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Innovation day 2012   9. dany robberecht - verhaert - 'product management; turning pain into gain'

Innovation day 2012 9. dany robberecht - verhaert - 'product management; turning pain into gain'






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    Innovation day 2012   9. dany robberecht - verhaert - 'product management; turning pain into gain' Innovation day 2012 9. dany robberecht - verhaert - 'product management; turning pain into gain' Presentation Transcript

    • CONFIDENTIAL Product Management: turning pain into gain Dany Robberecht Director Consulting Office Dany.robberecht@verhaert.com 26.10.2012 Slide 1
    • CONFIDENTIAL What is it about? How to get it done? What does it take? 26.10.2012 Slide 2
    • CONFIDENTIAL Understanding the walk 26.10.2012 Slide 3
    • CONFIDENTIAL Product management – common understanding 26.10.2012 Slide 4
    • CONFIDENTIAL He’s becoming in fact the innovation manager Innovation driven Front end activities Increasing expectations Different toolchain Time pressure Converging world 26.10.2012 Slide 5
    • CONFIDENTIAL The fuzzy-front-end … Source:Based on Verhaert 26.10.2012 Slide 6
    • CONFIDENTIAL The key role of the product manager Complex interdisciplinary management of diverse roles and orientations Need for hollistic ”mushroom” profile Product Strategy For “new” product: Often link to (corporate) business problem is required. Product Management Product Development Product Management must drive return on innovation Toegevoegde waarde Product Marketing Cost 26.10.2012 Slide 7 = ROI
    • CONFIDENTIAL But the goal remains the same … “build products people want to buy” 26.10.2012 Slide 8
    • CONFIDENTIAL Is it really so difficult? 26.10.2012 Slide 9
    • CONFIDENTIAL Would you buy this? How would a good product for the problem look like? Toilet Snorkel US Patent 26.10.2012 Slide 10
    • CONFIDENTIAL The world is moving as well Globalisation Fierce competition Shorter life cycles Social media power Novel distribution models 26.10.2012 Slide 11
    • CONFIDENTIAL Managing in a concurrent environment Product innovation Elec& sw,.. Marketing,.. Business innovation New-value proposition Options Options Options Design,… Options Mech.eng,.. Stage 4 Stage 3 User ,.. Business modeling Stage 2 Stage 1 “The nature of how companies are organised inhibit cross disciplinary collaboration” “The nature of how companies are organised inhibit cross disciplinary collaboration” 26.10.2012 Slide 12
    • CONFIDENTIAL Getting the job done 26.10.2012 Slide 13
    • CONFIDENTIAL Driving innovation – what entry points to consider? What customers demand Business Process How customers have access to a solution Voice of the customer Job-to-be-done What customers in fact need Source:Based on Verhaert 26.10.2012 Slide 14
    • CONFIDENTIAL High Coke Cooler Innovations at glance … Technology Change Low Hug me cooler Known Meaning to users Novel Source:Based on Verganti 26.10.2012 Slide 15
    • CONFIDENTIAL High Coke Cooler Innovations at glance … Low energy cooler Low Technology Chance Hug me cooler Known Meaning to users Novel Source:Based on Verganti 26.10.2012 Slide 16
    • CONFIDENTIAL High Coke Cooler Innovations at glance … Low energy cooler POP Cooler Low Technology Change Hug me cooler Known Meaning to users Novel Source:Based on Verganti 26.10.2012 Slide 17
    • CONFIDENTIAL High Coke Cooler Innovations at glance … Low energy cooler POP Cooler Low Technology Change Hug me cooler Known Glacier Cooler Meaning to users Novel Source:Based on Verganti 26.10.2012 Slide 18
    • CONFIDENTIAL PRODUCT PERFORMANCE From a market strategy perspective start an innovation strategy from the situation TIME when product performance is good enough… Focus on a) desire-ability: life style-design, branding, communities,… b) use-ability, convenience throughout the life cycle -Look for User Centered Design (UCD) -Look for potential in service innovation 26.10.2012 Slide 19 Source:Based on Christensen
    • CONFIDENTIAL From a product development perspective leverage from platform thinking An example … An important ‘top-level’ specification step : How do we diversify the product towards different client groups -”jobs to be done”? What do we deliver and what de we leave for our partners? What’s the baseline? What are options (how do we construct our price list)? What are the technical building blocks? Which components / subsystems are driving performance? Which components / subsystems are sensitive for technology evolution? What will probably be personalised? How is the product handled throughout the value chain? (transport, installation, …) 26.10.2012 Slide 20
    • CONFIDENTIAL From a product strategy perspective build differentiating value propositions An example … In our product economy we often tell bizarre stories. Stories that not engage our users, neither they improve our competitive position. Despite the efforts of a whole company they don’t deliver anything. 26.10.2012 Slide 21
    • CONFIDENTIAL Understand market problems and your unique ability to address them. MARKET STRATEGY Formalise your product plans to deliver profitable solutions for market problems BUSINESS Create a product strategy integrated with your organisation’s products PLANNING Create go-to-market programs aligned to the buying/making process PROGRAMS Connect your business plans with the organisations that develop, promote and deliver to the market Support the sales channels with market and product expertise READINESS SUPPORT Ensure the ability to sell and support your product TACTICAL STRATEGIC The new product management framework Source:Based on Verhaert 26.10.2012 Slide 22
    • CONFIDENTIAL The new product management framework Strategy Business plan Positioning Customer acquisition Market problems Market definition Pricing Customer Buying process Win/Loss analysis Distribution strategy Buy, build, partner Buyer personas Customer rentention Distinctive competence Product portfolio Profitability monitoring User personas your fit Program effectiveness Marketing MARKET STRATEGY BUSINESS PLANNING PROGRAMS READINESS SUPPORT Competive landscape Product roadmap Innovation competencies Requirements Launch plan Sales process Presentations & demos Use scenarios Thought leadership Collateral ‘Special’ calls Status boards Lead generation Sales Tools Event support Referrals & references Channel training TACTICAL STRATEGIC ? Marketing event plan Channel support Technology knowledge Technical Source:Based on Verhaert 26.10.2012 Slide 23
    • CONFIDENTIAL NPM’s must manage return on innovation valuation € Innovation value curve investment multiple cumulative cash time traction Source:Based on Verhaert 26.10.2012 Slide 24
    • CONFIDENTIAL Establish a framework 26.10.2012 Slide 25
    • CONFIDENTIAL Companies must create differentiated roles … Engineering Senior Mgm Technical product mgr Technical support Product Director Product Management Solutions architect Sales Product Marketing Mgr Presales Marketing focus technical business Source:Based on Verhaert 26.10.2012 Slide 26 # persons # locations
    • CONFIDENTIAL Example of a medical company’s perspective Interventional cardiology Existing treatments Interventional radiologist Solutions + New treatments Vascular surgeon S T O Technology Source:Based on Verhaert 26.10.2012 Slide 27
    • CONFIDENTIAL The product management organisation Organised from a market / application perspective Organised from a Technology perspective or or or Organised from a product champion perspective LEADERSHIP 1) General product mgm function 2) From one of the components Most companies need all of them 26.10.2012 Slide 28 Source:Based on Verhaert
    • CONFIDENTIAL A driver needs a dashboard 26.10.2012 Slide 29
    • CONFIDENTIAL Dashboard as a basis for communication To Inform all stakeholders •Maximizing fit with user / market requirements •Minimizing the development cycle •Controlling development & product costs 26.10.2012 Slide 30
    • CONFIDENTIAL New Products Pipeline is yours connected to your business strategy? New-Products pipeline CONFIDENTIAL 12/07/02 last update last print initiator Product candidate/ Project Stage idea General Total (N°) General Total (KEuro) Project Project Project Project Project Project A B C D F G FW startegic fit 13 24.000 22 38.250 added value 10 50.000 bus m odel business case 21 287.898 Lead user ID Funding 13 156.057 x x x x x x x x x x x x •Provides overview of the initiatives, status, and potential •Make sure your pipeline is not back or front loaded (distribution) •Each project described as NABC (New Application & Business Concept) 26.10.2012 Slide 31 Value Euro 1.258.852 17.124 26.400 14.285 15.000 20.000 27.300 14.285 55.400 15.000 15.000 40.100 20.000 60.000
    • CONFIDENTIAL N-ABC New application & business concept Elements of a product candidate description of eight key elements: 1. 2. 3. 4. 5. 6. 7. 8. Title Summary of the problem/need and approach (useful?) Description of the situation the customer/user was facing (value?) What we will do to solve their problem (feasibility?) Description of the impact of the solution (usability?) An appropriate illustrative visualisation (desirability?) Differentiation concept (positioning / competition) Business concept 26.10.2012 Slide 32
    • CONFIDENTIAL Illustration of N-ABC (product model) Need Approach 350 million smokers – 5000 million cigarettes/y Packaging is very expensive Main functions are marketing and product preservation Increasing regulations to stop advertising / smoking Launch project in marketing driven projects (Music festivals, …) Benefit Competition Blister will unleash a marketing tornado = branding Traditional packs Prototype development required of blister concept Improved performance to getting wet, less cracks in pocket, etc. Better fit to jeans pocket 26.10.2012 Slide 33
    • CONFIDENTIAL Building a common language is essential – visual thinking System diagrams – artist impressions, moodboards,exploded views, collages,… “Product Managers need to connect the dots. Visual thinking, on all aspects, provides very good communication abilities.” 26.10.2012 Slide 34
    • CONFIDENTIAL Conclusions • The nature of new products management requires an exploratory attitude, out-of-the-box thinking, but focused on a business challenge; so very result driven at the end. • Companies must creates some ‘air’ to connect the dots, hence the innovation strategy and the measures taken within must be aligned to a company’s business strategy / ambitions. • Innovation requires multi level decisions, hence a separate reporting structure is required, managing both horizontal and vertical streams • Communication is essential and visual thinking is very useful to create a common communication language 26.10.2012 Slide 35
    • CONFIDENTIAL VERHAERT MASTERS IN INNOVATION® Headquarters Hogenakkerhoekstraat 21 9150 Kruibeke (B) tel +32 (0)3 250 19 00 fax +32 (0)3 254 10 08 ezine@verhaert.com More at www.verhaert.com VERHAERT MASTERS IN INNOVATION® VERHAERT MASTERS IN INNOVATION® helps companies and governments to innovate. We design products and systems for organizations looking for new ways to provide value for their customers. We are a leading integrated product innovation center; creating technology platforms, developing new products and business in parallel, hence facilitating new-growth strategies for our clients. 26.10.2012 Slide 36 Netherlands European Space Innovation Centre Kapteynstraat 1 2201 BB Noordwijk (NL) Tel: +31 (0)633 666 828 willard.vanderheijden@verhaert.com More at www.verhaert.com