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7th Lecture for the Software Product Management course at Utrecht University
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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...
21
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?
36
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
39
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
40
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
42
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?
43
Facebook SWOT analysis 2013
44
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)
47
Microsoft Office
• Core
– IO
– Ribbon
– Audio/video
– Shapes
48
Office Core
Word Excel Powerpoint
Microsoft Office
• App specific
– Transitions
– Publisher mode
– Formula’s
49
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)
50
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
52
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
55
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
56
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
59
60
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
62
1. Selecting stakeholders
• Who is involved?
63
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
65
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
66
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
68
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
69
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
71
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
72
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
76
Questions?
77