Value Driven Product Management Process by Terry Mosbaugh

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Value Driven Product Management Process by Terry Mosbaugh

  1. 1. Terry Mosbaugh
  2. 2. Terry Mosbaugh
  3. 3. Value-Driven Product Management WHAT IS IT? 6-Step Process to Drive Successful Business Growth  Product Lines  Small Businesses  Start-ups $$
  4. 4. Value-Driven Product Management Provides thought leadership by bringing customer and market expertise to the strategic planning process Categorizes strategy implementation to better manage details and apply best practices Aligns the product team around a strategic vision to drive execution towards: Building Products & Services Customers Want !!
  5. 5. Value-Driven Product Management  Gives market insights  Don’t be tricked into focusing only on major customer unique needs  Drives alignment between executives and product management team  Aligns business strategy with product strategy  Communicates the strategic vision to internal stake holders (i.e. Marketing, Sales, Product Development, Finance, Operations, Legal)  Provides market feedback to help adapt and improve along the way
  6. 6. Value-Driven Product Management 6 Steps to VDPM: 1. Voice of the Customer [VOC] Assessment 2. Product Profile SWOT Analysis 3. Product Portfolio vs. VOC Gap Strategy 4. Order Fulfillment Strategy 5. Go-To-Market Strategy 6. Infrastructure Review Apply “Best Practices” within each step
  7. 7. Value-Driven Product Management 1.) Voice of the Customer (VOC) Assessment - Ask lots of open-ended questions then “Listen” - Utilize multiple channels for collecting VOC - Summarize details in a MRD (Market Requirement Document)  Who are your target customers ? - Influencers, End-Users, Buyers - Enterprise, SMB, SOHO, Consumer  What do they do? What do their customers do?  What are their “problems, needs, and pains”? - True requirements may not be obvious at the start - They mostly emerge during customer interactions  What VALUE it is to them to address needs and /or eliminate pains?
  8. 8. Value-Driven Product Management 1.) Voice of the Customer [VOC] Assessment (Cont.)  What is the overall size of the market opportunity?  Why are customers buying existing products / technology?  What was their fundamental needs? How did you address their needs?  What was their alternative solutions?  What was their ROI perception?  Did your products meet, exceed, fall short of customer’s expectations?  What prospects did you forecast to purchase products but did not?  Why? objections, barriers, competitive solution  What is your competition [direct and indirect]?  Do you have a differentiator over competition? Why now?  What are the major roadblocks to you growing faster? Why?
  9. 9. Value-Driven Product Management 2.) Product Profile SWOT Analysis SWOT = Strengths, Weaknesses, Opportunities, Threats  What do you have today ?  Is it a solution or a product ?  Does it offer “Value” to your customers ?  How does it compare to competition ?  Is the product portfolio sustainable (roadmap strategy) ?  Do you have IP (patents or trade secrets) ?
  10. 10. Value-Driven Product Management 3.) Product Portfolio vs. VOC Gap Strategy Options to Fill Gaps:      Repackage what you have Private brand labeling Create custom product extensions Develop new products / services M & A strategy
  11. 11. Value-Driven Product Management 3.) Product Portfolio vs. VOC Gap Strategy (Cont.)  Regular evaluation of the portfolio and development pipeline to assign resource priority (what offers the best ROI)  Invest in product development technologies that improve the agility and speed of the engineering portion of the product development lifecycle  Product Management is key to bridging communications between Voice of the Customer and Product Development teams Apply ‘Best Practices’ o LEAN - PD o Agile Development Methodology
  12. 12. Value-Driven Product Management 4.) Order Fulfillment Strategy  Manufacture Internally  Outsource to Contract Manufacturer / ODM  Private Label  All of the Above What is your Vendor, Logistics and Supply Chain Support Strategy?
  13. 13. Value-Driven Product Management 5.) Go-To-Market Strategy  Product [Packaging, MOQ’s, Vertical’s]  Price [Standard, Tiered, Disty, eBusiness)]  Promotion [Social Media, eMarketing, Lead Gen, PR]  Placement [Sales Channels]  Position = “Targeted Value-Add Solutioning”
  14. 14. Value-Driven Product Management 5.) Go-To-Market Strategy (Cont.) Targeted Value Add Solutioning (Step 1) 1. Promote “Value” not Features / Benefits  Customers do not buy product features nor benefits  Focus sales enablement and marketing tools around the value features and benefits bring to addressing identified customer’s needs or pains
  15. 15. Value Driven Product Management 5.) Go-To-Market Strategy (Cont.) Targeted Value Add Solutioning (Step 2) 2. Develop “Solutions” not Products  Solutions can be a combination of products, services, messaging, and operational best practices  Solutions drive differentiating value resulting in greater revenue and higher margins  Solutions have less competitive pressures
  16. 16. Targeted Value-Add Solutioning Targeted Value Add Solutioning (Step 2) 2. Develop “Solutions” not Products (cont.)  Four Samples of Solutions are:  Stand Alone: a product and/or service combined with Best-of-Class Customer Service  Vertical Market/Niche Market Specific: a product wrapped in value-add messaging crafted for specific users  Bundle: a combination of existing discrete products, services, and operational best practices into a solution possibly with promotional package pricing  Integrated Solution: an offering that integrates multiple components such as products, services, processes, intellectual property, and pricing that delivers value beyond which each individual component could provide on its own
  17. 17. Value-Driven Product Management 5.) Go-To-Market Strategy (Cont.) Targeted Value Add Solutioning (Step 3) 3. Identify “Targeted Customer Needs”  Be the expert on "Targeted Customer Needs" and how your products are used to address the needs  In addition to existing customers be sure to evaluate the needs of new prospects, vertical marketing teams, sales engineers, and channel partners (MSP, VAR, SI, Dealers)  Focusing only on major customer unique needs can be dangerous
  18. 18. Value-Driven Product Management 5.) Go-To-Market Strategy (Cont.) Targeted Value Add Solutioning (Step 3) 3. Identify “Targeted Customer Needs” (Cont.)  Influencers, Users and Buyers all have different needs  Enterprise customers have different needs than SMB, SOHO or Consumer  Specific Vertical Markets have unique different needs  Hunter sales people have different needs than Farmer sales people
  19. 19. Value-Driven Product Management 5.) Go-To-Market Strategy (Cont.) Targeted Value Add Solutioning (Step 3) 3. Identify “Targeted Customer Needs” (Cont.)  Prioritize Target Customers  “Execute” on GTM strategy
  20. 20. Value-Driven Product Management 6.) Infrastructure Review  What infrastructure is required to support Steps 1 through 5?  Create Org Chart with boxes of functionality  Assess existing personnel / support groups  Assign personnel / groups to best functionality  Recruit / Hire / Train key performers – Fill function gaps  Develop KPI metrics reporting dashboards  Lead, Manage, Mentor and Motivate team(s) Communicate Communicate Communicate
  21. 21. Value-Driven Product Management VDPM Process  Generates:  Business Strategy  Product Line Strategy  Product Roadmap  Gains Stakeholders Agreement  Creates Milestones and Budget Allocations  Set Target Dates to Achieve  Can Monitor Budgets Status  Monitors Progress via KPI dashboards  Adjust Strategy [Pivot] as needed  Be Flexible to Market & Customers Changes  Anticipate vs. React DIFFERENTIATION ISN’T ENOUGH  YOU HAVE TO BE BETTER
  22. 22. Value-Driven Product Management Jim Brown VP - Global Product Innovation and Engineering Aberdeen Group
  23. 23. Value-Driven Product Management WHAT IS IT? 6-Step Process to Drive Successful Business Growth  Product Lines  Small Businesses  Start-ups $$
  24. 24. THANK You ThankYOU Terry P. Mosbaugh terry.mosbaugh@gmail.com

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