Product Portfolio Management Strategic Targets and KPIs over Life-Cycle: A Case Study in Telecommunications Business

Erno Mustonen, Jonne Seppänen, Arto Tolonen, Janne~Harkonen and Harri Haapasalo
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Erno Mustonen: University of Oulu, Finland
Jonne Seppänen: University of Oulu, Finland
Arto Tolonen: University of Oulu, Finland
Janne~Harkonen: University of Oulu, Finland
Harri Haapasalo: University of Oulu, Finland

Managing Global Transitions, 2020, vol. 18, issue 1 (Spring), 5-23

Abstract: Product portfolio management (PPM) should define, which products to develop, sell, deliver, maintain, and remove based on company's strategic targets. Aligning the product portfolio with business strategy is, however, seen challenging. Hence, an approach for PPM target setting over life-cycle is needed. A single-case study was conducted to examine the relationship between product portfolio management and business strategy to propose a practical approach for defining product portfolio management strategic targets and key performance indicators over life-cycle. The main results include proposing PPM target setting to cover horizontally all product life-cycle phases and vertically the product structure, including both commercial and technical aspects. PPM strategic targets and key performance indicators over life-cycle through four success factors are proposed. In addition, a new tool for product portfolio analysis is introduced. The study contributes to the previous studies on aligning product portfolio management with business strategy by providing a practical example.

Keywords: product portfolio management; performance management; strategic management; product life-cycle management (search for similar items in EconPapers)
JEL-codes: L21 M10 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.26493/1854-6935.18.5-23

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