A product portfolio contains product lines across many horizons according to their lifecycle. Therefore overall business performance depends on the contributions of all of these products.
They are in different adoption phases. They can grow easily or strongly, are in saturation, or are completely outdated by new approaches.
- Products of “today” and the core business are characterised by mature markets, they are often referred to as H1. Many incremental innovations take place in this space. These innovations involve high costs because they address a larger market (“installed base”).
- Products of “tomorrow” generate strong growth (Horizon 2, H2). However, the introduction of such projects is a major challenge.
- Horizon 3 (H3) deals with the future, i.e. new applications and technologies that are not yet noticeably perceived on the market.
However, in the case of the transition zones, there is a dilemma in the form of intra-company competition between the various projects.
For example, Geoffrey A. Moore aptly formulates this phase as “Strategy’s no-man’s-land lies between the budget and the long-term plan. “In his HBR article “To Succeed in long-term the focus on the middle-term. “
Above all, to resolve this dilemma, a systematic innovation process needs to be in place.