Portfolio Optimization Through New Products and Harmonized Roadmap Planning
Our client is a leading provider of application-specific integrated circuits used primarily in the automotive industry. The company develops and manufactures semiconductor solutions that primarily enable safety-critical, comfort-enhancing, and energy-efficient functions in vehicles—including sensor technology, lighting, driver assistance systems, and human-machine interfaces.
Fragmented planning and a lack of transparency
The product roadmaps of the responsible organizational units were distributed at the segment level and had not been consolidated. This made coordinated, strategic management considerably more difficult. Particularly critical was the lack of an overall view across all segments: On the one hand, R&D capacities could not be precisely managed; on the other hand, it was difficult to adequately assess the extent to which market needs were being met. Compounding this was the absence of a standardized portfolio management process, which meant that transparency and comparability between different portfolio scenarios—in terms of opportunities and risks—could not be guaranteed. Resource planning was also undermined by unclear prioritization, which further exacerbated conflicts between operational and strategic objectives.
Target Vision and Methodological Approach to Portfolio Management
The goal was to define a shared vision (“North Star”) for the entire portfolio, design a future portfolio with a planning horizon of five to six years, and, based on that, develop a consolidated roadmap across all segments. From a business perspective, the goal was to nearly double revenue during this period. The process was divided into four phases:
- Development of a shared portfolio vision to guide strategic direction.
- Analysis of the existing portfolio (current state) and derivation of a target portfolio, taking strategic guidelines into account.
- Developing cross-segment scenarios based on the estimated potential and effort.
- Development of segmented product roadmaps and their integration into an overall roadmap, including implementation planning.
In doing so, methods were deliberately chosen that allowed for a clear structure:
- The Porter Five Forces analysis was used to assess the strategic environment and develop a vision.
- Standardized evaluation methods were used to estimate development costs, manufacturing costs, and market potential for new product ideas.
- A gap analysis identified market gaps.
- Several portfolio scenarios were simulated to enable informed decisions.
Success Factors and Learnings
A key factor in the project’s success was the early involvement of all segments and stakeholders in developing the vision and roadmap. The combination of proven methods, structured assessment, and scenario planning fostered trust, transparency, and decision-making capability. The close integration of strategy and operational planning was particularly effective—a key driver for acceptance and sustainable, pragmatic implementation.
Impact: Transparency, Alignment with Strategy, and Confidence in Decision-Making
Thanks to the new roadmap structure, development resources could be allocated in a more targeted manner —by approximately 30 %. Coordination cycles were shortened by 25 %. New product ideas with high market potential were identified and prioritized, while parallel development projects were significantly reduced. The organizational unit responsible for the products now has an integrated, forward-looking portfolio planning process that combines strategic management, operational feasibility, and innovation.
