Accept Corporation and AIPMM Executive Study Finds Growing Gap Between C-Suite and Product Development
Two-Thirds of Product Executives Can't Reconcile Top-Down Business Models with Bottom-up Plans and Fail to Make Fast Go-Kill Decisions
Santa Clara, CA — June 8, 2011
- Accept Corporation, a leader in product innovation management, has unveiled the results of an independent survey conducted in partnership with the Association of International Product Marketing and Management (AIPMM) to identify the most pressing priorities, challenges and trends in product portfolio management and efforts at redefining innovation.
- The study was conducted in April 2011 with over 150 company executives responding across a number of industries and roles including CXOs, Vice Presidents, Product and Portfolio Managers, Directors and Analysts.
- More than 60 percent of the respondents said they struggle reconciling top-down business models with bottom-up operational plans, pointing to a significant gap between strategy setting and execution.
- 60 percent of respondents also confessed they are challenged making fast go-kill decisions leading to resources being wasted on poor or ill-conceived product ideas while viable product candidates are starved of critical resources.
- 89 percent of respondents say they do not have an integrated view of their portfolios across the enterprise, confirming that most portfolio decisions are made in silos either within specific functions or product lines.
- Strategy and Execution Misalignment - The two biggest challenges to product portfolio management were 1) spending on the most important corporate initiatives and 2) planning resources and priorities to match timing and market needs. Companies are generally unable to do rapid top-down modeling that helps identify viable investment options and ensure those align with detailed bottom-up plans and execution priorities.
- Lack of Unified Portfolio View Across the Enterprise - Only 11 percent of executives report having an integrated view of their product portfolio across the enterprise and still operate in silos despite advances in collaboration technology and social media infrastructure. Companies today do not have a complete picture of the product portfolio process, and their functions or product lines remain in silos. An integrated view of the entire portfolio will drive much more significant levels of growth to help companies differentiate from the competition and meet aggressive revenue targets. Disjointed, non-integrated tools may help drive some incremental benefit, but they will ultimately fall short and fail to adequately support the business.
- Failure to Automate Product Portfolio Processes - More than 85% of respondents said their product portfolio management processes are mostly manual and they still rely on static programs and basic tools like spreadsheets, documents and presentations to store and access information when it comes managing their product portfolios end-to-end from strategy, planning through execution. As a result of these static processes, companies are unable to build dynamic, automated operating plans that align corporate strategies with enterprise-wide visibility.
To learn more about the study findings, download the complimentary report at http://www.accept360.com/portfoliostudy
- Survey participants included 150 global product and portfolio executives, and represent a cross-section of the organization, including CXOs, Vice Presidents, Managers, Directors and Analysts. Respondents were from the Americas (77%), Asia Pacific (4%) and Europe (19%).
- 65% of respondents represented companies with less than $500 million in revenue. 10% ranged from $500 million to $1 billion. 15% ranged from $1 billion to $10 billion, and a remaining 10% of respondents were from companies with over $10 billion in revenue.
- The survey was completed in April 2011 by email invitation to AIPMM members, Accept customers and industry members.
"Organizations today are challenged with limited resources, faster time-to-market customer requirements and a business environment that is increasingly global in nature, calling for a new approach to ideation and the entire process of innovation management," said Bryan Plug Chief Executive Officer of Accept Corporation. "The concept of product portfolio management has become antiquated, as businesses need to consider the role of the entire product portfolio in the context of overarching company objectives. This broader, more holistic approach to innovation management will require ongoing, real-time processes across the enterprise to align corporate strategy with product development, production and execution."
"These findings point to a fundamental gap between the c-suite and the product development team that will only be improved when companies fundamentally change the basic processes and infrastructure to provide the kind of real time visibility that will drive continuous improvement across the organization," added Mr. Plug.
Accept Corporation delivers The Product Innovation Management solution that technology-driven companies use to decide which products to bring to market for the fastest time-to-profit. The Accept360 Suite is the only complete end-to-end software solution that tightly links company and product strategy through ideation, portfolio planning, roadmaps, requirements and execution. For more information, visit www.accept360.com or call us at +1.866.423.8376