In 2014 Ensto started a program for improving product portfolio management skills and practices. Ensto has wide range of products thus an efficient management of product portfolio is essential. In the program process was created for the product portfolio management with the product managers. Product portfolios are analyzed twice a year according to the process and needed actions are carried out.
Product portfolio management is a dynamic decision process, where products are evaluated and their role and the status of the life cycle is determined. The process encompasses a number of decision-making processes including periodic reviews, making decisions on individual products and prioritizing them, so that it is easier to allocate resources.
The main target of Ensto´s portfolio management project was to clarify the offering based on customer needs and remove the products that are at the end of their life cycle. To enhance the use of standard components, components were examined and made sure that no duplicates exist.
The clearest outcome of the process was the decrease of active items. In the future we expect to scrap fewer products and components and have more space in our stock. As a result of this program also better skills and IT- tools for product portfolio management, improved overall profitability, better positioning of the products and tangible results in handling low volume-low profitability products were expected.
In the future portfolio management process could involve sustainable matters. Life cycle analysis, material choices as well as other sustainability criteria could be included in the portfolio management process.