Strategic Planning for More Effective Product Management
- 1. Optimal Product Management and Product MarketingTM Strategy Essentials for building long term competitive advantage Brian Lawley, CEO & Founder, 280 Group © 2011 280 Group LLC.
- 2. Housekeeping Slides: email contact@280group.com Interactive session Giveaways - Product Management LifeCycle Toolkit™ - One copy of each book © 2011 280 Group LLC. 2
- 3. Agenda About • Strategy Definition & Examples • Seven Phase LifeCycle and Strategy • Tools & Techniques • Q&A • Drawing
- 4. Brian Lawley Background - >25 years of PM/PMM experience - 280 Group LLC President & Founder - Whistle Communications Director of Product Management - Symantec Director of Java and C++ tools - Apple Computer Senior Product Manager, MacOS - Claris Corporation (FileMaker, Inc.) Marketing Specialist - Digidesign, Inc. (division of Avid) Manager Sales & Marketing Awards, Honors, etc. - Former President Silicon Valley Product Management Association - AIPMM Product Management Excellence Award – Thought Leadership - CNBC’s World Business Review - Silicon Valley Business Report - Silicon Valley Business Journal - Author of five best-selling books Optimal Product Process 42 Rules of Product Management Expert Product Management The Phenomenal Product Manager 42 Rules of Product Marketing - Writing: SD Forum, Softletter, Optimal PM Blog/newsletter, SVPMA © 2011 280 Group LLC.
- 5. Why The 280 Group? © 2011 280 Group LLC. 5
- 6. Helping companies deliver products that delight their customers and produce massive profits ™ Assessment – Training – Certification – Consulting – Contractors – Templates – Mentoring – Books © 2011 280 Group LLC.
- 7. Agenda • About Strategy Definition & Examples • Seven Phase LifeCycle and Strategy • Tools & Techniques • Q&A • Drawing
- 8. What is strategy? Merriam Webster Dictionary.com © 2011 280 Group LLC. 8
- 9. What is strategy? Operational effectiveness is not strategy - Necessary but not sufficient Creating a unique and valuable position - Involving different sets of activities Strategy requires trade-offs - Choosing what not to do “Fit” among a company’s activities Source: “What is Strategy” Porter, M (1996, Nov-Dec) Harvard Business Review 9 © 2011 280 Group LLC.
- 10. Examples Razors and blades Land grab Low cost provider Premium brand & price First mover advantage © 2011 280 Group LLC. 10
- 11. Agenda • About • Strategy Definition & Examples Seven Phase LifeCycle and Strategy • Tools & Techniques • Q&A • Drawing
- 12. Seven Phase LifeCycle™ Phase: Stage in the product lifecycle Gate: Critical decision point ending a phase, and starting the next Product LifeCycle: phases from conceive to retire One Phase Gate Conceive Plan Develop Qualify Launch Market Retire Source: AIPMM 12 © 2011 280 Group LLC.
- 13. Conceive Phase Brainstorm Generate ideas Prioritize Choose © 2011 280 Group LLC. 13
- 14. Plan Phase Strategy Market Research Competitive Analysis Business Case Market Needs Product Description Roadmap © 2011 280 Group LLC. 14
- 15. Develop Phase Engineering Tradeoffs Adjustments - Schedule - Feature - Plans © 2011 280 Group LLC. 15
- 16. Qualify Phase Internal Beta Early Customer Minor Adjustments © 2011 280 Group LLC. 16
- 17. Launch Phase Announcement Availability Exposure Ramp Revenues © 2011 280 Group LLC. 17
- 18. Market Phase Ongoing Programs Measure ROI Optimize * AIPMM calls this phase Deliver © 2011 280 Group LLC. 18
- 19. Retire Phase End of Life New Version Obsolescence © 2011 280 Group LLC. 19
- 20. © 2011 280 Group LLC. 20
- 21. © 2011 280 Group LLC. 21
- 22. 280 Group Optimal Product Process™ Source: Conceive to Retire from AIPMM Product Management Body of Knowledge® (ProdBOK®) Version 1 22 © 2011 280 Group LLC.
- 23. Key Strategy Documents Document Purpose Business Case Evaluate the (business) opportunity Market Needs Define the (customer) problem Product Description Design the (engineering) solution Determine what will generate (market) Market Strategy demand Roadmap Evolution of the product’s strategy © 2011 280 Group LLC. 23
- 24. Agenda • About • Strategy Definition & Examples • Seven Phase LifeCycle and Strategy Tools & Techniques • Q&A • Drawing
- 25. Strategic Management Vision Something clear, easy to remember, and exciting Mission Benefits provided to the customer in pursuit of the vision Strategies The way the mission will be accomplished Objectives Measurement of progress towards the vision Tactics Tasks and plans of how to accomplish the objective Culture & What are the organization’s values and culture Values © 2011 280 Group LLC. 25
- 26. Strategic Management: 280 Group Vision - Delighted customers, massively profitable companies Mission - Provide world’s best consultants, contractors, training, templates, books and tools to help customers to define, launch and market great products Strategy - Staff of world’s experts - World’s best, most up-to-date, practical, flexible and highly effective training and methodology - Massively market to create a loyal and enthusiastic fan base and a new worldwide standard. © 2011 280 Group LLC. 26
- 27. Pricing Strategy High Price Medium Price Low Price High Premium High-value Superb-value Quality Strategy Strategy Strategy Medium Over-charging Average Good-Value Quality Strategy Strategy Strategy Low False-economy Economy Rip-off Strategy Quality Strategy Strategy Source: Kotler, Marketing Management 27 © 2011 280 Group LLC.
- 28. Porter’s Generic Strategies Competitive Advantage Lower Cost Differentiation Competitive Scope Broad Target Cost Leadership Differentiation Narrow Segmentation (niche) Strategies Target Differentiation Cost Focus Focus Source: M. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors, 1980 28 © 2011 280 Group LLC.
- 29. Kotler’s Strategies Market Leader - Creates new products, new/more usages, new markets Market Challenger - Attacks with discounting, proliferation, improved services, cost reduction, advertising Market Follower - Product imitator Market Nicher - Product or market specialist © 2011 280 Group LLC. 29
- 30. Porter’s Five Forces Threat of Threat of New Substitutes Entrants Bargaining Power Bargaining Power of Customers of Suppliers Intensity of Competitive Rivalry Source: Porter, M.E. “How Competitive Forces Shape Strategy” Harvard business Review, March/April 1979 30 © 2011 280 Group LLC.
- 31. Adoption of Innovation Chasm 2% 15% 34% 34% 15% Innovators Early Pragmatists Conservatives Laggards Adopters Source: Crossing the Chasm: Marketing and Selling High-Tech Products to Mainstream Customers by G Moore (1991) 31 © 2011 280 Group LLC.
- 32. Product Life Cycle Stage of the product life cycle Introduction Growth Maturity Decline + 0 – Marketing Gain Awareness Stress differentiation Maintain brand loyalty Harvest and deletion objective Competition None Growing Many Reduced Full Product One More versions Best sellers product line Stay profitable Price Skimming or penetration Gain share, deal Defend share, profit Stress competitive Promotion Inform, educate Reminder oriented Minimal promotion differences Place Limited More outlets Maximum outlets Fewer outlets (distribution) Source: AIPMM 32 © 2011 280 Group LLC.
- 33. Product-Market Expansion Grid Existing New Products Products Market Product Existing Penetration Development Markets (low risk) (medium risk) Market New Diversification Development Markets (high risk) (medium risk) Source: Igor Ansoff, “Strategies for Diversification” Harvard Business Review 1957 33 © 2011 280 Group LLC.
- 34. Boston Consulting Group Matrix High Market Share Cash Stars Cows Low Growth High Growth Rate Rate Questions Dogs Marks Low Market Share © 2011 280 Group LLC. 34
- 35. GE-McKinsey Matrix Business Unit Strength High Medium Low Industry Attractiveness Investment Selective High Selectivity and Growth Growth Selective Harvest or Medium Selectivity Growth Divest Harvest or Low Selectivity Divest Divest © 2011 280 Group LLC. 35
- 36. Agenda • About • Strategy Definition & Examples • Seven Phase LifeCycle and Strategy • Tools & Techniques Q&A • Drawing
- 37. 280 Group Website Resources © 2011 280 Group LLC. 37
- 38. Wrap Up Question & Answer Giveaways! - Product Management LifeCycle Toolkit™ - One copy of each book © 2011 280 Group LLC. 38
- 39. Optimal Product Management and Product MarketingTM Thank You! If there is anything I can do for you… contact@280group.com © 2011 280 Group LLC.