• How do leading manufacturers use cloud software to support product innovation, product development, engineering, and manufacturing?Please share your experience, thoughts, and lessons learned in this new survey on cloud software for product innovation and manufacturing.If you already completed the survey  –> please share with a colleague or on social media using the “Share/Save” buttons above. If you haven’t taken the survey  –> please: CLICK HERE TO TAKE THE SURVEY NOW!Complete the survey and receive a free copy of the final report. In addition, 25 *eligible respondents will … [ read more ]

    Cloud for PLM and Manufacturing (survey invite)
  • This infographic shares survey results about quality and cost management in the Consumer Packaged Goods industry. It visually communicates the results of our research that shows how Top Performing CPG companies are able to achieve better quality and better cost of quality, without trading one for the other. The research shares the methods these leading companies employ, including automation, integration, and a more holistic approach to managing quality.To learn more, please:View the full Stop Choosing Between Cost and Quality in CPG infographic from our sponsor Dassault Systèmes BIOVIA (free or … [ read more ]

    Choosing Cost versus Quality in CPG (infographic)
  • Jim Brown contributed a guest post, Innovation Platforms - the Operating System for the Digital Enterprise, on the value of innovation platforms published in the Dassault Systèmes' Navigate the Future blog. The post shares the value an integrated platform of solutions provides to engineers, the enterprise, and toward achieving digital transformation. The post also covers some basis of the innovation platform from people, process, and technology perspectives.Read the post now (free of charge, no registration required).   … [ read more ]

    Innovation Platforms are the Operating Systems for the Digital Enterprise (guest post)
  • Please join Tech-Clarity's Michelle Boucher, Mark Turner from Alcon Labs, and Swapan Jha from PTC on Tuesday September 12, 2017 for a discussion on the right software solution for medical device engineering. The discussion will feature an interactive discussion between the panelists coving topics such as:Challenges facing medical device manufacturers. Why to consider the complete product lifecycle with respect to:Managing product and requirements. Transitioning from document to product centric approaches. Enabling smart and connected products.The best selection criteria for … [ read more ]

    Selecting the Right PLM Software for Medical Device Engineering (webcast)
  • Dassault Systèmes continues to make significant progress on the 3DExperience vision they laid out 5 years ago. This strategy has seen them transform from a software vendor offering distinct solutions for a variety of functional areas to a company that leads with a strong business transformation message backed up by a platform of solutions. I dropped "PLM" from the title of last year's strategy review. I feel even better about that decision a year later. They now have a broad software suite brought to market as solutions tailored to support key initiatives in the vertical industries they serve. As times goes … [ read more ]

    Dassault Systèmes Strategy 2017+

Advanced PPM – Taking Product Portfolio Decision-Making to the Next Level

Share

A quick peek into some research on … optimizing product portfolios using value optimization to improve decision making. Basic PPM offers the ability to balance, resource enable, and track new product development (NPD) projects. To make better portfolio decisions, the report overviews advanced PPM techniques that help companies choose projects with the highest potential financial return and shows them which risks and uncertainties they should address first in their plan. For more information, please download the report, Issue in Focus: Optimizing Product Portfolios with Advanced PLM – Applying Value Optimization to Portfolio Decision Making.

The Research Findings

Companies have achieved important business value from implementing the basic functions of PPM and the associated best practices. These tools help drive higher levels of profitability, as discussed in Tech-Clarity’s Issue in Focus: The ROI of Product Portfolio Management. But there is more value to be gained by extending those tools to encompass a deeper understanding of the financial value available from the project. Basic PPM offers the following important capabilities (knowledge well established by specialists in this field like Doctors Edgett and Cooper (among others):

  • Develop and track to realistic timelines, tasks, and costs
  • Identify and correct bottlenecks
  • Uncover and address skills gaps
  • Document and mitigate project issues and risk
  • Provide enterprise visibility to project health and status

Advanced PPM goes further. The primary enhancements Advanced PPM offers include:

  • Analyze a variety of potential outcomes for a project (resulting in a range of potential financial returns)
  • Develop a common understanding of the factors that influence the value (uncertainties and risk, as described in a Value Map)
  • Allow companies to focus on the biggest areas of uncertainty earlier in the project plans (allowing them to get a better understanding of the actual value they will achieve, and helping them make better portfolio decisions as the company learns from the project)

Combining Basic and Advanced PPM allows companies to develop a more comprehensive, valuable portfolio management process. As Tech-Clarity’s PPM Framework (below) points out, it is important to determine and monitor product value. Advanced PPM adds this capability to current best practice PPM solutions to help them achieve higher return on product portfolio investments.

Implications for Manufacturers

Whether a manufacturer already has PPM best practices in place or not, there are significant benefits available from adopting advanced PPM concepts.  Companies have the opportunity focus their decisions and product development efforts on realizing the highest potential for the product portfolio, and moving risk and uncertainty management form a passive approach (just managing the risk) to a proactive approach (using a tornado diagram to identify and focus on highest value uncertainties early in the project in order to better understand the achievable value of the product). The basics of PPM are still incredibly important, of course, and can be implemented first, in parallel, or following advanced PPM and value management techniques.

So that was a quick peek into some recent research on PPM, I hope you found it interesting. Does the research reflect your experiences? Do you see it differently? Let us know what it looks like from your perspective. And please feel free to review more free research and white papers about PPM, PLM and other enterprise software for manufacturers from Tech-Clarity.

Speak Your Mind

*