Strategic portfolio analysis: Re-use planning with consideration of market potential
Being experts for complexity management, we at MB Collaborations know that the client is king. There are good reasons why variety is created and consequently complexity occurs. That is why it is all the more important to ensure that you are offering a portfolio from which your clients will purchase in the future before you begin searching for the perfect modularization solution for a certain product.
During a strategic portfolio analysis, we will jointly gain an overview over the existing product portfolio, determine external and internal trend factors and based on our findings, deduce possible scenarios for the future. That means that we will begin to prepare the continuing modularization during the strategic portfolio analysis by identifying acquisition potential across the entire portfolio at this stage already.
General process for strategic portfolio analysis by MB Collaborations
One basic goal for strategic portfolio analysis at MB Collaborations is to always prevent complexity already at the beginning of the value chain. For example, no efforts should be associated with the standardization of product components which the markets may no longer require tomorrow. Furthermore, together with you we will identify potentials in workshops which exceed the limits of individual product families.
Part of the strategic portfolio analysis is an evaluation of your current product portfolio which will be visualized while analyzing internal and external trends. On the basis of alternative future scenarios, we will determine which portfolios you should offer in the future under economic and strategic considerations.
In doing so, we will investigate key numbers, such as revenue, quantities, profit margins and number of existing product variants.
As part of a high-level analysis we will then determine how certain components, adoption components, can be re-used across the entire portfolio. All components will be subject to a feature analysis in order to visually demonstrate on the basis of key figures what kind of advantages a module strategy might bring.
The result is a clear view of your future product portfolio as well as a strategy which ensures that the product variety you are offering will remain competitive in the future. The timetable based on these findings enables the creation of a modular product architecture which does justice to the variants. (à Link to sub-page possible?: Variety reduction on component and product level).
Your advantage: The strategic portfolio analysis by MB Collaborations reduces complexity before it can start to develop. It combines an extensive analysis of the existing and of future product portfolios with an evaluation of re-using potential on portfolio level.
At a glance: the three steps of a strategic portfolio analysis
At MB Collaborations, we divide the process for a strategic portfolio analysis into the following three steps:
Step 1: Analysis of current situation of product portfolio
- Evaluation of economic significance: Analysis of existing product program structure and determination of economic key figures, such as revenue, sales volume and profit margin.
Step 2: Future analysis of product portfolio
- Assessment of chances and risks as well as strengths and weaknesses
- Identifying future trends and success factors
- Deduction and demonstration of future scenarios
Step 3: High-level analysis of internal variety
- Evaluation of re-use potential of components between different product families
- Timetable for development of corresponding concepts
Result: Potential complexity is prevented on portfolio level
- Your future portfolio is aligned with the market.
- A timetable for the development of modular building blocks / modular product architecture has been defined.
- Recycling potential of components for complexity reduction on product / product family level has been identified.
Would you like to find out more about strategic portfolio analysis? Contact us or drop us a line.