How to Create a Compelling Business Case for Your Product Ideas

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You have some great ideas to create successful products, but you can’t convince key stakeholders within your company to take action without a high level of certainty that they are worth the investment. How these decisions are made often determines whether your organization succeeds or fails.

A business case provides evidence to confirm whether or not a proposed product is a good investment. Its importance significantly increases as the cost and complexity of the product idea increases.

This session introduces you to a better approach for creating and presenting business cases that executives and senior managers within your company will respect; one that highlights the unique value proposition in your proposed ideas, while ensuring a comprehensive and thorough evaluation. This approach will bring enhanced credibility to all your recommendations.

About the Speaker:
Hector Del Castillo has over 15 years of experience transforming products to wealth for technology-based companies by building and directing high performing product teams, improving core business processes and establishing strategic partnerships. He has launched several profitable technology-based products and solutions. He provides services as a consultant, contractor, coach, or trainer to companies that want to grow by strengthening their product portfolio and creating new revenue streams using a sustainable approach.

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Published in: Business, Technology

How to Create a Compelling Business Case for Your Product Ideas

  1. 1. AIPMM www.aipmm.com © AIPMM 2013 www.aipmm.com
  2. 2. © AIPMM 2013 www.aipmm.com
  3. 3. The Hub Of All Things Product Management  Founded 1998, AIPMM has certified product team professionals in nearly 70 countries  World’s largest professional association for product management, product marketing, and brand management  Provides globally recognized certifications: • Certified Product Manager • Certified Product Marketing Manager • Agile Certified Product Manager • Certified Innovation Leader • Certified Brand Manager © AIPMM 2013 www.aipmm.com
  4. 4. Tweet! Use AIPMM: Business Case: #AIPMM #BusinessCase Follow Hector Del Castillo: AIPMM: @hmdelcastillo @AIPMM © AIPMM 2013 www.aipmm.com
  5. 5. ProdBOK® Guide • Sets a global standard • Introduces the steps of a product life cycle • Describes widely accepted techniques and methodologies • Identifies key terms, deliverables and essential tools Description: Amazon.com Keyword: ProdBOK © AIPMM 2013 www.aipmm.com
  6. 6. Participate and Win! • Two lucky winners will win a copy of the Guide to the Product Management and Marketing Body of Knowledge (ProdBOK®) © AIPMM 2013 www.aipmm.com
  7. 7. Hector Del Castillo linkd.in/hdelcastillo © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  8. 8. What We Will Discuss 1. 2. 3. 4. 5. Why You Need a Business Case What Is a Business Case Steps To Create a Compelling Business Case Pitfalls To Avoid Key Takeaways © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  9. 9. Why You Need a Business Case © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  10. 10. © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
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  13. 13. © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  14. 14. © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  15. 15. What is a Business Case? © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  16. 16. © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  17. 17. Documents Business Analysis Market Strengths Environment Weaknesses Capabilities Business Analysis Production Opportunities Finance Threats © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  18. 18. © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
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  33. 33. © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  34. 34. Market Customer Product Business Organization Source: © 2013 AIPMM, All Rights Reserved © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  35. 35. Key Elements • Executive Summary • Market Problem • Product – – – Overview Value Proposition Marketing Mix • Market – – – – Competitors Competing Products Alternative Solutions Key Partners & Channels • Customers – – Customer Segments Target Customers • Business – – – – Business Drivers Key Partners Success Criteria Risk Assessment • Organization – – – Key Activities and Resources Implementation Approach Constraints • Financial Analysis – – – Financial Metrics Assumptions Opportunity Costs • Conclusion – – Recommendation Next Steps • Appendix © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  36. 36. Steps To Create a Compelling Business Case © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  37. 37. Nine Steps Define market problem Identify organizational constraints Perform financial analysis Identify customer segments, needs and behavior Perform business analysis Make recommendations Identify competing & substitute products Define product value proposition Obtain management approval © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  38. 38. Tips For Creating A Compelling Business Case © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  39. 39. 1. Get buy in from executives © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  40. 40. 2. Encourage teamwork
  41. 41. 3. Use checklists Done □ □ □ □ □ □ □ □ □ □ □ □ □ Product Business Case Creation Checklist Owner Commitment for business case creation was obtained Hector Core team has been identified Hector Roles and responsibilities have been assigned Hector Executive sponsors for approval have been identified Hector Market problem has been identified Hector Customers, needs and behavior have been identified Areas of Concern Sally Competing and substitute products have been identified Hector Product value proposition has been defined Hector Business analysis has been performed Mary Organizational constraints have been identified John Financial analysis has been performed Jennifer Recommendations have been made Hector Business case has been approved Lisa © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  42. 42. 4. Use a standard document guide Business Case Canvas Problem Statement • Market opportunities • Unmet needs (pain points) Product • Value proposition • Place • Promotion • Price • People • Process • Physical evidence • Product positioning Market • Competitive landscape • Opportunities • Threats • Market segments • Competitors • Positioning • Market strategy Financial Analysis • Revenue streams • Cost structure • Estimated P&L • Assumptions • Risk assessment Customer • Target customers • Customer overview • Customer segmentation • Customer segments Business • Business strategy • Business model • Competitive advantages • Barriers to entry • Advantageous barriers Organization • Scope & schedule • Communication plan • Impact assessment Recommendations • Stop, Recycle, Acquire, License, and/or Build Source: Business Case Canvas, H. Del Castillo, AIPMM, © 2010-2013, All Rights Reserved.
  43. 43. 5. Expect iteration early and often Business Case MRD PRD Roadmaps © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  44. 44. 6. Establish realistic success criteria 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Why should we invest? What happens if we don’t? What are we going to build? Who needs to be involved? How long will it take? What is the window of opportunity? How much will it cost to implement? What is the unit price? What are target customers willing to pay for a solution? How many unit sales to reach profitability? Who are the competitors? What other alternatives do customers have today? Who else is likely to enter this market? What is the marketing effort required to achieve target ROI? © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  45. 45. 7. Identify and track risk factors Source: swsi.moodle.tafensw.edu.au © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  46. 46. Pitfalls To Avoid © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
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  52. 52. Key Takeaways 1 • Helps make smarter decisions, better results 2 • Helps prioritize investment opportunities 3 • Identifies ways to reduce time to market 4 • Establishes clear direction and objectives 5 • Allows you to guide key product decisions © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  53. 53. Hector Del Castillo • Senior consultant with over 15 years of experience transforming products to wealth for technology companies • AIPMM Body of Knowledge (ProdBOK®) Contributor • Established companies – Jet Propulsion Laboratory, Lucent Technologies, MEI Technologies • Small companies and startups – Nextone Communications, Smith Micro Software • Launched 30+ Products for global deployment – HW/SW, Telecom, Enterprise Mobility, Information Security Services, Professional Development • Certified PMP®, CPM® and CPMM® • University of California at Santa Barbara, MS EE • University of Texas at El Paso, MS EE, BS EE © 2013 Bold PM, All Rights Reserved. 53 Linkd.in/hdelcastillo
  54. 54. Q&A Presenter: Hector Del Castillo, CPM, CPMM, PMP Product Innovation Consultant hmdelcastillo@aipmm.com linkd.in/hdelcastillo @hmdelcastillo © 2013 Bold PM, All Rights Reserved. Linkd.in/hdelcastillo
  55. 55. Please Join Us Again! AIPMM Webinar Series: The Art of a Handoff Why the Way You Collect the Voice of the Customer Matters Nov 22nd, 12 pm ET Dec 6th, 12 pm ET http://aipmm.com/aipmm_webinars/ Global Product Management Talk: http://www.blogtalkradio.com/prodmgmttalk Stay Informed! Announcements: http://www.aipmm.com/subscribe Call For Speakers: http://www.boldpm.com/call-for-speakers LinkedIn: http://www.linkedin.com/company/aipmm Membership: http://www.aipmm.com/join.php Certification: http://aipmm.com/html/certification/ © AIPMM 2013 www.aipmm.com

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