Central activities of solution portfolio management

Portfolio management has been recognised as an essential capability in successful solution business. However, there is ambiguity in depicting which activities are central to solution portfolio management and conceptualising it. Drawing from product portfolio management, this study empirically elaborates solution portfolio management and identifies the related central activities in product- and service-oriented integrated solutions. The study conceptualises solution portfolio management as a strategy-driven, dynamic development process aimed at constructing a balanced solution portfolio between internal efficiency and customer needs, and at maximising value for both solution providers and their business customers. For managers, the study provides topical advice in terms of applying a strategy-driven and customer-focused approach to the industrial solution business.