Process-Driven Products

Neil Stolovitsky is a Senior Solution Specialist at Genius Inside.

  Governance   Portfolio Management   ProjectsAtWork  

From R&D to post-sales customer service, every group in an organization is critical to a new product’s success. PPM systems can unite all the elements that drive new product development — and squeeze more profits out of these projects.

Too many organizations run their new product development projects in silos, typically within the confines of marketing and engineering. Project portfolio management is used more as a tactical tool to monitor progress, overcome bottlenecks and keep on budget for new product launches. Finance, operations, senior management and other groups are typically left out of the PPM strategy.

To fully tap PPM’s potential, organizations need to understand PPM can actually contribute to the new product development “value chain,” a theory popularized by Competitive Advantage: Creating and Sustaining Superior Performance author, Michael Porter. Porter asserts that the concerted activities of all groups within an organization determine its full competitive advantage. Every group in the chain has the potential to affect a product’s profitability. 

PPM can improve collaboration, delivering project information and visibility to key decision makers across the entire value chain, so that they can see what makes their product development projects tick. 

In Porter’s theory, the …

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