Product portfolio management is fundamental to business success. In any economic environment, companies are challenged with optimizing their portfolio to ensure that their product development pipeline reflects business objectives and growth targets. Senior managers observe business case presentations by enthusiastic product and market managers that forecast optimistic market share gains and growth projections. Unfortunately, nearly 50% of these new products never achieve market success, as measured by sales and profits.1 Managers need to address the following questions:
- Were the financial projections unrealistic?
- Did companies choose the wrong products to develop and/or projects to pursue?
- Did the new products miss the mark – as measured by the creation of real customer value?
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