Tuesday 1 October 2019

Day #22: Portfolio Management for New Products

I have found an interesting document that I would like to share. It is called Portfolio Management for New Products - Picking the Winners. It is a short essay written by Dr. Robert G. Cooper and Dr. Scott J. Edgett, two experts in product innovation who have written several articles and books. Besides, at the end of the essay there is a list of additional reading that can be useful for newbies.

The document is about how to prioritise projects and resources across development projects. The authors focus on four goals of portfolio management:


  • Maximize the value of your portfolio
  • Seek balance in your portfolio
  • Your portfolio  must be strategically aligned
  • Pick the right number of projects
One of the tools that are included is the bubble diagram, which represents the project in a grid where the axes are the probability of technical success and the reward. Depending on where the projects land, there are four regions which describe what the projects can be: "Bread and Butter", "White Elephants", "Pearls" and "Oysters". I really liked the names! Here you can see it better (figure from the paper):




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