Product portfolio management is a popular concept in the realm of big business. It has everything to do with measuring the usefulness and profitability of ongoing projects within a company.
It is through specific and thorough portfolio management that major changes in company direction are either sustained or reversed based on factors such as the project’s performance over a set range of time. The total amount of revenue generated and spent in the same time and the level of priority that should be granted to any project in particular at any given moment.
Project management software allows for this process to be undergone without the need for excessive man-power or extensive teams of thinkers to keep track of all the most important aspects of each individual project within the business.
With this process, in general, being a sort of brainstorming activity undergone on an ongoing basis with the intent of looking ever ahead of the business’s current situation, project management software, in particular, can be considered to be a type of whiteboard for ideas and strategy to be assembled, assessed fully and acted out in the most efficient possible manner.
The Benefits of Product Portfolio Management
Product portfolio management offers a unique sort of advantage to those businesses that engage in it – allowing them to make all manner of deliberate modifications to large-scale, companywide strategy based on a number of measurable factors.
This means steps can be taken to curb negative results and poor returns on investments before they have the chance to get out of hand. Also, multiple projects of varying sizes can be taken on at once in order to maximize earnings potential and diversify income streams over both the long-term and the short-term.
The following points can be raised as to the inherent benefits of portfolio management through either a team or software:
Gain and Interpret Insights
Insights into the overall direction of a project and the manner in which money can be made through certain project options provide plenty of intelligence on which you and your team leaders can act to improve revenue generation and re-establish general financial expectations.
Essentially, through the exposure to useful data during the process of active product portfolio management, you can arrive at conclusions that you may not have arrived at without having devoted time and effort specifically to the analytical side of such a process.
Take Predictive Action
Once you have arrived at a conclusion as to a business opportunity in the future or a chance to avoid accruing further losses on a project gone wrong, you can establish a basic strategy for rectifying the situation ahead of time.
Predictive actions can constantly be taken over the lifespan of a company as a means of directing its course on a rapidly changing marketplace. Innotas, in particular, offer this level of functionality in their own PPM and BPM offering.
Understand Potential Risks and Rewards
Through proper project portfolio management, risks and rewards can be analyzed in full for the sake of weighing them against one another to determine a viable investment path for the company to plot out.
All manner of investments can be contemplated; from improvement campaigns in company production to spin-off’s and cross-company collaboration potential.
Here are a few of the functions that can be used in project portfolio software to help you manage your company’s potential more effectively:
Accurate Management of Resources
This involves the proper and detailed management of figures pertaining to the amount of resources your business’s plans will require up-front to proceed with and the overall amount of things that can be accomplished with resources your company has on hand at the moment.
The program allows you to gauge what your business will be capable of getting done with the resources you have and manage these figures to optimal effect.
Comprehensive Use of Analytics
These programs are capable of delivering extremely useful analytics with ready-made forms and charts that present important data in a way that is easily understood. Multiple dashboards and hierarchies are often the norm, with excellent support for complex configurations that accurately depict the relationships between aspects of individual projects as effectively as they represent the connections between different projects as well.
Financial management on a Companywide Scale
This aspect of a good software system of this type delivers custom financial reporting and tracking as well as provides means for integration with other software dedicated to financials of the business for stronger data inclusion and more accurate information regarding costs.
Project management software can help you keep your entire team on track in a more organized way than old methods. Plus, today many PM software systems are cloud-based which enables you to get your team together, and organized, no matter where they are. Aside from the obvious benefits of PPM, being location independent can improve your business on many levels that wasn’t possible until recently.