Developing a Systematic Model for Product Strategy and Product Portfolio Management

This master’s thesis discusses the processes and practices of product strategy development and product portfolio management. The goal of this research was to develop a systematic model consisting of tools and processes for the product management function of the case company. The theoretical background of this research is divided into three parts: strategy, product management, and management tools. This research was conducted on an assignment for a case company. The research process resembled an action research process and the researcher was an employee of the case company for approximately five months. The research material was gathered mostly by semi-structured interviews, informal discussions, benchmarking two other companies, and with a survey. The material was mostly qualitative but also a quantitative survey was used which makes this thesis a mixed-method research. As a result of this research a systematic process model was developed. The model is divided into three layers which are: daily, quarterly, and as needed -tasks. Five sets of templates were also developed to help the product management function in the product offering development. These templates are called preliminary investigation, business case, current state analysis, product strategy, and product group strategy. The standardized form of performing the tasks will benefit the case company by assuring that all the essential elements are taken into consideration when performing the needed tasks. The standardized way of illustrating makes the results easier and faster for others to understand and it also makes the results more reliable. For academics this research provides a summary of the scattered publications about product strategy and product portfolio management and provides detailed information about the research process conducted in the case organization of this research. /Kir1