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Value Innovation Portfolio Management: Achieving Double-Digit Growth Through Customer Value ReviewThe co-authors of this book are colleagues at Product Development Consulting, Inc. where they and their PDC associates devised and have since refined the Market-Driven Product Definition (MDPD®) methodology in response to their clients' need for a customer value dimension in their product portfolio management. "We watched many of our clients make MDPD an integral part of their product development processes, then go on to use the resulting database of customer value information as input to their portfolio processes. Thus was born our idea of providing a new methodology, philosophy, and criteria for evaluating changes to the portfolio [begin italics] before [end italics] making portfolio decisions and committing company resources."
What Sheila Mello (lead author) and her collaborators have learned about value innovation portfolio (VIP) management is provided in this book. Whether or not the organizations of those who read it achieve "double-digit growth through customer value" will depend on how effectively the MDPD methodology is executed.
Here are several of the questions to which Mayo and her collaborators respond:
1. How to define or re-define a product portfolio along the value dimension?
2. What are the leading causes of product failure and how to avoid or correct them?
3. What is innovation's proper role within the MDPD methodology?
4. In what respect(s) is the "optimized" portfolio "the sweet spot"?
5. In terms of MDPD alignment, why is the "why?" so important?
6. What is an "actionable" portfolio? A "fortified" portfolio?
7. How to use MDPD to "hear the voice of the customer"?
I especially appreciate the provision of the three appendices whose material will assist, indeed expedite the formulation and implementation of a successful value innovation portfolio (VIP). Decision-makers in smaller or at least less complex organizations may prefer to devise a mini-program, try it out, and then expand or modify it. This book will be invaluable to either approach.
That said, I presume to share two caveats. First, when creating and then developing a VIP, focus on what is most important...and most appropriate. Nail the fundamentals. For example, make certain that all decisions are based on accurate, current, and sufficient information. Keep in mind what Peter Drucker once observed: Also, beware of over-complicating the VIP design and implementation process. Recall what Albert Einstein once observed: "Everything should be made as simple as possible, but not simpler."Value Innovation Portfolio Management: Achieving Double-Digit Growth Through Customer Value OverviewThe quest for successful products - along with a simple, effective, and predictable way to determine in advance which ones will be successful - is a major concern for nearly every company out there. Most firms use traditional financial projections to select the best products, and many are often frustrated by under-achievement, lower than expected profits, and sometimes outright failure. "Value Innovation Portfolio Management" presents a pioneering new product-selection method based on high customer value, better business strategy alignment, and optimal investment intensity - allowing businesses to find success more often with new products. This ground-breaking new method is backed up by numerous case studies and examples that demonstrate significantly improved results using customer value as the yard-stick for product development.
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