Managing The Opportunity Portfolio

Abstract

OVERVIEW:Portfolio planning involves five basic tasks: identifying current as well as future gaps in the portfolio relative to the firm's overall business strategy, striking a balance between strengthening the firm's current strategic position and the exploration of new markets or technologies, creating a portfolio with the highest potential financial value, and exploring the extent to which the competition can be redefined. Tools for accomplishing these tasks include the “traffic light” approach, analysis of technology positions and product attributes, identification of discontinuous change, creating new dimensions of merit, lifecycle analysis, portfolio/scenario analysis, and the strategic bucket framework. Not every tool will work for everyone, but used as needed, these tools will help managers to build a rigorous portfolio strategy.