product management - technologymultipliers.com · product management, as a function, may reside...

ProductManagement

Guide to

By Kerim Tumay

©2011 Technology Multipliers

Technology Multipliers

Technology Multipliers 1

Guide to Product Management


Table of Contents

What is Product Management? ...................................................2

Strategic and Tactical Roles ........................................................3

Portfolio Management ................................................................4

Roadmapping ............................................................................6

Requirements Management ......................................................11

Early Adopter and Beta Programs .............................................13

Product Launch ........................................................................14

Software ..................................................................................16

Keys to Success ......................................................................17




What is Product Management?

One of the secrets of successful technology companies is the capability and capacity of their product management function.

Awareness for product management need arises from signs such as:

• disconnectbetweenthestrategicvisionoftheCEOandday-to-dayproduct developmentactivities,

• lackofcommunicationandcoordinationbetweenengineering,marketing,sales,financeand legal groups

• missedlaunchdates,

• lostopportunitiesincompetitivesituationswithlargeaccounts.

Productmanagement,asafunction,mayresidewithinthemarketingortheproductdevelopmentgroup.Regardlessofwhereitsitsintheorganization,successcomesfromclearlydefinedrolesandresponsibilitiesandsincere,openchannelsofcommunicationbetweentheCEO,theexecutiveleadershipteam,andproductmanagement.

MARKETING

New Product Development

Product Life Cycle Management

TECHNOLOGY

Marketing Strategy Product Marketing

Technology Strategy Product Development

Business Strategy Product LaunchProduct Management

CHART1.PRODUCTMANAGEMENT

Inmosttechnologystartups,thefoundersarethefirstproductmanagers.Ifandwhenthefounderssucceed,theyrealizetheydon’thavethecapacitytodoproductmanagementfulltime.So,theyrecruitandmentorproductmanagementprofessionalstoexecutetheirstrategicvision,businessstrategywithproductstrategyandnewproductdevelopmentinitiatives.




Strategic and Tactical Roles

ThestrategicvisionisusuallysetbythefoundersorbytheCEO.Productmanager’sstrategicroleistolinkthestrategicvisionwiththeday-to-dayproductdevelopmentactivities.First,thestrategicvisionneedstobelinkedto a platform strategy. Once the platform strategy and subsequentproductlinestrategiesaredefined,individualproductstrategiesneedtobelinkedwiththeproductdevelopmentprocesses.

Technology companies that are in growth mode often ignorethesanitychecksnecessarytobalancestrategicvisionwithrealitiesoflimitedresourceandtime.Anotherimportant strategic responsibility is to monitor the currentmarketinganddevelopmentprograms,projects,andpipelineinordertoassisttheexecutiveteaminmaintaining a strategic balance.

Somecompaniescreateaspecific,VPorDirectorlevelroleforproductstrategymanagement,projectportfoliomanagement(PPM),andpipelinemanagement.OthersassignthestrategicroletoVPofProductManagementand tactical roles to Product Managers.

Roadmapdevelopmentstartsasastrategicactivitywithvisionaryandmarketroadmaps.Itturnsintoatacticalactivitywithplatformorproductspecificroadmaps.Oneofthemosteffectivesalestoolsinthearsenalofa successful technology company is a sharp product managerwhocanprepareandpresentroadmapstokeydecisionmakersinacompetitivesituation.

Requirementsmanagement,betaprogrammanagement,and product launch process management are clearly the tactical roles necessary to set realistic launch dates and manage the launch process.




Portfoliomanagementistheoptimizedallocationofresourcesontherightprojects,specificallythose aligned with the business strategy. Technology companies that apply portfolio management to theirinnovationmanagement,NPD,andPLMprocessesaremorelikelytosucceedinbringingnewproductstolaunch,creatingprofitablegrowth,andextendinglifecyclereturns.

Inadequateorineffectiveportfoliomanagementresultsin:

• toomanyactiveprojectscompetingforthesamescarceresources

• projectdelaysandmissedlaunchdates

• prematurelaunchorretirementofproducts

• poorprioritizationofprojects

• projectsthatarenotalignedwiththestrategicbalance

PortfolioManagementhasfourprimaryobjectives:

1. MaximizedValueofPortfolioandPipeline–Allocationofresourcetoprojectscanfocuson increasingprofitabilityorROI,orreducingrisk.Forstartupsandsmalltechnology companies,thevalueoftheirprojectpipelineissometimesmoreimportantthanprofitability ofexistingproducts.NetPresentValueandExpectedCommercialValuearetwopopular methodsofcalculatingportfoliovalue.

Portfolio Management

CHART2.PORTFOLIOBUBBLECHART




2. EfficientResourceAllocation–Thisisperhapsthegreatestproductmanagementchallenge fortechnologyproducts.Mostcompanieshavetoomanyprojectsandnotenough resources.Understandingvariabilityinactivitydurationsandresourceconstraints,modeling theprojectinterdependenciescanhelpanticipateresourcebottlenecksbeforetheyoccur. Projectmanagementandprocessmanagementmodelsareidealtoolstoaidin resource allocation.

3. AlignmentWithStrategicDirection–Intechnologycompanies,bottom-up,grass-roots projectscangetknowledgeworkersjustasexcitedasthetop-down,strategicprojectsfrom seniormanagement.Regardlessoftop-downorbottom-up,eachprojectneedstopassthe strategicalignmenttesttoreceivecontinuedfundingandsupport.

4. StrategicBalance-Typicallyhighriskprojectshavehighreturnpotentialwhereaslowerrisk projectshavelowerreturnpotential.Or,short-termprojectsinevitablygethigherpriorityover longertermprojects.Strikingandmaintainingahealthybalancebetweenthesetrade-offs is important.




Roadmapsarethemeanstodefineandcommunicatewherethecompanyisgoing,wherethetechnology,platform,andproduct-linearegoing.

Executivesneedroadmapstoraisemoneywithinvestorsandtosetexpectationswithanalysts.Salespeopleneedroadmapstowinlargedealsorkeepcustomersfromswitchingtocompetitors.Technologypartnersneedroadmapstoplantheirintegrationprojects.Resellersneedroadmapstoplantheirmarketingprograms.Productdevelopmentandprojectmanagersneedroadmapstoplanandexecuteattheoperationallevel.

Productmanagementistheunenviableowneroftheroadmappingprocess.Itisproductmanagement’sresponsibilitytodeterminethetargetaudience,appropriateinformation,levelofdetail,andtimehorizonforeachpurpose,andtoupdatetheroadmapsonaregularbasis.

There are different types of roadmaps depending on the purpose and target audience.

• VisionaryRoadmaps

• Market/StrategyRoadmaps

• Platform/ProductRoadmaps

• TechnologyRoadmaps

• ProductLineRoadmaps

Roadmapping




Visionary Roadmaps

VisionaryRoadmapsarecreatedandupdatedonanas-neededbasisforstrategicpurposessuchasinvestorpresentations,industryanalystbriefings,orkeycustomerpresentations.Usually,thetimehorizonis2-3yearsandtheintentistoillustratethealignmentbetweenindustrytrendsandthecompany’sstrategicvision.Typicaltriggersforvisionaryroadmapsareannouncementsofnewstandardsorgovernmentregulations,andnewsaboutimportantacquisitions/mergersintheindustry.

Company

Vision

2011 2013

2012

Market

Trends

Virtualization - Android apps run on other phones such as Blackberry & Nokia

NEC and mobile payments pervasive

Mobile apps that leverage LBS to shine

Devices - Smartphones & media tablet PCs growing, mini notebooks maintaining

Mobile OS - Android & Win 7 growing, iOS maintaining, Symbian & Blackberry declining

Mobile Browsers - Android & iPhone growing, Opera, Nokia & Blackberry declining




FY 2011

Industry AutomotiveHealthcare

Telecom

US, China,India, Germany

Large

Direct, Resellers

AerospaceFinancial

TransportationLogistics

Brazil, ArgentinaFrance, Turkey

SMB

Self Service

Regional Focus

Business Size

Distribution

FY 2012

Market/Strategy Roadmaps

Market/StrategyRoadmapsarecreatedanddistributedonasemi-annualorannualbasisforplannedactivitiessuchasboardmeetings,annualreports,andfinancialanalystmeetings.Theseroadmapscommunicatethetargetmarketsegments(byindustryorgeography),keycompetitorsfortargetsegments,andhighlevelstrategies.Onetypeofmarket/strategyroadmapmaybecreatedtocommunicategrow,maintainmarketshare,orexitstrategies.Anothermaybecreatedforpresentingbuild,buy,orpartnerstrategies.




Platform/Product Roadmaps

Platform/ProductRoadmaps–createdandsharedwithinthecompanyaswellaswithtechnology/solutionpartners.Theseroadmapsprovideonetotwo-yeartimelineofplatformsandproductsthatarebuiltontopofthem.Theseroadmapsareespeciallyusefulfordevelopmentpartners,systemsintegrators,andcustomers.Annualuserconferencesareidealeventstounveilplatform/ product roadmaps.




Technology and Product Line Roadmaps

TechnologyRoadmapsarecreatedforexternalandinternalusersonanadhocbasis.Typically,thetriggerfortechnologyroadmapsareeventssuchastheannouncementofanewtechnology,end-of-lifenewsaboutanexistingtechnology,orexternaltechnologyannouncementsfromcompetitorsorpartners.Theseroadmapshave2-3yeartimehorizonthatalignwiththetechnologyadoptioncurvesofexternal,relatedtechnologies.

ProductLineRoadmapsarecreatedandsharedwithinternalstakeholdersandtechnology/solutionpartners.Typicallytherearetwoversions:Oneisforinternaluse.Theotherisforpartners/resellersandismorerelevanttotheirpurposes.Timehorizonisusuallyfourquarterswithhighergranularityforthefirsttwoquartersandlessergranularityforlasttwoquarters.Therefore,productroadmapsneedtobeupdatedonaquarterlybasistoreflectchangesthattakeplaceoverthespanofaquarter.Webcastsarethemostcost-effectivemeanstocommunicatingproductroadmaps.

CHART3.ROADMAPOVERVIEW




Requirements Management

Growingsmalltomediumsizetechnologycompaniesareconstantlyoverwhelmedbyproductrequirements.Anorganizedproductmanager,awell-definedrequirementsmanagementprocess,andpropersoftwaretoolscanhelpturnthischallengeintoacriticalsuccessfactorforinnovativenewproducts.Requirementsmanagementrequiresinteractionswithexternalentitieslikecustomers,partners,andindustryanalystsaswellasinternalentitiessuchasengineeringmanagement,qualitymanagement,andthechiefarchitect.Theprocesshasfourmajorsub-processes:

• RequirementsGathering

• RequirementAnalysis

• RequirementsDefinition

• RequirementsValidation




Gatheringcustomerrequirementsstartswithidentifyingdifferenttypesofusers,selectingtargetusersforelicitation,anddefiningusecases.Gatheringmarketrequirementsinvolvestrackingtechnologytrendsandcompetition,reviewinganalystreportsandsurveys,andleveragingtheinternettocapturerelevantinputs.Analysisprocessinvolvestriangulatingwhatthecustomerortheanalystsaid,whatweheard,andwhattheyreallymean.Thisrequiresclarificationwithusersandre-assessmentofrequirementsthatfailvalidation.Theoutputoftheanalysisprocessisprioritizedrequirements.Definitionprocessincludesusecases,qualityattributes,models,andarequirementstraceabilitymatrix.Finally,requirementsneedtobevalidated.

Therequirementsmanagementprocessisiterativeandnon-linearmakingitachallengetomanagewith proper tools. Most product managers start with word processors or spreadsheets and graduate to proper requirements management software tools. The best of class product life cycle management platforms come with a robust requirements management module.




Early Adopter and Beta Programs

Earlyadopterprogramsandbetaprogramsaredesignedtoprovidestrategiccustomersandpartnerstogetdirecthands-onaccesstothenewplatformorproductbeforegeneralavailabilitytoallcustomers.Thepurposesof these programs are twofold:

1. Inboundfocused–tocapturefeedbackfromearlyadoptersforfixingissues,makinglast minuteimprovementstotheproduct,completingthedocumentation,andverifyingthatthe product is ready to ship.

2. Outboundfocused–tocapturetestimonialsfromearlyadoptersforlaunchpromotion programs,creatingabuzzinsocialmedia,andverifyingthattheproductisreadytosell.

Typicaltimeframeforanearlyadopterorbetaprogramisbetween8-12weeks.Theprocessinvolves:

• identifyingspecificgoals,successcriteriaandprotocols,

• selectingandrecruitingcustomersandpartners,

• gettingwrittenagreementsandtime/resourcecommitmentsfromusers,

• runningtheprogram,monitoringfeedback,providingresponsestothefeedback

• wrappinguptheprogram,conductingonlineusersurveys,capturingoutboundfocusedinformation.

Successful early adopter and beta programs require a team effort. The team should include the product manager,productdevelopmentmanager,qualitymanager,documentationengineerandrepresentativesfromproductmarketingandpresalesengineering.

CHART4.EARLYADOPTERANDBETAPROGRAMS




Product Launch

All product management responsibilities are important but product launch is arguably the most critical success factor for a technology product.

Productlaunchissimilartoscoringatouchdowninthered-zoneinAmericanfootball.Adriveisconsidered unsuccessful if the team does not score a touchdown while in the red zone (within 20 yards of the end zone).

Asuccessfulproductmanagermustplan,coordinate,andmanagetheproductlaunchlikeaseasonedprofessionalquarterbackintheredzone.

Planningforafull-scalelaunchstartswithadetailedchecklist,clearlydefinedaccountabilityandresponsibilityforeachchecklistitem,atimelineoflaunchactivities,andacontingencyplan.

Atahighlevel,atypicallaunchchecklisthasthefollowingcategoriesofprogramsandcorrespondingownership of accountability.

• Customerandpartnertestimonialsandreferences–productmarketing

• Industryanalystrelations–productmarketing

• Mediarelations(traditionalmediaandsocialmedia)–marketingcommunications

• Events-marketingcommunications

• Salestoolsandcollateral–productmarketing

• Salesreadiness–productmarketing

• Salestraining–productmarketing,presalesengineering

• Leadgeneration–productmarketing




Forsmalltomediumsizetechnologycompanies,animportantconsiderationisthelaunchbudget.Aproperlyplannedandexecutedlaunchmaycostanywherefrom$100Kto$500Kormore.

Therearetimeswhenitismoreappropriatetodoasoftlaunchinsteadofafull-scalelaunchbecausefinancialresourcesarelimitedorthecompanywantstobefirsttomarketbuttheproductisnotquiteready.Insuchcases,thesoftlaunchchecklistmayincludeasubsetoftheactivitieswithineachlaunchprograms.Aproperlyexecutedsoftlaunchcanbeausefulprecursorforafull-scalelaunchhelpingproductmanagementexercisealltheplanning,coordinationandmanagementaspectsofaproductlaunchwithreducedcostandrisk.

Timing of a product launch is another important consideration for product management. Aligning productlauncheswithkeyeventssuchasamajortradeshoworuserconferencepaysignificantdividendsintermsofpublicrelationsandsocialmediabuzz.Itisrecommendedtoscheduleafull-scalelaunchatleast6-8monthsinadvanceandasoftlaunchatleast3-4monthsaheadoftime.

CHART5.PRODUCTLAUNCHCONSIDERATIONS

Sort Launch vs Full Launch

Inbound Focused - Engineering,Marketing

Outbound Focused - Customers,Partners, Analyst, Media

Timing

Budget

Contingency Plan




Software

Forstartupsandsmallcompanies,themostcost-effectiveproductmanagementsoftwaresuiteisofferedby280Group.Thetoolkitisacollectionoftoolkitsandtemplatesthatincludeproductlaunch,roadmapping,runningbetaprograms,conductingproductreviews,andcompetitiveanalysis.

Formid-sizeandlargeenterprises,Accept 360offersanintegratedsuiteofVoiceoftheCustomer(VOC),strategy,roadmaps,andrequirements.Anothercompanythatoffersacompletesuiteofproduct management software is Sophion.

Portfoliomanagementtoolsenableassessmentofcurrentprojectmixandsimulationofpossiblefutureprojectmixscenarios.Theyprovidescoringmodelsusefulformeasuringtheportfoliovalue.Theyalsoprovidevisualchartssuchasportfoliobubblediagramstovisualizestrategicbalanceorlackthereof.

RMsoftwareaidindocumenting,analyzing,tracing,prioritizingandagreeingonrequirementsandthencontrollingchangeandcommunicatingtorelevantstakeholders.Popularrequirementsmanagementsoftware products by target company size include:

• Accompa-http://www.accompa.com (small to mid)

• Contour–http://www.jamasoftware.com (small to mid)

• Ryma-http://www.featureplan.com(mid-to-large)

• RationalDoors-http://www-01.ibm.com/software/awdtools/doors/features/requirements.html (mid to large)

Inthepastfewyears,ProductLifeCycleManagement(PLM)softwarevendorshaveintegratedportfolio management and requirements management modules into their enterprise software offerings. AnotherinterestingdevelopmentistheintegrationofideationandrequirementscapturefunctionalityintoenterpriseCRMproductsalaSalesforceChatter.




Keys to Success

• Productmanagementresponsibilitiesshouldbefocusedonproductstrategyandnew productdevelopmentprocesses.

• Recruitandempowerproductmanagementandprofessionalswhocanconcurrentlyexecute atstrategicandtacticallevels.

• ApplyportfoliomanagementtoinnovationmanagementandNPDfortimelyproductlaunches andcreatingprofitablegrowthandextendedlifecycle.

• Developdifferenttypesofroadmapstocommunicatewherethebusiness,technologyand platform/productaregoing.

• Implementanditerateaformalrequirementsmanagementprocesswithpropersoftware.

• Donotlaunchnewproductwithoutearlyadopterandbetaprograms.

• Productmanagement’smostcriticalroleistoplan,coordinate,andmanagesuccessful product launches.




References

The Product Managers Handbook-LindaGorchels.NTCBusinessBooks,2000.

Inspired: How to Create Products Customers Love-MartyCagan,SVPGPress,2008.

Product Strategy for High-Technology Companies-MichaelE.McGrath.McGraw-Hill,2001.

Software Requirements-KarlE.Wiegers.MicrosoftPress,2003.

The Art of Product Management: Lessons from a Silicon Valley Innovator-RichMironov.2002.

The Product Manager’s Toolkit-GabrielSteinhardt.Springer-Verlag.2010.

Expert Product Management-BrianLawley.280GroupLLC.2007.

Strategic Role of Product Management-SteveJohnson.PragmaticMarketing. http://www.pragmaticmarketing.com/strategic-role-of-product-management/strategic-role-of-product-management

Tyner Blain Blog-TylerBlain.http://tynerblain.com/blog/category/product-management

How to be a Good Product Manager-JeffLash.http://www.goodproductmanager.com

A Practical Approach to Portfolio Management-KennethCrow.DRMAssociates. http://www.npd-solutions.com/portfolio.html

Building a Better Beta-SaeedKhan.PragmaticMarketing. http://www.pragmaticmarketing.com/publications/magazine/4/3/0605sk

http://en.wikipedia.org/wiki/Product_Management

http://en.wikipedia.org/wiki/Requirements_management




For further reading on product strategy, please visit our recommended reading list.

ProductStrategy

ProductManagement

Guide to


NewProductDevelopment

Guide to


Guide to


InternetMarketing

ProductMarketing

Guide to


ProductLifecycleManagement

Guide to


Guide to


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