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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used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
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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Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
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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Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
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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Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
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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used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
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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Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
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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used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
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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used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
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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Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
Profile of Responders:
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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Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
Profile of Responders:
Job Level
Half of those surveyed held executive positions in their firms.
Manager, 48%
Director43%
VP, 7%
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Copyright © 2015 Gatepoint Research. All rights reserved. The information contained in this report is the sole property of Gatepoint Research and may not be
used, reproduced, redistributed in any form including, but not limited to, print and digital form without the express written consent of Gatepoint Research.
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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