This presentation provides the ultimate guide to Portfolio Product Management
1) New Product Development
New Product Development Process
Internal Sources of New Product Ideas
External Sources of New Product Ideas
Idea Screening
Concept Testing
Business Analysis of New Products
Develop a Marketing Strategy
Agile Product Development - Scrum Framework
Test Marketing
Commercialization
2) Performance Evaluation
Performance Evaluation: Major Component Activities
Performance Evaluation Process
Performance Attribution Analysis
Scope of Performance Appraisal
Scope of Investment Performance Presentation
3) Risk Management
Risk Management Procedure
Risk Identification
Risk Assessment
Risk Control Matrix
Risk Item Tracking
4) Portfolio Prioritization
Portfolio Prioritization Process
Project Portfolio Prioritization Matrix
Product Prioritization Frameworks
5) Resource Optimization
Factors Affecting Project Resource Management including Optimization
Resource Optimization - Time phased resource plan
Schedule Optimization
Multi-Project Critical Path
Multi-Project Critical Chain
6) ROI Maximization
Agile Investment Management
Product Portfolio Investment Map
5 Tips for Product Development Strategy
7) Product Consistency
Brand Consistency
UX/UI Consistency
4. New Product Development Process
08. Introduction
The product is introduced in the Market
01. Idea Generation
Pool of Ideas is created
02. Idea Screening
Most feasible ideas reselected from the pool of
Ideas
03. Concept Development
A concept is developed & Tested
04. Business Strategy Development
Marketing & other business strategies are developed
05. Product Development
Product prototype is created
06. Test Marketing
Prototype introduced for research &
feedback
07. Commercialization
Final briefing & strategy formulation is done
New Product
Development
4
5. Internal Sources of New Product Ideas
Sales Force
Innovation Group Meetings Stockholders
Employee Suggestions
Research and
Engineering
• ProductTesting
• ProductEnhancement
• Brainstorming
• Accident
Management
• Strategic Planning
• Marketing
Manager
5
6. External Sources of New Product Ideas
‘Fallout’form predictions ofchanging
economic and socialconditions
Analysis ofexisting product
perceptions
Studying activitiesto identify
unsatisfiedneeds
Locatingareasof consumer
dissatisfactionwith currentproducts
Learning from competition
Overseas experiencetransferring
foreignproducts
New
Product
Long
Range
Studies
Market
Gap
Analysis
Consumer
Activity
Analysis
Learning
From
Competitors
Market
Research
6
7. Idea Screening
Idea
05
02
04
03
01 06
Rate a “criteria coefficient” for each
criteria from 1 (low importance) to 5
(high importance)
Rate your criteria
Time
Cost
Potential impact
Monetary impact
How much of your organization is
affected
Business critical
Ownership
Linked to strategic goals
Choose criteria
First ’filter’ to select the most-
workable ideas through voting
Select the ideas
Score from 1 to 5 (1 being the least
effective, 5 being the most)
Score each idea
Calculate each idea’s weighted score
Calculate each idea
Sum the weighted scores and compare
Sum & Compare
7
8. 01
02
03
04
05
Why: set a goal for your test
When: to run a Concept Test
(1) at the discovery stage,
(2) during the design stage,
(3) before the product launch
What: Ask your audience the right questions
How: Survey Methodology: (1) Single Concept Evaluation, (2) Multiple Concept
Evaluation, (3) Concept Selection, (4) Concept Selection and Evaluation
Who: Tap into your target audience
Concept
Testing
8
9. Concept Testing Process
9
Set a Goal
for the Test
Choose a Survey
Population
Choose a
Survey Format
Communicate
the Concept
Measure Customer
Response
Interpret the
Results
Reflect on the Results
and the Process
10. Business analysis of new products
4. Identify your break-even point
7. Scope your marketing strategy
1. Estimate your product price 2. Identify your product's market potential
3. Forecast your sales volume
6. Consider the long term
5. Determine your minimum sale price
10
11. Develop a marketing strategy
11
Marketing Strategy
Identify your business goals Profile your competitors
State your marketing goals
Develop strategies to support your
marketing goals
Research your market Use the '7 Ps of marketing'
Profile your potential customers Test your ideas
12. People
› Employees
› Management
› Culture
› Customer Service
The 7 Ps of Marketing
12
Place
› Retail
› Wholesale
› Mail order
› Internet
› Direct Sales
› Peer to Peer
› Multi-Channel
› Smart
› Run-down
› Interface
› Comfort
› Facilities
Physical evidence
Price
Strategies:
› Skimming
› Penetration
› Psychological
› Cost-Plus
› Loss leader, etc
Promotion
› Special Offers
› Advertising
› Endorsements
› User trials
› Direct mailing
› Leaflets/posters
› Free gifts
› Competitions
› Joint ventures
Process
› Especially relevant to service
industries
› How are services consumed?
7 Ps of
Marketing
› Design
› Technology
› Usefulness
› Convenience
› Value
› Quality
› Packaging
› Branding
› Accessories
› Warranties
Product
14. 01
02
03
04
05
Why Should Companies Test Market?
Provide valuable information to help in this decision-
making process
What Are the Methods?
(1) Market testing
(2) Focus group interviews
(3) Consumer surveys
(4) Trade show exhibits
What Is Being Tested?
(1) Product positioning strategy (4) Product pricing
(2) Advertising strategy and tactics (5) Branding and product packaging
(3) Product distribution strategy (6) Budget levels
3 Test Market Approaches:
(1) Standard test markets
(2) Controlled test markets
(3) Simulated test markets
How Much Market Testing Is Needed?
Depend on each new product or service
If confident -> little or no test marketing is needed
Test
Marketing
14
15. 01 02 03 04 05
Production Distribution Marketing Sales Customer Support
Commercialization
15
16. New Product Detailed Overview
Product Detailed
Strategic › Degree to which project aligns with business strategy
› Strategic importance
Product Advantage
› Unique benefits
› Meets customer needs better
› Value for money
Market Attractiveness
› Market size
› Market growth
› Competitive situation
Synergies
› Market synergies
› Technological synergies
› Manufacturing/processing synergies
Technical Feasibility
› Technical gap
› Complexity
› Technical uncertainty
Profitability Analysis
› Expected profitability (Magnitude ; E. G. NPV )
› Return(e.g. IRR)
› Payback Period
› Low cost and fast to do
16
18. Performance Evaluation: Major Component Activities
18
Performance
Measurement
Measure risk and
return
Performance
Attribution
Identify and quantify
the sources of
performance of
portfolio
Performance
Appraisal
Identify and measure
investment skill
includes technical
aspects
Manager
Selection
Whether to hire, retain
or dismiss a portfolio
manager
Investment
Performance
Presentation
Provide information
about the investment
portfolios
20. Performance Attribution Analysis
20
Illustration to show the difference between two approaches
Arithmetic
Market start value = $1,000,000
Market end value = $1,070,000
Profit = $70,000 Fund return = 7% Benchmark Return = 5%
Added value = Fund return – Benchmark return = 7% - 5% = 2%
Geometric
Added Value = (Fund Return-Benchmark Return) / Benchmark Return
= ($1,070,000-$1,050,000)/$1,050,000
= $20,000/$1,050,000 = 1.9 %
21. Scope of Performance Appraisal
21
Analyze
Interpret
Conclude
The
proposed
and
implemented
investment
strategy
Interpret
Analyze
Measure
The results
of past
investment
decisions
Investment decision-making process
22. Scope of Investment Performance Presentation
22
Sales Processes
Example:Sales Support
Prospective & Existing
Clients
ManagementProcesses
Example:Quality Review
Investment Portfolios &
Products
MonitoringProcesses
Example:Compliance
Checks
Investment Policies,
Guidelines& Regulations
Focus Area of Investment
Performance Presentation
32. Product Prioritization Frameworks
32
Impact v Effort or Value v Effort
01
The Kano Model
02
RICE
03
Cost of Delay
04
WSJF
05
HiPPO
06
Custom Weighted Scoring
07
Opportunity Scoring
08
Buy a Feature
09
MoSCoW
10
Hierarchy of Purpose
11
Story Mapping
12
Product Trees
13
Balanced Scorecard
14
Quality Function Deployment (QFD)
15
NPV
16
Ian McAllister’s Product Prioritization Framework
17
33. Impact vs Effort Matrix
33
1 2 3 5 8 13 Effort
Impact
#1 MUST #2 NICE
#3 CAN #4 REVIEW
Epic /
Story
Epic /
Story
Epic /
Story
Epic /
Story
Epic /
Story
Epic /
Story
Epic /
Story
Epic /
Story
Epic /
Story
Epic /
Story
35. Factors Affecting Project Resource Management
including Optimization
35
01. Clear Understanding
Know the skill set of the members&
the skills required for the project
02. Resource Scheduling
Develop the Budget and time
frame forcompletionof the project
03. Resource Optimization
Keep track of the resources indemand
and the resources available
04. Quantifying your Efforts
Calculating resource Utilization and
realization
05. Using Software to Manage
Use software to connect projectand financial
data
37. Schedule Optimization
•Multi-Project Critical Path
• load dependencies between projects into a
master integrated schedule
•Multi-Project Critical Chain
• combine both resource optimization and
schedule optimizationtogether
• prioritizes the scheduling of tasks that utilize
bottleneck resources
37
40. Product Portfolio
Investment Map
40
1. BROADEN
Extend innovation outside the Core Product (into
Augmented Product)
2. DECIDE
Choose your strategic position as an Innovator,
Follower, or Lowest Cost Producer
3. INVEST
Consider investing in Transformational Product if your
culture tolerates risk
4. LINK
Align your vision to your Product Development
Strategy to yearly budget commitment
5. IMPLEMENT
Ensure your governance, Funding Model, and process
supports your Product Development Strategy
41. 5 Tips for Product Development Strategy
41
Tip #1. INNOVATE
Innovate away from your core product
Tip #2. EXISTING PRODUCTS
Find applications for existing products in new markets
Tip #3. PRODUCT STRATEGY
Consider investing in Transformational Product if your
culture tolerates risk
Tip #4. PRODUCT PORTFOLIO
Managing a product portfolio requires a process tied to
R&D spending and budgeting
Tip #5. NEW PRODUCT IDEAS
Nurturing new product ideas, and loading the pipeline
with successful new products
43. Brand Consistency
43
Use your logo and design elements consistently and provide
access to employees
01
Select the right topics for your brand’s content calendar
02
Bring offline marketing events into your online branding
efforts
03
Keep your brand’s tone and personality consistent across
channels
04
Partner with the sales team on the development of a sales
playbook
07
Align your brand with the right influencers
06
Participate in platforms and channels that align with your
brand’s identity & customers’ preferences
05
Brand guidelines
+
Content
+
Internal Branding
44. UX/UI Consistency
44
Consistent communication
05
Product content: content structure, brand content, appropriate
user defaults
04
Consistent actions in application
03
Establish design patterns for product UI and UX design
consistency
02
User-focused UI and UX design research
01
Design guidelines
+
Design System