Issue in Focus: The ROI of Product Portfolio Management - The "How to Guide" for Predicting Return on Investment for PPM
In addition to growing the top-line, PPM also helps companies improve the bottom-line through cost reduction. These cost savings come in the form of reduced product development expenditure, which can be captured and transferred directly to the bottom line. Alternatively, many companies choose to recognize the cost savings by applying the newfound resources to accelerate more valuable products or to invest in more R&D and new product development. Cost savings come from a combination of sources, including: avoiding expense of initiating non-strategic projects and avoiding cost through early termination or correction of low value or floundering projects.