5. Portfolio Decision Making and Business Case Risk

Position within DFSS Flow

Chapters 5 and 6 deal with two of the more common and pernicious types of risk: the risk that the product will be released late, perhaps missing the market window. . . and the risk that the product will not even have a market window to miss. This chapter will focus on the latter.

Product portfolio decision making is somewhat analogous to portfolio decision making for investments by a business or an individual. On an individual basis, investing all of one’s hard-earned savings in one risk investment is considered very risky. Similarly, counting on one “home run,” one miraculous product success, is very risky for a business. Portfolio decisions can propel the business ...

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