Large companies struggle with the complexities of managing broad product and service portfolios. Today, uncoordinated management of existing portfolios and poor marketing planning leads these companies to leave millions of dollars in revenue on the table.
Most companies focus the majority of their attention on new product introduction. Existing product lines and platforms are often left behind, to be managed in a disconnected fashion through multiple independent programs. Few organizations effectively manage their entire portfolio of existing products using a unified approach, in a way that maximizes financial and business results.
Interconnections: among portfolio elements, and with the rest of the company
Almost any company can benefit financially from a more rigorous and repeatable process for managing existing products, product platforms, and product portfolios.Companies in the hi-tech, consumer goods, industrial, and consumer electronics and some service businesses stand to gain the most. These industries are characterized by one or more of the following dynamics that demand fast and effective decisions:
- Short product lifecycles
- Demand volatility
- Competitive actions
- Price and margin pressure
- Rapid changes in raw material and component costs
Unfortunately, product marketing managers or the group tasked with making decisions for individual products or services have almost no way to quickly predict the impact of their decisions on other portfolio components (i.e. products/lines/families), let alone on overall financial objectives.Furthermore, the cascading (and often unintended) impact on related areas such as sales, finance, procurement, and manufacturing is an ongoing source of internal friction.It is also a leading cause of costly inefficiency, and prevents companies from responding quickly and effectively to competitive challenges.
