Title: Strategic portfolio planning in industries with long R&D cycles and interrelated product offerings: a practical approach to optimisation

Authors: Christina Raasch, Arne S. Schneider, Gunther Friedl

Addresses: Hamburg Technical University, Schwarzenbergstr. 95, 21073 Hamburg, Germany. ' McKinsey and Company, Am Sandtorkai 77, 20457 Hamburg, Germany. ' Technische Universitat Munchen, Arcisstr. 21, 80333 Munchen, Germany

Abstract: Portfolio planning is a major determinant of the long-run success of companies. A fact-based approach to strategy making which facilitates the identification of a near-optimal product portfolio is therefore a valuable support for managers. Taking the automotive industry as an example, this contribution develops a tool geared to accompanying the entire portfolio strategy process, from cross-functional data collection to comprehensive analyses of financial and other industry-specific performance indicators. Moreover, the tool can be profitably utilised in top management strategy meetings, allowing a high ad-hoc adaptability of analyses and strategy alternatives while remaining easy to use.

Keywords: portfolio planning; optimisation; automobile industry; strategy tool; cycle planning; strategic planning; R&D cycles; research and development; product portfolio; automotive products.

DOI: 10.1504/IJTIP.2007.015783

International Journal of Technology Intelligence and Planning, 2007 Vol.3 No.3, pp.271 - 291

Published online: 14 Nov 2007 *

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