This document discusses product portfolio management. It introduces a framework for objectively balancing investment across products/projects to meet business objectives. Key aspects include: 1) Defining attributes for products like risk and revenue; 2) Plotting products on a graph of these attributes; 3) Evaluating current funding against objectives; 4) Rebalancing funding as needed. The framework aims to consider both near and long-term goals. It is not a perfect solution but can help optimize allocation of resources and efforts.

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 Reback
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Copyright 2003 Andrew Reback

2. Personal Context
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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 objectives
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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 needs
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5. One model
• Need to balance current investments:
– Near and longer term product deliverables
– Risk – revenue, market, and development
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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 Offerings
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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 19
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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 H
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9. Sample Product Portfolio - Fiscal Year 1 State
Portfolio
Product
Higher 7
Revenue
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
Lower
Revenue
Lower Risk Market or Project Risk Higher Risk
Mature Product Maturity New Offerings
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Copyright 2003 Andrew Reback

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
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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 Offerings
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Copyright 2003 Andrew Reback

11. Sample Product Portfolio - Fiscal Year 1 State
Product Portfolio
Higher 7
Revenue
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
Lower
Revenue
Lower Risk Market or Project Risk Higher Risk
Mature Product Maturity New Offerings
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12. Sample Product Portfolio - Balanced Proposal
Product
Higher 7
Revenue
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
Lower
Revenue
Lower Risk Market or Project Risk Higher Risk
12 Mature Product Maturity New Offerings
Copyright 2003 Andrew Reback

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)
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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.
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15. Future Opportunities
• Long-term financial assessment
– Success metrics and performance against
expectations
• More rigid risk assessment + ongoing risk re-
evaluation
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16. Why use portfolio management?
• Benefits
• Risks of not using a portfolio approach
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17. Product Portfolio Management
Andrew Reback
Group Product Manager, Intuit
QuickBooks Industry-Specific Solutions
Silicon Valley Product Management
Association Presentation
9 July 2003
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Copyright 2003 Andrew Reback