Tech Product Management Essentials: Roles, Pricing & RoadmapsRich Mironovrich@mironov.com12 Oct 2010 for Prof. Sarangee, M...
An Unapologetic Product Guy<br />Currently CEO of stealth start-up<br />Agile product management consultant<br />Interim e...
Agenda<br />What does a product manager do?<br />Basics of pricing software<br />Roadmapping: process vs. artifact<br />Ta...
Product<br />Management<br />Executives<br />Development<br />What Does Product Management Do?<br />strategy, forecasts, c...
Product Mgmt Planning Horizons<br />many years<br />Exec<br />Strategy<br />years<br />Portfolio<br />many mons<br />PM<br...
Pragmatic Marketing® Framework<br />Less Technical<br />BusinessPlan<br />MarketingPlan<br />Positioning<br />Pricing<br /...
Pragmatic Marketing® Framework<br />Dir, Prod Strategy<br />Prod Mktg Mgr<br />Tech Prod Mgr<br />BusinessPlan<br />Market...
Nature of PM Role<br />No natural sequence for PM<br />Must work all aspects in parallel<br />Planning onion as simultaneo...
Product As Simultaneous Equation<br />Market Needs<br />Roadmap<br />Customers with <br />real needs<br />Truly differenti...
 Most products fail to thrive</li></li></ul><li>Agenda<br />What does a product manager do?<br />Basics of pricing softwar...
“Pricing is almost neverabout the number.  It’s about the model.”<br />
Start with Customer View<br />Customers buy most products to make money or save money<br />How do they describe value?<br ...
Hard Cost Savings Example<br />“By using our tech support knowledge automator, you can reduce your support time per call b...
Pricing Your Start-Up<br />Why will customers buy?<br />Tell a story in customer’s own language<br />What’s the natural un...
Software Value Exchange Models<br />Time-based access (e.g. unlimited/month)<br />Transaction (stock trade)<br />Metered (...
Support the Business Model<br />Pricing drives customer behavior<br />What do you want core customers to do?<br /><ul><li>...
Big up-front license (lock up marketplace)
Lust for upgrades (cool features are extra)
Freemium model (1% upsold into paid services)
Install latest version (free updates, increasing service fees)</li></li></ul><li>Customer Commitments<br />“by the drink”<...
Workshop Exercise: Teleportation<br />Founders: Stanford physicists with local VC<br />Software plus expensive custom hard...
How Will People Cheat?<br />If I want to rip you off, how could I do it?<br />Licensed software…<br />Per-seat SaaS…<br />...
Agenda<br />What does a product manager do?<br />Basics of pricing software<br />Roadmapping: process vs. artifact<br />Ta...
Class Roadmapping Experience<br />Who has a roadmap?<br />What timeframe does it cover?<br />Successes, failures?<br />
Benefits of a Solid Roadmap<br />Identify/clarify tactical and strategic intent<br />Internally<br />Becomes a filter for ...
Roadmaps are Scary<br />Articulate when things should arrive <br />Describes what you are not going to build<br />Forces o...
Typical Roadmap Failures<br />No visible logic<br />Created unilaterally<br />Lack of buy-in<br />Poor technical and marke...
Successful Roadmap Creation…<br />Active participation of key constituents<br />Engineering (architects), perhaps Marketin...
Build Strategically, Iteratively<br />Time Horizon -- Quarters work well…<br />Small Office<br />Market Map<br />Biometric...
Key Questions <br />Who are my desirable markets/market segments? What do they care about?<br />When / how often should I ...
Low-Tech Speeds Collaboration<br />Formal results transcribed into high-tech tools<br />(Visio…)<br />
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Product Management Basics (for SCU MBA program)

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For Prof. Kumar Sarangee's MBA class at Santa Clara/Leavey. Basics of tech product management: role, pricing, roadmapping, and "how it is in the real world." Energetic class participation

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  • No natural sequence for PMMust work all aspects in parallelPlanning onion as simultaneous equationBottoms-Up Shapes Top-DownCustomer visits inform market viewCompetitive price points drive business modelFeature complexity shapes release planTop-Down Shapes Bottoms-UpMarket segmentation determines customer selection and benefitsProduct strategy drives backlogProduct Management provides strategy, judgment and integration as well as executionOwning market success is an unbounded problem
  • Be honest and humble. Most startups breathe their own smoke.
  • © Rich Mironov, Mironov Consulting, 2010. All rights reserved. Portions © Enthiosys, Pragmatic Marketing.
  • Product Management Basics (for SCU MBA program)

    1. 1. Tech Product Management Essentials: Roles, Pricing & RoadmapsRich Mironovrich@mironov.com12 Oct 2010 for Prof. Sarangee, Marketing 572<br />
    2. 2. An Unapologetic Product Guy<br />Currently CEO of stealth start-up<br />Agile product management consultant<br />Interim executive<br />Business models, pricing, whole products<br />Repeat offender at product mgmt/marketing<br />Tandem, Sybase, four software startups<br />“The Art of Product Management”<br />Chaired Agile ‘09/’10 PM/PO tracks<br />Founded ProductCamp<br />
    3. 3. Agenda<br />What does a product manager do?<br />Basics of pricing software<br />Roadmapping: process vs. artifact<br />Take-Aways<br />
    4. 4. Product<br />Management<br />Executives<br />Development<br />What Does Product Management Do?<br />strategy, forecasts, commitments, roadmaps,competitive intelligence<br />budgets, staff,<br />targets<br />market information, priorities,<br />requirements, roadmaps, MRDs,<br />personas, user stories…<br />Field input,<br />Market feedback<br />Mktg & Sales<br />Markets & Customers<br />software<br />Segmentation, messages, benefits/features, pricing, qualification, demos…<br />
    5. 5. Product Mgmt Planning Horizons<br />many years<br />Exec<br />Strategy<br />years<br />Portfolio<br />many mons<br />PM<br />Product<br />2-9 mon<br />Release<br />Dev<br />Team<br />Sprint<br />2 wk<br />Daily<br />
    6. 6. Pragmatic Marketing® Framework<br />Less Technical<br />BusinessPlan<br />MarketingPlan<br />Positioning<br />Pricing<br />Market Problems<br />Customer Acquisition<br />BuyingProcess<br />Market Definition<br />Buy, Build or Partner<br />Win/Loss Analysis<br />Customer Retention<br />Buyer Personas<br />Distribution Strategy<br />Product Profitability<br />Distinctive Competence<br />Program Effectiveness<br />UserPersonas<br />Product Portfolio<br />Tactical<br />Strategic<br />Business<br />Market<br />Programs<br />Planning<br />Strategy<br />Support<br />Readiness<br />Business<br />Market<br />Programs<br />Planning<br />Strategy<br />Support<br />Readiness<br />Innovation<br />Competitive Landscape<br />LaunchPlan<br />Require- ments<br />Product Roadmap<br />Presentations & Demos<br />SalesProcess<br />Technology Assessment<br />Thought Leadership<br />UseScenarios<br />“Special”Calls<br />Collateral<br />Lead Generation<br />Status Dashboard<br />EventSupport<br />SalesTools<br />Referrals & References<br />ChannelSupport<br />Channel Training<br />More Technical<br />© 1993-2009 Pragmatic Marketing, Inc. All rights reserved<br />
    7. 7. Pragmatic Marketing® Framework<br />Dir, Prod Strategy<br />Prod Mktg Mgr<br />Tech Prod Mgr<br />BusinessPlan<br />MarketingPlan<br />Positioning<br />Pricing<br />Market Problems<br />Customer Acquisition<br />BuyingProcess<br />Market Definition<br />Buy, Build or Partner<br />Win/Loss Analysis<br />Customer Retention<br />Buyer Personas<br />Distribution Strategy<br />Product Profitability<br />Distinctive Competence<br />Program Effectiveness<br />UserPersonas<br />Product Portfolio<br />Business<br />Market<br />Programs<br />Planning<br />Strategy<br />Support<br />Readiness<br />Business<br />Market<br />Programs<br />Planning<br />Strategy<br />Support<br />Readiness<br />Innovation<br />Competitive Landscape<br />LaunchPlan<br />Require- ments<br />Product Roadmap<br />Presentations & Demos<br />SalesProcess<br />Technology Assessment<br />Thought Leadership<br />UseScenarios<br />“Special”Calls<br />Collateral<br />Lead Generation<br />Status Dashboard<br />EventSupport<br />SalesTools<br />Referrals & References<br />ChannelSupport<br />Channel Training<br />© 1993-2009 Pragmatic Marketing, Inc. All rights reserved<br />
    8. 8. Nature of PM Role<br />No natural sequence for PM<br />Must work all aspects in parallel<br />Planning onion as simultaneous equation<br />Bottoms-up shapes top-down<br />Top-down shapes bottoms-up<br />Product Management provides strategy, judgment and integration as well as execution<br />Owning market success is an unbounded problem<br />
    9. 9. Product As Simultaneous Equation<br />Market Needs<br />Roadmap<br />Customers with <br />real needs<br />Truly differentiated<br />products<br />Product /<br />solution<br />Economic valueto capture<br />Business Plan<br /><ul><li> Most product concepts fail
    10. 10. Most products fail to thrive</li></li></ul><li>Agenda<br />What does a product manager do?<br />Basics of pricing software<br />Roadmapping: process vs. artifact<br />Take-Aways<br />
    11. 11. “Pricing is almost neverabout the number. It’s about the model.”<br />
    12. 12. Start with Customer View<br />Customers buy most products to make money or save money<br />How do they describe value?<br />Quantify it for them<br />They won’t spend time to fully analyze your product<br />Assume you can capture a fraction of value<br />B2B: often 5% to 15%<br />Consumers often driven by fashion, not analytics <br />
    13. 13. Hard Cost Savings Example<br />“By using our tech support knowledge automator, you can reduce your support time per call by 30%.”<br />
    14. 14. Pricing Your Start-Up<br />Why will customers buy?<br />Tell a story in customer’s own language<br />What’s the natural unit of exchange?<br />How do they derive value? What does the competition do?<br />Can you split off a profitable segment?<br />How much of customer value can you capture?<br />Test, trial-close, get your hands dirty<br />
    15. 15. Software Value Exchange Models<br />Time-based access (e.g. unlimited/month)<br />Transaction (stock trade)<br />Metered (seats, CPUs, named users)<br />Hardware (appliances, dongles)<br />Service (virus updates, support)<br />Percentage of incremental revenue/savings<br />Data-driven insights<br />Charity…?<br />From Luke Hohmann’s “Beyond Software Architecture”<br />
    16. 16. Support the Business Model<br />Pricing drives customer behavior<br />What do you want core customers to do?<br /><ul><li>No-brainer renewals (small monthly fees)
    17. 17. Big up-front license (lock up marketplace)
    18. 18. Lust for upgrades (cool features are extra)
    19. 19. Freemium model (1% upsold into paid services)
    20. 20. Install latest version (free updates, increasing service fees)</li></li></ul><li>Customer Commitments<br />“by the drink”<br />“by the month”<br />No commitmentHigh variable costs<br />Lower volume<br />Uncertain usage<br />Optional<br />Actively manage costs<br />NEED CONTINUOUS MARKETING<br />Big commitmentLow/no variable costs<br />Higher volume<br />Predictable usage<br />Required (cost of business)<br />Low cost control effort<br />HARD INITIAL SELL<br />
    21. 21. Workshop Exercise: Teleportation<br />Founders: Stanford physicists with local VC<br />Software plus expensive custom hardware<br />Some arbitrary product limitations such as…<br />Inanimate objects only (no people)<br />Under 40 pounds, under 18” diam<br />2000 mile limit, arrival +/- 3 inches<br />Non-military, non-government<br />Result: every group jumps to price, skips use case (value)<br />
    22. 22. How Will People Cheat?<br />If I want to rip you off, how could I do it?<br />Licensed software…<br />Per-seat SaaS…<br />Hardware token…<br />Licensing versus enforcement<br />Who are the cheaters?<br />How much are we willing to spend? <br />Diminishing returns<br />Easier to exploit complex pricing models<br />
    23. 23. Agenda<br />What does a product manager do?<br />Basics of pricing software<br />Roadmapping: process vs. artifact<br />Take-Aways<br />
    24. 24. Class Roadmapping Experience<br />Who has a roadmap?<br />What timeframe does it cover?<br />Successes, failures?<br />
    25. 25. Benefits of a Solid Roadmap<br />Identify/clarify tactical and strategic intent<br />Internally<br />Becomes a filter for prioritization<br />Ensures “ship is headed in the right direction”<br />Avoids the “last/loudest” priority problem<br />Externally<br />Near-term commitments and long term view for customers<br />Binds best customers to your company<br />
    26. 26. Roadmaps are Scary<br />Articulate when things should arrive <br />Describes what you are not going to build<br />Forces open discussion among functions<br />Makes you commit to an uncertain future<br />Dirty secret: most companies do not have a workable roadmap process<br />They jump from vision/portfolio to release<br />
    27. 27. Typical Roadmap Failures<br />No visible logic<br />Created unilaterally<br />Lack of buy-in<br />Poor technical and market inputs<br />Static<br />No plan for internal or external sharing<br />
    28. 28. Successful Roadmap Creation…<br />Active participation of key constituents<br />Engineering (architects), perhaps Marketing, next-level product strategists or Support<br />Extended in-person meetings<br />Time to research issues<br />Reviews every 1-2 quarters<br />Clear (written) distribution plan<br />Easy to say, hard to do<br />
    29. 29. Build Strategically, Iteratively<br />Time Horizon -- Quarters work well…<br />Small Office<br />Market Map<br />Biometric<br />Id<br />Managed Service<br />Feature/Benefit Map<br />What technology should we use?<br />Linux<br />Tarchitecture<br />Roadmap<br />Market Events <br />/ Rhythms<br />The Real<br />Schedule<br />
    30. 30. Key Questions <br />Who are my desirable markets/market segments? What do they care about?<br />When / how often should I serve them?<br />What technologies can I leverage?<br />How must my current product change?<br />What are the external factors that I must address to deal with these issues?<br />What external events drive my timing?<br />
    31. 31. Low-Tech Speeds Collaboration<br />Formal results transcribed into high-tech tools<br />(Visio…)<br />
    32. 32. Agenda<br />What does a product manager do?<br />Basics of pricing software<br />Roadmapping: process vs. artifact<br />Take-Aways<br />
    33. 33. Take-Aways<br />Tech product management is critically important but loosely defined<br />Pricing is strategic, creative and behavior-focused<br />Roadmapping is a process, not just a deliverable<br />Someone must be responsible every day for long-term thinking<br />
    34. 34. Q&A / Contact Information<br />+1-650-315-7394<br />rich@mironov.com<br />www.mironov.com/articles/<br />feeds.feedburner.com/RichMironovProductBytes<br />@RichMironov<br />www.linkedin.com/in/richmironov<br />

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