Abstract

Product portfolio management (ppm) should define, which products todevelop, sell, deliver, maintain, and remove based on company’s strategictargets. Aligning the product portfolio with business strategy is, however,seen challenging. Hence, an approach for ppm target setting over life-cycleis needed. A single-case study was conducted to examine the relationshipbetween product portfolio management and business strategy to proposea practical approach for defining product portfolio management strategictargets and key performance indicators over life-cycle. The main results include proposing ppm target setting to cover horizontally all product life-cycle phases and vertically the product structure, including both commercial and technical aspects. ppm strategic targets and key performance indicators over life-cycle through four success factors are proposed. In addition, a new tool for product portfolio analysis is introduced. The studycontributes to the previous studies on aligning product portfolio management with business strategy by providing a practical example.