Competing on the Market Life Cycle Write in the major company projects names on the life cycle

Copyright © 2004 Marc H. MeyerDo not reproduce without the permission of the author. [email protected]

D isruptive T echnology

P roduct L ine D evelopm entand G row th

E nterprise G row th

Stagnation& D ecline

L iving D ead

Competing on the Market Life CycleWrite in the major company projects names on the life cycle.

Think not only about what has worked, but has failed, and why.


An Enterprise Growth Engine

InvestmentBooard

StrategyDevelopment

&Consensus

Observe Users

Create Concepts

Rapid Prototype

Lead User FeedbackBusiness PlanDevelopment

Review business plan, prototypes , testmarket plan with senior management

Review results of test market&

Capital and R&D expense projections for platforms

Decision to launc hSales valume and capital tuned to

initial ramp-up requirements..

New target market applications,integrated into portfoliomanageement processs

Scale and Ramp

Product and ProcessPlatform Development

Ne xt GenDevelopment

1st investment: "Series A"

2nd investment: "Series B"

3rd investment: "Series C"

Focused Test Market

Refresh team


Segment A Segment B Segment C Segment D Segment E

Product/Service

Market Size

Market growth

Product/Service

Market Size

Market growth

Product/Service

Market Size

Market growth

New Users

Use / Application 3

Leading players / share

Use / Application 2

Use / Application 1

Traditional Users



The Market Segmentation Grid: Users and Uses


Users

Satiation

Gifting

Health

Age

Kids/Teens Young Adults Mature Adults

Uses

Product Line 1Flavors and Fun Packaging

Product Line 2IndulgentVariety

Product Line 3Functional Ingredients

A Product Stratety Map for Brand X

Best: Better:Good:

Best: Better:Good:

Best: Better:Good:

Developing the Product Strategy Map(Based on a Growth Market Segmentation)


Competitors

Points of Pain

Before

1

2

3

Points of Pleasure Pleasure 1 Pleasure 2 Etc

Firm A, Offering Firm B, Offering

During

1

2

3

After

1

2

3Activities Activities Activities

For each activityN

Pain 1 Pain 2 Etc

Developing the Use Case Scenario


Perceived NeedsNeeds Users Can Readily Articulate

Latent NeedsFrustrations: Users Can't See a Solution

Perceived Need 1(Performance)

Latent Needs(An Emotion - > Need -> Solution)

Perceived Need 2(Cost)

Consumer ExampleFear of getting lost -> real-time locator -> handheld GPS.

Perceived Need 3(Quality)

Business ExampleCannot charge credit card from my truck -> take a credit card in

the field -> cell phone credit card charge device.

Perceived Need 4(Ease of use)

Healthcare ExamplePatient mortality from wrong medications ->

insure that patient X gets medication Y at time Z -> mobile RFID medication cart links to pharmacy

If the buyer is not the user and middlemen are involved:

Perceived and Latent Needs

User

Buyer

ChannelPartner

Perceived Latent


Target User Needs/Frustrations

Map Features Address Needs

Product Concept Subsystem Innovations

(Examples)

User Need 1 (Perceived) Prroduct Feature 1 Enhance existing module

User Need 2 Product Feature 2 New technology, R&D in progress

Unser Need 3 Product Feature 3 New user interface, exterior styling

User Need 4 (Latent) Product Feature 4 Components from Supplier X

User Need 5 Product Feature 5 Services team.

Product Design: Mapping Needs to Product Concepts to Technologies


The Product Line Architecture Block Diagram

Layer 1

Layer 2

Layer 3

Layer N

....

Subsystem 1 Subsystem 2

Subsystem 3

Subsystem 4 Subsystem 5 Subsystem 6

Subsystem N

The User Other Systems

Other System ResourcesStrive for one interface mechanismfor each subsystem.

Some interfaces, such as a User Interface.,are major subsystems in their own right.

For each subsystem specify: Purpose, focus Link to specific design documents Internal engineering owner or external partner Potential and/or status of IP (Intellectual property)


Year 1 Year2 Year 3 Year 4 Year 5Products Line(s)

Product 1Good

Initial featuresBetter

Added featuresBest

Added featuresNew "Best"

Added features

Product 2 Good Better Best

Product 3 Good Better

Platforms Gen 1 Gen 2 Gen 3

Shared Subsystems or Processes

Subsystem AGood

Initial capabilitiesBetter

Added capabilitiesBest

Added capabilities

Subsystem BGood



Added capabilities

Subsystem C Good



Added capabilities

The Product and Platform Roadmap


Use A

Use B

Use C

Users A

Prod Line 3

Product Strategy

Users B Users C

Prod Line 2

Prod Line 1TEAM 1

TEAM 2

TEAM 3

“Bottoms Up” Resource Planning

User Product Process Package Mft Sales Total byResearch Dev Dev Dev Engineering Team

TEAM 1 0.5 1 0.25 0.25 0.25 1 3.25

TEAM 2 1 2 1 0.25 1 1 6.25

TEAM 3 1 2 1 0.25 1 1 6.25

Total byFunction 2.5 5 2.25 0.75 2.25 3


Market-Platform TeamsUse this to organize cross-functional market teams, R&D teams, and the interactions between them.

Try to make your organization look like the products you make.

Market Teams Current Markets New Markets

Business/Market Manager Business/Market Manager Business/Market Manager Business/Market Manager

Business Planning by Integration Engineer Integration Engineer Integration Engineer Integration Engineer

Small, Multifunctional Services Manager Services Manager Services Manager Services Manager

Management Teams Sales Expert Sales Expert Sales Expert Sales Expert

Finance Finance Finance Finance

R&D Teams

Vertical Market Products Engineering Manager Engineering Manager Engineering Manager Engineering Manager

Product Req Mgr Product Req Mgr Product Req Mgr Product Req Mgr

Staff Staff Staff Staff

Fill this in if you have Common Product 1 Engineering Manager Product Reqs Mgr Staff

common applications. Common Product 2 Engineering Manager Product Reqs Mgr Staff

Hope you have these! Common Subsystem 1 Engineering Manager Staff

Common Subsystem 2 Engineering Manager Staff

Common Subsystem 3 Engineering Manager Staff


Cross Functional Team Members

Name Current Job Name Current Job

Joe Karen

Sarah Ralph

Joe D.

Name Current Job

Steve

ArtName Current Job Name Current Job

Rich Scott

Rob

Lee

Manufacturing - Production

Fill in these tables…..

Legal, Finance, HR

Sales - Channel Dev.

Market Research

Team Leaders

Engineering - Development

Support Functions


WW

WC

omp

Lit

A rch itec tu re B lo ck D ia g ra m

P ro d u ct F a m ily R o ll-o u t S ch ed u lea n d R eso u rce P la n s

M o n th ly D eta ilE n g in eer in g S ch ed u le

A p p lica tio nS to ry B o a rd s

Sal

es P

lan

&A

ctiv

itie

sP

R P

lan

&

Act

ivit

ies

Mar

ket

Res

earc

h

T h e " I D U N N O " P o st-it B o a rd


Parallel ActivitiesUse this to define the activities of each team, and who is reponsible for specific projects,and where different functional groups need to work together to solve specific problems.

Parallel ActivitesUnknown Issue & Action to Resolve Issue Type Date Who StatusAssign Team Members Core

Understand market needs Mkt-Eng

Competitor research - product breakdow ns Marketing

Integrate market data - pick market focus Core

Define platform architecture Engineering

Cost modeling Eng-Prod

Define production plan Production

Define business model Core

Etc …

Schedules and budgets should support line items.

Engineering Production

Marketing

Core

Documents

Competing on the Market Life Cycle Write in the major company projects names on the life cycle