Portfolio Management For New Products

by Robert G. Cooper, Scott J. Edgett, Elko J. Kleinschmidt

In today's business climate, where speed-to-market is paramount and there's no margin for error, companies who fail to excel at new products stand no chance of survival. Companies who live and die by their products need better tools for linking product development to strategy to ensure that resources are deployed efficiently from idea to launch across the full range of products.In Portfolio Management for New Products , the authors present a rigorous and practical approach to managing a company's product portfolio as you would a financial portfolio—investing for maximum long-term growth. With its field-tested, step-by-step framework, the book provides corporations and managers with the methods and strategies they need to assess and realign their current R&D divisions, determine which products are most worthy of resource allocation, design and implement a portfolio management process, maximize the value of their product portfolios, create balanced portfolios, and recognize and solve challenges as they arise. Portfolio Management for New Products , is an essential resource for any company whose profitability, and very existence, relies on the products it chooses to develop and the speed with which it brings those products to market. This book clarifies the decision-making process, demystifies R&D, and puts corporations on track to understanding and developing the strategies necessary to succeed in the highly competitive and volatile world of product development.

Genres: Business, Nonfiction, Management

256 pages, Hardcover

First published March 25, 1998

About the author

Dr. Robert G. Cooper is a leading authority on innovation and new product development, best known for pioneering the Stage-Gate idea-to-launch process now used by most major corporations. He has spent decades researching thousands of product initiatives, shaping global innovation practices. A widely sought-after speaker and consultant, he has authored more than 100 academic articles and eleven books, including Winning at New Products. He is Professor Emeritus at McMaster University and a Distinguished Fellow at Penn State University.

Reviews

[Divya · Rating 3 out of 5]

This is a relevant and useful read for portfolio management. The elements of creating a good portfolio process are definitely here.There are very practical tips and the gray boxes with points to ponder are also quite helpful. The main issue is it could be simplified a great deal and many times it felt repetitive to the point where'd you wonder if you really were learning anything new. Perhaps it could have been organized differently. All in all I would still recommend it as a read.

[Carolyn Spencer · Rating 5 out of 5]

This books covers the foundations of Portfolio Management really well. I recognize that it’s older however the blocking and tackling doesn’t change. One piece of advice; you really have to read the whole book before jumping into developing or refining your portfolio management strategy. When you get about halfway through you’ll want to jump in but there’s more to come. The one topic I wish were covered in a little more depth was the StageGate process. Great read for a business book!

[May Ling · Rating 4 out of 5]

This is a somewhat newer topic to me and likely works best with large organizations that have no way of lowering the cost of R&D.

I like many of the frameworks introduced. For example on page 37:
"The five major factors Hoechst considers in prioritizing projects are:
>probability of technical success
> probability of commercial success
> reward (to the company)
> business strategy fit (fit with the business unit's strategy)
> strategic leverage (ability of the project to leverage company resources and skills)

The subsequent charts provided after that describe key factors and define the low mid and high points (1,4,7,10) are instructive of how to effectively communicate a score card.

I also like many of the frameworks on page 75 related to market vs. tech risk, market segment vs. strategic intent (the purpose and type of project: defend, grow, new application, new business, fundamental research).

I'm not thrilled with the gating approach though I know many use it quite effectively. I think it's def necessary, but what a layer of bureacracy in this particular formulation.

The appendix has a few good points. The quality of execution point is interesting, but potentially could benefit from the ideas that inspired agile and scrum development. Similarly, the idea of adding superior value for customers via some competitive advantage with each stage is very nice.

[DJ · Rating 4 out of 5]

I really enjoyed this. I hope someone in my company put some thought into which of our R&D efforts are worth pursuing, because I'd rather not waste a bunch of time. Plus, now I know where the stage-gate process came from (appendix B).

[Johan Oskarsson · Rating 4 out of 5]

All about 2001 portfolio management. Still really good, most product and portfolio and PMOs managers should read it. Lacks newer ideas, but hey its more than 10 years old.

[Ben Sweezy · Rating 4 out of 5]

I found this book to be very useful. Many good conceptual diagrams worth scanning and distributing to struggling teams.