What Are The 3 Main Sections of SAFe® Portfolio Canvas?

 

SAFe Portfolio Canvas is based on the business model canvas created by Alexander Osterwalder. The portfolio canvas defines the value stream development in the SAFe portfolio, the value propositions, and solutions they offer, the customers they serve, the budgets for each value flow, and other key activities and events required to achieve the portfolio vision.

Each Portfolio Canvas’ section is described in this blog section:

 

1. Value Propositions

It describes the customers and the value provided by each value stream solution, as well as customer segments, relationships, KPIs / Revenue, and budgets. Use a separate line for each developmental value stream.

 

1.      Value Stream: Value stream development (VSD) is used to build systems and capabilities that enable business processes in operational value flows or provide products/services for operational value flows.

2.      Solutions: Each value stream creates one or more solutions, i.e., products/services/systems that are delivered to the customer both internally and externally.

3.      Clients: It describes the internal/external clients of each value stream. It defines how the company views different customer groups differently and treats them based on their common characteristics.

4.      Channels: Reveals how the company delivers its products/services to customers, intermediaries, and end-users. If you are serving external customers, this may include the marketing and sales mechanisms used to reach customers (e.g., online, direct selling, distribution network). Internal customer service creates interfaces with internal stakeholders and end-users (e.g., internal websites, customer-specific IT applications).

5.      Customer Relationships: The types of customer relationships required for the effective application and use of the company's products/services. It describes the relationships and interactions with every customer segment. Those relationships influence the design of decisions and the allocation of resources in the portfolio.

6.      Budget: Each value stream is assigned a small budget including operational, general, and capital expenditure.

7.      KPIs/Returns: KPIs (Key Performance Indicators) define the metrics used to measure the ROI (return on investment) in value.

 

2. Resources & Activities

 

It describes the required three things to implement the value proposition.

 

1.      Key Partners: Various relationships between business alliances and buyers and suppliers that make it easier to propose value.

2.      Key Activity: The main steps a company takes to deliver its products/services.

3.      Key Resources: The critical physical, financial, intellectual, human, and some other capabilities, and resources that organizations must have to achieve their goals.

 

3. Cost Structure & Revenue Streams

 

This describes the portfolio's expenditure structure and determines how revenue or value is generated.

 

1.      Cost Structure: Identifies key costs in the business model of the portfolio, including structural aspects such as licensing costs, development lab costs, and external services costs. The development of cyber and physical systems also entails other costs (such as hardware, software) that need to be considered here.

2.      Revenue Streams: If development value flows generate revenue directly, identify the types and sources of revenue for the customers. Identify the main sources of revenue and how the customer is billed. Describe the value of solutions for internal customers, non-profits, & government agencies.

 

Implementing the vision is not a one-time exercise. It will be updated using the current and future Portfolio Canvas. As new information is gathered about changing portfolio solutions, the stakeholders regularly update the vision and canvas. Other factors include innovations, portfolio market rhythms identified in the portfolio roadmap, and other strategic changes.

Get the latest update and knowledge on SAFe by enrolling for SAFe training to become an expert. Various SAFe Certifications are available: Leading SAFe, LPM, SSM, and more. Know the SAFe Certification Cost in India. Gain more for the betterment of the career.

 

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