Innovation day 2012 9. dany robberecht - verhaert - 'product management; turning pain into gain'

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  • Create Differentiated Roles for Overall Success
    And while there are certainly individuals who can do all this, the fact is, it is an impossible task for most people, and leads to both individual and organizational failure. So here’s a simple solution. Understand the needs of these different internal (and external) groups and create differentiated roles WITHIN the Product Management organization and STAFF THEM appropriately. This will help create a scalable effective, and focused Product Management organization.
    The following are a few key roles I’ve seen implemented in successful Product Management organizations.
    Technical Product Manager
    Engineering and Technical Support need more technically focused interaction with Product Management. So define the role of Technical Product Manager (TPM) to work closely with these teams and the issues they raise.
    A TPM can act as a Product Owner in an Agile environment, working with a Project Manager (not necessarily part of the PM team) and the Development leads to ensure requirements (user stories etc.) are clear and iterations move forward efficiently.  Or, a separate Product Owner role can be defined (whether in the PM org or not) and that role can work with the TPM in an effective manner.
    Software Developers or QA staff who want to move into Product Management are great candidates for the TPM role.
    Product Marketing Manager
    Product Marketing is often a completely separate team from Product Management, reporting into a different executive. e.g. up into the Marketing organization. Everyone says they should work with Product Managers, but they have their own goals and objectives and thus often remain quite separate.
    Fundamentally, Product Marketing is strategic marketing for products and is a core component of overall Product Management. Product  Marketing should be the primary Product Management interface into the Sales and Marketing organizations. Much of the work remains the same, but it can be done more effectively as part of the Product Management organization.
    A good market focused Sales Consultant or Field Marketing person could transition easily into a Product Marketing role.
    Solution Architect
    For particularly technical or complex products, the role of a solution architect or solution specialist within the Product Management team can be very effective.  Product Management is viewed as the “product expert” by external departments, and called upon when thorny issues or new usage scenarios are encountered. But to be effective, even a good TPM needs to have time to focus and understand problems before identifying solutions in sales situations.
    Solution Architects are deep product experts with a sales/customer mindset. While this may sound a bit like a Sales Consultant or Sales Engineer (and there is overlap), the goal of these SAs is to work as overlays across prospects and customers, and help the SEs and Technical Support with thorny problems.
    The SAs insight can help identify real world product limitations that Product Management should address in the future, or provide clever workarounds to problems that a field SC or Support Engineer couldn’t create.
    Technical Sales Consultants, and customer-focused Technical Support Engineers can make great Solution architects.
    Product Manager, Director/VP Product Management
    And of course, there need to be clear leaders on the team. They can be either people with the title or Product Manager (Senior, Principal etc.) or those at the Director or VP level. Regardless, they must be seasoned veterans, who’ve been down in the trenches and understand the details, but now focus on managing and developing the team, strategy, and cross-organizational and external alignment.  And while much of the interaction between Product Management and the Executive team will here, these leaders need to ensure the individual contributors they manage get executive face time when needed.
    Other roles
    Depending on the company, it’s structure and needs, other roles such as Interaction Designer, Business Analyst and even Project Manager could be part of the Product Management organization. These are less common in my experience and thus not addressed in this post.
    Organizing for Efficiency, Scalability and Success
    Once the various roles have been defined, their objectives and responsibilities set, a diagram showing how they interact across internal teams could look like:

  • Innovation day 2012 9. dany robberecht - verhaert - 'product management; turning pain into gain'

    1. 1. CONFIDENTIAL 26.10.2012 Slide 2 PRODUCT MANAGEMENT: TURNING PAIN INTO GAIN CONFIDENTIAL Dany Robberecht Director consulting office Dany.robberecht@verhaert.com
    2. 2. CONFIDENTIAL 26.10.2012 Slide 3 What is it about? How to get it done? What does it take?
    3. 3. CONFIDENTIAL 26.10.2012 Slide 4 Understanding the walk
    4. 4. CONFIDENTIAL 26.10.2012 Slide 5 Product management – common understanding
    5. 5. CONFIDENTIAL 26.10.2012 Slide 6 He’s becoming in fact the innovation manager Innovation driven Front end activities Increasing expectations Different toolchain Time pressure Converging world
    6. 6. CONFIDENTIAL 26.10.2012 Slide 7 The fuzzy-front-end … Source:Based on Verhaert
    7. 7. CONFIDENTIAL 26.10.2012 Slide 8 The key role of the product manager Complex interdisciplinary management of diverse roles and orientations Need for hollistic ”mushroom” profile For “new” product: Often link to (corporate) business problem is required. Product Management must drive return on innovation Product Strategy Product Develop- ment Product Manage- ment Product Marketing Toegevoegde waarde Cost = ROI
    8. 8. CONFIDENTIAL 26.10.2012 Slide 9 But the goal remains the same … “build products people want to buy”
    9. 9. CONFIDENTIAL 26.10.2012 Slide 10 Is it really so difficult?
    10. 10. CONFIDENTIAL 26.10.2012 Slide 11 Would you buy this? Toilet Snorkel US Patent How would a good product for the problem look like?
    11. 11. CONFIDENTIAL 26.10.2012 Slide 12 The world is moving as well Globalisation Fierce competition Shorter life cycles Social media power Novel distribution models
    12. 12. CONFIDENTIAL 26.10.2012 Slide 13 New-value proposition Stage 1 Stage 2 Stage 3 Stage 4 ProductinnovationBusinessinnovation Options Options Options Options Design,… Mech.eng,.. Elec& sw,.. Business modeling User ,.. Marketing,.. Managing in a concurrent environment “The nature of how companies are organised inhibit cross disciplinary collaboration” “The nature of how companies are organised inhibit cross disciplinary collaboration”
    13. 13. CONFIDENTIAL 26.10.2012 Slide 14 Getting the job done
    14. 14. CONFIDENTIAL 26.10.2012 Slide 15 Driving innovation – what entry points to consider? Business Process Voice of the customer Job-to-be-done What customers demand What customers in fact need How customers have access to a solution Source:Based on Verhaert
    15. 15. CONFIDENTIAL 26.10.2012 Slide 16 Technology Change Meaning to users LowHigh Known Novel Coke Cooler Innovations at glance … Source:Based on Verganti Hug me cooler
    16. 16. CONFIDENTIAL 26.10.2012 Slide 17 Technology Chance Meaning to users LowHigh Known Novel Coke Cooler Innovations at glance … Source:Based on Verganti Hug me cooler Low energy cooler
    17. 17. CONFIDENTIAL 26.10.2012 Slide 18 Technology Change Meaning to users LowHigh Known Novel Coke Cooler Innovations at glance … Source:Based on Verganti Hug me cooler Low energy cooler POP Cooler
    18. 18. CONFIDENTIAL 26.10.2012 Slide 19 Technology Change Meaning to users LowHigh Known Novel Coke Cooler Innovations at glance … Source:Based on Verganti Hug me cooler Low energy cooler POP Cooler Glacier Cooler
    19. 19. CONFIDENTIAL 26.10.2012 Slide 20 when product performance is good enough… Focus on a) desire-ability: life style-design, branding, communities,… b) use-ability, convenience throughout the life cycle -Look for User Centered Design (UCD) -Look for potential in service innovation TIME PRODUCTPERFORMANCE From a market strategy perspective start an innovation strategy from the situation Source:Based on Christensen
    20. 20. CONFIDENTIAL 26.10.2012 Slide 21 From a product development perspective leverage from platform thinking An example … An important ‘top-level’ specification step : How do we diversify the product towards different client groups -”jobs to be done”? What do we deliver and what de we leave for our partners? What’s the baseline? What are options (how do we construct our price list)? What are the technical building blocks? Which components / subsystems are driving performance? Which components / subsystems are sensitive for technology evolution? What will probably be personalised? How is the product handled throughout the value chain? (transport, installation, …)
    21. 21. CONFIDENTIAL 26.10.2012 Slide 22 From a product strategy perspective build differentiating value propositions An example … In our product economy we often tell bizarre stories. Stories that not engage our users, neither they improve our competitive position. Despite the efforts of a whole company they don’t deliver anything.
    22. 22. CONFIDENTIAL 26.10.2012 Slide 23 The new product management framework MARKET STRATEGY BUSINESS PLANNING PROGRAMS READINESS SUPPORT Understand market problems and your unique ability to address them. Create a product strategy integrated with your organisation’s products Formalise your product plans to deliver profitable solutions for market problems Create go-to-market programs aligned to the buying/making process Support the sales channels with market and product expertise Connect your business plans with the organisations that develop, promote and deliver to the market Ensure the ability to sell and support your product STRATEGIC TACTICAL Source:Based on Verhaert
    23. 23. CONFIDENTIAL 26.10.2012 Slide 24 The new product management framework MARKET STRATEGY BUSINESS PLANNING PROGRAMS READINESS SUPPORT STRATEGIC TACTICAL Market problems Techno- logy knowledge Competive landscape Distinctive compe- tence Win/Loss analysis Distribution strategy Market definition Product roadmap Product portfolio Business plan Profitability monitoring Buy, build, partner Pricing Innovation compe- tencies Customer Buying process User personas Buyer personas Use scenarios Status boards Positioning Require- ments Referrals & references Customer acquisition Program effective- ness Customer rentention Thought leadership Lead generation Marketing event plan Launch plan Collateral Sales Tools Sales process Channel training ‘Special’ calls Event support Presenta- tions & demos Channel support ?your fit Strategy Technical Marketing Source:Based on Verhaert
    24. 24. CONFIDENTIAL 26.10.2012 Slide 25 NPM’s must manage return on innovation Innovation value curve investment cumulative cash traction multiple valuation Source:Based on Verhaert € time
    25. 25. CONFIDENTIAL 26.10.2012 Slide 26 Establish a framework
    26. 26. CONFIDENTIAL 26.10.2012 Slide 27 Companies must create differentiated roles … Senior Mgm Sales Marketing Product Director Product Marketing Mgr Engineering Technical support Presales Technical product mgr Solutions architect Product Management focus technical business # persons # locations Source:Based on Verhaert
    27. 27. CONFIDENTIAL 26.10.2012 Slide 28 Example of a medical company’s perspective Existing treatments Technology Interventional cardiology Solutions Interventional radiologist Vascular surgeon New treatments + S T O Source:Based on Verhaert
    28. 28. CONFIDENTIAL 26.10.2012 Slide 29 The product management organisation Organised from a Technology perspective Organised from a product champion perspective Organised from a market / application perspective Most companies need all of them or or or LEADERSHIP 1) General product mgm function 2) From one of the components Source:Based on Verhaert
    29. 29. CONFIDENTIAL 26.10.2012 Slide 30 A driver needs a dashboard
    30. 30. CONFIDENTIAL 26.10.2012 Slide 31 •Maximizing fit with user / market requirements •Minimizing the development cycle •Controlling development & product costs To Inform all stakeholders Dashboard as a basis for communication
    31. 31. CONFIDENTIAL 26.10.2012 Slide 32 New-Products pipeline CONFIDENTIAL 12/07/02 last update initiator FW last print Product candidate/ Project Stage Value idea startegic fit added value bus model business case Lead user ID Funding Euro General Total (N°) 13 22 10 21 13 General Total (KEuro) 24.000 38.250 50.000 287.898 156.057 1.258.852 Project A x 17.124 Project B x 26.400 Project C x 14.285 Project D x 15.000 Project F x 20.000 Project G x 27.300 14.285 x 55.400 x 15.000 x 15.000 x 40.100 x 20.000 x 60.000 •Provides overview of the initiatives, status, and potential •Make sure your pipeline is not back or front loaded (distribution) •Each project described as NABC (New Application & Business Concept) New Products Pipeline is yours connected to your business strategy?
    32. 32. CONFIDENTIAL 26.10.2012 Slide 33 Elements of a product candidate description of eight key elements: 1. Title 2. Summary of the problem/need and approach (useful?) 3. Description of the situation the customer/user was facing (value?) 4. What we will do to solve their problem (feasibility?) 5. Description of the impact of the solution (usability?) 6. An appropriate illustrative visualisation (desirability?) 7. Differentiation concept (positioning / competition) 8. Business concept N-ABC New application & business concept
    33. 33. CONFIDENTIAL 26.10.2012 Slide 34 Illustration of N-ABC (product model) Need 350 million smokers – 5000 million cigarettes/y Packaging is very expensive Main functions are marketing and product preservation Increasing regulations to stop advertising / smoking Approach Launch project in marketing driven projects (Music festivals, …) Prototype development required of blister concept Benefit Blister will unleash a marketing tornado = branding Improved performance to getting wet, less cracks in pocket, etc. Better fit to jeans pocket Competition Traditional packs
    34. 34. CONFIDENTIAL 26.10.2012 Slide 35 Building a common language is essential – visual thinking System diagrams – artist impressions, moodboards,exploded views, collages,… “Product Managers need to connect the dots. Visual thinking, on all aspects, provides very good communication abilities.”
    35. 35. CONFIDENTIAL 26.10.2012 Slide 36 Conclusions • The nature of new products management requires an exploratory attitude, out-of-the-box thinking, but focused on a business challenge; so very result driven at the end. • Companies must creates some ‘air’ to connect the dots, hence the innovation strategy and the measures taken within must be aligned to a company’s business strategy / ambitions. • Innovation requires multi level decisions, hence a separate reporting structure is required, managing both horizontal and vertical streams • Communication is essential and visual thinking is very useful to create a common communication language
    36. 36. CONFIDENTIAL 26.10.2012 Slide 37 VERHAERT MASTERS IN INNOVATION® Headquarters Hogenakkerhoekstraat 21 9150 Kruibeke (B) tel +32 (0)3 250 19 00 fax +32 (0)3 254 10 08 ezine@verhaert.com More at www.verhaert.com VERHAERT MASTERS IN INNOVATION® Netherlands European Space Innovation Centre Kapteynstraat 1 2201 BB Noordwijk (NL) Tel: +31 (0)633 666 828 willard.vanderheijden@verhaert.com More at www.verhaert.com VERHAERT MASTERS IN INNOVATION® helps companies and governments to innovate. We design products and systems for organizations looking for new ways to provide value for their customers. We are a leading integrated product innovation center; creating technology platforms, developing new products and business in parallel, hence facilitating new-growth strategies for our clients.

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