It can be challenging for a technology business to assess and manage its product portfolio. A thorough evaluation goes beyond quantifying its dollar value; it also requires understanding the unique position your company and offerings hold in the marketplace. Only when you have a solid grasp of the holistic value of your offerings can you wisely allocate resources, pursue innovation that will be valued by the market, and remain competitive in a crowded, ever-evolving industry.
When leaders of a tech business have a clear view of the value and potential of their offerings, itâs far easier to chart the optimal path ahead. Below, 16 members of Forbes Technology Council share best practices for tech companies seeking to assess and wisely manage their project portfolios.
1. Focus On Early Disruption
Focus on two things. Disrupt your products before someone else does, and keep an eye out for inflection pointsâsuch as technological changes, macroeconomic conditions and so onâand strive to design new digital products before these inflection points arrive! – Cristian Paun, DuPont
2. Start With External Selling Tactics
Tech companies often have strong external value-selling tactics. Use that foundation to evaluate your product(s) within your own organization. Establish core OKRs, targets and meaningful impacts. Then, assess how each product performs and make a rollup of that. Finally, establish KPIs to continuously track and measure deviations in performance over time. – Jimmie Lee, JLEE
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3. Conduct Market Analysis
Be sure to conduct market analysis: Assess current market trends, customer needs and your competitorsâ offerings. Itâs crucial because it provides insights into where your product stands in the market and identifies opportunities for innovation or improvement. It ensures that your portfolio remains relevant and competitive, guiding strategic decisions on development, marketing and discontinuation. – Miguel Llorca, Torrent Group
4. Implement A Dynamic Evaluation Framework
A best practice for product portfolio management in technology businesses is implementing a dynamic evaluation framework. This approach emphasizes continuous assessment of products against market demands and technological changes. Its importance lies in fostering adaptability and enabling timely decisions that align with evolving industry trends, thus enhancing sustainability and growth. – Nicola Sfondrini, PWC
5. Ensure You Fully Protect Your IP
One thing to keep in mind is intellectual property protection. Make sure you copyright your code, apply for patents for hardware and generally review what proprietary stuff is worth protecting. Itâs important to remember that the value of your patents and copyrightsâincluding the R&D that goes into themârepresents an item on your balance sheet. – Jordan Yallen, MetaTope
6. Know What Differentiates Your Product
Most organizations evaluate the size and growth rate of the market they are attempting to penetrate to project the value of a component of their portfolio. However, many organizations fail to identify what specific capabilities of a given product or portfolio will enable them to differentiate their offerings and drive compelling interest in their products. – Russ Kennedy, Nasuni
7. Build On What Youâre Best At
Know what you are better at than any of your competitors, and make sure you expand your portfolio by building on that strong foundation. Everyone wants to work with the best in the industry, but too often, we chase expanding our portfolios to our detriment rather than expanding from a position of differentiation and our strength in what weâre the best at. – Richard Ricks, Silver Tree Consulting and Services
8. Engage In Data-Driven Review And Analysis
A best practice for product portfolio management is regular, data-driven review and analysis. This approach allows businesses to assess each productâs performance, market demand and strategic alignment. Itâs crucial because it informs decision making on resource allocation and product improvements (or discontinuation), ensuring the portfolio remains competitive and aligned with business goals. – Saif Sultan, Volos Portfolio Solutions, Inc.
9. Incorporate Cross-Functional Collaboration
Foster a culture of holistic innovation by engaging teams in product portfolio management. This shared-vision approach leverages diverse insights, aligning products with market needs for sustainable growth and leadership. Incorporate cross-functional collaboration, enhancing product relevance and innovation and ensuring your portfolioâs adaptability and competitive edge in a fast-evolving market. – Andres Zunino, ZirconTech
10. Establish A âPortfolio Health Indexâ
Implement a âPortfolio Health Indexâ that combines traditional metrics with novel indicators such as customer sentiment analysis, sustainability impact and societal relevance. This holistic approach ensures that the portfolio not only meets financial targets, but also resonates with broader stakeholder values, fostering long-term resilience and positive brand perception. – Jagadish Gokavarapu, Wissen Infotech
11. Regularly Reinvent The Mix
For effective product portfolio management, regularly reinvent your portfolio mix for relevance. Prioritize, evaluate and optimize service offerings based on market trends, needs and constant feedback to ensure sustained alignment with dynamic consumer demands. Also, decide what portfolio items to deprioritize. – Jo Debecker, Wipro
12. Account For The Time And Money Your Portfolio Saves
Humans, from customers to employees, ultimately make or break a business. One significant way to estimate the value of your technology portfolio is to account for the time and money it saves in creating a dollar of revenue. Whether it is an internal project or a product we sell, the value of each component in a technology stack is easily determined by the money it saves. Every product should increase the difference between expenses and returns. – Kevin Korte, Univention
13. Invest In ROI Modeling For Each Product
Invest heavily in clear ROI modeling for each product. Quantifying business impact is truly hard but utterly essential. We build robust models that capture not only financial returns, but also less tangible, yet critical, benefits, including brand equity, talent retention and strategic positioning. This rigorous, 360-degree analysis provides the pivotal fact base to inform difficult resourcing trade-offs among products. – Marc Fischer, Dogtown Media LLC
14. Adopt A âLeanâ Approach
Adopt a âleanâ approach thatâs focused on iterative development and customer feedback. By valuing what customers truly need, businesses can prioritize projects that offer real value, reduce waste and increase ROI. This method ensures resources are optimally allocated, driving innovation and sustainability. Itâs crucial for staying competitive and responsive in a rapidly evolving tech landscape. – Shelli Brunswick, SB Global LLC
15. Practice Agile Portfolio Management
Agile portfolio management emphasizes flexibility and rapid iteration, both of which are crucial for adapting to market changes. By continuously evaluating products against current trends and feedback, it ensures timely alignment with consumer demands, enhancing product success and market responsiveness. – Andrew Blackman, EZ Cloud
16. Leverage AI-Driven Analytics
Leverage AI-driven analytics for real-time insights into market trends, customer feedback and competitive landscapes. This not only quantifies the value of each product with precision, but also identifies synergies and gaps, guiding strategic decisions. Why? Because adaptability informed by data is the cornerstone of sustained success. – Marc Rutzen, HelloData.ai