Financial Analysis in

Product Portfolio
Management
Prepared by:
Kristal Lane Corpuz
Valerey Delos Reyes
Objectives:
1. Define what is Financial Analysis
2. Define what is Product Portfolio
Management (PPM)
3. Know the Goals and Objectives of PPM
4. Benefit of PPM to businesses
5. Steps in Product Portfolio Management
Financial Analysis
Financial Analysis
 Financial analysis is the examination of
financial information to reach business
decisions.

This type of analysis applies particularly well to

the following situations:
Investment decisions by external investor.
Investment decisions by internal investor.
 Financial Analysis
The key source of information for financial analysis is the
financial statements of a business.

The outcome of financial analysis may be any of these

decisions:
• Whether to invest in a business, and at what price per
share.
• Whether to lend money to a business, and if so, what
terms to offer.
• Whether to invest internally in an asset or
working capital, and how to finance it.
 Financial Analysis

 Financial analysis is one of the key tools

needed by the managers of a business to examine
how their organization is performing.
Product Portfolio
Management
Product Portfolio Management

 Is a definitive process of analyzing and assessing each

product and its current level of success.

It also involves identifying risks and future

opportunities, streamlining resource allocation based on
product success and priority, and ultimately aligning these
products with the business’s long-term strategic goals.
Product Portfolio Management

 Is a compilation of all of a company's products or services.

Product portfolio analysis can give you a lot of information

about a stock, its growth prospects, profit margin drivers,
income contributions, market leadership, and operational
risk.
The various components of a portfolio also face different
market dynamics and can contribute inconsistently to the
bottom line.
 Goals and Objective of PPM

 Primary objective of product portfolio management is

to minimize investments in lagging products and bolster
the development of the ones that have breakthrough
potential.
 Goals and Objective of PPM
▪  List of motives and goals behind setting up a systematic PPM
process:
• Align the products (both present and pipelined) with the organization’s mission and
vision;
• Assess and analyze the place of products in the market and their impact on the
internal business environment;
• Eliminate the low-profitable and the ones not adding value from the portfolio;
• Assign and schedule resources to profit-yielding and novel, innovative products to
help them upskill and perform better;
• Review and focus on improving the products’ or services’ performance to keep
them in-line with the ongoing demands; and
• Create a transparent work-environment and keep every stakeholder and decision-
maker in the loop.
 Benefits of PPM to Businesses

• Meet the strategic or long-term goals faster with intuitive

market insights and quick product development.
• Prioritize and organize the products based on their market
value and consumer demand.
• Streamline Research and Development with the best
opportunities to upscale the business with a data-driven
approach.
• Bring novel and unique products and services to the market
ahead of the competitors with forecasting ability.
 Benefits of PPm to Businesses
• Form a contingency plan in advance to deal with the market
uncertainties.
• Improve overall efficiency and performance of products to
drive the competitive edge.
• Maximize employee productivity and team engagement by
enabling uninterrupted, inter-departmental collaboration
• Improve operational prowess with smart and 
competent resource planning and allocation and a start-to-end 
systematic management process.
 Steps in Product Portfolio Management
Step 1. Product Portfolio analysis

 To evaluate if the assignment you are planning to take

up aligns with your short and long-term goals.

It facilitates managers to categorize the products into

different sections and implement the right course of
action.
 Steps in Product Portfolio Management
▪ Step 2. Product Lifecycle stage analysis
to find out where each product stands in the product life
cycle. 
Product life cycle encompasses the following stages:
1. Introduction
2. Growth
3. Maturity
4. Decline
 Steps in Product Portfolio Management
▪ Step 3. Resource Allocation
Based on the product, its tasks, and the lifecycle stage,
managers have to identify and 
schedule competent resources keeping other resource
attributes in mind.
Efficient scheduling can be a breeze with an 
advanced resource scheduling tool that allows you to find
the right resource across geographical boundaries.
Managers have the liberty to filter out the resources based
on their requirements like specific cost rate, location,
profile, roles, etc.
 Steps in Product Portfolio Management
▪ Step 4. Forming the Product Portfolio Roadmap

also called a project manager’s work breakdown structure

is one such document that logs every detail from the
product and its categorization to the scope and 
resource plan.
This roadmap encourages team collaboration, empowers you
to solve complex problems in a coalition, makes investment
decisions mutually, and meets the product’s cross-
functional needs in a matrix organization.
 Steps in Product Portfolio Management
▪ Step 5. New Product Development and acquisitions
New Development Product (NDP) provides immense growth
opportunities and allows you to diversify.
Acquisition is an extensive process that involves searching for
the right opportunity, engaging and collaborating with
potential organizations, performing a detailed background
check, and finally, after consensus integrating the product
into your portfolio.
To ensure seamless execution of the acquisitions, the product
portfolio team must work cohesively to attain tangible results.
 Key Takeaways
A product portfolio is the menu of goods or services that a
firm producer and offers for sale.

Analysis of product portfolios can give deep and nuanced

insight into the workings of a company and its earnings
potential.

Product portfolios will tend to be different for mature versus

younger growth companies