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PMnetwork Features Dr. Robert G. Cooper and Dr. Scott J. Edgett
With a Cover Article on Portfolio Management
ANCASTER, ONTARIO, CANADA-April, 2002-Dr. Robert G. Cooper and Dr. Scott J. Edgett, internationally recognized experts in the field
of new product development, and co-authors of Portfolio
Management for New Products, Second Edition, discuss the importance
and surrounding issues of Portfolio Management, in "Priority
Decisions", published in the April issue of the Professional
Management Institute's magazine PMnetwork.
Having conducted numerous portfolio management consulting projects,
Cooper and Edgett address the increasing importance of selecting
and supporting winning new product development projects. They explain
that Portfolio Management can drastically improve organizational
decision making, aligning resource allocation with overall business
strategy, and more effective execution and management of individual
projects.
The article examines the importance of using a proper new product
development process, such as Stage-Gate® in conjunction with
a Portfolio Management process. The Stage-Gate® process helps
to weed-out weaker projects, while Portfolio Management helps to
better allocate resources to the more desirable projects that continue
through the new product development process. The result: more efficient
use of company resources and more successful projects.
The article also looks at the consequences of using predominantly
financially based project prioritization criteria. Most organizations
rely on NPV or ECV analysis to rank projects, but data integrity
can be problematic, especially in the early stages of new product
development. Issues with these types of analysis are examined, and
alternative approaches to project valuation are discussed.
About Product Development Institute
Product Development Institute (www.prod-dev.com)
is dedicated to helping companies improve their approach to new product development
and portfolio management. Led by internationally recognized experts in the field
of product development, Drs. Robert Cooper and Scott Edgett, PDI provides executives
and managers with a wide range of products and services aimed at improving companies'
new product success rates. Cooper and Edgett have worked with more than 800
businesses, including most Fortune 500 companies, and have compiled the largest
knowledge base on product development best-practices in the world.
For further information please contact:
Scott J. Edgett
Product Development Institute
Tel: +1 905 304 8798
edgett@prod-dev.com
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