sponsored by · observations and conclusions an overwhelming majority (64%) of those surveyed...

Trends in Product Portfolio Management

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Program Overview

In May of 2015, Gatepoint Research invited selected executives to participate in a survey themed Trends in Product Portfolio Management.

Candidates were invited via email with 100 executives participating.

Management levels represented were predominantly senior decision makers associated with product development and branding: 7% were VPs, 43% were Directors, and 48% were Managers.

23% of those surveyed were overseers of all product development at their companies. All survey participants were involved with product development at some level.

Survey participants represented firms from a wide variety of industries including manufacturing, technology , healthcare, retail, and business services.

Respondents worked for firms with a wide range of revenue levels: 45% were from Fortune 1000 companies with over $1.5 billion in revenue; 30% were from companies with $500 million to $1.5 billion; and 25% were from companies under $500 million in revenue.

100% of respondents participated voluntarily; none were engaged using telemarketing.

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Observations and Conclusions

An overwhelming majority (64%) of those surveyed reported their biggest product development challenge was handling too many projects for the available resources.

Though 55% of respondents reported a full pipeline of innovative ideas, far fewer reported feeling confident about completing projects on time and budget (41%).

17% of respondents reported “rarely” having the data they need to make informed decisions; 68% said they can make well-informed decisions only “most of the time.”

When managing complex product portfolio processes, only 4%-15% of respondents reported harnessing commercial applications. Most (29%-48%) said they use spreadsheets.

26% of respondents already use Product Portfolio Management software; another 45% said they have started evaluating it.

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How confident are you about the following statements?

Though 55% of respondents reported having a full pipeline of innovative ideas,

far less felt confident about completing projects on time and budget (41%).

Those answering “highly confident”

55%

52%

49%

41%

0% 10% 20% 30% 40% 50% 60%

We have enough innovative ideas to fill our pipeline

We know how to pick thehighest value projects and products

We schedule the rightresources to the right projects

We complete projects on time and on budget

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What are some of your product development challenges?

Overwhelmingly, the biggest product development challenge reported was

having too many projects to handle with the available resources.

64%

36%

27%

21%

11%

0% 10% 20% 30% 40% 50% 60% 70%

Too many projectsfor our resources

Unclear priorities onhighest value projects

Cutting costs without reducingthe health of the product pipeline

Inability to hit revenue targets

Inability to collaborate

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How does your organization manage the following

product portfolio business processes?

29%-48% of respondents reported using spreadsheets most often to manage product

portfolio business processes. Only 4%-15% reported using commercial applications.

32%

48%

40%

31%

39%

29%

44%

20%

20%

27%

34%

22%

29%

26%

9%

9%

15%

13%

14%

13%

4%

23%

7%

2%

6%

9%

12%

10%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

In-market product analysis

Product financial planningand analysis

Resource planningand management

Stage-Gate® or gated project process

Prioritizing products/projects

Ideation

Roadmap planning

Spreadsheets Collaboration tools Commercial applications Not sure

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What criteria are used to evaluate your initiatives?

Not surprisingly, 77% of respondents reported financial impact measurements to

be the criteria most commonly used to evaluate initiatives.

77%

63%

61%

60%

58%

42%

42%

33%

32%

28%

27%

18%

13%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Financial impact (ROI, COGS, Margin,…

Technical viability

Competitive impact

Strategic alignment

Time to market viability

Resource availability

Complexity

Value chain or channel impact

Regulatory impact

Drivers of brand choice / consumer…

Risk Score

Environmental impact

Cycle time

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Do you have access to the accurate and timely data

you need to make informed decisions?

17% of respondents reported “rarely” having the data they need to make informed

decisions; 68% reported making well-informed decisions “most of the time.”

Usually15%

Most of the time68%

Rarely17%

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What are your plans for implementing

Product Portfolio Management software?

Only 26% of respondents reported already using Product Portfolio

Management software. 45% said they have started evaluating it.

45%

26%

2%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

We’ve started thinking about it We already use it We’re planning to make a decision about it in the next six months

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What are your business goals in the next 12 months?

57% of respondents indicated increasing revenue as their prime business goal this year. Decreasing time to market (47%); delivering higher quality products (41%); and reducing

costs (41%) were cited as three critical components of that goal.

57%

47%

41%

41%

36%

0% 10% 20% 30% 40% 50% 60%

Increasing revenue

Decreasing time-to-market

Delivering higher quality products

Reducing costs

Reacting more quicklyto customer opportunities

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Profile of Responders:

Industry Sectors

Manufacturing sectors – high tech, general, and primary – comprise 78% of

survey respondents’ organizations.

Mfg - General36%

Mfg - High Tech36%

Healthcare9%

Mfg - Primary6%

Wholesale Trade6%

Retail Trade4%

Business Services2%

Utilities1%

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Revenue

45% of those surveyed worked for Fortune 1000 companies.

<$250 million15%

$250 - 500 million10%

$500 million -$1.5 billion

30%

>$1.5billion45%

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Job Level

Half of those surveyed held executive positions in their firms.

Manager, 48%

Director43%

VP, 7%

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Describe your level of involvement with product development

at your company.

23% of those surveyed oversee all product development at their companies.

All survey participants are involved with product development at some level.

I am part of a team that manages

product development

56%

I oversee all product

development23%

I am involved in the process

21%

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