Transcript Document

So many decisions, more
time than we thought
Barely Sufficient Portfolio
Management
Todd Little and Kent McDonald
By the Book Gaming




Pools for Fools
Tools for Pools
By my Fantasy
You Betcha
The Problem(s)
The Development Funnel
Evaluation and
Selection
Development
Projects
New Products
/Services
Real Funnels: Group B
Quality
Research Control
OEM
Customer
Cont.
Marketing
Engineering
Strategic
Planning
Real Funnels: Group C
1 1/2 – 2 years
Central
Research
leaky
8 –12 months
2– 3
hours
NIH
Resistor
RELAUNCH
HERE
(abrasion;
slows
down the flow)
LAUNCH
HERE
Product "A"
Tech
Prod'n
Local
Inputs
Competitor
Boot
Board Heat
Log
Sales
What can we do to get useful
Portfolio Management?
Value Models?
How Do You
Determine Costs?
Costs
Benefits
Value
Model
How Do You
Determine Benefits?
Business Value
A Value Model?
Line Change
Value Model!
Considerations
Considerations
What do
we do?
Purpose
Benefits
Costs
Value
Model
When do
we do it?
When
do we
decide?
Decisions, Decisions,
Decisions
What do we do?
When do
we do it?
When do we decide?
Real Options
Deciding Is Not a Once in a
Lifetime Event
 Knowledge Improves
 Business Conditions
Change
 Project Conditions
Change
 Do You Know Why
You Are Deciding
Early?
Considerations
Risks
Assumptions
Constraints
Risks – Types of Uncertainty
Cost/Time Uncertainty
General
Market
Uncertainty
Feature Acceptance
Uncertainty
Purpose-Based Alignment
High
Partner
Differentiating
Who Cares?
Parity
Market
Differentiating
Low
High
Low
Mission Critical
Purpose Does Not Equal Priority
Example: Health Insurance
Purpose Alignment
High
Healthcare
analytics
Pharmacy
Dental
Market
Differentiating
Disability
Insurance
Member
Medical Home
Claims Processing
Enrollment
Customer Service
Low
High
Low
Mission Critical
Example: Apple
High
MS Office
ATT
Intel
Market
Differentiating
Peripherals
New Product
Design
User Experience
Content
Distribution
Software
Manufacturing
Low
High
Low
Mission Critical
By the Book Gaming
Product Line
Pools for
Fools
Be My
Fantasy
Tools for
Pools
You
Betcha
Total
2008
Head
Count
2008
Revenue
($Thousands)
2009
Revenue
Target
($Thousands)
2010
Revenue
Target
($Thousands)
8
8,000
12,000
18,000
8
0
4,000
6,000
8
0
0
0
8
2,000
4,000
6,000
10,000
20,000
30,000
32
Simulation









Get into teams
Choose a representative to the Portfolio Team
Prepare your case (25 minutes)
Pitch your case (20 minutes)
Break (finalize investment)
Simulate 2009 (20 minutes)
Revisit Investment Options (20 minutes)
Simulate 2010 (20 minutes)
Debrief (30 minutes)
Iteration 1
Iteration 2
Debrief/Retrospective
Buy the Book:
Stand Back and Deliver
New book by Pixton,
Nickolaisen, Little, and
McDonald
Published by Addison
Wesley in Early 2009
Drafts:
www.accelinnova.com
/booklogin.php
Contact
Todd Little
 www.toddlittleweb.com
 713-504-5365
 [email protected]
Kent J McDonald:




www.knowledgebridgepartners.com
www.accelinnova.com
515.229.6929
[email protected]