Whole product thinking starts from the customer perspective – their realities and perceptions. Generic Product: What your customer actually bought. Expected Product: What your customer thought they purchased. Defines minimum expected configuration. Gaps between expected and generic product perceptions cause churn and renewal problems. Augmented Product: How your customer may “flesh out” their purchase to achieve their maximum buying objective. For example, customers may augment software with services. Potential Product: Your customers perception of future growth, ancillary products. We intentionally draw these lines as wavy because perceptions change. Note that market clarity means you not understand your customer, but you ALSO understand how your customer perceives you and your offerings.
This is clearly a “hardware” centric perspective, but the principles remain: You can use the conceptual framework of the whole product to consider what you want to offer your customer in terms of growth.
Let’s simplify the whole product mix and consider just three things: The Product Services associated with the product Other (you define – could be operations, finance, partnerships, etc). 15 min: What is the Whole Product for what you’re working on?
Copyright (c) 2010 Enthiosys www.enthiosys.com 1. Place a sticker on where the product(s) you’re managing fall on this curve. 2. How long will it take you to move to the next phase? 3. How will you know when you’ve reached the next phase?
Copyright (c) 2010 Enthiosys www.enthiosys.com Used in product / portfolio management to help make choices in: Allocating resources Formulating business-unit strategy Setting performance targets Analyzing portfolio balance (cash flow, balance, etc) What is your product? Four main strategies Increase market share Hold market share Harvest Divest What should be done with your product?
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Copyright (c) 2010 Enthiosys One way to correlate the growth of your market and key market events is to consider the maturation of your customer relative to your product or service. For example, children mature their knowledge and use of financial services products in well-defined ways. This can enable you to create roadmaps segmented by market maturity, which encourages smaller and more frequent releases. Instead of “blowing your customers away” with too much functionality, you can release features at a pace that customers can absorb. How do your customers grow and mature their knowledge? Do you expect them to start with a basic system
Copyright (c) 2010 Enthiosys To help you get started with rhythms, write down the following things about your market: Annual conferences that your company/division attends Topic schedules of industry magazines Previous release of your product When finished, “roll” the wheel on your timeline. How do these rhythms affect your market windows?
Strategic Thinking Through Pictures
Strategic Planning Through Pictures Often the best way to communicate strategic choices is through simple pictures. Let’s review some options.
Collis’s Strategic Sweet Spot Competitor Offerings (for target market) Customer Needs (for target market) Your Capabilities Sweet spot You win Opportunity Jump ball You lose You battle
Hi-Tech “Whole Product” Planning The Product Hardware Software Networks & peripherals Templates Consulting Where you can show you understand your customer’s business problem and its solution Where you can show you have committed to solve the problem and have a pre-engineered solution What your in-category competitors have in common with you Source: The Chasm Group Legacy interfaces Pre-sales services Post-sales service & support
BCG Growth-Share Matrix Market Growth High Relative Market Share Low Weak Strong Star Dog Cash Cow Question Mark
SWOT Structure S T W O Helpful Harmful Internal External Phase 1 Complete this matrix for a specific competitor. Phase 2 Analysis it. What, if anything, are you going to with your conclusions?
Phase 1: Completing the Matrix <ul><li>What do you do well? </li></ul><ul><li>What are your unique selling points? </li></ul><ul><li>What are your structural advantages? </li></ul><ul><li>What relevant resources you have access to? </li></ul>• What are you doing badly? • What should you improve? • What should you avoid? Analyze external attractive factors facing you like positive market trends and try to uncover greater potential. What external obstacles in your are largely beyond your control? Example: Unfavourable trends like downsizing, obsolescence, price wars, competitors with superior skills/products, shifts in consumer tastes and changing technology.
Channel Distribution Structures Wholesalers / Distributors Manufacturers / Producers “ Customers” Enterprises Professionals Consumers Systems Integrators Value-Added Resellers Retailers Agents / Brokers Direct
Potential / Development Plot Technology Stage-Gate: A Structured Process for Managing High-Risk New Technology Projects