Product Portfolio
In a literal sense, a product portfolio is the group of products a company offers to the market. Since products should always seek to solve market problems, by extension, product portfolios are collections of products that solve market problems. Since similar products are often grouped into portfolios, product portfolios should be managed like products themselves. That involves creating portfolio business plans, positioning statements, and market requirements.
What are the benefits of product portfolio management?
Product portfolios can improve the efficiency and effectiveness of product management because they enable teams to allocate resources to similar products. The benefits of portfolio product management include:
- Encourages new ideas and learning
- Frees up resources
- Reduces risk
- Simplifies the sales process
- Improves competitiveness
What are the challenges of product portfolio management?
Managing product portfolios presents unique challenges. That’s because portfolio managers must meet goals today while planning for tomorrow, requiring them to allocate resources for short-term and long-term goals. Furthermore, managing products at different life cycle stages requires product managers to support and generate revenue from existing products while innovating future products.
Download The Pragmatic Framework
Managing product portfolios is an exciting challenge for any product professional. Product portfolios are one of the fundamental product concepts that we explore in the Pragmatic Framework, the philosophy underlying all courses and certifications we offer. To go deeper, download your copy of the Pragmatic Framework today.
