Product Development is a central and critical business process for all software companies. Regardless of the origin of the software or service it requires a continuous product development to meet both existing customers and potential customers’ needs and desires for functionality. This is the third of a series of presentations where I list and explain five overall and general objectives for the company’s product development.

1. Product Development
Objectives
Last part – Increased Shareholders Value and Growth Opportunities
Daniel Maurer – November 2015
Software Vendor Management Guide
www.softmanguide.com

2. A presentation for you who…
• Is the CEO of a software company
• Shall take over as CEO of a software company
• Member of the management team of a software company
• Is a board member of a software company
• Is the owner of a software company
• Is an investor in a software company
• Wants to start a software company
• Are generally interested in how software companies are managed and
developed

3. Content
How Product Development contributes to increased Shareholders
Value and more Growth Opportunities

4. Introduction
Product Development shall create a long term value for the Shareholders

5. Introduction
Product Development shall create a long term value for the Shareholders
Product Development shall ensure a high quality

6. Introduction
Product Development shall create a long term value for the Shareholders
Product Development shall ensure a high quality
Product Development shall contribute to growth

7. Increased Shareholders Value
The important and central role for the Product Manager

8. The Product Manager shall…
Keep an eye on competitors…
…listen to customers and…
…listen to partners
But also…
…consider the company’s strategic plan…
...and the desired market position

9. The Product Manager must…
Be well versed in the market position…
…both the existing one and the desired…
…as well as the strategic and tactical plan how to get there

10. Increased Shareholders Value
How to get there?

11. For the smaller company – Best of Breed
For the smaller Product company this is a way forward…
…by selecting…
…a few specific features and…
…focus on these

12. For the larger company
For the larger Product company with more development resources…
…additional features can be added…
…or added with acquisitions

13. Don’t forget about Churn
Don’t focus on new functionality only since…
…focusing on quality as well, increase the product value…
…and hence the Shareholders value, because…
…high quality enhance the customer experience…
…and reduce the churn rate

14. Increased Shareholders Value
What shall the Board and the Management Team do?

15. Board and Management responsibilities
One development track must be directed to…
…strengthen the existing market position or…
…the desired one

16. Board and Management responsibilities
In the best of worlds this development track…
…conforms with other development tracks but…
…both the Board and the Management team…
…must ensure that this strategic work is not forgotten

17. Higher growth
How to reach new target groups and new markets?

18. Evaluate areas of growth
New markets can require something as easy as…
…multi-language support
New markets can also require…
…more complexed localization due to…
…legal requirements…
…custom…
…market structure or…
…business culture

19. Evaluate areas of growth
New markets can require…
…new functionality or…
…a wider range of existing features why…
…acquisitions can be important

20. Don’t forget to link the strategies
Product development for new markets requires a…
…link between product strategy and…
…business strategy

21. Hype impact
What’s happening in your business environment is important to
understand

22. Keep track
External factors affects your growth strategy and…
…the Product Manager needs to be aware of the hypes and…
…how they may affects your product or service

23. Keep balance
The bigger challenge is not to keep track but…
…neither overestimate nor…
…underestimate…
…what’s happening on the market

24. Continuous development
To keep track and balance is important…
…whether it’s about…
…Big Data, Cloud, SaaS, Streaming, 3D, VR…
…Social Selling, Devops, Biometrics or…
…why not – IoT

25. Discuss and evaluate
One way to keep track and balance is to…
…have a yearly workshop…
…preferably in connection with the Strategy Meeting…
…in order to keep the strategy map updated
An ounce of prevention…
…is worth a pound of cure

26. So…
- PM needs to be involved in the strategic plan
- Evaluate Best-of-Breed and/or acquisitions
- Don’t forget about quality and churn
- Evaluate areas of growth continuously
- Link the business strategy to the product strategy
- Keep track of hypes - but keep the balance

27. Product Development
Objectives – Last part
Thank you for your attention!
Daniel Maurer – November 2015
Software Vendor Management Guide
www.softmanguide.com