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

8. Strategic Bucket

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® Process
 Portfolio Review

12. Stage-Gate® 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

20. The Gates Dominate

21. The Portfolio Review Dominate
All projects are up for auction
Must Do’s identified
Won’t Do’s 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