Product Portfolio Management

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PLANVIEW APPROACH TO

PRODUCT PORTFOLIO MANAGEMENT
According to the Product Development Institute, there are four goals to the management of the product portfolio:
1.
2.
3.
4.

Maximizing its value
Getting the right balance of projects
Strategically aligning your portfolio
Helping balance your limited resources

As usual: easier said than done. Your organization has outgrown the once-sufficient approach supported by the spreadsheet. Its
silos, lack of version control, error-prone nature, absence of built-in analytics, and other inherent problems have caused you and your
management enough sleepless nights.
And so your research has led you to the concept of Product Portfolio Management (PPM). But between the buzzwords, various
vendor options, and multiple analyst opinions: what does it really all mean, and how does it apply to helping you achieve your goals?
The PPM Funnel: From Idea to Revenue
Simply stated, PPM helps you turn the voice of the customer into ideas, and ideas into products and enhancements that hit the market
at the right time and cost.
At its best, this is an approach that empowers you to map
your efforts to company strategy and plan your roadmap
with confidence.

Analytics and Reporting

Product Portfolio Management

A complete solution combines the application technology
with process management, best practices, and analytics
technologies, and is built from the ground up to the exacting
specifications of product development organizations.
Look for a solution that’s not just tuned to new product
development (NPD) and R&D, but one that can be equally
and reliably applied to current products and enhancements.

Ideation

Product Planning

Development

New Product
Ideas
Product
Enhancements
Maintenance
and Support
Research and

And importantly, the solution should span the entire product
lifecycle, from the point when ideas are generated, through
planning and execution, until the products are launched and
eventually sunsetted. This ensures that you’ll have the data
to support informed decision making at all times to make the
right decisions for your organization.

Development

Best Practice Integration and Automation

Process Acceleration and Management

According to Aberdeen Group, when compared to the industry average,
companies that are best in class in at product portfolio management:






Make 25% more revenue from new products
See 2.9x greater increase in product profit margins
Are 31% more likely to meet budget
Achieve launch dates 25% more often
Are 44% more likely to hit expected revenues

Launch

The End-to-End PPM Approach

Let’s see what to look for by reviewing the end-to-end PPM diagram section by section.
We’ll start where you start: where you plan your strategy and outline operations.
Product Portfolio Management
• Integrated strategic, product & project portfolios
• Total cost of development
• Product financial planning
• Product revenue forecasts

• Product roadmapping
• Complete lifecycle portfolio analysis
• Competitive impact and brand alignment
• Sustainability analysis

Good PPM solutions seamlessly connect sophisticated topdown planning with hard-core execution. This ensures that you
are able work on two critical levels in parallel.

Strategically, you can analyze risk, prioritize strategies, plan
financials, and prepare for change. Operationally, you can manage people and demand, measure costs, and track change. All in one place that leverages the
same data store enterprise-wide, so you have the information you need, when you need it.



Keep your portfolio aligned with strategy: Develop your plan and manage project execution, while you efficiently allocate and dynamically manage resources.
You’ll make better investment decisions to effectively drive revenue, cut costs, and mitigate risk, always keeping plans aligned with goals.



Analyze product financials for transparency into Total Cost of Development (TCD): Select a solution that helps you maximize resources with insight into costs,
funding, and budgets related to developing new products vs. maintaining existing ones.



Roadmapping: Top tools offer interactive product and technical roadmaps that graphically plot products and technology components on a timeline for
launch, and show what your organization can confidently deliver and when.



Differentiate your brand from the competition: Create offerings that resonate with customers and sustainability goals while you strategically differentiate
yourself from the competition by evaluating and scoring your product portfolio against drivers of brand choice, sustainability, and the competiton.

Ideation
• Voice of the customer
• Idea capture & sharing
• Idea source tracking for IP
• Idea alignment, status, and
dispatch
New Product
Ideas
Product
Enhancements
Maintenance
and Support

Ideation Management
The kernel of any innovative offering is a great idea. But capturing that idea is just the start. Ensuring it’s aligned with
strategy, is executable, and is routed to the people who can and will act on it is what turns the idea into actuality.
That’s where PPM can come into play, helping you:



 ear the voice of the customer and capture their ideas: Ideation Management lets you ask anyone you
H
want anything you want, and integrated tools make it easy for you to visualize which ideas are winning.



 et ideas to the right people: Automated solutions route ideas across silos and geographies to keep the
G
innovation process moving and ensure that ideas get in front of decision makers to determine if they make the
cut, and, if so, what part of the product mix they form.



 lign ideas with your needs and capabilities: Make sure ideas are aligned with operating strategy, that they are
A
technically and financially feasible, and that you have the resources to actually get the idea done.

Research and
Development

Product Planning
• Alignment to strategic goals
• Financial planning and analysis
• Organizational capacity planning
• What-if scenario analysis
• Pipeline prioritization
• Efficient frontier optimization



Product Planning
Innovation for its own sake is folly. What counts is that the products you develop both meet or exceed market
expectations, and that they help your company hit organizational and revenue goals. You must therefore carefully
analyze into which products you invest scarce resources. Look for a PPM solution with the capabilities to help
you:



 lign products to corporate strategy: Make sure that your plans and resources are in lockstep with company
A
goals with tools for codifying strategic plans, keeping them consistently relevant as market changes occur,
and then rolling up product plans to that strategy.



 lan and analyze product financials: Go into your development projects with the knowledge your plans are
P
financially sound. Financial management capabilities embedded empower you to examine multiple diverse
plans to determine the optimal mix that will drive maximum revenue at the best cost, then track costs and
benefits in real-time of strategies, products, and projects.



 lan organizational capacity: Ensure that when the time comes, you’ll be able to get the right people on the
P
right jobs. Lower labor costs and improve utilization using powerful tools like dynamic skills inventories, rolebased planning and forecasting, and resource dashboards.

Prioritize with What-if and Efficient Frontier analyses: Know before you make a change what its impact will be by selecting a PPM application with powerful
what-if scenario analysis builders. And some tools offer a Efficient Frontier capability that lets you analyze all the possible combinations and values of
products, to ensure you are selecting the right offerings, that you’re getting the best value from your portfolio, and that you’re investing intelligently.

Development
• Product development
• Project execution
• Resource management
• Time reporting
• CRI management

Launch
• Release management
• Product marketing
• Cross-team readiness

Development
A complete PPM solution gives you a handle on all the details of the development cycle, to help you mitigate risk and drive
towards successful product launch. You can see all the details for minute-to-minute updates, and roll them up for easy
reporting to management. Get on top of the processes associated with:



 roject management: Look for solutions that combine strong project management principles and best practices to help you
P
scope, schedule, and manage projects and resources; manage demand with a centralized location for work requests;
display project performance; track and manage changes, risks, and issues; and more.



 roject execution: The ideal PPM solution integrates easily with tools like JIRA®, IBM Rational®, and Microsoft Project®,
P
with seamless data transfer for top productivity, and works equally well for Agile and traditional, waterfall method shops.



 esource management: PPM solutions should help you manage developers’ daily work and dynamically move them where
R
need and revenue impact are greatest, and develop a future skills pipeline for their and the company’s growth.

Launch
This is what it’s all for: bringing your innovative offerings to the people who want them. Now it’s all about timing — making
sure all the pieces fall into place at the time when the market is ripe. Secure a PPM solution with all the tools you need
built in, to help you with:



 elease planning: Seek out dynamic release management capabilities to let you track and manage releases, their asR
sociated products, and the dependencies between them to hit on-time delivery dates and everything that entails: higher
revenue, lower risk, greater shareholder value.



 ross-team readiness: With plans strategically aligned, resources optimized, and roadmaps communicated, previousC
lysiloed teams across the enterprise — including Product Management, Engineering, Documentation, Marketing, and
others — will all be readied to launch the new release to the market for maximum effect.

Best Practice Integration and Automation
• Integrated Product Development best practices
• Innovation acceleration
• Improved portfolio visibility

• Higher pipeline value
• Business process models
• Cross-functional team design

• Preconfigured governance and
decision-making structures
• Role and responsibility definition

Best Practice Integration for Innovation Acceleration
Software plus best practices is how you drive change, improve performance, and create innovation. PPM vendors who are committed to technology
excellence are committed to best practices. Source technology married to best practices, to help you:



Accelerate innovation through the pipeline: Look for automated leading practices, such as Kalypso’s Nova for PPM, integrated directly into the PPM
solution, to give you preconfigured metrics, reporting, valuation techniques, business process flows, and decision making structures.



Increase innovation and pipeline value: By incorporating best practices into product development, you get to the insightful aha! moment faster
than ever before, enabling you to speed innovation right from the start. The result is improved portfolio visibility and higher pipeline value.

Process Acceleration and Management
• Business process management
• Continuous process improvement
• Process assessments and reviews

• Stage-Gate® process management
• PACE process management
• Worfklow and lifecycle management

• Development and deliverables processes
• Operational planning processes

Process Automation, Acceleration, and Management
The processes underlying your development efforts be attuned to helping you create the best product possible. Your PPM solution should enable you with
user-friendly processes that address:



Gate management and automation: Whether you use Stage-Gate®, PACE, or a home-grown gating process, there is a PPM solution that will
work with it. No more manual monitoring of your gated process; automate it to improve development visibility and communication, ensure onschedule delivery, and meet compliance requirements at every stage to achieve audit goals.



Requirements management: Managing product requirements using traditional, siloed tools can result in scope creep, resource overload, audit
issues, management frustration, and the like. Automate the process for a holistic view of all product requirements that guides requirements through
gates and more.



Process assessments and reviews: Do your processes support your innovation goals? Could they be beefed up to help you be more effective?
How do you get there without alienating your development team? This is where the vendor’s experience comes into play. Look for breadth,
depth, and partnership in the team that will walk through your product development and management processes, look for ways in which a small
change can make a big difference, and help you take the next step.

Analytics and Reporting
Analytics and Reporting
• Executive dashboards about the product portfolio
• Reports on projected product P&L

• Graphics comparing innovation vs. incremental enhancements
• Analytics revealing the cost of maintaining declining products

Every business runs on numbers – the numbers that show what your products are driving, costing, using up. Are they on time, ahead of schedule, late?
Why, when, and how? What would happen if?
These are the questions you have to answer, often only at a moment’s notice, and to varying degrees of detail. And if management isn’t asking, then
it’s you that needs to know, for next quarter’s planning. Usually, this means spending however much time you have cobbling your best guess together
with spreadsheets into something that passes for something you can stand behind and move forward with.
Analytics are often a top decision factor when selecting a PPM application, so take your time and pick with care. Many solutions offer reporting, but
how easy is it to access? How simple is it to format? To distribute? To analyze? You may be just a click away from the data you need, but is your boss?
Here are a few of the things you want to be able to do quickly:



Deliver executive dashboards: Management doesn’t need the details: they only care that a project is on
time and on budget, and if it isn’t, what is being done to rectify the problem. Make sure you give them
fast and meaningful insight with an executive dashboard showing analytics views with only what matters
to management. Some PPM tools also provide the ability to easily share those views through Microsoft
Office® applications, a major plus for many users, look for it.



 roduce projected P&L reports: Good PPM tools make it easy to produce
P
a projected P&L report by tracking all the line items and marrying them
to the big picture, so that when it’s time to predict how your offering’s
going to do, you can do so quickly and with confidence.



 easure the cost of maintaining declining products: Your customers
M
value your current offerings — but is maintaining them costing you
the opportunity to bring new breakthroughs to market? Take the gut
feel, guess work, and politics out of it by thoroughly analyzing current
customer base vs. customer acquisition cost, maintenance costs vs.
R&D expenses, and more.

Making the move to a product portfolio management system isn’t painless, but the rewards
far outweigh the costs. With visibility into each phase of the development lifecycle, your
organization is empowered to:
1. Drive innovation fast enough to hit the market at the right time
2. Make smart decisions quickly and effectively
3. Plan and deploy its finite resources right
Once you know what to look for, it’s easier to ask the tough questions and see through the jargon. Look to a vendor like
Planview to provide the complete solution you need.
We’ve been building this kind of technology and working with enterprise customers for more than 20 years, so we can see
around the corners when it comes to deploying a flexible, large-scale solution, be it SaaS or on-premise. Our solutions grow
with you: use what you need, build on early wins, and leverage more of our end-to-end approach as your requirements evolve.
And as product developers ourselves, we purpose-built our product PPM solution from the ground up, because we know that
product organizations’ needs are unique, so you get a solution that speaks your language.
Ready to learn more? Check out a video, see a demo, and much more at www.Planview.com/ProdDev.

Proud to
partner with:

Certified Stage-Gate® Ready, Planview solutions
have been endorsed by Stage-Gate Inc., as meeting
the requirements to assist customers in driving
innovation while minimizing risk.

WWW.PLANVIEW.COM | [email protected] | 800.856.8600 | +1.512.346.8600 |
©2012 Planview, Inc. All rights reserved. All trademarks acknowledged.

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