Strategic Alignment and the New Product Portfolio

New Product Portfolio

Especially in middle to large companies (100 employees and up), new products typically evolve out of a company-wide, strategic process of generating ideas, conceptualizing them into opportunities, new products and new services, and conducting an evaluation process that qualifies them for the company's new product portfolio. A new product portfolio is a collection of new product projects that have been generated, evaluated, and selected on the basis of their estimated business value, financial performance, alignment with business strategy, and risk management potential. They may or may not be funded. This discussion of a new product portfolio will focus on the Eastern case study, and how the process works from initial business planning through to selection and funding of new product candidates. This case study will provide a business application of new product portfolio development.

A new product concept becomes a project when it is selected to the portfolio and then funded with resources and company support. As the new product or service concept is being analyzed for selection, it is still a concept, not a project. Project identification begins when the company gives it resources, establishes a project team, and authorizes it as part of the company-approved portfolio.

New project process

A business will typically articulate a strategic plan, and state strategic objectives. It then identifies and categorizes programs of initiatives and specific projects. Programs are collections of projects and products in a particular area of the company's internal operations, product delivery, or customer service. Each of these candidate projects will support at least one strategic objective. When a portfolio of candidate projects is generated, each is analyzed in terms of its estimated cost and schedule, business value, financial performance, alignment

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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