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Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
Easyto buyandsell product camp 2013
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Easyto buyandsell product camp 2013

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  • 1. MODULE 3 Creating Products that are Easy to Buy and Easy to Sell presented at Product Camp Silicon Valley 2013 Patrina Mack Managing Partner 325M Sharon Park Drive Menlo Park, CA 94025 www.visionandexecution.com
  • 2. Your Favorite Products • Describe one of yours – Why did you “need” it? – Why did you choose it over others? – How long did it take you to make your decision to buy? – What price did you pay? What does this tell you about designing products? – What influences affected your buying decision? – How do you feel owning it? – Would you buy it again? • Now describe your worst product experience – Answer all of the above + what you did and how you felt 3/25/2013 © 2003 - 2013 Copyright Vision & Execution
  • 3. Question for Your Company Has your team thought of everything that your favorite product company thought of to win you as a customer? 3/25/2013 © 2003 - 2013 Copyright Vision & Execution
  • 4. Finding a Market Worthy of Investment • Problem – Not defining a sizeable enough market • Solution – 3 mandatories of market viability • Large & growing • Clear customer need & willingness to pay • Opportunity you can fulfill—defensibly 3/25/2013 © 2003 - 2013 Copyright Vision & Execution
  • 5. What is Your Value Proposition? • 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? – Do nothing? 3/25/2013 © 2003 - 2013 Copyright Vision & Execution
  • 6. Validate Your Market Opportunity • Total addressable market size + the segments • Market & growth trends • Tech, regulations, environmental trends • Your “ecosystem” & differentiated value • Purchasing characteristics/process – By segment • Most receptive geographic region • Customers buying expectations – From where / from whom / in what form? • Target market developmental stage 3/25/2013 © 2003 - 2013 Copyright Vision & Execution
  • 7. 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 © 2003 - 2013 Copyright Vision & Execution
  • 8. 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 © 2003 - 2013 Copyright Vision & Execution
  • 9. Leveraging Customers • During which phase of product development would be the best time to ask this question of customers? • Does the product deliver on the value proposition? – …Vision phase How do you refine your business model to make it easier for customers to buy or adopt? – …Define phase – …Develop phase – …Delivery phase 3/25/2013 © 2003 - 2013 Copyright Vision & Execution
  • 10. Customer Input Matters at Every Stage VISION  Ethnographic Customers research  Concept evaluations  Strategic client requirement  Sales/account management  Support DEFINE DEVELOP  Demand  Working validation  Feature Prioritization/ Trade-offs 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 © 2003 - 2013 Copyright Vision & Execution 3/25/2013
  • 11. Deliver a Superior Customer Experience • Problem – • Not creating value for customers by failing to deliver the “whole” product Solution – Develop the product from customer need and market demand • Not just because it’s new technology 3/25/2013 © 2003 - 2013 Copyright Vision & Execution
  • 12. Create a Compelling Customer Experience • Design for the whole product – Deliver on external customer needs • • – Customers Channels/partners Deliver on internal customer needs • • • • • • Marketing Development Manufacturing Operations Sales Finance Crossfunctional Requirements Create Compelling Customer Experiences 3/25/2013 © 2003 - 2013 Copyright Vision & Execution
  • 13. Best Practices: Cross-Functional Teams • Fully cross-functional team delivers a complete product Product Marketing Corporate Marketing Channel Marketing Regional GMs Business Dev Partners Marketing Sales Global Team Lead Finance Billing Reporting SLA Management Engineering QA Documentation Beta Program Operations/ Manufacturing Infrastructure Support Sourcing Engineering Prof. Serv. Account Mgmt Regional Leads – Needs of external customers met – Needs of “internal customers” met – Global requirements embedded in initial design 3/25/2013 © 2003 - 2013 Copyright Vision & Execution
  • 14. “Whole” Products Deliver Solutions What “gaps” in functional considerations do you have in creating a “whole” product for your company? 3/25/2013 © 2003 - 2013 Copyright Vision & Execution
  • 15. Pace Development to Adoption • Understand what the minimum feature set is to gain initial trial CUSTOMER’S RATE OF ADOPTION • Understand what the minimum feature set is to gain widespread adoption • Build a product roadmap • Get customer agreement with your roadmap • Understand how to prioritize maintenance vs. Version 2.0 TIME = YOUR ABILITY TO DELIVER = CUSTOMER’S ABILITY TO ABSORB © 2003 - 2013 Copyright Vision & Execution 3/25/2013
  • 16. Process Has its Place • Problem – – Is late to market – • Missed customer expectations Has cost over-runs Solution – Apply a disciplined product development process to deliver a product or service that: • Satisfies the customer’s entire ownership experience • Is on time • Is on budget 3/25/2013 © 2003 - 2013 Copyright Vision & Execution
  • 17. Product Development Best Practices Holistic, effective cross-functional teams 37 .4 Lean, scalable, and adaptable State Gate process 15.4 38.5 Metrics, accountable teams 10.3 Spiral development -- loops with users throughout development Focus and portfolio management 25.2 9 0 20 Average Productivity Businesses © 2003 - 2013 Copyright Vision & Execution 70.7 44.8 52.1 48.3 25.2 44.9 25.3 7 .7 72.2 69 33.4 Heavy front end-end homework before development begins Low Productivity Businesses 54 41.4 Customer focused Source: APQC Study 58 40.2 40 60 80 High Productivity Businesses 3/25/2013
  • 18. Key Customer/Industry Inputs by Phase Concept Approval Development Approval/POR Beta Launch Approval PRTApproval GA EOL Approval EOL Planning Propose • Market Opportunity Validation • Industry Forecasts • Qualitative Exploratory Research Define • Paper prototype testing • Customer PRD reviews • Prototype testing • Usability testing • Ongoing concept validation testing • Ongoing concept • Quantitative Demand testing Research/ Concept Testing • Risk Analysis Develop Stabilize Launch Sustain • Alpha test • Customer satisfaction • Beta test • Business metrics • Pilot programs • Bug data • Market test • Feature request data • Lead user groups ( new uses for current technology) • Closed Loop Marketing • Competitive Analysis • Feasibility Analysis • Financial Analysis 3/25/2013 © 2003 - 2013 Copyright Vision & Execution
  • 19. Product Development Lifecycle Concept Approval Define Business Vision Market & product strategy vision  Platform strategy  Segmentation strategy  MRDs Approval for Development Define Product PRD including Product concept “glocalization” requirements proposal / business case  Engineering response  Preliminary technology  Architecture assessment & HL system design  Risk analysis  Technology assessment & readiness report  Third-party LOI  Market plan  Must-Do for Startups Approval for Beta Develop Product Approval for Release Test Product Approval for EOL Deliver Product Sustain Product Complete beta  Announce distribution plan test product  Integrated test plan  Complete  Transition to customer sustaining duties  Systems integration service / & disband the Alpha testing support & product delivery  Beta test plan & exit logistics team criteria testing Implement post Documentation Implement launch marketing  Customer service & pre-launch deliverables support plan marketing  Implement post Manufacturing plan deliverables launch training  Launch plan  Implement deliverables pre-launch  EOL & migration  Localize software training plan deliverables  3rd party contracts  Production/ © 2003 - 2013 Copyright Vision & Execution Ongoing product support  Achieve or exceed program objectives (metrics capture) Achieve product support / value objectives (customer feedback mechanism)  Execute end-oflife plan 3/25/2013
  • 20. 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 © 2003 - 2013 Copyright Vision & Execution
  • 21. Getting Agile • Problem – – • Not anticipating change Not planning for your next phase Solution – Develop flexible/agile leadership skills • Anticipate your options for growth • Monitor your market & competitors • Monitor your business © 2003 - 2013 Copyright Vision & Execution 3/25/2013
  • 22. Enrich Product Anticipate Options for Growth Core Product Extend Business © 2003 - 2013 Copyright Vision & Execution 3/25/2013
  • 23. Contingency Plans • Prepare for change agents – Monitor for unexpected competition – Track shifts in customer behavior/needs – Monitor for new game changing delivery mechanisms – Track changes in regulatory environment – Monitor for changes in supplier sourcing/costs 3/25/2013 © 2003 - 2013 Copyright Vision & Execution
  • 24. Monitoring Your Business Pays Dividends Timeliness Timeliness Quality Productivity Time to Market Customer satisfaction Patents Time to Revenue First-time right Function points for software % on-time Delivery Warranty costs % Part reuse Financial R&D as % of revenue Margin ROI Profitability Engineering Change Cycle Time Market Impact % Revenue from new products Market share Days to close sales 3/25/2013 © 2003 - 2013 Copyright Vision & Execution
  • 25. Key Points to Remember • Define a large market you can dominate • Understand what drives your customer to buy and your channel to sell • Consider the entire “ownership” experience and how emotional the decision making process is • Remember good process gets to market faster, on budget, especially when you focus on the minimal viable feature set • Stay agile by investing in monitoring your business and anticipating market changes 3/25/2013 © 2003 - 2013 Copyright Vision & Execution
  • 26. What Will You Do Next?  Create value proposition  Size market opportunity  Conduct customer research Visit http://www.visionandexecution.com /downloads_tools.html for tools to complete next steps  Write MRD  Write PRD  Prioritize features  Identify metrics to measure your business by 3/25/2013 © 2003 - 2013 Copyright Vision & Execution
  • 27. 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 © 2003 - 2013 Copyright Vision & Execution

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