News Release
Dr. Robert G. Cooper and Dr. Scott J. Edgett Make a Significant
Contribution to the PDMA ToolBook for New Product Development
ANCASTER,
ONTARIO, CANADA—April 8, 2002— Internationally
recognized experts in the field of new product development
and co-founders of Stage-GateŽ, Inc., Dr. Robert G. Cooper and Dr. Scott J. Edgett’s article, “Portfolio Management:
Fundamental to New Product Success”, contributes to
the newly published
The PDMA ToolBook for New Product Development.
Designed for the new product development professional, the
book compiles successful approaches to all aspects of new
product development, from idea inception to full product
commercialization.
As
an integral component of the “Portfolio Tools”
section of the book, the article describes in-depth the
four goals of portfolio management: maximizing portfolio
value, achieving portfolio balance, aligning the portfolio
to strategy, and selecting the right number of projects.
Cooper
and Edgett explain that project selection based solely on
financial analysis might not necessarily help to achieve
maximum portfolio value. Instead scoring models based on
criteria such as technical feasibility and strategic alignment
might yield more desirable results. The use of visual charts
and graphs, such as bubble diagrams illustrating risk versus
reward, are recommended to help achieve a balanced portfolio.
To achieve strategic alignment in portfolio management,
the proven Strategic Buckets Model is outlined as a useful
tool. Finally, the importance of selecting the right number
of projects given the company’s resources is emphasized.
Perhaps
the most critical part of the article is the final segment
dedicated to, “Putting the Portfolio Tools to Work”.
Several approaches are outlined so that organizations can
successfully implement portfolio management process.
|
