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Portfolio Planning (Product Line Management)

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Portfolio planning is not the same as product management

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Portfolio Planning (Product Line Management)

  1. 1. Portfolio Planning a.k.a Product Line Management From a hardware product perspective It is not the same as product management https://www.linkedin.com/in/cheeunng THIS IS A DOCU-SLIDES. NOT PRESENTATION Oct 2017 www.superzi.com Based on my old works in Nokia/ Microsoft/ Alcatel, and many thinking are from the Nokia Portfolio Team
  2. 2. Portfolio planning and product management require different personal character and expertise Portfolio planning is challenging and requires the person to have the appetite and courage to propose properly researched, hedged risks/ bets on big ticket items ability to influence key decision makers to take in his/ her proposal Portfolio planning, even though less concrete, usually has bigger impact on a company’s future compare to product management
  3. 3. Portfolio and Product Management thinking and responsibilities are different Portfolio/ Product line management Product management Creating a winning portfolio (might not consists of winning product) Creating a winning product Open end exploration with limitless options Narrow down options for execution Predict market trend 1-2 years ahead Predict market reality 6-12 months ahead Driving long term key differentiation development for category Drive product differentiation implementation Define differentiation enhancement for each product waves in the roadmap Implement current wave differentiation Driving long lead time platform development Drive current/ near term technology implementation Define product role in portfolio Define product mission and target Optimise category opportunities (e.g. might sacrifice certain product to win the war) Optimise product opportunities (and protect your baby, i.e. product) Propose product slots (and cancellation) Propose product features
  4. 4. Product line planning Define product line’s qualities, e.g. mission, ambition, market coverage, differentiation and target consumers Define product line’s strategy to reach the ambition Define product line’s logic, such as pricing, products wave timing, product tier (roles and product counts/ distribution), distribution channel etc. Product line implementation Concretise differentiation into actionable investment areas, such as key user experiences or features, for R&D implementation Concretise and drive the implementation of category baseline and common features Tackle portfolio threats/ risks, such as possible products delay or changing competition landscape Tackle portfolio opportunities, such as entering new arenas or changing the game rule Ultimately for a product line proposal Propose the product roadmap, slots increment/ cancellation for approval Instead of individual product planning, portfolio manager should focus on
  5. 5. Portfolio manager will performs multiple roles during the whole planning cycle Portfolio implementation Range planning (all product lines Intertwined planning) Start of planning cycle End of planning cycle Next year range planning Product line planning Less work at the start due to range planning not stable, but get heavier later) Yearly cyclic planning activities timeline
  6. 6. Target setting and portfolio target Portfolio logic & innovation Asset prioritisation 1. Market ambition 2. Price band target 3. User experience target setting (partly on strategic differentiator) 4. Focus markets 5. Consumer value proposition step up (enhance screen size etc.) 6. Product line priorities 7. Innovation targets 8. Production capacity assumption 9. Definition of ideal portfolio (after taking account of all above) 1. Alternative portfolio constructs (e.g. what happen if we chipset delay etc.) a) No. of products b) Pricing c) … 2. Assessment of alternative 3. Financial modelling 4. Priorities of experience & innovation 5. Investment level vs. priorities aspiration 6. Competitiveness assessment 1. Selection of portfolio construct 2. Anchors products 3. Draft product roadmap 4. Draft implementation plan 5. Asset step-up plan to fulfil the roadmap 6. Consumer research Product line 1 Product line 2 Cross planning is a must as categories are intertwined Long term (LT) product strategy Where/ what to target? LT differentiation LT forecast Top down financial target Target consumers Geographical scope Product line … This is what range planning is about
  7. 7. Range planning logic Portfolio (product line) planning logic Iterativeon-goingsynchronisation 1. Range planning Way of Working (WoW) 1. Product Pricing stack up 2. Experience roll-out stage 3. Ideal portfolio + anchor products 2. High level product line planning 1. Boundaries 2. Engine/ chipset phrasing 3. Product count trade off 4. Capacity balancing – e.g. if need to prioritise one product, what is the knock-on effect for the rest of the portfolio (even in other lines) 5. Pricing conflict 6. Technology feasibility -> technology (e.g. new component) lead product selection (not necessary be a new product) 7. Consumers value proposition 1. Market value sizing 2. Target consumer 3. Value proposition 4. Product logic 1. Tiered vs. focused products 2. Role and drivers (cost, TTM, etc.) 3. Slots and differentiation 4. Phasing of products 5. Products priorities 5. Experience priorities 6. S/w asset plans where possible 7. Competitiveness assessment 8. Technology envelope 1. Baseline / minimum definition 2. Stretch / maximum 3. Breadth / how many variation 9. Re-distribution of financial target, as a result of on-going update of financial modelling / business case vs. finance target Iterativeon-goingsynchronisation From range planning to portfolio planning
  8. 8. The end! Any question? Wanna debate? Contact me below! https://www.linkedin.com/in/cheeunng THIS IS A DOCU-SLIDES. NOT PRESENTATION Oct 2017 www.superzi.com Based on my old works in Nokia/ Microsoft/ Alcatel, and many thinking are from the Nokia Portfolio Team

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