Companies Stymied by Poor Product Portfolio Performance, AberdeenGroup Reports
Benchmark Study Reports Significant Opportunity to Improve Product Profitability
Available by Taking Advantage of Product Portfolio Management
MENLO PARK, CA, USA — 14 September 2006 (FOR IMMEDIATE RELEASE) —
A recently released benchmark study report by the AberdeenGroup highlights
actions management must take to improve lackluster product portfolio
performance. We are pleased that SmartOrg processes and software directly
enable companies to address the recommendations of the report.
The study, “The Product Portfolio Management Benchmark Report:
Achieving Maximum Product Value” disclosed that products fail to
meet expectations for many reasons, most of which are self-inflicted by
companies. Many companies lack the ability to make portfolio decisions
based on the value of potential product opportunities, so they make
difficult decisions based on political muscle or allow momentum to keep
low-value projects alive.
The report indicates that companies that are best in class at product
portfolio management are four times more likely to achieve margin premiums
of 75% or higher from new products. The report identified “best
practices” common among top performers, including:
- Best in class companies are executing product portfolio strategies 64%
more frequently than the lowest performing (bottom 20%-25%) companies and
for a longer time — two or more years.
- Best in class companies have more standardized product portfolio
management processes and higher levels of adoption of these processes
among product innovation participants.
SmartOrg directly addresses these and other best practices. A Fortune
100 company client reported these results in just one year following
installation of SmartOrg processes and enabling software:
- 100% increase in the value returned from one portfolio—from $40 to $80 million.
- 100% improvement in projects moving from the lab to implementation.
- 100% increase in the number of projects terminated early.
A free summary of the AberdeenGroup report is available at:
http://www.aberdeen.com/link/sponsor.asp?spid=30410395&cid=3359
For information about SmartOrg products and services:
info@smartorg.com
About SmartOrg
SmartOrg provides browser based applications and services that help
companies improve the return on R&D, new product development and other
business opportunities. Portfolio Navigator™, a browser-based
application, provides project teams and portfolio managers with tools to
lower risk and maximize the return on a company’s investment in
technology and R&D. Decision Advisor® is a desktop application
that supports real-time, in-depth project-evaluation workshops; combines a
facilitative framework with decision and risk analysis to turbo-charge
team discussions; and automatically creates spreadsheet models and
conducts risk analysis. SmartOrg was formed in 2000 by former directors
and partners of Strategic Decisions Group, an international strategy
consulting firm.
For Additional Information:
Don Creswell
SmartOrg Inc.
855 Oak Grove Avenue
Menlo Park, CA 94025
dcreswell@smartorg.com
www.smartorg.com
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