Posted by Michelle Duerst on Jan 13, 2016

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Get a Clearer Picture with Better Product Portfolio Management

Featuring Gartner Insight

Can you quickly and confidently answer the following questions?

  • Are our projects projected to be on-time and on-budget?
  • Which projects should we initiate?
  • Which projects should we continue?
  • Which projects should we terminate?
  • Do we have enough resources?
  • Do the product portfolios meet our financial objectives?
  • Are we in compliance with all regions where we distribute/sell our products?

PPM Checklist

Many companies house disparate data, with the data volume growing exponentially every day.  What they do not immediately see is how these data points connect to form an accurate picture of where they are, where they’ve been and where they could potentially go.

Product Lifecycle Management houses many of the critical data factors for effective Product Portfolio Management (PPM), but it often does not include the analysis needed for executive go/no-go decisions. 

Gartner states, “[Product Portfolio Management] PPM captures a decision-making methodology, supported by views of risk versus opportunity for each product initiative.” [1] 

What is PPM and how will it change your view on the future? 

PPM is a subset of Product Lifecycle Management (PLM).  Just like PLM, PPM has multiple functionalities that provide a unique view, analytic, or workflow.  

1. Business Intelligence (B/I)

B/I provide the overview or snapshot of your current product portfolio.  Integrating critical data from PLM and legacy systems, B/I provides metrics for all performance indicators to measure if the portfolio is meeting expected returns and the foresight to be able to adjust accordingly with:

  • Financial Models
  • Bubble Diagrams
  • Resource Models
  • Portfolio Charts
  • Scoring Models
  • Complete analysis and reporting tools

2. Idea Management

Idea Management is a formalized framework that allows you to expand the number of ideas collected, while making the influx manageable by qualifying the ideas submitted before they are sent for management review. 

Expand:  Create an intuitive form that allows you to expand who can submit new ideas.  Instead of just a marketing and research team, you can provide a forum for all employees, shareholders, customers, vendors, etc. to contribute.

Narrow:  Create defined criteria to assess and score viability of the product and then pre-qualify the ideas as submitted.

There are more steps and functionality involved with Idea Management.   

Read More:

Idea Management Blog

3.  Resource Management

Resource Management can be the "Goldilocks" of PLM as too many resources will spike the costs of the project while too few can completely stall a launch.  A precise balance must be reached to keep momentum, costs, and timelines in check with key metrics and functionality like:

  • Resource Time Tracking: Project/Admin/Vacation/Travel, planned vs. actual
  • Dashboards with progress status, alerts to possible delays, and current task lists
  • Plug and play data entry

Read More:

Resource Management Blog

4.  Financial Modeling

Profit/Loss (P/L) statements provide hardline truths on where your company viability is and where it can go.  Traditional methods rely upon manually entering results.  However such methods are prone to errors in P/L and can yield inaccurate and potentially catastrophic results.

Better PPM will employ automated P/L statements with the continual updates as well as other key functionality:     

  • Iteration models to understand different financial scenarios
  • User defined units of measure
  • Global currency conversions
  • Measuring planned vs. actual financial results
  • Analytics and reporting tools

Read More:

Financial Modeling Blog   

PLM Vision          PPM Datasheet

 

[1]                 Source:  Gartner, “Hype Cycle for Process Manufacturing and PLM, 2015” by

Marc Halpern, Simon F Jacobson, Rick Franzosa, Janet Suleski, July 2015

Topics: PLM, Collaboration, Best PLM Practices, Innovation Process Management, Financial Modeling, Resource Management, Business/Intelligence, Product Portfolio Management, Idea Management, IPM

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