Friday, December 5, 2014

Portfolio Decomposition Diagrams

Your Portfolio Decomposition Diagrams are used to identify (visualize) individual objects (e.g., individual brands, products, tools, etc.) in a portfolio. 

If you are dealing with a portfolio of quasi-businesses (e.g. business units or regional branches), you will have to first perform a decomposition of the corresponding icon on CCOM using portfolio decomposition diagram and then perform decomposition of each business unit using the quasi-business decomposition diagram.

How many steps in your decomposition process will you have to perform? A business unit can have several retail locations; each location can have several product lines and each product line can have several products.

So the first decomposition (yielding Level 2) will show all of your business units and your retail locations. The second decomposition (yielding Level 3) will show product lines and individual products. So unless you have a very deep and/or complicated structure of your SBU, retail outlets, products and product lines, you are unlikely to go beyond Level 3. And very highly unlikely - beyond Level 4. 

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