A very useful tool in product portfolio management is the BCG Matrix. I’ve written about it before and I’ll reinforce here that it helps us understand how to manage each product, depending on the stage it is in its lifecycle.

BCG Matrix as a product portfolio management tool

I’ve been supporting my clients in building their own BCG Matrices to organize their product portfolios. I also recommend that they revisit and update this matrix at least quarterly or, at most, every six months, to reflect on key questions such as:

• Are we investing the right resources according to each product’s stage? Each stage in a product’s lifecycle requires a specific allocation of resources — development, operations, and product marketing. Identifying the current stage of each product and assessing if the resources are being allocated properly is essential to ensure that the strategy is being executed.
• How many bets do we have? The stars of a portfolio emerge from the bets we make — and not every bet turns into a star. The success rate is usually low. If we have too few bets, the chances of having more stars in the future decrease.
• How long has each product been a “bet”? If a product has remained in the “bet” category for too long, is it still a bet? Maybe not. Products that spend many months as a bet without evolving into a star should be reviewed. It might be time to acknowledge that this bet didn’t pay off and move it to the “dog” category, freeing up space and focus for new bets.
• How long has each product been a “dog”? If a product remains a dog for too long, it may be consuming resources that could be used to create new bets.
• What will we do with each “dog”? We need to decide: do we want to try to rescue this product, making significant changes? Or is it better to discontinue it and direct efforts to new products?

The BCG Matrix allows us to manage the portfolio tactically, helping us define what to do with each product in each stage of its lifecycle. However, it doesn’t answer a fundamental question in portfolio management: Which products should we have in our portfolio?

Product Vision as a Portfolio Management Tool

That’s where Product Vision comes in — a clear representation of how we imagine our products in the future, two or three years from now. I’ve shared some examples of product visions in a previous article.

Last month, I helped a client build their product vision. They lead a B2B SaaS company focused on a specific market segment. Over time, they developed their core product and acquired companies with complementary products. Today, they have over 10 products, and a recurring question was: What is the role of each product within the company’s strategy?

Once we finalized the product vision, people started commenting on how everything became clearer — why each acquisition made sense and which partnerships or acquisitions should come next.

Conta Azul vision

At Conta Azul, we had a very clear product vision — and it guided important decisions, including two acquisitions:

• Wabbi: A startup that developed a cloud-based accounting system. The acquisition aimed to create a unified platform for business owners and accountants.

• Swipe: A platform specialized in digital wallets. The acquisition accelerated the launch of Conta Azul’s integrated digital account.

These moves wouldn’t have been possible without a clear vision of the future we wanted to build.

Now you have two complementary tools to manage your product portfolio:

• BCG Matrix: To tactically manage the product lifecycle and allocate resources efficiently.
• Product Vision: To strategically guide the portfolio, defining which new products are worth betting on.

One without the other may leave your management short-sighted. The vision answers “Where are we going?” The BCG Matrix helps decide “What should we do now?” Together, they help you see both the present and the future of your portfolio.

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Gestão de produtos digitais

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• Transformação digital e cultura de produto: Como colocar a tecnologia no centro da estratégia de sua empresa
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