Glossary

Product portfolio optimization

Marketers who manage innovation based on the incremental profitability to the portfolio, instead of sales or share, stand to make better decisions to drive portfolio growth. They need to measure whether the innovation is profit-accretive to the portfolio mix and quantify the ROI. With this fresh perspective, marketers can plan for accretive margins from the early stages—and give more disruptive innovation enough time and investment to become profitable.  Extracted from McKinsey.