When a company adds an entirely new product category to its portfolio or brings new technology to current product lines, this is known as disruptive growth. An expanding global economy has aided disruptive change—and, by extension, portfolio growth.

Firstly, encourage disruptive innovation as a best practice for product portfolio management in a disruptive growth scenario. While emphasizing innovation puts the organization at risk, staying competitive in such a fast-paced market is necessary.

Second, agile portfolio management is a must-have technique. Agile portfolio management allows for more flexibility and ongoing experimentation compared to traditional portfolio management. Companies operating in a disruptive growth industry will need to develop and launch new products quickly.

Disruptive Innovation's Key Requirements

For disruptive innovation to emerge, three conditions must be met:

• Simplicity refers to product lines or technology that are less complicated than competitors'.
• Affordability: The solution should be less expensive than the products of competitors.
• Accessibility means that someone who previously couldn't use the product can now do so.

Disruptive innovation is often associated with start-up enterprises, although it can also occur in existing organizations. However, it may be necessary to restructure the company's business model and corporate strategy completely. Enormous benefits nearly always come with a high level of risk.

Talking about things to be kept in mind while dealing with Disruptive Products, Mr. Moon Tiga, Product Manager at Yes Bank, says, " The one thing which product manager should keep in mind while dealing with disruptive product is “Value Creation and its ecosystem,”. Value creation means the benefits that customers will be experiencing from the product. In the example of camera vs smartphones, smartphones are multipurpose providing good audio, video, picture quality, also connecting people across the globe, help you access your work/study-related materials at go. Therefore, a product manager who is dealing with the disruptive product should focus on “Value Creation” and then how to leverage this into the ecosystem and binds the customer in a way that most retained in that ecosystem with a minimal effort."

Examples Of Disruptive Innovation

One of the most well-known examples of disruptive innovation is smartphones. Consumers' access to the internet has never been the same since the arrival of smartphones. Smartphones gave personal computers and laptops a run for their money, causing the markets to be disrupted.

Netflix and other streaming video services are other product portfolio management innovation examples. Despite legacy technologies like cable, on-demand viewing has forever transformed the way people watch TV and movies.

How Can Your Product Portfolio Management Strategy Help You Achieve Disruptive Growth?

Innovation drives disruptive growth far more than incremental growth. However, like with total growth, a strong risk-reward analysis is required.

A solid product portfolio management plan looks at the whole picture of the company's products. On the other hand, product portfolio management serves to simplify the process by ensuring that goods are evaluated and adjusted regularly.

Portfolio Management Best Practices List

The following is a rundown of the finest product portfolio management practices:

• Concentrate on your company's business operations and strategy, and ensure that existing product lines are compatible.
• Evaluate and analyze the performance of existing product lines regularly.
• Gather information and gather ideas for new items.
• Risk and market demand for new items are assessed and analyzed.
• Create a solid marketing strategy.
• In incremental growth markets, limit innovation.
• Encourage and support disruptive growth market innovation.
• Embrace agile product development and management.
  
  Practice and adopt these best practices and watch your new innovative products fly. To know more about product management, read our blog on Building Thought Leadership for Your Product.