Championing breakthrough ideas product camp sv 2013
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Championing breakthrough ideas product camp sv 2013

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Learn how to develop and sell internally breakthrough ideas to enhance your company's sales

Learn how to develop and sell internally breakthrough ideas to enhance your company's sales

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    Championing breakthrough ideas product camp sv 2013 Championing breakthrough ideas product camp sv 2013 Presentation Transcript

    • Championing Breakthrough Ideas Product Camp Silicon Valley 2013 Patrina Mack Managing Partner 325M Sharon Park Drive Menlo Park, CA 94025 www.visionandexecution.com
    • Learning Objectives • How to assess and articulate your company’s strategic portfolio even when one doesn’t exist? • How to position the strategic opportunity that your innovative idea represents within this portfolio matrix? • How do you capture Voice of the Customer data to substantiate the significant opportunity your innovative idea represents? • How do you build a compelling business case that not only captures the opportunity but a realistic assessment of the costs to successfully bring an innovative product to market? • How to shape metrics and evaluation criteria to get your business case approved when financial thresholds 3/25/2013 are in place? © 2002-2003 Copyright Vision & Execution
    • Defining a Product Portfolio • ….where none exists – Define what business you are in 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Portfolio Management • Decision-making process where a business’ list of active projects is periodically reviewed and revised “There are two requirements for a business to succeed at new products: doing projects right and doing the right projects” 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Goals of Portfolio Management • These main goals dominate the thinking of firms successful at Portfolio Management: 1. Maximize Value To allocate resources so as to maximize the value of the portfolio in terms of company’s key objectives (such as profitability, ROI, acceptable risk). A variety of methods are used to achieve this maximization goal, ranging from financial methods to scoring models. 2. Achieve Balance To achieve a desired balance of projects in terms of a number of parameters: risk versus return; short-term versus long-term; and across various markets, business arenas and technologies. Typical methods used to reveal balance include bubble diagrams, histograms and pie charts. 3. Align Business Strategy To ensure that the final portfolio of projects reflects the company’s business strategy and that the breakdown of spending aligns with the company’s strategic priorities. The three main approaches are: top-down (strategic buckets); bottom-up (effective gating and criteria) and top-down & bottomup (strategic check). Source: Robert G. Cooper, Product Management Institute © 2002-2003 Copyright Vision & Execution 3/25/2013
    • Portfolio Management Tools Approach 1 Approach 2 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • What is a Strategy Portfolio? • A coherent portfolio of options that address new capabilities and new, potential markets which enables tactical opportunism within the company’s longterm mission. 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Why Does a Strategy Portfolio Matter? • Allows you to reposition the company more quickly than your competition – Uncovers hidden constraints in your company’s future – Establishes a process to minimize the cost of creating and maintaining the portfolio – Optimizes your strategy faster and easier 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Defining a Strategic Portfolio • ….where none exists – Define what business you are in and where your product fits 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Laying the Foundation 1. Do you know your unique leverage points? Financial Relationships/Assets Intellectual Property/Technology People/Culture Scale/Efficiencies/Processes Partners Distribution 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Laying the Foundation 2. Do you know what are the top 5 most disruptive events that would cause your business to fail? 3. Do you have a plan to address each of these events to prevent them or survive them? 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Laying the Foundation 4. Do you know what are the top 5 trends that could positively impact your business? 5. Do you know what resources/ changes you would have to put in place to address those opportunities? 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Laying the Foundation 6. Do you know what are top 3 direct and top 3 indirect competitors? 7. Do you know their greatest strengths and vulnerabilities? 8. Have you identified which tactics you could pursue to weaken your competitors’ position? 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Laying the Foundation 9. Are your responses consistent with your corporate mission? - If not, should you be changing your mission, or your response? 10. Are your responses consistent with the burning needs of your target market? - If not, are you pursuing the most financially attractive or most strategic market segments? Or should you change your response? 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Laying the Foundation 11. Are your internal resources (capital, people, culture, technology, partnerships) able to: - rise to the opportunities? - stand up to the threats? 12. Can you finance your strategic options of choice? 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • What is Your Revenue Potential? • Why would anyone buy this general type of product or service? • Why will someone buy our product/service? • Why will we meet our volume and profit goals? • If this new product was not available, what would someone do instead? Solution – Buy something else? – Make something? 3/25/2013 – Do nothing? © 2002-2003 Copyright Vision & Execution
    • Enrich Product Anticipate Options for Growth Core Product Extend Business © 2002-2003 Copyright Vision & Execution 3/25/2013
    • Prioritize for Maximum Market Opportunity Region 1 …Channel 1 Region 2 …Channel 2 Region 3 …Channel 3 Region 4 …Channel 4 Segment 1 Market size Market growth Likelihood to adopt Key features Market size Market growth Likelihood to adopt Key features Market size Market growth Likelihood to adopt Key features Market size Market growth Likelihood to adopt Key features Segment 2 Market size Market growth Likelihood to adopt Key features Market size Market growth Likelihood to adopt Key features Market size Market growth Likelihood to adopt Key features Market size Market growth Likelihood to adopt Key features Segment 3 Market size Market growth Likelihood to adopt Key features Market size Market growth Likelihood to adopt Key features Market size Market growth Likelihood to adopt Key features Market size Market growth Likelihood to adopt Key features Market size Market growth Likelihood to adopt Key features Market size Market growth Likelihood to adopt Key features Market size Market growth Likelihood to adopt Key features Market size Market growth Likelihood to adopt Key features Segment 4 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Customer Input Matters at Every Stage VISION  Ethnographic Customers research  Concept evaluations  Strategic client requirement  Sales/account management  Support DEFINITION  Demand validation  Feature Prioritization/ Trade-offs DEVELOPMENT  Working prototype evaluations  Process engineering  Prototype evaluations DELIVERY  Beta test  Pilot program  User groups  Bug data  Feature request button  Usability/ human factors  Customer satisfaction CONTINUOUS PROCESS OF INDUSTRY RESEARCH, COMPETITIVE ANALYSIS, COST / BENEFIT ANALYSIS & METRICS © 2002-2003 Copyright Vision & Execution 3/25/2013
    • MRD—Business Case—PRD: How They Interrelate MRD BUSINESS CASE PRD  Written by Marketing  Written by Marketing  Written by Marketing  Vision phase  Business Definition phase  Product Definition phase  Major functional input  Major functional input  Customer value proposition  Key product functions, features, benefits (general)  Market: size, growth rate, trends, other characteristics  Competition, competitive differentiation  Pricing, margin requirements  Other: market plan, sales channels, distribution, service, etc. from Eng., Mfg., Fin.  Customer value proposition  Market opportunity, trends from Eng., Ops., Sales, Fin.  Detailed product functions & features over 3-5 year period  Costs / expenses: development, marketing, manufacturing, support  Forecasts: pricing, sales, margins, profits for 3-5 years  Product cost targets  Customer user experience  Service, support & other requirements  ROI 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Monitoring Risk Maintains Agility • Prepare for change agents – – Track shifts in customer behavior/needs – Monitor for new game changing delivery mechanisms – Track changes in regulatory environment – • Monitor for unexpected competition Monitor for changes in supplier sourcing/costs What 3-5 metrics could avert crisis? 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Metrics that Matter to Management Timeliness Timeliness Quality Productivity Financial Time to Market Customer satisfaction Patents ROI Time to Revenue First-time right % Part reuse Profitability Function points for software Margin % on-time Delivery Warranty costs Engineering Change Cycle Time R&D as % of revenue Market Impact % Revenue from new products Market share Access to new markets Days to close sales 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Key Take Aways • Ask senior management to articulate your company’s strategic portfolio, and if they can’t develop your own • Identify where your product fits in the portfolio and where you’d like to be working in the portfolio matrix • Use your internal leverage analysis to surface “white spaces” within your company or new markets to target • Use traditional market opportunity assessments to evaluate the potential and fit of the strategic opportunity that your innovative idea represents within this portfolio matrix • Use Voice of the Customer data as well as internal cost data to substantiate the significant opportunity via a business case your innovative idea represents • Shape metrics and evaluation criteria to get your business case approved based on current evaluation tools or make case for new ones 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • What Will You Do Next?  Create a portfolio matrix  Position your idea in matrix Visit  Validate market opportunity http://www.visionandexecution.com/do wnloads_tools.html  Influence R&D to support new opportunity exploration for tools to complete next steps  Build your business case  Prioritize metrics to support business case 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • How to reach Patrina • • • • • • Phone: +1 650 233 0256 Cell: +1 650 380 2627 Skype: patrina.mack eMail: pmack@visionandexecution.com Twitter: @visionexecution Blog: www.visionandexecution.com/blog 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Appendix 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • What Is Innovation? An iterative process initiated by the perception of a new market and/or new service opportunity for a technology-based invention which leads to development, production, and marketing tasks striving for the commercial success of the invention OECD, 1991 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Defining Levels of Innovation • Garcia & Calantone – – – – Radical Innovations Really New Innovations Discontinuous Innovations Incremental Innovations “This iterative nature results in a variety of different innovation types, typically called ‘radical innovations’ for products at the early stages of diffusion and adoption and ‘incremental innovations’ at the advanced stages of the product life cycle.” 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Defining Levels of Innovation • A technological invention only becomes an innovation when it is introduced to the market, having passed through production and marketing, to become adopted and diffused in the marketplace. – “A discovery that goes no further than the laboratory remains an invention. A discovery that moves from the lab into production, and adds economic value to the firm (even if only cost savings) would be considered an innovation. Thus, an innovation differs from an invention in that it provides economic value and is diffused to other parties beyond the discoverers” (Garcia & Calantone, ibid. p. 112). 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Defining Levels of Innovation • Clayton Christensen – Innovator’s Dilemma – Sustaining Technologies • Discontinuous or radical or incremental • Improve performance of established products, per historic values of mainstream customers – Disruptive Technologies • Near-term worse product performance • Introduce a different value proposition • Offer features that fringe customers value – cheaper, simpler, smaller, more convenient, etc. 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Product Strategy • A strategic master plan that guides your business’ new product war efforts (Robert G. Cooper) – Arenas of strategic focus – Goals for business’ total product development efforts – Role of product development – Resource allocation – Go to market strategy 3/25/2013 © 2002-2003 Copyright Vision & Execution
    • Platform Strategy • A core development project that typically has a design life of several years and establishes the basic architecture for a set of follow-on derivative projects – Many firms inexplicably develop one product at a time, and by doing so fail to embrace commonality, compatibility, standardization, or modularization among different products and product lines – Examples of product platform leadership • Hewlett-Packard, EMC, Black & Decker, and Boeing 3/25/2013 © 2002-2003 Copyright Vision & Execution