Portfolio Management
Portfolio management refers to activities that effectively deploy, maintain and dispose of assets cost-effectively to maximise growth and ROI.
Product Portfolio Management is designed to manage all aspects of the products your company sells. This involves evaluating their performance, identifying risks and opportunities, prioritising high-value products, optimising resource allocation across the portfolio and balancing the product mix among strategic buckets. Done right, this practice aligns the product portfolio with business strategies to achieve target revenue and profitability.
Launching a New Product Introduction (NPI) or acquiring a product will impact your portfolio and will increase complexity and costs as well as competition for limited resources. It will also generate opportunities for growth and synergies and strengthen your ability to sell more comprehensive offerings.
Assessing your portfolio regularly is important to maximise revenue and profitability. It should be sensitive to customer needs (Value Proposition), and assess the economic attractiveness of meeting those needs. It should also assess the fit of an NPI with the positioning of existing offerings.
Doing this can achieve an increase in the portfolio's overarching value by enabling strategic decisions on restructuring, acquisition, divestiture or product launch.
Best Practices
Leverage our deep knowledge and tested strategies.
Successful Product Portfolio Management means applying your people and your money to the most profitable products, which means that not every idea makes it through the pipeline, and not every product lives out its life cycle in the marketplace. Companies that adopt Product Portfolio Management consistently report increases in revenue tied to successful selection of products aligned with strategic objectives.
The potential benefits are a combination of increased revenue from higher sales volume and margin lift, reduced costs from better resource utilisation, avoiding spending on low-value projects, and improved efficiency
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