright 2003 Andrew Reback
  13. 13. 6 Easy Pieces 1. Define key product/project attributes reflective of business requirements 2. Define metrics (qualitative or quantitative) for key product attributes 3. Consolidate metrics as appropriate to drive trade-off between x (risk is this model) and y (revenue in this case) attributes 4. With consideration for both near and long term business objectives, evaluate whether current funding is appropriate to execute against the defined objectives 5. Rebalance current and future funding based on business objectives and shifting product attributes 6. Re-evaluate funding decisions on periodic basis (semi- annually, annually)13 Copyright 2003 Andrew Reback
  14. 14. What it is not • The answer to all PM problems • Still need – Smart people – To define appropriate attributes – To decide specific investments – To define execute Like any tool, product portfolio management requires good inputs, intelligent application, and valid outputs to be useful.14 Copyright 2003 Andrew Reback
  15. 15. Future Opportunities • Long-term financial assessment – Success metrics and performance against expectations • More rigid risk assessment + ongoing risk re- evaluation15 Copyright 2003 Andrew Reback
  16. 16. Why use portfolio management? • Benefits • Risks of not using a portfolio approach16 Copyright 2003 Andrew Reback
  17. 17. Product Portfolio Management Andrew Reback Group Product Manager, Intuit QuickBooks Industry-Specific Solutions Silicon Valley Product Management Association Presentation 9 July 200317 Copyright 2003 Andrew Reback

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