{"id":1493,"date":"2021-03-23T00:00:57","date_gmt":"2021-03-23T00:00:57","guid":{"rendered":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/?p=1493"},"modified":"2023-12-20T20:35:29","modified_gmt":"2023-12-20T20:35:29","slug":"product-portfolio-management-ppm","status":"publish","type":"post","link":"http:\/\/ec2-52-95-249-27.ap-south-1.compute.amazonaws.com:8000\/blog\/product-portfolio-management-ppm\/","title":{"rendered":"A Quick Guide to Product Portfolio Management"},"content":{"rendered":"

Diversification and the ever-growing consumer demand<\/a><\/strong> have led companies to expand their horizons and enter new business realms. Moreover, increased profit margins<\/a> and the advent of digitization have fueled this expansion to a greater scale. Firms invest in developing new products<\/strong> and forming a full-fledged portfolio<\/strong> that comprises all the products and services.<\/p>\n

However, as the number of products increases<\/strong> in the portfolio, it gets challenging<\/strong> to keep a tab on every product, its contribution to the market share and company\u2019s growth, and so on.<\/p>\n

To combat these challenges, businesses are now resorting<\/strong> to a systematic approach<\/strong> in managing their portfolio, known as product portfolio management.<\/span><\/p>\n

This article is a comprehensive guide<\/a> that takes you through all the basic product portfolio management<\/a> concepts<\/strong> and tips to formulate a full-proof strategy.<\/p>\n

\"A<\/a><\/p>\n

Beginning with defining the term,<\/p>\n

Definition of Product Portfolio Management (PPM)<\/h2>\n

Product portfolio management<\/strong> is a definitive process of analyzing and assessing<\/strong> each product and its current level of success. It also involves identifying risks<\/strong> and future opportunities, streamlining resource allocation<\/a><\/strong> based on product success and priority, and ultimately aligning these products with the business\u2019s long-term strategic goals.<\/p>\n

This methodology enables product managers<\/strong> and stakeholders<\/strong> to constantly review their products<\/strong>, improve them based on evolving consumer demands, add more products or services and streamline the product execution based on resource capacity<\/a>. These processes cumulatively result in an increased Return on Investment<\/strong>, thereby enhancing the business\u2019s top line.<\/p>\n

\"What<\/a><\/p>\n

Given the definition and processes involved in PPM, let us now understand what its goals and objectives<\/a> are,<\/p>\n

Goals and objective of PPM<\/h2>\n

Not every product or service offered by your firm does well in the market or aligns with your business strategy. Thus, it becomes imperative to diligently assess<\/strong> these products and take the right call<\/strong> of either upgrading them or taking them out of the portfolio altogether. Otherwise, the resources allocated<\/a><\/strong> to these underperforming products will also be wasting their time, effort, and expertise.<\/p>\n

The primary objective of product portfolio management<\/strong> is to minimize investments<\/strong> in lagging products<\/strong> and bolster the development<\/strong> of the ones that have breakthrough potential. This approach not only impacts the top line but also ascertains that resources<\/a> are working on value-adding<\/a> assignments.<\/p>\n

Here is the list of motives and goals<\/strong> behind setting up a systematic PPM process:<\/p>\n