Portfolio Management for New Products

Portfolio Management for New Products

Portfolio Management for New Products

Portfolio Management for New Products

Synopsis

In today's business environment, where speed-to-market is paramount and there's no margin for error, companies that live and die by their products need better tools for linking product development to strategy and ensuring that resources are deployed efficiently from idea to launch across the full range of products. In Portfolio Management for New Products, the authors take the guess-work out of R&D, offering a rigorous analytical and practical approach to managing the portfolio of projects as you would a financial portfolio -- investing for maximum long-term growth.

Excerpt

New products are vital to the success and future prosperity of the modern corporation. the period of downsizing that characterized the mid-80s to mid-90s is over: senior executives are beginning to sober up to the reality that no corporation ever shrank itself to greatness. As we move into the next millennium, the growth game is on -- and faster than ever. Front and center in this game is the desire for new products -- successful, significant, winning new products. Driven by rapidly advancing technologies, globalization of markets, and increasing competition at home and abroad, effective new product development is emerging as the major corporate strategic initiative of the decades ahead. Those corporations that succeed at new product development will be the future Mercks, HPs, 3Ms, and Microsofts; those companies that fail to excel at developing new products will invariably disappear or be gobbled up by the winners.

A vital question in this new product battleground is: How should corporations most effectively invest their R&D and new product resources? That's what portfolio management is all about: resource allocation to achieve corporate new product objectives. Much like stock market portfolio managers, those senior executives who manage to optimize their R&D investments -- to define the right new product strategy for the firm, select the winning new product projects, and achieve the ideal balance of projects -- will win in the long run. This book is about how winners manage their R&D and new product portfolio and the lessons your company can put into practice in order to achieve a higher return from R&D investment.

Before moving ahead, consider the plight of this product developer heading for trouble:

The Modified Plastics business within a major chemical company was almost blindsided by its new product portfolio problems. the business's strategy centered on the development of many new products, which leveraged its core competencies in modifying polyolefins (the business unit possessed a unique ability to modify low-end polymers and upgrade their performance). Specifically, the strategy was to target the lower end of high-performance engineering resins with very cost-effective modified polymers. the business unit had a formal new product process in place, in which the . . .

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