Portfolio management is used for evaluating any product and its current progress. It also includes recognizing risks and coming opportunities, simplifying resource allocation based on priorities and product success, and finally adjusting those products with the long-term strategic goals of the enterprise. This method allows stakeholders and product managers to frequently examine their products, make enhancements based on changing customer needs, add more services, and simplify product performance based upon resource capabilities. The accumulation of these processes leads to higher returns on investment, thereby raising corporate profit.
Portfolio management solutions facilitate and automate the visual workflow of industry best practices, project execution, and templates. PPM provides a product analysis structure, including scoring methods, X-Y charts, growth stock matrices, and bubble charts. Product roadmaps can be built and managed to communicate objectives, schedules, priorities, dependencies, and other critical information. These important tools discard cumbersome manual processes and spreadsheets. More importantly, they provide a single source of truth and concentrate on product data. Therefore, decisions are based on accurate, real-time analysis, not intuitive responses.
What Is the Role of Portfolio Managers?
Portfolio managers look at the overall portfolio and monitor the broader market at any time. They continuously assess the relative performance of all products and describe the most viable opportunities for revenue growth, new markets, and other business objectives. In order to see how their relative performance reflects the strategic priorities that companies should place on these products and which flaws in their product portfolio should be removed.
What Are the Goals of Product Portfolio Management?
Companies tend to hire portfolio managers when they expand their product lines. A business needs someone who will have a broad, strategic view of the entire company product catalog as the product line grows. As a result, they often hire portfolio managers to occupy this strategic high ground, identify market opportunities, and better allocate resources. A product manager may be entirely focused on maintaining the market viability of a particular product. However, what if the product reaches the “recession” phase of the life cycle that each product goes through (introduction, growth, maturity, recession)? Product managers may take longer to see that companies can benefit by shifting some development and support resources to other projects.
What Is the Difference b/w Product Portfolio Management & Product Management?
The role of the product portfolio manager is very different from that of the product manager. The product manager focuses on a specific product, while the product portfolio manager is responsible for the product portfolio. To explain the different duties of these two roles, consider this. A product manager will concentrate on classifying extra features that meet users’ requirements for a particular product. On the other hand, Portfolio managers will focus on what other products a company might want to build to meet these user needs.
What Is Meant by Product Portfolio Management Software?
The PPM software typically includes methods for integrating combined and project views. Linking portfolios with data for each project improves workflow and connects product managers with more prominent product lines. Tools that enable scenario planning allow users to examine several possible portfolio management options for more effective product line decisions. Other PPM tools help companies track growth potential and risk, enabling managers to make better decisions to go or not to go.
Verdict
Portfolio management is designed to balance risk to deliver strong results today and in the future. While new products consume resources in the short term, in the long term, they are positioned to generate new sales and take off as other products mature and decay.