Red7 Product Portfolio Management

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This presentation will discuss how you can develop your product market strategy to align with corporate operational objectives to drive meaningful development while demonstrating investment value and alignment.

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  • BioRobert Grupe is an experienced international business leader with a background in engineering, sales, marketing, PR, and product support in the software, digital marketing, health care, electro-optic and aerospace industries. From Fortune 100 to start-up companies, Robert has worked for industry leaders including Boeing, McAfee, Text 100 PR, and Express Scripts.  Management experience includes working with and leading local, as well as internationally distributed, teams while implementing best practices to maximum organizational and market performance.  Robert is a registered Certified Information Security Professional (CISSP), Certified Secure Software Lifecycle Professional (CSSLP), Professional Engineer (PE), and Product Management Professional (PMP).
  • Update listing of new product ideas and enhancements to existing productsPrioritize the list based on executive decision influenceEngineering preferencesNew sales commitments (whale / major account proposal needs)Renewal sales customer dissatisfaction issues‘Visionary’ leap to new uncontested market opportunitySelect next projects based on development resource availabilityAdd to portfolio management dashboardDevelop product<<Preform web research and revenue projections for business case>>Launch productRepeatProduct Portfolio Management is actually Project Program Management
  • New Product Life Cycle (NPLC) ProcessPhase-Gate Process Well understood, good process to generate and process new product ideasChallengesCorporate strategy mapping usually happens at the end of effortsLong process from Ideas Discovery to development kickoffHow to determine and demonstrate corporate strategic alignment?Small mention of market positioning strategyWhat your future, current non-customers, will want
  • Primary FocusCorporate strategy – weak for innovationProduct Strategy – Technology Star-upsMarcomms Strategy – mid-sized / aggressive growth (Dot.Coms)What other tools are needed? How do they fit together?But Then What, How Do you Do that?Here is a view based on the toolsProcess Steps
  • Financial ModelsUsesGo/No-Go decision: Kill if too weakRanking: Resource allocation from strongest-weakest, others killed or put on hold (positive, but not enough resources)Best PracticeUse with other methodsLimitation: worst real-work performance = lack of research rigorChecklist Scoring: UsesGo/No-Go decisions, especially in early phasesRanking of resourcesBest PracticesRequires well informed management group to assessBehavior: Bringing managers to team consensus
  • WARNINGStudy 129 firms found that those who follow portfolio planning models like the BCG matrix had lower shareholder returns.Doesn’t evaluate profitabilityDepends on how “market” is definedLeads to conclusion to funnel money from cows to stars (so that cows turn into dogs)This should only be attempted for real lines that have a sufficient history to allow some prediction; if the corporation has made only a few products and called them a product line, the sample variance will be too high for this sort of analysis to be meaningful.Use GE/McKinsey Strategic Alignment instead
  • P31 – need another arrow
  • http://www.strategy2act.com/solutions/bsc_toolkit/02-building-balanced-scorecard.htmhttp://www.schneiderman.com/Concepts/Scorecard/How_to_Build_a_Balanced_Scorecard/how_to_build_a_BSC_intro.htmDrucker ThoughtsBalanced Objectives: market standing, innovation (10% invest), productivity, physical and financial resources, profitability, manager performance and development, worker performance and attitude, and public responsibility (patient outcomes)
  • Marketing Strategy is more important than product featuresthink insurance, coffee, heavy machinery, airlines, etc.You need to lead or follow your corporate marketing strategyWhat are your organization’s strengths and weaknesses?What will this product need to succeed?Positioning Direct ResearchSurveysCustomer firmographic & physchographic profilesIndirect ResearchAnalyst market researchMarket & Competitive Analysis Promotional TacticsVoC / QFDSales channel development & incentivesPhyschographic: IAO variables (for Interests, Activities, and Opinions). They can be contrasted with demographic variables (such as age and gender), behavioral variables (such as usage rate or loyalty), and firmographic variables (such as industry, seniority and functional area).
  • http://techcrunch.com/2011/06/06/sharethis-facebook-38-percent-traffic/
  • Effective Product Portfolio ManagementMaximize return on investmentsBalance of project types Strategic alignment of all effortsRight number of projectsPMP = focusing strategic vision into realityAnything worthwhile will face oppositionreassess, but stay focused if opposition is destructively motivated.Learn from mistakesStay aligned into sponsorsPersonal Professional FocusExtended into your own personal objectives and plansTeam to personal Scorecard
  • From The DailyDrucker, 3/13Bonus – apply this same principle to your own life (God’s purpose for your life, we your plans)
  • Red7 Product Portfolio Management

    1. 1. 1 Red7 :|: product managementSTRATEGIC PRODUCTPORTFOLIO MANAGEMENTTools and Process for Aligning Corporate OperationalObjectives with Product Leadership StrategiesrobertGrupe, CISSP, CSSLP, PE, PMPtags :|: product management, portfolio management, strategy, scorecard © Copyright 2012-03 Robert Grupe. All rights reserved.
    2. 2. Red7 :|: product managementDescription• How can Product Managers • effectively balance market leadership strategies with corporate financial objectives?• Do you find yourself • firefighting and reacting to executive and sales crises instead of building market leadership?• This presentation will • discuss how you can develop your product market strategy to align with corporate operational objectives • to drive meaningful development • while demonstrating investment value and alignment. © Copyright 2012-03 Robert Grupe. All rights reserved.
    3. 3. Red7 :|: product managementTable of Contents• Product Portfolio Introduction• Product Portfolio Management Tools• Corporate Strategy Mapping• Market Communication Strategy• Integrated PMP: Putting IT All Together © Copyright 2012-03 Robert Grupe. All rights reserved.
    4. 4. Red7 :|: product managementPRODUCT PORTFOLIOINTRODUCTION © Copyright 2012-03 Robert Grupe. All rights reserved.
    5. 5. Red7 :|: product managementTypical Product Portfolio Planning &Management Process © Copyright 2012-03 Robert Grupe. All rights reserved.
    6. 6. Red7 :|: product managementEvaluating Your PMP• Does your portfolio reflect and support the business strategy?• What is the quality of the portfolio – solid and high value?• Are new products reaching market on time?• Are your success rates and profit performance results consistent with forecasted expectations?• Are you allocating the appropriate levels of resources between sustaining projects, new product development, and must-do maintenance?• Do you have regular (quarterly) senior management reviews of all your projects (market developments, forecast adjustments, progress, resource priorities)?• Is the senior management team leading portfolio prioritisations?• Do you have a portfolio funnel or tunnel? © Copyright 2012-03 Robert Grupe. All rights reserved.
    7. 7. Red7 :|: product managementEffects of Ineffective PMP• Reluctance to kill projects • Once started, many projects added to list, total lack of focus • Too many projects – resources spread too thin, projects queued, low execution quality • Increased time to market, high failure rates• Weak decision points • poor Go/No-Go decisions • Too many low value projects, tweaks and modifications, good projects starved • Too few stellar product winners, many ho-hum launches• No rigorous selection criteria • projects selected on emotions, politics • Wrong projects are selected • Many failures• No strategic criteria for project selection • Projects lack strategic direction, projects not strategically aligned • Scatter gun effort, does not support strategyCORELLARYPMP performance is not just about process,but is also a function of organization maturity and effectiveness. © Copyright 2012-03 Robert Grupe. All rights reserved.
    8. 8. Red7 :|: product managementPhase-Gate Development Only -One Part of Whole NPD Process Market & Segments, Road Business and Product Product Line and Mapping Strategy Solution Mapping Technologies, & Building Blocks Phase-Gate Product New Concept Concept Feasibility and Solutions Generation Assessment Development Lifecycle Management and Retire Pipeline Throughput Management © Copyright 2012-03 Robert Grupe. All rights reserved.
    9. 9. Red7 :|: product managementSustainable ProductPortfolio Management Process (PMP)• About balancing business priorities • risk versus return • maintenance versus growth • short-term versus long term• On-going process • under constant review and revision• Different things to different people • Strategist: supporting the corporate vision and mission • Financial: most efficient allocation of financial resources to maximize shareholder value • Engineering: choosing projects to foster the right innovation • Marketing: faster times to market • CEO: positive financial impact, quickly• Axioms • Profit is required to sustain costs in future and for innovation, • so cut any non-performing products or those without well understood forecast (futures modeling) • Balanced = stakeholders • (shareholders, customers, employees, suppliers, communities/government) • Tradeoff: short-term profits versus long term investments © Copyright 2012-03 Robert Grupe. All rights reserved.
    10. 10. Red7 :|: product managementProduct PMP Context Corporate Product Strategy Strategy Marcomms Strategy © Copyright 2012-03 Robert Grupe. All rights reserved.
    11. 11. Red7 :|: product managementPRODUCT STRATEGY © Copyright 2012-03 Robert Grupe. All rights reserved.
    12. 12. Red7 :|: product managementPortfolio Management Tools• Financial / Economic Models • Behavioural Approaches • Payback period • Modified Delphi method • Break even analysis • Q-Sort method • ROI • Paired Comparison models • Discounted cash flow (DCF) • Mathematical Optimisation • Net Present Value (NPV) Procedures • Internal Rate of Return (IRR) • Linear and mathematical programming • Financial Ratios • Statistical decision theory • Productivity Index • Game theory• Checklist Scoring Models • Probability Theory (Markov processes) • Fit with corporate objectives • Decision Support Systems (DSS) • Competitive advantage • Project Analysis and Support System • Market attractiveness (PASS)• Probabilistic Financial Models • Mapping Approaches / Bubble • Monte Carlo Simulation Diagrams • Decision Tree Analysis • Boston Consulting Group Matrix • Options Pricing Theory (Real Options) • GE/McKinsey position vs attractiveness © Copyright 2012-03 Robert Grupe. All rights reserved.
    13. 13. Red7 :|: product managementBest In Class Objective #1:Maximizing Projects Portfolio Value © Copyright 2012-03 Robert Grupe. All rights reserved.
    14. 14. Red7 :|: product management Maximizing Value: Scoring Check Lists Scored Project Screening Criteria Rating ScaleKey Items Rating 0 4 7 10Strategic Alignment & Importance 9.5 Product has only Modest fit, but not Strong fit with Good fit with a peripheral fit with with a key several key Congruence 9 key element of business element of the elements of strategy strategies strategy strategy Minimal impact; Moderate Significant Very strong no noticeable Impact 10 competitive, competitive and positive impact on harm if product financial impact financial impact the business droppedProduct Competitive Advantage 6.7 Product offers Product offers Product offers no Product offers some benefits but positive, unique Customer Benefits 7 unique benefits or unique features not important to benefits and features and benefits customer features Product is Product is clearly Product is same Product is better marginally better superior than as competitors in than competitors Meets Customer Needs 8 than competitors competitors in meeting customer in meeting in meeting meeting customer needs customer needs customer needs needs Product is same Product provides Product clearly as competitors; Product has good better value for has excellent Customer Value for Money 5 poor value for value for money money for the value for money money for the for the customer customer for the customer customer • Potential Categories • Strategic Alignment • Competitiveness • Market Attractiveness • Leverages Core Competencies • Technical Feasibility © Copyright 2012-03 Robert Grupe. All rights reserved.
    15. 15. Red7 :|: product management Maximizing Value: Scored Prioritization Strat Prod Mkt Core Tech Proj Staff CummProject Fit Adv Attr Comp Feas Reward Attract FTE FTE StatusEcho 9 9 10 10 9 9 93.3 20 20 Go #1Beta 10 10 7 7 7 7 80.0 20 40 Go #2Foxtrot 8 7 7 8 8 9 75.0 15 55 Go #3Charley 7 7 9 9 8 5 74.0 12 67 Go #4Alpha 7 7 6 6 8 6 66.7 20 87 HoldGolf 8 6 6 8 7 5 66.7 20 107 Hold • 70 FTE constraint • Project Attractiveness = Average of scores * 100 © Copyright 2012-03 Robert Grupe. All rights reserved.
    16. 16. Red7 :|: product managementMaximizing Value: NPV Prioritisation Immediate Resource Resource Requirements Requirements Project NPV Remaining (Next Quarter) Lima 55.0 5.0 5.0 Alpha 52.0 9.5 3.2 Echo 48.5 7.0 1.3 Foxtrot 43.8 5.0 1.5 Delta 42.0 3.8 2.5 Golf 37.5 8.3 3.8 Beta 30.0 3.1 0.3 India 9.5 2.5 0.5 Charley 8.6 2.1 1.4 Juliet 6.2 0.8 0.8 Kilo 4.5 1.4 1.2 © Copyright 2012-03 Robert Grupe. All rights reserved.
    17. 17. Red7 :|: product managementMaximizing Value: BBI Prioritisation• $15m constrained portfolio Immediate Cummulative Resource Resource Immediate Requirements Bang-for-Buck Requirements Resource Project NPV Remaining Index (Next Quarter) Requirements Delta 42.0 3.8 11.1 2.5 2.5 Lima 55.0 5.0 11.0 5.0 7.5 Beta 30.0 3.1 9.7 0.3 7.8 Foxtrot 43.8 5.0 8.8 1.5 9.3 Juliet 6.2 0.8 7.8 0.8 10.1 Echo 48.5 7.0 6.9 1.3 11.4 Alpha 52.0 9.5 5.5 3.2 14.6 Golf 37.5 8.3 4.5 3.8 18.4 Charley 8.6 2.1 4.1 1.4 19.8 India 9.5 2.5 3.8 0.5 20.3 Kilo 4.5 1.4 3.2 1.2 21.5 Hotel 3.0 1.0 3.0 0.7 22.2 Insight: More projects can be done simultaneously if they do not compete for maximum resources in the same quarter BBI = NPV RRR © Copyright 2012-03 Robert Grupe. All rights reserved.
    18. 18. Red7 :|: product managementExpected Commercial Value (ECV)EVC = [ ( PV * Pcs - C ) * Pts ] - D • Pts - Probability of technical success (0.0-1.0) • Pcs - Probability of commercial success (0.0-1.00 • D - Development costs remaining • C - Commercialization costs (launch) • PV - Net Present Value of project’s future earnings © Copyright 2012-03 Robert Grupe. All rights reserved.
    19. 19. Red7 :|: product management Example: Maximizing Value Dynamic Rank Order Probability of Strategic TechnicalProject IRR NPV Importance Success IRR Rank NPV RankAlpha 20% $10.0 5 80% 2 3Beta 15% $2.0 2 70% 4 6Charlie 10% $5.0 3 90% 6 5Delta 17% $12.0 2 65% 3 2Echo 12% $20.0 4 90% 5 1Foxtrot 22% $6.0 1 85% 1 4 Strategic Probability of Importance Technical IRR*Pts NPV*Pts SI Ranking PrioritisedProject IRR NPV (SI) Success (Pts) IRR * Pts NPV*Pts Rank Rank Rank Mean RankingAlpha 20% $10.0 5 80% 16% $8.0 2 2 1 1.67 1Beta 15% $2.0 2 70% 11% $1.4 5 6 4 5.00 6Charlie 10% $5.0 3 90% 9% $4.5 6 5 3 4.67 5Delta 17% $12.0 2 65% 11% $7.8 3 3 4 3.33 3Echo 12% $20.0 4 90% 11% $18.0 4 1 2 2.33 2Foxtrot 22% $6.0 1 85% 19% $5.1 1 4 6 3.67 4 © Copyright 2012-03 Robert Grupe. All rights reserved.
    20. 20. Red7 :|: product managementBest In Class Objective #2:Right Balance of Portfolio Projects• Long term, versus short/fast• High risk and low risk• Markets• Types of technologies• Types of projects: new, improvements, cost reduction, research © Copyright 2012-03 Robert Grupe. All rights reserved.
    21. 21. Boston Consulting Group Red7 :|: product management Growth-Share Matrix High Rate ofIndustry Growth Low Low Relative High Product bubbles: revenue contribution Market X axis: Log 0.1-1.0-10.0 Share © Copyright 2012-03 Robert Grupe. All rights reserved.
    22. 22. Red7 :|: product managementRisk-Reward Diagram Bubble sizes: annual resources Y: Probability of success, X: Reward (modest to excellent), Y: Ease-Difficulty, X Low-High Importance © Copyright 2012-03 Robert Grupe. All rights reserved.
    23. 23. Red7 :|: product managementBest In Class Objective #3:Strategic Alignment © Copyright 2012-03 Robert Grupe. All rights reserved.
    24. 24. 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.
    25. 25. Red7 :|: product management Attractiveness vs. Competitive-Position Portfolio Classification and Strategies Strong Medium LowHigh PROTECT POSITION INVEST TO BUILD BUILD SELECTIVELY • Invest to grow at maximum • Challenge for leadership • Specialize around limited digestible rate • Build selectively on strengths strengths • Concentrate effort on • Reinforce vulnerable areas • Seeks ways to overcome maintaining strength weaknesses • Withdraw if indications of sustainable growth are lackingMedium BUILD SELECTIVELY SELECTIVITY/MANAGE FOR LIMITED EXPANSION OR • Invest heavily in most EARNINGS HARVEST attractive segments • Protect existing programs • Look for ways to expand • Build up ability to counter • Concentrate investments in without high risk; otherwise, competition segments where profitability minimize investment and • Emphasize profitability by is good and risk is relatively rationalize operations raising productivity lowLow PROTECT AND REFOCUS MANAGE FOR EARNINGS DIVEST • Manage for current earnings • Protect position in most • Sell at time that will maximize • Concentrate on attractive profitable segments cash value segments • Upgrade product line • Cut fixed costs and avoid • Defend strengths • Minimize investments investment meanwhile © Copyright 2012-03 Robert Grupe. All rights reserved.
    26. 26. Red7 :|: product managementStrategicAnsoff Matrix © Copyright 2012-03 Robert Grupe. All rights reserved.
    27. 27. Red7 :|: product managementBest In Class Objective #4:Right Number of Projects © Copyright 2012-03 Robert Grupe. All rights reserved.
    28. 28. Red7 :|: product management Risk-Benefit Balance Maintenance (fixes)New ProductProjects Enhancements & Extensions © Copyright 2012-03 Robert Grupe. All rights reserved.
    29. 29. Red7 :|: product managementRisk-Benefit Balance Best Average Worst Promotional developments & package New to the changes world 10% products 10% New to the business Incremental product products 25% improvements & changes 33% Major product revisions 22% © Copyright 2012-03 Robert Grupe. All rights reserved.
    30. 30. Red7 :|: product managementPMP Tools Evaluation © Copyright 2012-03 Robert Grupe. All rights reserved.
    31. 31. Red7 :|: product managementStrengths and Weaknesses of PMP Tools Strategic Financial Scoring BubblePerformance Methods Methods Model DiagramsProjects are alignedwith businessobjectives   Portfolio contains veryhigh value projects  Spending reflects thebusiness strategy  Projects on done ontime no-gridlock  Portfolio has goodbalance of projects   Portfolio has rightnumber of projects When used as a dominant portfolio method: - Best method for performance criteria - worst method for performance criteria © Copyright 2012-03 Robert Grupe. All rights reserved.
    32. 32. Red7 :|: product managementSatisfaction with PMP Tools Strategic Financial Scoring Bubble Performance Methods Methods Model Diagrams Method truly used to make Go/No-Go decisions    Fits management style    Understood by management   User friendly easy to use   Realistic method   Perceived as efficient   Perceived as effective    Method rated as excellent  Business would recommend method   When used as a dominant portfolio method:  - Best method for performance criteria  - Worst method for performance criteria © Copyright 2012-03 Robert Grupe. All rights reserved.
    33. 33. Red7 :|: product managementPMP Tools: Take Aways• Formal portfolio management methods work• There is no one right portfolio management method• Beware of over-reliance on financial methods and models• Look more to strategic approaches as the way to manage your portfolio• Consider a scoring model as an effective prioritization tool• Bubble diagrams must also be part of your portfolio models • Corporate Strategic Alignment• Focus is only on product development, not market execution• Product functionality and features only focus • Assumes that promotional strategy and investment will be someone else’s responsibility • Don’t forget your market strategy :: great product, but no one knows about it or your sales aren’t promoting it • Sales incentives • Demand generation © Copyright 2012-03 Robert Grupe. All rights reserved.
    34. 34. Red7 :|: product managementCORPORATE STRATEGYMAPPING © Copyright 2012-03 Robert Grupe. All rights reserved.
    35. 35. Red7 :|: product management Balanced Scorecard Strategy Map Strategy MapFinancial Perspective Long-Term ShareholderIf we succeed, how will we look to Value Revenueour shareholders? Productivity GrowthCustomer Perspective Quality Time Function PartnershipTo achieve our vision, how mustwe look to our customers? Price BrandInternal Perspective Manage RegulatoryTo satisfy our customers, which Manage Operations Manage Customers Manage Innovation and Socialprocesses must we succeed at? ProcessesLearning & GrowthPerspective Human Information OrganizationTo achieve our vision, how must Capital + Capital + Capitalour organization learn andimprove? © Copyright 2012-03 Robert Grupe. All rights reserved.
    36. 36. Balanced Scorecard Example Red7 :|: product management • Organizational Scorecard Strategy Map Balanced Scorecard Action PlanProcess: Operations Management Objectives Measurement Target Initiative BudgetTheme: Ground TurnaroundFinancial Perspective • Profitability • Market Value • 30% CAGRIf we succeed, how will we look to our shareholders? • Growth revenue • Seat Revenue • 20% CAGR • Fewer planes • Plane lease cost • 5% CAGRCustomer Perspective • Attract & retain • # repeat customers • 70% • Implement CRM • $XXXTo achieve our vision, how must we look to our more customers • # customers • Increase system • $xxxcustomers? • Flight is on time • FAA on-time arrival 12% • Quality • $xxx • Lowest prices rating annually Management • Customer ranking • #1 • Customer • #1 Loyalty programInternal Perspective • Fast ground • On-ground time • 30 minutes • Cycle-time • $xxxTo satisfy our customers, which processes must we turnaround • On-time departure • 90% optimizationsucceed at?Learning & Growth Perspective • Develop the • Strategic job • Yr. 1-70% • Ground crew • $xxxTo achieve our vision, how must our organization necessary skills readiness Yr. 3-90% training • $xxxlearn and improve? • Develop the • Info system Yr. 5-100% • Crew scheduling • $xxx support system availability • 100% system rollout • $xxx • Ground crew • Strategic awareness • 100% • Employee Stock aligned with • % ground crew • 100% Ownership strategy stockholders • Plan Total Budget $XXXX • Staffing Resources Scorecards • Goals, Weighting, Thresholds, Target, Stretch, Comments © Copyright 2012-03 Robert Grupe. All rights reserved.
    37. 37. Red7 :|: product managementMARKETINGCOMMUNICATIONSSTRATEGYDon’t forget the 4th P © Copyright 2012-03 Robert Grupe. All rights reserved.
    38. 38. Red7 :|: product managementThe Fourth P• 4 P’s of Marketing • Product  Product Strategy • Price  Product Strategy • Placement (distribution)  Product Strategy • Promotion  MarComs (Marketing Communications) © Copyright 2012-03 Robert Grupe. All rights reserved.
    39. 39. Red7 :|: product managementMarCom Dashboard © Copyright 2012-03 Robert Grupe. All rights reserved.
    40. 40. Red7 :|: product managementMarComs Tools• Advertising• Sales Promotion• Public Relations• Personal Selling• Legitimization © Copyright 2012-03 Robert Grupe. All rights reserved.
    41. 41. Red7 :|: product managementAdvertising Digital Content Digital Channels MetricsTV Vlogs YouTube ViewersRadioPrint MarCom Tools: Advertising Podcasts iTunes, TalkShoe Listeners/downloadsPackaging - outerPackaging - insertsMailings Direct email Constant ContactVideoMagazines WebzinesBrochures Micro websitesPostersLeafletsDirectories Search Engine Optimization Google, Bing, others (SEO) Search Engine Marketing (SEM): Paid Search /Adwords Director/reviews Yelp, Angies List Paid Search / AdWordsReprints of adsBillboards Banner adsAugmented Reality AppsPoint of purchase displays Affilate linksAudio/visual materialsSymbols and logos © Copyright 2012-03 Robert Grupe. All rights reserved.
    42. 42. Red7 :|: product managementSales Promotion Digital Content Digital Channels Metrics MarCom Tools: Sales PromotionContests, gamesPremiums and gifts Online contests, games Blogs, RSS feedsSamplingFairs and trade showsExhibitsDemonstrationCouponingRebatesLow-interest financingEntertainmentTrade-in allowanceTrading stampsTie-ins Mobile app tie-ins © Copyright 2012-03 Robert Grupe. All rights reserved.
    43. 43. Red7 :|: product managementPublic Relations Digital Content Digital Channels MetricsPress Kits Online press kits MarCom Tools: Public RelationsSpeachesSeminars Webcast recording Webcast live/recordingArticles Social news services Digg, redditNewletters Blogs, RSS feedsAnnual reports IR websiteCharitable donations Non-profit digital sponsorshipsSponsorships Webinars, MicrositesPublicationsCommunity Relations Microblogging Twitter Community networks Ning, MySpace, PatientsLikeMe, LinkedIn Groups Social networks Facebook, LinkedIn, Xing, Community Content Newsgroups, Wikis, epinion Affinity groups Social Bookmarking Services Delicious, LinkrollProduct reviewsLobbyingIdentity media © Copyright 2012-03 Robert Grupe. All rights reserved.
    44. 44. Red7 :|: product managementPersonal Selling Digital Content Digital Channels Metrics MarCom Tools: Personal SellingSales presentationsSales meetings Online meetings Slideshare, YouTubeTelemarketing Direct EmailIncentive programsSamplesFairs and trade shows © Copyright 2012-03 Robert Grupe. All rights reserved.
    45. 45. Red7 :|: product managementLegitimization Digital Content Digital Channels Metrics MarCom Tools: LegitimizationCorporate brochureProduct brochure Company web site Product web siteBuilding signs Online community web sites LinkedIn, Facebook © Copyright 2012-03 Robert Grupe. All rights reserved.
    46. 46. Red7 :|: product managementOnline PR: Social Sharing Reach• Social Sharing now produces • estimated 10 percent of all Internet traffic and • 31 percent of referral traffic to sites from search and social. • Search is still about twice as big.• Facebook makes up 56 percent of all shared content • Up from 45 percent in August, 2010 • Email at 15 percent (down from 34 percent) • Twitter at 8 percent (down from 12 percent). • Email 17%, Other (bookmarking, blogs) 34%• Twitter links are clicked on 4.9 times each, versus 4.3 times for Facebook links and 1.7 times for emailed links. © Copyright 2012-03 Robert Grupe. All rights reserved.
    47. 47. Red7 :|: product managementINTEGRATED PMPPROCESSPutting It All Together © Copyright 2012-03 Robert Grupe. All rights reserved.
    48. 48. Red7 :|: product managementSustainable ProductPortfolio Management Process (PMP)• About balancing business priorities • risk versus return • maintenance versus growth • short-term versus long term• On-going process • under constant review and revision• Different things to different people • Strategist: supporting the corporate vision and mission • Financial: most efficient allocation of financial resources to maximize shareholder value • Engineering: choosing projects to foster the right innovation • Marketing: faster times to market • CEO: positive financial impact, quickly• Axioms • Profit is required to sustain costs in future and for innovation, • so cut any non-performing products or those without well understood forecast (futures modeling) • Balanced = stakeholders • (shareholders, customers, employees, suppliers, communities/government) • Tradeoff: short-term profits versus long term investments © Copyright 2012-03 Robert Grupe. All rights reserved.
    49. 49. Red7 :|: product managementIntegrated Portfolio ManagementFramework Corporate Strategy Market Research & Strategy Marcomms Product Strategy Strategy © Copyright 2012-03 Robert Grupe. All rights reserved.
    50. 50. Red7 :|: product management Integrated Portfolio Management Dashboards Corporate Strategy Map 4/8/2012 Robert Grupe Objectives Goals Plan Measurement Target Initiative Budget# YR-01 YR-02 YR-03 YR-04 YR-05 Financial Product Porfolio Plan1 Profitability 4/8/2012 Robert Grupe Market Value 30% CAGR2 Revenue Growth Unit Revenue 20% CAGR3 Objectives Strategy Products Forecasts Positioning Budget Revenues4 Corporate Initiative Classification Strategy SKU Initative/Project Priority YR-01 YR-02 YR-03 YR-04 YR-05 YR-01 YR-02 YR-03 YR-04 YR-055 TOTALS $23 $25 $26 $27 $32 $200 $181 $225 $260 $275 Processes6 New (world/company)7 Corp Initative A Invest to Build PN-006 Product G v1 1 $10 $4 $1 $1 $1 $10 $50 $70 $100 Organization B Corp Initative PN-007 Product H v1 5 $2 $6 $5 $1 $1 $1 $20 $40 $50 Enhancement Corp Initiative A Protect Position PN-002 Poduct B v3 2 $5 $1 $1 $2 $1 $100 $110 $115 $120 $115 Corp Initiative D Manage Earning PN-004 Product D v2 4 $1 $5 $1 $1 $2 Maintenance Corp Initiative D Cost reduction 10% PN-003 Product C v5 3 $2 $1 $5 $1 $1 Corp Initiative C Protect/Refocus PN-005 Product F v2 4 $3 $1 $3 $1 $1 Hold/Retire $100 $60 $40 $30 $10 Corp Initative D Divest PN-001 Product A v6 $1 $1 Undefined/TBD $6 $10 $19 $25 © Copyright 2012-03 Robert Grupe. All rights reserved.
    51. 51. Red7 :|: product managementIntegrated Product DevelopmentPortfolio Management Process © Copyright 2012-03 Robert Grupe. All rights reserved.
    52. 52. Red7 :|: product managementInitiation: Organizational Context• What is the driving influence of your organization’s executive team? • Determines if you should start with Corporate Score Card, Market Analysis, or Marcomms strategy • Then your Product Management leadership will be to balance the organize• Risks and Impediments • Who will you be threatening with this new process? • The visionary: who needs to be balanced and reigned in? • The stock price value maximizer: who doesn’t get future risk for long term growth ? • Technical founder: who is use to calling all shots? • Etc.• Senior management buy-in and sponsorship of PMP initiative • Whosoever sets the strategy must be responsible for the prioritisation © Copyright 2012-03 Robert Grupe. All rights reserved.
    53. 53. Red7 :|: product managementImplementing PMP1. Form a portfolio management tools & process evaluation team • Evaluate current company approaches, review current best practices • Stakeholder representation • Finance • Marketing & Sales (Product Management) • R&D • Customer Support • Regions2. Determine Product Projects Phased Exit Criteria: Go, No-Go • Must-Meet / Should-Meet3. Provide checklist scoring and Financial metrics for all existing projects • (except maintenance releases)4. Review of industry best practices5. Selection of methods suitable for leadership style of the organisation • Not all tools are appropriate for your organisation6. Integrate team recommendations into product lifecycle decision point processes7. Continuous Process Improvement (CPI) • Real-time monitoring against models • Seasonal Trends, Market Changes (anticipated and not), Competitive Moves • Reviews & Retrospectives © Copyright 2012-03 Robert Grupe. All rights reserved.
    54. 54. Red7 :|: product managementPortfolio and Project Reviews Business Strategy & New Product Strategy (drives both decisions processes) Portfolio Projects Review Review Review decision gates At key project decision gates * Review all projects together Decisions & adjustments * Project pass Must-Meet * Identify Strategic Criteria imperatives * Scored on Should-Meet * Check project priorities Criteria * Check portfolio balance * Go/No-Go decisions * Projects prioritized Project status & scores * Resources allocated Portfolio Management Project Framework • Evaluation of new business opportunities • Evaluation of project phase exit and approval to become projects deliverables to ensure completeness and required level of quality • Project prioritization based on strategic fit and financial return • Project resource allocation based on project prioritisation and available • Regular re-evaluation and prioritization resources of existing projects against revised market and project status information © Copyright 2012-03 Robert Grupe. All rights reserved.
    55. 55. Red7 :|: product managementCODA © Copyright 2012-03 Robert Grupe. All rights reserved.
    56. 56. Red7 :|: product managementFinis• What we measure and how we measure determine what will be considered relevant, and determine, thereby, not just what we see, but what we - and others - do. • Peter Drucker, Management: Tasks, Responsibilities, Practices• 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.

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