What Is a Portfolio?
A portfolio is a cohesive collection of programs and projects that form the backbone of an enterprise, coordinating investments, divisions, and core functions at an executive level to optimize strategic benefits and operational efficiency. In essence, portfolio management allows us to oversee individual key components and integrate them into a unified system where risks, resources, and stakeholder interests are meticulously planned, monitored, and managed.
Why Portfolio?
When I founded Lycan, my initial focus was solely on designing, building, and selling motorcycles. However, as we worked deeper into the complexities of the electric vehicle (EV) industry and the evolving market demands, the scope of our company expanded dramatically.
Today, Lycan’s operations extend beyond product development and manufacturing to encompass energy solutions, technology integration, and retail & distribution. This broader scope necessitates a holistic portfolio management approach and a conglomerate structure that not only addresses individual risks and rewards in each division but also leverages synergies among them.
The diversified nature of our business requires that we treat each division as a strategic asset while ensuring they work in concert to drive the company’s long-term success.
The Role of Portfolio Management in Lycan and How It Improves Business Efficiency
At Lycan, we utilize a unified portfolio management framework that integrates methodologies and tools such as Lean Six Sigma, Scrum, Agile, and Waterfall. This hybrid approach enables us to tailor our management strategies to the unique demands of each business unit while maintaining a cohesive overall strategy.
For instance, Lean Six Sigma drives operational efficiency in our manufacturing processes, while Agile and Scrum methodologies support rapid product development and iteration in our R&D teams. Meanwhile, the Waterfall approach helps us manage larger, more sequential projects like infrastructure expansion.
Each division at Lycan plays a critical role to create value for our customers.
The R&D division, together with the complexities involved in product development and product-market fit, must carefully align its outputs for a smoother transition into the manufacturing.
Likewise, the distribution division must develop creative ways to raise awareness and provide value to customers and franchise partners to bring revenues and capital back into production.
The battery network, while a separate endeavor, must create the infrastructure that ties customers, R&D, manufacturing, and sales together.
Technology, particularly IoT, creates a unified network of seamless communication that brings convenience to customers and stakeholders.
Portfolio management, under this context, improves our business efficiency by ensuring that each division at Lycan operates not as an isolated entity, but as a strategically coordinated component of a larger ecosystem, especially since our value chain is vertically integrated.
Rather than viewing R&D, manufacturing, distribution, battery infrastructure, and technology as separate functions, our portfolio management framework integrates them into a unified system where resources, objectives, and timelines are continuously optimized to maximize output and minimize inefficiencies -- all the while applying innovative business models and programs that allow each component to act as an independent business with its own revenue streams outside of Lycan's ecosystem when needed.
Independent Synergies Across Divisions
Integrating all these divisions into a cohesive ecosystem presents significant risks—any disruption in one area could have a cascading effect on the entire system. To mitigate this, each division operates with its own distinct business model, allowing it to generate revenue independently by serving other markets and industries. This approach ensures long-term sustainability, business continuity, and reduced dependency on any single vertical.
The R&D division, leveraging its existing facilities and expertise, can expand beyond vehicular innovations by developing non-automotive products and offering R&D and product development services to external companies and organizations—similar to our successful collaboration on the BubbleTuk project.
The manufacturing & production division remains resilient against market fluctuations by offering contract manufacturing and white-labeling services to product makers, ensuring that production capabilities are utilized even if internal demand experiences a temporary downturn.
The battery & energy division has a secondary business model that extends beyond EV users, operating as a decentralized energy storage system that allows the general public to tap into Lycan’s batteries and swapping stations for various energy needs, further diversifying its revenue streams.
The retail division, with its physical locations in key areas, serves as a versatile distribution channel, not only for Lycan’s motorcycles but also for non-vehicular products developed by the R&D team, allowing for further expansion into consumer markets.
The technology division, with its proprietary software and smart systems, can license its technology to external companies, enabling them to integrate Lycan’s IoT and AI-driven solutions into their own products, further extending its market reach.
By structuring each division as an independent yet interconnected entity, Lycan ensures sustainability, scalability, and risk mitigation. This model not only minimizes operational vulnerabilities but also opens doors for horizontal integrations and expansion into adjacent industries. Most importantly, it safeguards investors and shareholders against external threats while creating multiple pathways for long-term growth and profitability.
Addressing Business Challenges Through Scalable Programs
One such challenge arises in our product development division, where progress is frequently constrained by limited time and resources. Scaling up product development would typically require significant investment in team expansion and training. However, given that the EV development and manufacturing industry is still in its infancy in the Philippines, sourcing local talent with specialized automotive expertise remains a challenge.
To bridge this gap, we launched the Co-Producer Program, a collaborative initiative where key professionals—designers, engineers, and marketers—from around the world partner with us and with investing sponsors to co-develop and commercialize new products. In return, stakeholders receive lifetime royalties and commissions tied to the product’s success. This structure creates a mutually beneficial ecosystem that accelerates innovation while minimizing upfront costs. My vision for this program and business model is to open vehicle development to more people where Lycan becomes their catalyst.
Since its inception, the Co-Producer Program has enabled us to work on multiple new product development projects, including those beyond the automotive sector, forming the foundation for Lycan’s expanding product lineup.
However, product commercialization presents a different set of challenges—most notably in financing. Traditional financial institutions in the Philippines have yet to fully embrace EV financing, particularly for high-performance electric motorcycles, due to the industry's relative infancy and perceived financial risks.
To overcome this, I developed the PayLink Program concept, an in-house financing model that allows existing microinvestors and partners to fund customer-backed orders in exchange for monthly payments with interest paid for by the customer. This approach effectively aligns investor capital, customer demand, and production capacity, creating a sustainable and scalable financing model that benefits all stakeholders.
Of course, these programs come with intricate technical considerations, regulatory requirements, and operational nuances that require careful management. While I won’t dive into every detail here, what’s clear is that by applying first-principles thinking, we have been able to transform challenges brought by limited resources into strategic opportunities—building scalable, mutually beneficial programs and business models that bring together diverse stakeholders to drive our vision forward.
Conclusion
In conclusion, Lycan’s approach to project portfolio management embodies a commitment to strategic excellence, operational efficiency, and continuous innovation. By integrating proven methodologies with real-time performance reviews and dynamic resource allocation, we not only manage diverse business units effectively but also drive forward a holistic, synergistic ecosystem.
As we continue to evolve and refine our strategies with data-driven insights, I invite like-minded investors to join us in building a future where Filipino innovation and sustainable mobility lead the global EV revolution.
For interested collaborations, email us at jg@lycan.com.ph
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Special thanks to a good friend, Dr. Te Wu, CEO of PMO Advisory, LLC, for introducing strategic project portfolio management for Lycan's endeavors.
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