Product Innovators win in the long run by optimizing their R&D investments with a new product strategy, selecting the right new product projects and achieving an ideal balance of projects. Portfolio Management for New Products helps you understand how winning companies manage their R&D portfolios. Learn how to steer your company's R&D investment to achieve a higher return.

This ground breaking book is the result of years of pioneering research by Dr. Cooper, Dr. Edgett and Dr. Kleinschmidt. It is full of practical examples from real companies combined with the authors' analysis of the various approaches. It illustrates the subtle but important differences between the traditional methods of portfolio management for investments and projects versus the new approaches for the complex world of new products.

The Complete Guide to New Product Portfolio Management - Strategic, Operational and Tactical

• Learn how to maximize the value of your portfolio of new products
• Discover the impact effective portfolio management has on new product performance
• Learn how to balance a portfolio and align it with your new product strategy
• Discover how to implement a world-class portfolio management process
• Benefit from the numerous examples and samples of real company valuation models, charts and metrics.

Portfolio Management For New Products: Second Edition | Robert G. Cooper | Scott J Edgett

         

Table of Contents

Chapter 1: The Quest for the Right Portfolio Management Process
What Is Portfolio Management?, What Happens When You Lack Effective Portfolio Management, A Roadmap of the Book, Portfolio Management Is Vital, Much Room for Improvement, Major Challenges for Portfolio Management, Some Definitions

Chapter 2: Three Decades of R&D Portfolio Methods: What Progress?
Recent Advances in Portfolio Management Methods, Where Portfolio Management Stands Today, Major Gaps between Theory and Practice, Portfolio Management: It’s Not So Easy, Requirements for Effective Portfolio Management, What the Leaders Do: Three Goals in Portfolio Management

Chapter 3: Portfolio Management Methods: Maximizing the Value of the Portfolio
Goal 1: Maximizing the Value of the Portfolio, Using Net Present Value to Get Bang for Buck, Expected Commercial Value, The Productivity Index (PI), Options Pricing Theory (OPT), Dynamic Rank-Ordered List, The Dark Side of the Financial Approaches to Project Evaluation, Valuation Methods: Scoring Models, Developing and Using Scoring Models, Assessment of Scoring Models, Checklists As Portfolio Tools, Paired Comparisons, Value Maximization Methods: Summing Up

Chapter 4: Portfolio Management Methods: Seeking the Right Balance of Projects
Goal 2: Achieving a Balanced Portfolio, Bubble Diagrams, Variants of Risk-Reward Bubble Diagrams, Other Bubble Diagrams, Bubble Diagram Recap, Other Charts for Portfolio Management, Balance: Some Critical Comments

Chapter 5: Portfolio Management Methods: A Strong Link to Strategy
Goal 3: The Need to Build Strategy into the Portfolio, Linking Strategy to the Portfolio: Approaches, Developing a New Product Strategy for Your Business – A Quick Guide, Moving to the Attack Plan, Product and Technology Roadmaps, Strategic Buckets: A Powerful Top-Down Approach, Strengths and Weaknesses of Top-Down Approaches, The Special Case of Platform Projects, A Variant on Strategic Buckets: Target Spending Levels, Bottom-Up Approach: Strategic Criteria Built into Project Selection Tools, Top-Down, Bottom-Up Approach, But How Much Should We Spend?

Chapter 6: Portfolio Management Methods Used and Performance Results Achieved
The Average Business, The Best and Worst Performers, Satisfaction with Portfolio Management Methods, The Nature of Portfolio Methods Employed, Popularity and Use of the Various Portfolio Methods, Which Methods the Best Performers Use, Specific Project Selection Criteria Employed, Selecting Projects in Rounds, How Specific Portfolio Methods Perform, The Benchmark Businesses, Conclusions and Advice from Our Practices and Performance Study

Chapter 7: Challenges and Unresolved Issues
General Conclusions, Specific Conclusions and Challenges Identified in Effective Portfolio Management, Challenges and Issues, Portfolio Management Is Not the Complete Answer, The Path Forward

Chapter 8: Data Integrity: Obtaining Reliable Information
Types of Information Required, Marketing, Revenue, and Pricing Data, Manufacturing or Operations and Related Cost, Estimating Probabilities of Success, Estimating Resource Requirements, Deal with Uncertainties: Sensitivity Analysis and Monte Carlo Simulation

Chapter 9: Making Strategic Allocations of Resources: Deployment
In Search of the Right Portfolio Method, Resource Allocation Across Business Units: The Methods, Deciding the Spending Splits: The Strategic Buckets Model, Strategic Buckets: A Step-by-Step Guide, Some Features of the Strategic Buckets Decision Process

Chapter 10: Making Portfolio Management Work for You: Portfolio Management and Project Selection
Three Key Components of the Portfolio Management Process, Strategy: The First Key Driver of the Portfolio Management Process (PMP), Gating: The Second Key Driver of the Portfolio Management Process, Portfolio Reviews: The Third Key Driver of the PMP, Two Fundamentally Different Approaches to a Portfolio Management Process, Approach 1: The Gates Dominate – An Overview of How It Works, Approach 2: The Portfolio Review Dominates, Pros and Cons of Approach 1 Versus Approach 2, In Conclusion: An Integrated Decision System

Chapter 11: Designing and Implementing the Portfolio Management Process: Some Thoughts
Before You Charge In, Stage 1: Defining the Requirements, Stage 2: Designing the Portfolio Management Process – Key Action Items, Stage 3: Trial Installation and Adjustment, Stage 4: Implementing and Improvement, Winning at New Products

LINK FOR THE BOOK

https://www.amazon.com/Portfolio-Management-New-Products-Second/dp/0738205141