Two effective best practices for portfolio planning are idea development and strategic analysis. Customer input, organization team members, or new legislation might inspire new product lines. Research should be conducted to ensure that the business can satisfy resource requirements for new concepts.

The new product line's strategic analysis includes assessing risk and potential return and ensuring that the product concepts are aligned with the company's overall business strategy. Financial techniques such as ratios and product portfolio road maps can also be beneficial in this situation.

Adopting a marketing strategy is perhaps the most essential practice for managing new product portfolio items. A good marketing plan will assist you in understanding your target market and clients and provide information about competitors. It will help your new product line stand out and considerably enhance lead generating. I asked Mr. Shubham Goyal, Product Manager at Microsoft, about his experience with the addition of new products to the portfolio and he tells, "Product-market fit & inter-product synergies & integrations are of utmost importance. There is no potential substitute to the right product tailored for the right user segment & delivered at the right time & place and leveraging deep inter-product synergies helps achieve this at scale, especially at large MNCs with a wide portfolio of products."

How Can Product Portfolio Management Assist?

Product portfolio management fundamentally assists businesses in moving new items from concept to manufacturing. A new product's design and development stages are frequently expensive, with no return on investment until later stages. Product portfolio management helps firms by ensuring that they have a significant picture perspective by considering the following factors:

• Identifying new product opportunities and dangers
• Prioritizing products with a better-perceived value
• Allocating resources more efficiently across all products

New product lines require ongoing support after the introduction stage, and product portfolio management can help by reviewing performance against expectations. Product portfolio management aims to maximize the profit margins on product lines.

Use Product Portfolio Management To Improve Your New Products

Using product portfolio management software is the most effective way to implement best practices. This gives the company a centralized data source and a product roadmap. Product portfolio management software will provide on-demand reporting and use analytics and data to aid the new product line's performance.

How To Allocate Your New Product Development And Marketing Budgets?

New product development necessitates resource allocation and marketing funding. Product portfolio management can help by identifying items with high demand in emerging areas and products that are underperforming.

To maximize market share, portfolio management will discover items that function well in various growth scenarios. Products with a higher return on investment will have more resources and marketing budgets.

Incremental Growth Best Practices

Most product portfolios have some level of complexity. Effective product portfolio management will aid in the reduction of this complexity, resulting in better business decisions. There are two types of growth that feed complexity: incremental and disruptive growth.

Incremental growth comes naturally as a company grows and modifies its product lines. Slower corporate growth is frequently caused by minor changes to current product lines and a focus on narrower product markets.

Innovation limitations are best practices for product portfolio management and incremental market growth. New goods and expansion result from creativity and invention, but they also pressure resources (time, people, and finances). Because they balance innovation with resource conservation, innovation limitations are best for incremental growth.

Product Portfolio Management Strategy to Achieve Incremental Growth

Implementing incremental innovation is the best approach to create total growth. The most beneficial product portfolio management techniques focus on balancing risk and return. Minor modifications in existing product lines, for example, could be implemented after careful examination.

Following the launch of a product, thorough analysis and review of goals and minor adjustments as needed will aid in continuous revenue growth.

Want to know what metrics to use to track your product's success? Head on to our blog Key Metrics of Product Management.

Eager to start a career in the role of a product manager? Click here.