SPM 7 Product Planning

Software Product Management Product Planning

Lecture 7

Garm Lucassen

Sjaak Brinkkemper

17 september 2014

Introduction

• Recall from the first lecture:

Product planning is concentrated around the gathering of information for, and creation of a roadmap for a product or product line, and its core assets.

2

Agenda

Introduction

Technology roadmapping

Market analysis

Product planning Roadmap intelligence

Core asset roadmapping

Product roadmapping

3

Product planning is about...

• Planning

• Product strategy

• Forecasting

• Cooperation

4

Product strategy

• Strategy comes from the Greek strategos

– Stratos means ‘army

– Ago means (roughly) ‘I lead’

• For a product manager, this mean s/he

– is the ‘general’ of the product team

– directs a series of actions over the long term

– has a clear picture of the enemy’s strengths and disposition (competitor)

– has built a number of broad contingencies into his/her strategies

5

Why is planning so difficult?

• Forces you to commit to an uncertain future

– What you are going to build

– What you are not going to build

will this help us?

may be helpful

it is difficult

understand usefulness

time

att

itu

de

6

Product roadmap

• A useful instrument in product planning is a product roadmap

• A product roadmap describes how a product or product line is going to develop over time

7

8

What’s the use of a roadmap in a product software company?

• Internally

– Improves communication, understanding and decision-making

– Gains consensus around direction

– Gains commitment of key stakeholders

– Encourages collaborative longer-term planning

– Validates that you are on track

• Externally

– Engages customers to collaborate

– Improves customer relationships

– Provides customers with access to near-term commitments and long term ‘points of view’

– Tool for negotiations

9

Agenda

Introduction

Technology roadmapping

Market analysis

Product planning Roadmap intelligence

Core asset roadmapping

Product roadmapping

10

Technology roadmapping: A planning framework for evolution and revolution

• Robert Phaal, Clare Farrukh & David Probert

• University of Cambridge

• Carried out a 3-year applied research program,

– more than 20 roadmaps were developed

– in collaboration with a variety of company types in several industry sectors

11

Some figures

• 10% of UK manufacturing firms uses technology roadmapping

• Key challenges:

– keeping the roadmapping process ‘alive’ on an ongoing basis (50% of responding companies)

– starting up the TRM process (30%)

– and developing a robust TRM process (20%)

• Problems

– Many types of roadmaps available: which type to choose?

– Little practical support available reinventing the process

Phaal et al.

12

Different types of technology roadmaps

• Product planning

• Service / capability planning

• Strategic planning

• Long range planning

• Knowledge asset planning

• Program planning

• Integration planning

Phaal et al.

13

Product planning

Phaal et al.

14

Service / capability planning

Phaal et al.

15

Strategic planning

Phaal et al.

16

Long range planning

Phaal et al.

information-driven seamless

enterprise

electronic invoicing

17

Knowledge asset planning

Phaal et al.

18

Program planning

Phaal et al.

19

Integration planning

20

So, how can a product manager use a roadmap...

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SPM Competence Model

22

SPM Competence Model

23

Agenda

Introduction

Technology roadmapping

Market analysis

Product planning Roadmap intelligence

Core asset roadmapping

Product roadmapping

24

Market analysis

• Goal: Gaining insight in relative position of the products in the market and drivers of your (prospective) customers

• Industry analysis: overall view of markets, volumes, trends

• Competitive analysis: competing products, competitor company status, market shares

• Market segmentation: sub-markets, specialized customer segments, geographies

• Value proposition: added value of product for customer

• Product positioning: comparison of product to competition

25

Typical outputs

26

Market analysis

• Approach

– Focus on research question – what do you want to know?

– Subdivide main question into parts

– Use different sources (diverge)

– Methods:

• SWOT for products

• DESTEP / PEST for markets

– Demografic, Economic, Social, Technological, Ecological, Political Analysis.

27

Market analysis tips

• Do’s

– Time boxing during information gathering

– Streamlining information by using templates

– Summarizing results

• Don’ts

– Single information source – challenge your facts

– Keep looking for information even when you are already in the converging phase

– Making your recommendations too complex (not SMART enough)

28

Value proposition

Template: For companies / consumers

who are dissatisfied with this is a

that provides unlike

we offer

• Target group • Business drivers / pain points • Solution description • Unique Selling Points • Competition • Distinctive advantage

A Value Proposition is an offer that describes the quantifiable benefits

that the product promises to deliver

iPhone (2007)

For Style-conscious cell phone consumers

Who are dissatisfied with

The integration of functions such as browsing, email, music on other telephones

This is a Smart phone

That provides Telephone access Internet access Entertainment to-go

Unlike Sony-Ericsson and Nokia

We offer Ease-of-use, style 29

Value proposition

Template: For companies / consumers

who are dissatisfied with this is a

that provides unlike

we offer

• Target group • Business drivers / pain points • Solution description • Unique Selling Points • Competition • Distinctive advantage

A Value Proposition is an offer that describes the quantifiable benefits

that the product promises to deliver

Apple Watch

For

Who are dissatisfied with

This is a

That provides

Unlike

We offer

30

Industry Analysts

• Goal: building authority / leadership position in market

• Approach

– Analysts are information brokers on industries and markets

– Source for information in market trends, competitors, business drivers

– Provide information about your own product (influence the analysts)

– Validation of product strategy, roadmap & positioning

31

Magic Quadrant & Forrester Wave

32 Enterprise Data Warehouses

Agenda

Introduction

Technology roadmapping

Market analysis

Product planning Roadmap intelligence

Core asset roadmapping

Product roadmapping

33

Roadmap intelligence

• Roadmaps should be pro-active, not re-active

• What’s going on? Make overviews of:

– Market

– Society

– Technologies

– Competitors

– Partners

• No strict rules: different types of roadmaps can be integrated.

34

Market

• Which markets do you focus on? How do you plan to develop products for each market?

2015 2016

Markets Government Education

Partners Company A Company B

Company A

Company B

Company C

Build in-house Release 3.0

Acquire Data analytics

35

Society

• What trends are currently and in the future happening in society?

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Technology

• What trends are currently and in the future happening in your industry?

2006 2007 2008

Vista

DirectX 10

QuickTime 8

Windows Media 10

MPEG5

Vista UI components

Custom codec

Vista optimized product

Re-architectural foundation

Exte

rna

l / in

du

str

y

facto

rs

Inte

rnal te

ch

no

log

y

develo

pm

ent

37

Hype cycle of emerging technologies

38

Hype cycle for 3d printing

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Competitors

“We’ve been looking for the enemy for some time now. We’ve finally found him.

We’re surrounded.

That simplifies things.”

Colonel Lewis B. “Chesty” Puller

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Competitors

• Research websites of competitors

• Read articles, press releases, new items

• Use report of analysts such as Gartner

• Use inside information from former employees

• Validate your findings

• Do’s:

– Limit your research to 3 competitors per segment / region

– Describe you findings in max. 8 pages and on a cheat sheet

• Don’ts: – Analyze the whole world

– Give to much weight to your conclusions: your competitor is also moving forward...

41

Partners roadmap

• Used by companies that have an overall platform strategy that relies on partners

Tools

Products

Platform

2014 2015 2016

* iOS 8 SDK

* Apple Watch SDK

* Apple Pay * Health

* iPhone 6 * Apple Watch

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SWOT analysis

Strengths (product is contributing positively to the portfolio and is strongly differentiated form its rivals)

Opportunities (identification of new needs, enhancements to beat competition, etc.)

Weaknesses (product is not robust, design is outdates, it is inadequate, too many bugs, etc.)

Threats (competitor introduced similar product, danger of losing customers)

1. What is the opportunity?

2. What is the data source?

3. Why is it important?

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Facebook SWOT analysis 2013

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Strengths Weaknesses

1.Integration with websites and applications 2.More than a billion active monthly users 3.Excellent users experience 4.Understanding of user’s needs and behavior

1.Weak CTR of advertisements 2.Social network lacks some features 3.One source of revenues – advertisements on Facebook 4.Attitude towards users’ privacy 5.Lack of website customization 6.Weak protection of users’ information

Opportunities Threats

1.Increasing number of people using Facebook through mobile devices 2.Expansion to China 3.Diversify sources of revenue 4.Open Facebook marketplace

1.Increasing number of mobile internet users 2.Users using ad-block extensions 3.Slow growth rate of online advertising 4.Identity thefts 5.Weak business model

Strategic Management Insight

Agenda

Introduction

Technology roadmapping (Phaal et al.)

Market analysis

Product planning Roadmap intelligence

Core asset roadmapping

Product roadmapping

45

Core asset roadmapping

• Core assets are components shared by multiple products

• Core asset roadmapping concerns the planning of future development of core assets .

• Examples of core assets are:

– Product platform

– Product components

– Software architecture and design

– Documentation

– Test cases and test scripts

– Processes, method and tools

– Services

– …

46

Core assets are especially important in product line development

(http://csdl.computer.org/dl/mags/so/2005/05/s5054.htm)

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Microsoft Office

• Core

– IO

– Ribbon

– Audio/video

– Shapes

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Office Core

Word Excel Powerpoint

Microsoft Office

• App specific

– Transitions

– Publisher mode

– Formula’s

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Office Core

Word Excel Powerpoint

Example

• The Arcade Game Maker product line

• 3 dimensions:

– Game

– Market

– Platform

(http://csdl.computer.org/dl/mags/so/2005/05/s5054.htm)

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http://www.sei.cmu.edu/productlines/ppl

/requirements_model.html

Agenda

Introduction

Technology roadmapping

Market analysis

Product planning Roadmap intelligence

Core asset roadmapping

Product roadmapping

51

Inspiration for product roadmaps

• Prioritized requirements in the RDB

• Company strategy

• Market analysis

• Product life cycle

• Roadmap intelligence

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Discuss in advance:

• Level of granularity

– Components

– Themes - requirement groups with a shared basis, e.g.

• Performance

• Interface improvement

– Individual requirements

• In this case: use the name of the most important requirements in your roadmap

– Etc.

• Time scale

– Short term: 1-2 years

– Long-term: 3 or more years

53

Product roadmap

• Shows when product releases are available & what their overall themes or main features are

2015 2016

Q1 Q2 Q3 Q4

Q1 Release

Q2 Release

Q3 Release

Q4 Release

•Theme 1 •Theme 2 •Theme 3

•Theme 1 •Theme 3

•Theme 1 •Theme 2 •Theme 3

•Theme 1 •Theme 2 •Theme 3 •Theme 4

54

Combinations

• Mostly used in software product management: a combination of product roadmap and

– Technology roadmap

– Market roadmap

– Platform/partner roadmap

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Product-technology roadmap

PRODUCT LINE A

PRODUCT LINE B

A1

YEAR

TECHNOLOGIES

A2 A3 A4

2012 2013 2014 2015 2016 2017

B1 B2 B3 B4

2018

technology b

technology x technology y

technology a

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Product-market roadmap (1)

1st Quarter 2nd Quarter 3rd Quarter

Market Market A Market B Market B

Product Product A v2.0 Product B v1.0 Product B v2.0

Key attributes Functions A, B, C Function D, E, F

Function G, H, I

Value Increased performance

Reduced prod. costs

New service revenue

57

Product-market roadmap (2) 3rd Quarter 2nd Quarter 1st Quarter CURRENT

Product A v1.0

Key attribute

“Value to

customer

Product A v2.0 Function B

“Increased

performance”

Product A v3.0

Function C

“Improved

Reliability”

Product B v2.0

Function E

“New service

revenue”

Market A

Product B v1.0

Function D

“Reduced

Production

costs”

Market B

58

Multiple products

• With a product portfolio consisting of multiple products, it might be necessary to also include information on other products in your roadmap

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Establish a product roadmapping process

• Form a roadmap team with key stakeholders, and assign a clearly designated owner of the product roadmap

• Create a ‘roadmap knowledge base’

– Roadmap template

– Roadmap intelligence

• Review and update product roadmaps regularly

• Compare your resources and key capabilities with your roadmap periodically

61

Product roadmap creation process

1. Selecting stakeholders

2. Defining management statements

3. Formulating product strategy

4. Product roadmap pre-conditions

5. Constructing the roadmap

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1. Selecting stakeholders

• Who is involved?

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1. Selecting stakeholders

• Formation of the team that is involved in the actual creation of the roadmap

– Persons who are of great influence to the existing product and the new version of the product

– Cross-functional team, where different departments are represented

– For example:

• Management: Vision & finances

• Developers: Technical feasibility & resources

• Sales: Customer representation and competitiveness

64

Responsibility Assignment Matrix

R = Responsible

A = Accountable

C = Consulted

I = Informed

S = Supportive

Portfolio management Product planning

Five

Fo

rces

Win

– lo

ss

anal

ysis

BC

G-m

atri

x

Mar

ket

tre

nd

anal

ysis

SWO

T

Vis

ion

of

tech

no

logy

Vis

ion

of

par

tne

rs

Vis

ion

of

com

pet

itio

n

Vis

ion

of

soci

ety

MT Cluster C - - - I - - C S

MT Unit A A A A A A A A A

MT Product C S S C S - - S -

Sales S S C S S - - S S

Marketing - C - - - - - I -

Development - - - - C S S - -

Strategic PM S - - S S S S S S

Product man. R R R R R R R R R

R&D - - - S - S S - -

Consultants C C - C C - - C -

Other BU - C - C S - - - C

Support - S - - C - - - -

Partners - - - C C C C - C

Customers - C - C - C - - C

WikiPedia (http://en.wikipedia.org/wiki/Responsibility_assignment_matrix)

Responsibilities

Tasks

Stakeholders

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2. Defining management statements

• Set financial objectives (expected revenue)

• Assess the corporate strategy is and how it affects the product strategy

• Determine the predefined demands from the management for the roadmap

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3. Formulating product strategy

• Research what competitors are doing

• Analyze market trends

• Explore different product-market combinations

• Investigate the major issues that should be addressed in the product roadmap

• Formulate the product strategy

67

4. Pre-conditions

• Determine from which companies investments can be expected

• Find out whether there are any commitments made to customers concerning the next release of the product

• Establish main themes for the product roadmap

• Calculate what the available capacity is

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5. Create roadmap

• Create roadmap based upon:

– Product strategy

– Management statements

– Pre-conditions

• Choose a granularity level

– Themes, components, product requirements, features

• Choose which views you want to include in your roadmap

– Product

– Technology

– Market

– …

• Choose a time scale

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Communicating the roadmap

• Use internal and external roadmaps

• Use different views for different audiences

• Avoid distributing detailed roadmaps to the Sales organization

– they may use the roadmap as collateral to help close a deal, and which could possibly end up in a contract

70

External product roadmap

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Communicating to customers (1)

1. Manage expectations

– ‘Plan of intent’

– Limit time horizon

– No specific dates or details

2. Beware of the risk of information leaks

– Assume competitors will see it

– Use an NDA

– Don’t leave it behind

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http://www.asphaltandrubber.com/news/ktm-product-road-map-leak/ 73

http://liliputing.com/2011/10/leaked-t-mobile-roadmap-shows-

three-more-android-tablets.html 74

http://news.mmogamesite.com/blizzard-product-slate-leaked.html 75

Communicating to customers (2)

• Avoid the delay of sales to future products

– Present during a vision presentation

– Offer “bridge” programs

• Prepare for the “so what?” response

– Know your market and customers

– Use as a collaboration tool, not as a plan

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Questions?

77