Difference between revisions of "Product Portfolio Management"
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'''Product Portfolio Management (PPM)''' is a definitive [[Process|process]] of [[Product Portfolio Analysis|analyzing and assessing each product]] and its current level of success. It also involves identifying [[Risk|risks]] and future opportunities, streamlining [[Resource Allocation|resource allocation]] based on[[Product|product]] success and priority, and ultimately aligning these products with the business’s long-term strategic goals. This [[Methodology|methodology]] enables product managers and [[Stakeholder|stakeholders]] to constantly review their products, improve them based on evolving consumer demands, add more products or services and streamline the product execution based on resource capacity. These processes cumulatively result in an increased [[Return on Investment (ROI)|Return on Investment]], thereby enhancing the business’s top line.<ref>What Does Product Portfolio Management Mean? [https://www.saviom.com/blog/product-portfolio-management-ppm/ Saviom]</ref> | '''Product Portfolio Management (PPM)''' is a definitive [[Process|process]] of [[Product Portfolio Analysis|analyzing and assessing each product]] and its current level of success. It also involves identifying [[Risk|risks]] and future opportunities, streamlining [[Resource Allocation|resource allocation]] based on[[Product|product]] success and priority, and ultimately aligning these products with the business’s long-term strategic goals. This [[Methodology|methodology]] enables product managers and [[Stakeholder|stakeholders]] to constantly review their products, improve them based on evolving consumer demands, add more products or services and streamline the product execution based on resource capacity. These processes cumulatively result in an increased [[Return on Investment (ROI)|Return on Investment]], thereby enhancing the business’s top line.<ref>What Does Product Portfolio Management Mean? [https://www.saviom.com/blog/product-portfolio-management-ppm/ Saviom]</ref> | ||
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| + | == Benefits of Product Portfolio Management<ref>What are the Benefits of Product Portfolio Management? [https://www.smartsheet.com/definitive-guide-to-product-portfolio-management Smarsheet]</ref> == | ||
| + | Product portfolio management brings plenty of benefits to companies who make it a part of their business operations. Product portfolio management provides a centralized (rather than individual) view of an entire suite of products against the prevailing marketplace for those products. Unlike individual product management, a portfolio approach eliminates competing initiatives and agendas for product development. Decisions about resource allocation to strengthen products in growing markets are balanced against decisions on offerings that need improvement or can be eliminated. Practitioners view products through the dual prism of how they are performing against the real marketplace conditions. Product portfolio management also utilizes data-driven methods to streamline R&D by identifying products or markets with the best opportunities for new development, growth, and profitability. Effective product portfolio management initiatives will help: | ||
| + | *Bring new, innovative products to market quickly | ||
| + | *Improve agility and response to market conditions | ||
| + | *Reduce the time it takes to bring products to market | ||
| + | *Improve competitive positioning | ||
| + | *Maximize product investments | ||
| + | *Improve visibility into product mix and identify strong and weak products to clarify resource allocation | ||
| + | *Reduce risk and ensure that product investments align with business objectives | ||
| + | *Prioritize product focus | ||
| + | *Improve communication and collaboration | ||
| + | *Improve overall product management efficiency | ||
Revision as of 17:08, 16 September 2021
Product Portfolio Management (PPM) is a definitive process of analyzing and assessing each product and its current level of success. It also involves identifying risks and future opportunities, streamlining resource allocation based onproduct success and priority, and ultimately aligning these products with the business’s long-term strategic goals. This methodology enables product managers and stakeholders to constantly review their products, improve them based on evolving consumer demands, add more products or services and streamline the product execution based on resource capacity. These processes cumulatively result in an increased Return on Investment, thereby enhancing the business’s top line.[1]
Benefits of Product Portfolio Management[2]
Product portfolio management brings plenty of benefits to companies who make it a part of their business operations. Product portfolio management provides a centralized (rather than individual) view of an entire suite of products against the prevailing marketplace for those products. Unlike individual product management, a portfolio approach eliminates competing initiatives and agendas for product development. Decisions about resource allocation to strengthen products in growing markets are balanced against decisions on offerings that need improvement or can be eliminated. Practitioners view products through the dual prism of how they are performing against the real marketplace conditions. Product portfolio management also utilizes data-driven methods to streamline R&D by identifying products or markets with the best opportunities for new development, growth, and profitability. Effective product portfolio management initiatives will help:
- Bring new, innovative products to market quickly
- Improve agility and response to market conditions
- Reduce the time it takes to bring products to market
- Improve competitive positioning
- Maximize product investments
- Improve visibility into product mix and identify strong and weak products to clarify resource allocation
- Reduce risk and ensure that product investments align with business objectives
- Prioritize product focus
- Improve communication and collaboration
- Improve overall product management efficiency