Westernacher

Portfolio Management

While most organizations have no shortage of ideas for investment in new products or services, they rarely have the financial or infrastructural resources to implement them all. Portfolio management, borrowed from portfolio theory in the financial industry, is the selection and prioritization of an organization’s potential projects, balanced with risk assessment and other strategic objectives in order to provide the best return on investment with a defined level of risk.  This objective approach should leave the organization well positioned with strategic options for the future and is driven by the need to return value to the business. 

At Westernacher, we understand that organizations with large numbers of products find it highly problematic to assign resources. Each product or service that remains active in the product portfolio requires a certain level of support, expending scarce resources. To build and sustain competitiveness, product-based organizations must strategically manage the product portfolio in a way that capitalizes on successful existing product lines, effectively introduces new products, and phases out products that have become redundant or non-profitable.

Westernacher enables organizations to derive real value from Portfolio Management by helping them to:

• Optimize the product portfolio for value and risk by selecting the best possible combination of products.
• Strategically align product groups to achieve the multifaceted objective of reduced costs, higher commercial potential, and lowered risk.
• Align their short-term and long-term strategy by: 
  • Ensuring the flow of new revenues in the future
  • Balancing the allocation of resources and investments in the short term
  • Maintaining a sustainable level of risk and return that is aligned to the strategic direction of the business.