Strategy

“Delivering superior customer value requires differentiation, which requires deep understanding of clients’ latent needs”

Mc Nally et al., 2007

A firm’s strategy is about how it achieves a sustainable competitive advantage and the means deployed to reach such advantage.

In its product portfolio, it is of the utmost importance that the firm insures a fit between its products, strategy and long-term goals.

Strategy and resource allocation must be intimately connected.

Ways to achieve Strategic Alignment

Ways of achieving strategic alignment:

•       Top – Down approach: Resource allocation is based on the company’s vision and specific goals.

•      Bottom up approach: Strategic criteria are built into the project selection tools and thus strategic fit is achieved simply by incorporating strategic criteria into the Go/Kill and prioritisation methods.

•        Top- Down and Bottom – Up approaches combined

Irrespective of the approach used, the following elements should be addressed:

·       Set Product Goals: E.g. percentage of revenue derived from new products the previous years. Percentage of profits to come from new products. Percentage of growth either revenue or profits

·       Analyze the market and the competition: PEST and competition analysis

·       Assess your market place: Identify customer latent needs, industry drivers, etc. Use of Porter’s 5 Forces (Porter)

·       Assess you company’s strengths and weaknesses: SWOT

·       Marketing and Sales

·       Product Technology

·       Operations or production capabilities and technology

Strategic Buckets

"The set of battlefield arenas that the firm’s leadership wishes to focus on. Such arenas may be markets, product types or technological arenas".

Coopers et al., 2001

Each of such arenas requires resource allocation.

The strategic bucket model allocates resources to each of the arenas.

Product Roadmap

Product roadmaps are designed to ensure that the product development schedule really contributes to the business’ strategy and goals. A product roadmap encompasses next generations of the product. It deals with the product lifecycle.

A typical product roadmap includes:

• Functionality
• Effort required
• Release dates