Aligning Your Organization with Strategic Product Management by Barbara Nelson at SVPMA Monthly Event January 2006

1. Align the Organization with
Strategic Product Management
January 4, 2006
Barbara Nelson, Pragmatic Marketing
bnelson@PragmaticMarketing.com
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© 1993-2006 Pragmatic Marketing, Inc. 1

2. Portfolio strategy matrix
Existing New New New
Products Options Technology Products
Existing
Customers
Competitors'
Customers
New
Customers
New
Markets
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Plot key initiatives
Existing New New New
Products Options Technology Products
Existing
Customers today ? ? ?
Competitors'
Customers ? ? ? ?
New
Customers ? ? ? ?
New
Markets ? ? ? ?
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© 1993-2006 Pragmatic Marketing, Inc. 2

3. Is everyone aligned?
Existing New New New
Products Options Technology Products
Existing Dev Dev
Customers
Sales Execs
PM PM
Competitors'
Customers
Sales Marketing Sales
New
Customers
PM Marketing PM
New Marketing
Markets
Sales Sales Dev
Execs
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Vital few versus compelling many
Existing New New New
Products Options Technology Products
Existing
Customers
Competitors'
Customers
New
Customers
New
Markets
What’s missing?
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© 1993-2006 Pragmatic Marketing, Inc. 3

4. Portfolio strategy matrix
Existing New New New
Products Options Technology Products
Existing
Customers
Competitors'
Customers
New
Customers
New
Markets
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Common Challenges
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© 1993-2006 Pragmatic Marketing, Inc. 4

5. Existing markets
Distracted by new markets before penetrating
existing markets
Challenging a market leader to a drag race
without enough resources
Market opportunity not big enough
Assuming existing markets are ready for
innovations
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New technology
Existing customers
Takes too long to make products backward
compatible
Customers don’t move on your time schedule
Technology doesn’t provide incremental revenue
New customers
Don’t always need everything existing customers
need
Some “requirements” are buying criteria, not using
criteria
Over engineered compared to value delivered
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© 1993-2006 Pragmatic Marketing, Inc. 5

6. New markets
Sometimes deal-driven
Existing products don’t always fit new markets
Existing sales channel can’t always sell into new
markets
New product in a new market is riskiest
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Alignment Requires Choices
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© 1993-2006 Pragmatic Marketing, Inc. 6

7. Market focus drives product strategy
Problems
Goals
Personas
Market Segments
Distinctive Competence
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For each initiative
What problem does it solve for the market?
Urgent
Pervasive
Willing to pay
What is the scope to build it?
How will you market it?
How will you sell it?
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© 1993-2006 Pragmatic Marketing, Inc. 7

8. Product strategy driven by the market
Existing New New New
Products Options Technology Products
Existing
Customers
Competitors'
Customers
New
Customers
New
Markets
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What it takes from you to drive strategy
Leadership
Market facts
Facilitation skills
Excellent communication skills
Ability to execute
Confidence
Courage
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© 1993-2006 Pragmatic Marketing, Inc. 8

9. Live the grid
Business Marketing
Positioning
Case Plan
Distinctive Market Sales Customer
Pricing
Competence Sizing Process Acquisition
Market Product Buy, Build Market Customer
Research Performance or Partner Requirements Retention
Market Operational Product Product Launch
Problems Metrics Portfolio Roadmap Plan
Strategic
Tactical
Market Quantitative Product Product Program Sales Channel
Analysis Analysis Strategy Planning Strategy Readiness Support
Technology Win/Loss User Buyer Channel Presentations
Innovation
Assessment Analysis Personas Personas Training & Demos
Competitive Success Collateral & “Special”
Use Scenarios
Analysis Stories Sales Tools Calls
Release Thought White Event
Milestones Leaders Papers Support
Lead Competitive Answer
Generation Write-Up Desk
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About Pragmatic Marketing, Inc.
Experts in technology product management and
product marketing
Specialize in training and consulting
Since 1993, we have trained over 30,000 people
at thousands of companies
Visit us
www.PragmaticMarketing.com
www.ProductMarketing.com
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© 1993-2006 Pragmatic Marketing, Inc. 9