Quote of the Day
I was almost a sorry witness of his doings, knowing that just a little theory and calculation would save him 90 percent of the labor.
— Tesla about Edison
Introduction
Figure 1: The Ansoff Matrix Provides a
Framework For Evaluating Product
Development Approaches (Source).
I am often asked to evaluate the focus of my team's efforts relative to company's priorities. There are different ways of expressing these priorities – one common approach is to look at how your group resources are allocated relative to the Ansoff matrix (Figure 1).
Technology firms are usually focused on developing products that expand their firm's Total Addressable Market (TAM), and it is important to ensure that your labor allocations reflect that priority. On the Ansoff matrix, diversification reflects new products for new markets.
Analysis
Figure 2 shows how I approached the problem in Excel. For each employee, I load the employees workload allocation per the four Ansoff categories. I then compute a weighted-average allocation for my total group.
Figure 2: Excel Table Showing My Workload Allocations Per the Ansoff Matrix.
Rather than go through the equations, it is easier just to include the spreadsheet.
Conclusion
While this is as simple problem to solve, it is a common type of management math problem.
I consider posts like this to be career/management broadening even though I'm retired. I had not heard of Ansoff. Thanks for the info. Not sure why the other person rated this low.
This is my sixth year of blogging, and I am always surprised at what people like and don't like. Most management theory is about creating a framework for making decisions and setting priorities, which is exactly what the Ansoff matrix does.
My goal here is just to show everyday examples of math and science in the workplace. Thanks for rating.
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