Which gaps in the product portfolio are addressable with the available resources, and what are the associated risks?
Product and Portfolio Innovation takes potential opportunities identified by Marketing and examines the practicalities in depth. This decision area looks at the costs and benefits of adding new features to fill product portfolio gaps, and their feasibility. It also determines how achievable these opportunities are for the business and the risks to performance.
For each opportunity, you need to measure time to market, implementation difficulty, external market or technical shifts and future scenario values—the upper and lower limits of potential profits. As well, ROI metrics should look at upfront investment, operating costs and sales.
With the Product and Portfolio Innovation decision area, you can set planning goals and scorecarding metrics for these elements of performance management:
- New product market share and sales potential (% and $).
- Project cost ($).
- New products in market ($ and %).
- Products modified (#).
Most importantly, you can analyze these goals and metrics by a number of dimensions to find the hidden gems in the data:
- Fiscal month / year.
- Product line.
- Project team and start / completion date.
- Product development milestone.
Using the Product and Portfolio Innovation decision area
You set targets based on your goals and metrics in Product and Portfolio Innovation. You monitor your success by looking at how you measure up against your objectives. Further, you dive into your results to these elements for managing performance.
- New product market share (%): Are our competitors launching similar product innovations? What are their pros and cons?
- Project cost($): Which gaps in the product portfolio can we address with available resources?
- Products modified (#): How many product modifications have we made in the last two years? Is it time to develop an entirely new product?
