Red7 Introduction to Product Management

1 Red7 :|: product managementA SHORTINTRODUCTION TOPRODUCT MANAGEMENTThe Role of Product Managementwithin the OrganizationProduct Manager, Business Analyst, Product Marketing Manager,Project Manager – who does what ?robertGrupe, CISSP, CSSLP, PE, PMP © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementDisclaimer• Summary of industry best practices frameworks and tools• Organizations do things differently• Jobs titles and responsibilities varies• This is not a presentation about how your company is structured, or necessarily how it should be • >> If you have something that already works better  © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementTable of Contents• Roles, Focus, and Tools • Product Management • Business Analysis • Project Management • Putting It All Together • Discussion © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementWhat Is A Product?Well, it depends upon whom you ask• Project Management definition • The outcome of an activity, especially in contrast to a process by which it was created or altered. • The amount of an artifact that has been created by someone or some process.• Marketing definition • A commodity offered for sale. • Any tangible or intangible good or service that is a result of a process and that is intended for delivery to a customer or end user. • Product  Systems + People • System - not just software applications, but also any process used to deliver a service. • i.e. automated and manual processes to provide valuable customer services © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementProduct Management• Planning, forecasting, or marketing of a product or products at all stages of the product lifecycle.• Consists of product development and product marketing.• Objective to maximizing sales revenues, market share, and profit margins.• Responsible for analyzing market conditions and defining features or functions of a product.• Spans many activities from strategic to tactical and varies based on the organizational structure of the company.• Product management can be a function separate on its own, or a member of marketing or engineering. © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementProduct Management in the Organization Production Engineering Advertising Executive Support Management Product Production Sales Management Finance Purchasing Marketing Customers Research Legal © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementProduct Management Roles• Product Manager (PM) Product strategy & planning (in-bound / strategic marketing) • Market Research, Analysis, and Strategy • Competitive differentiation, positioning • Market Requirements Document (MRD) • Gathering and validate Voice-of-the-Customer (VoC) market requirements • Defining new products • Defining and prioritizing product roadmaps • Product Requirements Document (PRD) • Product Life Cycle considerations • Stages: introduction, growth, mature, saturation/decline • Major accounts support (feature requests and roadmap)• Product Marketing Manager (PMM) Product marketing (outbound / tactical marketing) • Product positioning and outbound messaging • Promotion: press, customers, and partners • Packaging and delivery • Competition messaging monitoring • Product demonstrations in trade shows, creating marketing collateral like data sheets and white papers. • RFP responses standard © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementProduct Management Roles• Product Management Program Manager Internal and cross-functional project management • Leads projects for Product Management • cross-function coordination • Internal coordinated projects • Facilitation of whole Product Life Cycle (PLC) • Skilled project manager (MS Project, scrum, facilitation, collaboration, etc.) • Projects status reporting © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementProduct Management Roles Execution Administration• Product Manager • Director / Group PM • Prerequisites • Prerequisites • 3-5 years multi-department business • 2+ years experience as senior PM experience • Responsibility: • Internal (finance, operations) • Group of products • customer facing (sales, support, marketing) • Supervise, QA, and mentoring of PMs • Business math (NPV, financial forecasting, trend analysis) • Senior Director • Communications: • 2+ years as PM Director Presentation, writing, organization • Department Budgetary Responsibility • End-User skills proficiency • Product Portfolio Management • Responsibility • Product expert • QI leadership: P&P/Best Practices • Market analysis • Chief Product Manager / Head / VP• Senior Product Manager • Prerequisites • 3+ years experience • 2+ release cycles (PRD-Launch) • MRD • Able to work completely independently © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product management Product Life Cycle Stages Stages Introduction Growth Maturity DeclineAudience Early Adopters Early Majority Late Majority LaggardsMarket Small Growing Large ContractingSales Low High Flattening ModerateCompetition Low Moderate High ModerateBusiness Focus Awareness Market Share Customer Retention TransitionDesign Focus Tuning Scaling Support TransitionMarketing Objective Gain Awareness Stress Differentiation Maintain Brand Loyaty Harvesting, DeletionCompetition Few More Many ReducedProduct One More versions Full product line Best sellersPrice Skimming or penetration Gain market share, deal Define market share, Stay profitable profitPromotion Inform, educate Stress competitive Reminder oriented Minimal promotion differencesPlace (distribution) Limited More outlets Maximum outlets Fewer outlets © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementStrategic Marketing Plan andMarketing Requirements Document (MRD) • CURRENT MARKET SITUATION • MRD Sections • Company Historical Background • Business Opportunity • Market Analysis • Recommended Product Strategy • Customer Analysis • Product Family Positioning Statement • Competitive Analysis • Competitive Landscape • Company Analysis • Market Requirements Summary • Company Analysis • Target Market Segmentation Priorities • Current Product Analysis (if applicable) • Business-Oriented Use Cases • MARKETING OBJECTIVES • Financial Impact • Company Objectives • Risk and Consequences • Sales Objectives • Profitability Objectives • Consumer Objectives • STRATEGY • Product/Service Strategy (MRD/PRD) • Pricing Strategy • Distribution Strategy • Promotional Strategy • Financial Strategy • TACTICS • Distribution Tactics • Promotion Plan Tactics • Support Plan Tactics • Financial Plan Tactics (Business Plan) • EXECUTION SCHEDULE • Introduction Schedule • Post Introduction Schedule • PROJECTED PROFIT AND LOSS STATEMENT © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementSome Market Analysis Tools• Checklist Scoring Models • Mapping Approaches / Bubble • Fit with corporate objectives Diagrams • Competitive advantage • Boston Consulting Group Matrix • Market attractiveness • GE/McKinsey• Financial / Economic Models position vs attractiveness • Risk Reward • Payback period • Ansoff Matrix • Break even analysis • ROI • Probabilistic Financial Models • Discounted cash flow (DCF) • Monte Carlo Simulation • Net Present Value (NPV) • Decision Tree Analysis • Internal Rate of Return (IRR); ECV • Options Pricing Theory (Real • Financial Ratios Options) • Productivity Index © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product management Strategic Alignment GE/McKinsey Directional Policy Leader Growth Improve or Quit HighIndustryAttractiveness Try Harder Proceed with Care Phased Withdrawal Medium Share Cash Generator Phased Withdrawal Withdrawal Low High Medium Low Enterprise Strength © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementNew Product Development (NPD)Life Cycle Model Ideaisation Go:No-Go Scoping Go:No-Go Planning Go:No-Go Development Go:No-Go Testing Go:No-Go Launch Go:No-Go Maintenance Retirement Project Lifecycle EOL Framework © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementWhat Are Requirements?• Product Requirements - attributes of the final product • Functionality • Computer application user interfaces, • Communications • Reports • Customer services • User help manuals & self-help tutorials, • Service delivery staffing licensing/certifications • etc.• Project Requirements - things that need to be done • Types of testing & validation • Product launch promotion • User support readiness • Customer/user training development • Etc. © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementTypes of Product RequirementsProduct Requirements Document (PRD) • Functional Requirements • What a product/service must do for the customer and users • i.e. “The product shall do…” • Nonfunctional Requirements • Product attributes (appearance, performance, legal, legal/regulatory compliance, etc.) • i.e. “The product shall be…” • Look and Feel • Usability • Performance • Operational • Maintainability and Portability • Security • Cultural and Political • Legal • Upgrading • User Documentation. © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementProduct Requirements• The Product Requirements Document (PRD) • Defines the overall objectives and scope of the project • Specification for a project end-deliverable • Created and maintained by the Product Manager • The [Business/Marketing/Brand] “Owner” • Starting point for the product design (high level requirements) • Baseline for QA acceptance testing criteria• Why Product Projects Need a PRD • Defines the scope for the project • Provide a historical record for retrospective review and process audits • Agreed definition • Project performance reviews for process improvement • Can be thought through, reviewed and edited • Easily shared with others • Reduces developer gold plating © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementServices Product Design Marketing and Product Design Top Service Companies• Marketing Strategy • Strategic Concept • Clear target market, needs, and enduring • 4P’s of External Marketing customer loyalty • Product, Price, Promotion, Place • Leadership Quality Commitment • Plus • Not only financial, but monthly customer satisfaction/service metrics review • Internal Marketing • High Standards • Employee training and motivation • Customer and employee satisfaction • Interactive Marketing targets • Employee handling of customers • Service Performance Monitoring• 3P’s Competitive Differentiation • Own and competitors, regular • People: more able and reliable • Customer Complaints System • Generous responses to complaints • Place: attractiveness • Satisfying Employees as well as • Process: more convenient customers • Employee satisfaction reflects on customer relations © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementProduct Requirements DevelopmentTools & Process Requirements Backlog VoC High Level Research Requirements Product Use Release Cases Roadmap Product Requirement Documents Project Mockups Release Summary Product Context Process Work Diagram Flows © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementBusiness Analysts• An internal consultancy role that has responsibility for investigating business systems, identifying options for improving business systems and bridging the needs of the business with the use of IT. • BCS, The Chartered Institute for IT• A liaison among stakeholders in order to understand the structure, policies, and operations of an organization, and to recommend solutions that enable the organization to achieve its goals. • International Institute of Business Analysis (IIBA)• Uniquely placed in the organization to provide a strong link between the Business Community and Information Technology (IT). • The Certified Software Business Analyst (CSBA) Common Body of Knowledge © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementBusiness Analysis Tiers1. Planning Strategically • The analysis of the organizations strategic business needs2. Operating/Business Model Analysis • The definition and analysis of the organizations policies and market business approaches3. Process Definition and Design • The business process modeling (often developed through process modeling and design)4. IT/Technical Business Analysis • The interpretation of business rules and requirements for technical systems (generally within IT, sometimes referred to as Systems analysis) © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementOperations Service Strategic Alignment BUSINESS INFORMATION MANAGEMENT TECHNOLOGY MANAGEMENT STRATEGY SERVICE STRATEGY CONTINUAL SERVICE IMPROVEMENT TACTICS SERVICE DESIGN SERVICE TRANSITION OPERATIONS SERVICE OPERATION © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementITIL & MOF Lifecycles ITIL Service ITIL Service ITIL Service ITIL Service ITIL Continual Strategy Design Transition Operation Service Improvement PLAN Business IT Portfolio Alignment, Reliability, Policy , Financial mgt Service Alignment DELIVER Envision, Project Planning, Build, Stabilize, Deploy Project plan OPERATE approved Operations, Release Service Monitoring & Readiness Control, Customer service, Opera- Problem mgt tional health Policy & Control MANAGE GRC, Change & Configuration, Team © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementBusiness Requirements Document (BRD)• Executive Summary • Actors • Overview • Workers • Background • Business Actors • Objectives • Other Systems • Requirements • Role Map • Proposed Strategy • Business Rules• Product/Solution Scope • State Diagrams • Included in Scope • IT Requirements • Excluded from Scope • User Requirements • Constraints • User Task Overview Diagram• Business Case • User Task Descriptions• Business Services and Processes • IT Service Level (Non-Functional) Requirements • Impact of Proposed Changes on Business Services and Processes • System State Requirements • Testing State • Business Service and Process Overview Diagrams • Disabled State • Business Process Workflow • Static Model Requirements • Static Model: Diagrams • Multiplicity Rules Table • Business Service Level (Non- Functional) Requirements • Entity Documentation © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementBusiness Analyst ToolsPRD  BRD details• Activity Diagram • Requirements Attributes Table• Block Diagrams (swim lanes) • Requirements Traceability• Business Process Diagram (BPD) • Role Model• Business Process Modeling • Root-Cause Analysis• Business Use Case • Sequence Diagram• Cause-and-Effect Diagrams • State Machine (Harel Statecard) Diagram• Class Diagrams and Static Model • Structured Walkthrough• Communication Diagram • System Use Case and Diagrams• Data Flow and Context Diagram • Use Case Analysis• Decision Tree/Table • Six Sigma• Entity Relationship Diagram (ERD) and • Taguchi methods Data Model • axiomatic design• Flow Charts • TRIZ • Design for X• Functional Decomposition Chart • design of experiments (DOE)• FURPS • tolerance design• Object Diagram • Robustification• Pareto Analysis • response surface methodology © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementProject Management• Achieve all of the goals of the • 9 Knowledge Areas: project charter while adhering to • integration management, Project constraints: • scope management, • scope, • time management, • time, • cost management, • cost and • quality management, • quality. • human resource• Project management life cycle management, • 5 Process Groups: • communications • Project Initiation, management, • Project Planning, • risk management and • Project Execution, • procurement management. • Project monitoring and control, and • Project closeout. © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementProgram Management[& Product Portfolio Management]• Layer above project management focusing on selecting the best group of programs [and products] defining them in terms of their constituent projects and providing an infrastructure where projects can be run successfully• Governance: The structure, process, and procedure to control operations and changes to performance objectives.• Standards: Define the performance architecture.• Alignment: The program must support higher level vision, goals and objectives.• Assurance: Verify and validate the program, ensuring adherence to standards and alignment with the vision.• Management: Ensure there are regular reviews, there is accountability, and that management of projects, stakeholders and suppliers is in place.• Integration: Optimize performance across the program value chain, functionally and technically.• Finances: Tracking of finances is an important part of Program management and basic costs together with wider costs of administering the program are all tracked.• Infrastructure: Allocation of resources influences the cost and success of the program. Infrastructure might cover offices, version control, and IT. Planning: Develop the plan bringing together the information on projects, resources, timescales, monitoring and control.• Improvement: Continuously assess performance; research and develop new capabilities; and systemically apply learning and knowledge to the program. © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementWhy Is This Important?• Without clearly defined and integrated • product management, • product marketing, and • project management, • innovation will be • haphazard, • chaotic, and • un-scalable • with complexity and growth. • You can’t improve or accelerate what you can’t understand or control. • Putting random people on a galley ship won’t ensure you will get where you want to go or make it go faster. © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementRoles SummaryProduct Manager Product Marketing ManagerFocus: External revenue generating Focus: Product Promotionproducts & customer services (internal & external audiences)Marketing Requirements Document (MRD) Marcoms StrategyProduct Requirements Document (PRD) Launch Plan Campaigns / CollateralBusiness Analyst Project ManagerFocus: Internal users, cost savings, Focus: product developmentprocess improvements and delivery based on resources, time, and budget objectivesBusiness Requirements Document (BRD) Project PlanTraceability Matrix © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementPutting It All TogetherMarket Research[Product Managers & Researchers] Product Definition Product Market Product (with VoC research Technical Design Build, Test, Deploy Strategy Requirements & validation) [Engineering] [Development] [Product Manager] [Product Manager] [Product Manager]Corporate Strategy & Plans Operations Design [Business Analyst] Marketing Promotion Design [Prod Mkg Mgr] Improvement Production Analysis Performance Measurement [Product Manager, (Sales, service Six Sigma] levels) © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementForrester Research: Most PM’s not beingused effectively• Distracting challenges Customers Product and and market Internal company 8% process and strategy organization 10% 28% Development process 16% Time and resources Prioritization 22% and Focus 16% © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementForrester Recommendation:Product Management for StrategicAdvantage• Focus on inbound tasks• Decision-making power • Roadmap, release contents, release acceptance• Report to CEO/GM • i.e. not through Marketing or Engineering © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 :|: product managementFinis• This Presentation & Further Resources • www.red7managementsolutions.com• Questions, suggestions, & requests • Robert Grupe, CISSP, CSSLP, PE, PMP • robert.grupe@red7managementsolutions.com • +1.636.236.8434 © Copyright 2012-03 Robert Grupe. All rights reserved.

Red7 Introduction to Product Management

by Robert Grupe

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