Portfolio Management

The purpose of portfolio management is to increase the business value of your product portfolio by accomplishing the following goals:

Ensure the product portfolio has an acceptable balance of reward against risk
Improve alignment between innovation and business strategy by top-down allocation of new product development (NPD) resources
Maximize the value of the product portfolio by monitoring the health and performance of all products over their entire lifecycle

Analyzing a product portfolio provides you with answers to such questions as the following:

Do we have sufficient products in each stage of development?
Do we have products in development for all of the markets or strategic arenas in which we compete?
What are the planned launch dates for each of the products in the portfolio?
Do we have an appropriate balance of value against risk in the product portfolio?
Are we over or under spending in any specific product or market area?
Which products are at risk?
Where do we have product gaps that we require to fill?
Do we have sufficient high value products?
Do we have too many low value products?