This system is implemented in any organization with the view of achieving the following goals:
-Maximizing the profitability or value of the portfolio
-Providing balance
-Supporting the strategy of the enterprise

Product Portfolio Management is the responsibility of the senior management team of an organization or business unit. The team, which is involved in the process, is usually called the Product Committee. The product committee meets regularly to manage the product pipeline and make decisions about the product portfolio.

Most often, it is the product committee also that conducts the stage-gate reviews in the organization. In the process of product portfolio management, a logical starting point is to create a product strategy by outlining the markets, customers, products, strategy approach, competitive emphasis, etc.

The second logical step in the portfolio management for the product in a company is to understand the budget or resources available to balance the portfolio against. The next logical step is that each project must be assessed for its profitability against the investment requirements, risks, and other appropriate factors.

A recommended approach in portfolio management of any company is to start with the overall business plan that should define the planned level of Research & Development, investment, resources, and related sales expected from new products.
Most of the Indian companies did not follow a formal portfolio management system to determine the product mix in the organization.

However the bigger Indian FMCG companies with multiple business units, product lines or types of development, have started following a strategic allocation process based on the business plan.

~ Category editor Sakina Kadiwala. copyright data indianchild.com

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