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Business Portfolio Analysis Selecting Your Business and Innovation Project Portfolio |
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By Vadim Kotelnikov, Inventor, Author, and Founder, Ten3 BUSINESS e-COACH – Innovation Unlimited, 1000ventures.com
"Change starts when someone sees the next step." – William Drayton
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Three Primary Criteria to Assess Your Innovation Portfolio1
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Besides assessing each initiative individually for risk, investment, return, and timing, assess your total portfolio to ensure that you have the right initiatives in it:
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Business portfolio analysis is an enterprise strategy development tool based primarily on the market share of your business and the growth of market in which your business exists. Why is Business Portfolio Analysis? Business portfolio analysis as an organizational strategy formulation technique is based on the philosophy that organizations should develop strategy much as they handle investment portfolios. Just as sound financial investments should be supported and unsound ones discarded, sound organizational activities should be emphasized and unsound ones deemphasized.2 Most Popular Business Portfolio Tools Three most popular business portfolio tools are the BCG Growth-Share Matrix, the GE Multifactor Portfolio Matrix, Matsushita Strategy Matrix, and road-mapping. The GE Multifactor Portfolio Matrix was deliberately designed by General Electric Company (GE) and McKinsey and Company to be more complete that the BCG Growth-Share Matrix. Case in Point Silicon Valley Companies: Deciding If Your Innovation Portfolio Has Enough Stretch Adapted from “Relentless Growth,” Christopher Meyer
Strategy Innovation... Dynamic Strategy... Diversification Strategies... Opportunity-drive Business Development... Innovation Portfolio... Risk Management... Building Business Synergies...
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