際際滷

際際滷Share a Scribd company logo
General Content in Product
Portfolio Management
GROUP WORK 1


GIOVANNI MARCO BARBERIO
MARINA NACCARATO
Agenda

 PPM Introduction

 Strategic Portfolio Management

 Tactic Portfolio Management

 Methods

 Approaches in PPM

 Conclusion
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
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
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
Issue and risk in PPM

 Cannibalization:
 The process by which a new product gains sales by
 diverting sales from an existing product.
Strategic Portfolio Management

 How resources are split across different kinds of
  project.
 Two strategic methods:
  1) Strategic Buckets
  2) Strategic Roadmaps
Strategic Bucket
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
Strategic Roadmap

Product Roadmap        Technology Roadmap
Tactical Portfolio Management

 Individual Projects  Priorities  Resources

Two elements need to work together:

 Stage-Gate速 Process


 Portfolio Review
Stage-Gate速 Process




 Individual Process   Resources Allocated
 Go/Kill Decision     By Senior Management
Portfolio Review

Holistic
All project in auction
   Right Priorities?
   Right Mix?
   Sufficiency?
   Allignment?
   Resource Adequacy?
By Senior Management
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
Methods: PLC (Product Lifecycle )




 Different trend

 Helps firm to optimize its resources allocation
 Helps divestiture decision
BCG Matrix (Boston
 Consulting Group)
Bubble Diagram

       Seven type:
        Risk/Reward
        Newness
        Ease/Attractive
        Cost/Timing
        Strategic/Benefit
        Cost/Benefit
Scoring Model and Checklist Model

Scoring 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
Approaches in PPM


        Two Fundamental
        Approaches in PPM



The Gates                  The Portfolio
Dominate                     Review
                            Dominate
The Gates Dominate
The Portfolio Review Dominate


             All projects are up for auction
             Must Dos identified
             Wont Dos killed
             Other Prioritized
             Resources are allocated
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

More Related Content

Product Portfolio Management

  • 1. General Content in Product Portfolio Management GROUP WORK 1 GIOVANNI MARCO BARBERIO MARINA NACCARATO
  • 2. Agenda PPM Introduction Strategic Portfolio Management Tactic Portfolio Management Methods Approaches in PPM Conclusion
  • 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. 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. 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. Issue and risk in PPM Cannibalization: The process by which a new product gains sales by diverting sales from an existing product.
  • 7. Strategic Portfolio Management How resources are split across different kinds of project. Two strategic methods: 1) Strategic Buckets 2) Strategic Roadmaps
  • 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. Strategic Roadmap Product Roadmap Technology Roadmap
  • 11. Tactical Portfolio Management Individual Projects Priorities Resources Two elements need to work together: Stage-Gate速 Process Portfolio Review
  • 12. Stage-Gate速 Process Individual Process Resources Allocated Go/Kill Decision By Senior Management
  • 13. Portfolio Review Holistic All project in auction Right Priorities? Right Mix? Sufficiency? Allignment? Resource Adequacy? By Senior Management
  • 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. Methods: PLC (Product Lifecycle ) Different trend Helps firm to optimize its resources allocation Helps divestiture decision
  • 16. BCG Matrix (Boston Consulting Group)
  • 17. Bubble Diagram Seven type: Risk/Reward Newness Ease/Attractive Cost/Timing Strategic/Benefit Cost/Benefit
  • 18. Scoring Model and Checklist Model Scoring 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. Approaches in PPM Two Fundamental Approaches in PPM The Gates The Portfolio Dominate Review Dominate
  • 21. The Portfolio Review Dominate All projects are up for auction Must Dos identified Wont Dos killed Other Prioritized Resources are allocated
  • 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