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Terry Mosbaugh
Value-DrivenProduct Management Process
Terry Mosbaugh
Value-Driven Product Management
WHAT IS IT?
6-Step Process to Drive Successful Business Growth
Product Lines Small Businesses Start-ups
WHAT IS IT?
6-Step Process to Drive Successful Business Growth
Product Lines Small Businesses Start-ups
$$
Value-Driven Product Management
Provides thought leadership by bringing customer and market expertise to the strategic planning process
Categorizes strategy implementation to better manage details and apply best practices
Aligns the product team around a strategic vision to drive execution towards:
Provides thought leadership by bringing customer and market expertise to the strategic planning process
Categorizes strategy implementation to better manage details and apply best practices
Aligns the product team around a strategic vision to drive execution towards:
Building Products & Services
Customers Want !!
Value-Driven Product Management
Gives market insights Don’t be tricked into focusing only on major customer unique needs
Drives alignment between executives and product management team
Aligns business strategy with product strategy
Communicates the strategic vision to internal stake holders
(i.e. Marketing, Sales, Product Development, Finance, Operations, Legal)
Provides market feedback to help adapt and improve along the way
Apply “Best Practices” within each step
Value-Driven Product Management
6 Steps to VDPM:
1. Voice of the Customer [VOC] Assessment
2. Product Profile SWOT Analysis
3. Product Portfolio vs. VOC Gap Strategy
4. Order Fulfillment Strategy
5. Go-To-Market Strategy
6. Infrastructure Review
Value-Driven Product Management
- Ask lots of open-ended questions then “Listen”
- Utilize multiple channels for collecting VOC
- Summarize details in a MRD (Market Requirement Document) Who are your target customers ?
- Influencers, End-Users, Buyers
- Enterprise, SMB, SOHO, Consumer
What do they do? What do their customers do?
What are their “problems, needs, and pains”?
- True requirements may not be obvious at the start
- They mostly emerge during customer interactions
What VALUE it is to them to address needs and /or eliminate pains?
- Ask lots of open-ended questions then “Listen”
- Utilize multiple channels for collecting VOC
- Summarize details in a MRD (Market Requirement Document) Who are your target customers ?
- Influencers, End-Users, Buyers
- Enterprise, SMB, SOHO, Consumer
What do they do? What do their customers do?
What are their “problems, needs, and pains”?
- True requirements may not be obvious at the start
- They mostly emerge during customer interactions
What VALUE it is to them to address needs and /or eliminate pains?
1.) Voice of the Customer (VOC) Assessment
Value-Driven Product Management
What is the overall size of the market opportunity? Why are customers buying existing products / technology? What was their fundamental needs? How did you address their
needs? What was their alternative solutions? What was their ROI perception? Did your products meet, exceed, fall short of customer’s
expectations? What prospects did you forecast to purchase products but did not? Why? objections, barriers, competitive solution What is your competition [direct and indirect]? Do you have a differentiator over competition? Why now? What are the major roadblocks to you growing faster? Why?
1.) Voice of the Customer [VOC] Assessment (Cont.)
Value-Driven Product Management
SWOT = Strengths, Weaknesses, Opportunities, Threats
What do you have today ?
Is it a solution or a product ?
Does it offer to your customers ?
● Solutions offer more value than products
● Customers do not buy features & benefits – they buy value
● Do not add to portfolio unless it brings value
How does it compare to competition ?
Is the product portfolio sustainable (roadmap strategy) ?
Do you have IP (patents or trade secrets) ?
2.) Product Profile SWOT Analysis
“Value”
Value-Driven Product Management
Options to Fill Gaps:
Repackage what you have Private brand labeling Create custom product extensions Develop new products / services M & A strategy
Strategy ROI must meet goals of the business
3.) Product Portfolio vs. VOC Gap Strategy
Value-Driven Product Management
Regular evaluation of the portfolio and development pipeline to
assign resource priority (what offers the best ROI)
Invest in product development technologies that improve the agility
and speed of the engineering portion of the product development
lifecycle
Product Management is key to bridging communications between
Voice of the Customer and Product Development teams
o LEAN - PDo Agile Development Methodology
3.) Product Portfolio vs. VOC Gap Strategy (Cont.)
Apply ‘Best Practices’
Value-Driven Product Management
How do you accept and fulfill orders?
Manufacture Internally Outsource to Contract Manufacturer / ODM Private Label All of the Above
What is your Vendor, Logistics and Supply Chain Support
Strategy?
How do you accept and fulfill orders?
Manufacture Internally Outsource to Contract Manufacturer / ODM Private Label All of the Above
What is your Vendor, Logistics and Supply Chain Support
Strategy?
4.) Order Fulfillment Strategy
Value-Driven Product Management
Product [Packaging, MOQ’s, Vertical’s]
Price [Standard, Tiered, Disty, eBusiness)]
Promotion [Social Media, eMarketing, Lead Gen, PR]
Placement [Sales Channels]
Position = “Targeted Value-Add Solutioning”
5.) Go-To-Market Strategy
Value-Driven Product Management
Targeted Value Add Solutioning (Step 1)
1. Promote “Value” not Features / Benefits
Customers do not buy product features nor benefits
Focus sales enablement and marketing tools around the value features and benefits bring to addressing identified
customer’s needs or pains
5.) Go-To-Market Strategy (Cont.)
Value Driven Product Management
Targeted Value Add Solutioning (Step 2)
2. Develop “Solutions” not Products
Solutions can be a combination of products, services, messaging, and operational best practices
Solutions drive differentiating value resulting in greater revenue and higher margins
Solutions have less competitive pressures
5.) Go-To-Market Strategy (Cont.)
Targeted Value-Add Solutioning
Targeted Value Add Solutioning (Step 2)
2. Develop “Solutions” not Products (cont.)
Four Samples of Solutions are:
Stand Alone: a product and/or service combined with Best-of-Class Customer Service
Vertical Market/Niche Market Specific: a product wrapped in value-add messaging crafted for specific users
Bundle: a combination of existing discrete products, services, and operational best practices into a solution possibly with promotional package pricing
Integrated Solution: an offering that integrates multiple components such as products, services, processes, intellectual property, and pricing that delivers value beyond which each individual component could provide on its own
Value-Driven Product Management
Targeted Value Add Solutioning (Step 3)
3. Identify “Targeted Customer Needs”
Be the expert on "Targeted Customer Needs" and how your products are used to address the needs
In addition to existing customers be sure to evaluate the needs of new prospects, vertical marketing teams, sales engineers, and channel partners (MSP, VAR, SI, Dealers)
Focusing only on major customer unique needs can be dangerous
5.) Go-To-Market Strategy (Cont.)
Value-Driven Product Management
Targeted Value Add Solutioning (Step 3)
3. Identify “Targeted Customer Needs” (Cont.)
Influencers, Users and Buyers all have different needs
Enterprise customers have different needs than SMB, SOHO
or Consumer
Specific Vertical Markets have unique different needs
Hunter sales people have different needs than Farmer sales people
5.) Go-To-Market Strategy (Cont.)
Value-Driven Product Management
Targeted Value Add Solutioning (Step 3)
3. Identify “Targeted Customer Needs” (Cont.)
Prioritize Target Customers
“Execute” on GTM strategy
5.) Go-To-Market Strategy (Cont.)
Value-Driven Product Management
What infrastructure is required to support Steps 1 through 5?
Create Org Chart with boxes of functionality
Assess existing personnel / support groups
Assign personnel / groups to best functionality
Recruit / Hire / Train key performers – Fill function gaps
Develop KPI metrics reporting dashboards
Lead, Manage, Mentor and Motivate team(s)
Communicate Communicate Communicate
6.) Infrastructure Review
Value-Driven Product Management
Generates: Business Strategy Product Line Strategy Product Roadmap
Gains Stakeholders Agreement Creates Milestones and Budget Allocations
Set Target Dates to Achieve Can Monitor Budgets Status
Monitors Progress via KPI dashboards Adjust Strategy [Pivot] as needed Be Flexible to Market & Customers Changes Anticipate vs. React
DIFFERENTIATION ISN’T ENOUGH YOU HAVE TO BE BETTER
VDPM Process
Value-Driven Product Management
“One of the greatest challenges facing companies today is how to properly value product opportunities and make objective portfolio management decisions.”
Jim BrownVP - Global Product Innovation and Engineering
Aberdeen Group
Value-Driven Product Management
WHAT IS IT?
6-Step Process to Drive Successful Business Growth
Product Lines Small Businesses Start-ups
WHAT IS IT?
6-Step Process to Drive Successful Business Growth
Product Lines Small Businesses Start-ups
$$