What is a Product Portfolio?
A Product Portfolio is a collection of products or services offered by a company, managed strategically by Product Leaders and Product Managers to achieve business goals. With a focus on resource allocation, investment decisions, and identifying opportunities, Product Portfolio Management is key to increasing revenue, reducing risk, and enhancing competitiveness.
Why do Product Portfolios matter?
A Product Portfolio is a crucial element in Product Management that enables companies to achieve their business goals by strategically managing their products or services. With the help of a Product Portfolio, Product Leaders and Product Managers can evaluate the performance of individual products or services and make informed decisions about resource allocation, investment, and growth. This approach allows companies to stay competitive, innovative, and successful in the market.
How are Product Portfolios applied?
Product portfolios are leveraged by Product Leaders, Product Managers and Product Marketers. Product portfolios help companies successfully develop new and existing products: visualizing across an entire product line to see strong and poor performers, identifying opportunities for product innovation, and developing cohesive go-to-market strategies.
Companies that practice the discipline of product portfolio management are able to make data-driven decisions on resource allocation, strategy alignment, and investments.
What are the benefits of managing a Product Portfolio?
The benefits of managing a Product Portfolio in Product Management include:
Improved resource allocation and investment decisions
Increased revenue and profitability
Reduced risk and increased resilience
Better customer satisfaction and retention
Enhanced competitiveness and market share
Product Portfolio Term in Action
”By diversifying our Product Portfolio and introducing new products in complementary markets, we were able to increase our revenue and market share while reducing our overall risk.”