{"id":7629,"date":"2018-12-14T12:37:00","date_gmt":"2018-12-14T18:37:00","guid":{"rendered":"https:\/\/blog.planview.com\/?p=7629"},"modified":"2019-07-26T10:59:38","modified_gmt":"2019-07-26T15:59:38","slug":"managing-product-portfolio-challenges-in-the-digital-age","status":"publish","type":"post","link":"https:\/\/blog.planview.com\/managing-product-portfolio-challenges-in-the-digital-age\/","title":{"rendered":"Managing Product Portfolio Challenges in the Digital Age"},"content":{"rendered":"

\"Product<\/p>\n

If you read parts 1 and 2 of this series \u201cThe Complexity of Managing Smarter, More Connected Products<\/a>\u201d and \u201cConnecting Innovation Investments with Delivery<\/a>,\u201d you are probably anticipating learning the key to transforming your organization into a top performer like those we\u2019ve cited so far. In part 3 of this 8-part series, we\u2019ll speak to the best practices and other factors that these top performers\u2014those who are effectively managing product portfolio challenges\u2014have mastered.<\/p>\n

Part 3: Modernize Your Portfolio Management Approach<\/strong><\/h2>\n

As mentioned in previous series entries, Planview recently commissioned the Sixth Product Portfolio Management Benchmark Study<\/a> (conducted by Tech-Clarity). In it, one of the many things we learned is that good PPM practices can help companies pick winning products to commercialize and improve time-to-market. That didn\u2019t surprise us.<\/p>\n

What did surprise us is that many organizations are still struggling with the same PPM challenges this study uncovered a decade ago. Several respondents stated their most pressing concerns continued to be project prioritization. In practice, they still tend to consider all<\/em><\/strong> projects to be high priority until they are dropped or put on hold. There was, however, an interesting improvement.<\/p>\n

For most of the history of the survey, the number one pain point in managing product portfolios was \u201ctoo many projects for available resources,\u201d<\/strong> a challenge that\u2019s been improving from 68% in 2010 to 44% in 2018. For the first time in the benchmark\u2019s history, \u00a0\u201cdecisions that go back and forth and get made late or ineffectively\u201d<\/strong> is now ranked equally with the challenge of matching the volume of projects with available resources. An improvement from 53% in 2010 to the current level of 44%.<\/p>\n

This improvement suggests that companies\u2014especially top performers\u2014are realizing, that project prioritization is itself<\/em><\/strong> a priority. That said, while respondents reported improvements in every pain point category, it\u2019s useful to break down the current pain point ranking with a view to business impact. In order, 2018 respondents ranked pain points as follows:<\/p>\n

    \n
  1. Too many projects for our resources \u2013 44%<\/li>\n
  2. Decisions that go back and forth and get made late of ineffectively \u2013 44%<\/li>\n
  3. Not being able to drive innovation fast enough (missing time to market)\u00a0\u2013 34%<\/li>\n
  4. No consistent and transparent way to measure the value of projects\u00a0\u2013 33%<\/li>\n<\/ol>\n

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

    Understand the Business Impact<\/strong><\/h3>\n

    So, what actual business concerns have been induced, given the current pain-point ranking? Survey respondents were very clear: they worry most about wasting time and money. However, there is an intuitive understanding that this concern has peripheral implications that carry even greater weight.<\/p>\n

    Half of companies are failing to meet both their target revenue and their target launch dates for new product development projects. Further, it\u2019s likely that the former is caused by the latter; you can\u2019t realize revenue for a new product until its available. Specifically, the top three business concerns are:<\/p>\n

      \n
    1. Wasted time and\/or money \u2013 49%<\/li>\n
    2. Missed revenue opportunities \u2013 36%<\/li>\n
    3. Competitive disadvantage \u2013 33%<\/li>\n<\/ol>\n

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

      Address the New Demand for Digital Offerings<\/strong><\/h4>\n

      The mandate for smarter, more connected products represents new market opportunities but it also potentially compounds the issue of relieving pain points that can induce the reported business concerns. The Benchmark Study therefore queried companies that were already delivering digital products to understand the impact to both the pain points and the concerns they are creating.<\/p>\n

      What we found was that, among the 13% already delivering smarter, more connected products, the majority said they have \u201csignificant plans to expand.\u201d Further, more than 70% of survey participants said they are actively developing, researching, or considering adding these products. Both facts speak to the recognized market opportunity of the digital mandate\u2014but what additional concerns does this new reality produce?<\/p>\n

      The top answer was increased complexity in the practice of developing and communicating product roadmaps, which is becoming more difficult as different departments are required to work together. IT, engineering, product development, sales, supply chain, and marketing must all now collaborate and communicated to ensure that:<\/p>\n