New Product Development and Stage Gates


Published on

Shared experiences of delivering new software products from start-ups to well established companies -- from no process to very formal stage gates.

Presented to University of San Diego Business class.

Published in: Software, Business, Technology
1 Comment
  • Always good to see what a genius like you is up to! Thanks for posting Rick
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

New Product Development and Stage Gates

  1. 1. New  Product  Development   Experiences  and  Stage  Gates   Guest  Speaker   April  3,  2014   Rick  Berzle  |  President  |GoToMarket  LLC  
  2. 2. Agenda   •   Background/Experience   •   Company  Maturity  and  Product  Planning   •   Formal  New  Product  Planning  Processes   •   Limited/No  New  Product  Planning   •   Considering  GoToMarket  Alignment   •   ParKng  Thoughts  
  3. 3. Speaker  Background   •   BS  Computer  Science/MBA  MarkeKng   •   8  years  in  SoNware  Development   •   10  years  in  SoNware  Product  Management   •   15+  years  in  VP-­‐level  MarkeKng  PosiKons   •   12  MarkeKng/Business  Consultant       2  
  4. 4. My  Story/Career  TransiBons     •  Math  major  -­‐>  1st  job  Engineer’s  Aid   •  Back  to  school  for  Computer  Science   •  Honeywell  (LA)  -­‐>  Digital  (Boston)   •  Development  -­‐>  Product  Management   –  Graduated  to  Product  Line  Management   •  To  Apple  -­‐>  Taligent   •  Taligent  -­‐>  Start-­‐ups  -­‐>  GoToMarket   •  To  Peregrine  -­‐>  GoToMarket   •  Lots  of  early/mid-­‐stage  soNware   companies   3   70’s       80’s       90’s     20’s       Today  
  5. 5. Product  Planning  Processes   Factors  that  influence  product  planning:   •  Company  size/maturity   •  Financial  stability/shareholder  expectaKon   •  Leadership   •  Market  dynamics   •  Time-­‐to-­‐market   •  Category  (soN  vs  hard)   •  Capability  (experKse)   4  
  6. 6. Size/Maturity:  Product  Focus   • Sales leadership • Product suites • Revenue growth • Brand awareness • Integrated sales/mkting • Technical leadership • One Product Company • Reference Accounts • Sales & Sales Support • Minimal Marketing Start-up $0-5M Early-Stage $5-20M Mid-Stage $20-50M Growth $50-100M • Financial leadership • Product lines • Predictable revenues • Brand value • Market/Product Strategy Mature 100+M Product Planning MaturityInformal Formal
  7. 7. Maturity/Size:  GoToMarket  Focus   Start-up $0-5M Early-Stage $5-20M Mid-Stage $20-50M Growth $50-100M Mature 100+M • Focus is account acquisition • Product defined by engineering • Marketing is describing what was built • Product Management is non-existent • Focus is market expansion • Product Management/Marketing blended role • Product strategy and roadmap fundamental • Marketing is about awareness and value proposition • Product and Product line strategy • Specific marketing disciplines exist • Product management is fundamental • Well-defined marketing/sales boundaries
  8. 8. Digital  Equipment  Corp   •  Formed  in  late  50’s   •  Leading  suppler  of  mini-­‐computers   •  Grew  to  be  a  complete  systems  provider  –   desktop  to  servers   •  $14B  in  sales;  $1B  in  soNware   •  Squeezed  out  of  the  market   –  IBM,  Dell,  Compaq  at  the  low-­‐end   –  IBM  at  the  high-­‐end   •  Acquired  by  Compaq  (98),  merged  with  HP  (02)   7  
  9. 9. Phase  Review  Process   •  Product  Lifecycle  Model  and  Process   •  Spans  all  corporate  funcKons   •  Owned  by  Product  Management   •  Planning  and  ExecuKon  of  all  phases  and   phase  transiKons  of  the  product  lifecycle   •  Specific  EXIT  criteria  for  each  phase   •  Public  Exit  Phase  Reviews   8  
  10. 10. 6  Phases  to  the  Lifecycle   •  Phase  0  –  Strategy  and  Requirements   •  Phase  1  –  Planning  &  Feasibility   •  Phase  2  –  ImplementaKon   •  Phase  3  –  QualificaKon   •  Phase  4  –  ProducKon  and  Support   •  Phase  5  –  ReKrement   9  
  11. 11. Phase  0  –  Strategy  &  Requirements   •  IdenKfy  a  market   problem  or   opportunity     •  Propose  a  product   soluKon   •  Consistent  with   Corporate  Product   Strategy   •  Primary  deliverable  is   the  Business  Plan   10  
  12. 12. Phase  1  –  Planning   •  FuncKonal  specificaKon   and  engineering  plan   •  Preliminary  product   design   •  Integrated   implementaKon  Plan   •  Company  fully  commits   at  Phase  1  Exit   11  
  13. 13. Phase  2  –  ImplementaBon   •  Design  complete   •  Prototypes  built   •  Product  meets  phase  0   requirements   •  Full  funcKonality  is   tested   •  Product  launch  plan   developed   12  
  14. 14. Phase  3  –  QualificaBon   •  Qualify  producKon-­‐ level  copies  of  the   product   •  IniKate  field  tests   •  Demonstrate  product   meets  requirements   of  Phase  0  and   specificaKons  of   Phase  1  and  2   13  
  15. 15. Phase  4  –  ProducBon/Support   •  Achieve  and  maintain   steady-­‐state  volume   producKon,  sales  and   service   •  Phase  4A  –  Ramp-­‐up   •  Phase  4B  –  Steady-­‐ state   •  Monitor/adjust  to   meet  product  and   market  performance   targets   14  
  16. 16. Phase  5  –  ReBrement   •  Implement  Product   Phase  Down  Plan   •  Fulfilling  internal  and   external  commitments   •  Require  the  same  level   of  complexity  as  new   product  development   15  
  17. 17. Challenges  for  Tech  Products   Point  of  Sale   Sold  direct  to  customer  by  sales/channel   Capability/ROI   Emphasized,  demonstrated  ROI   Pre-­‐Sale  EvaluaKon   Demos,  Pilots  (months)   Post-­‐sale  support   DocumentaKon,  training,  service,  support   Purchasing  risk   High  (many  products  don’t  meet  their  hype)   Intangible  factors   Trust,  reputaKon,  references,  financial  stability   Product/Technology  Roadmap   Lifecycle  and  extendibility   Must consider go-to-market cost/risk in the Tech Market
  18. 18. Formal  New  Product  Planning   Digital  Equipment  CorporaBon  examples:   •  Low-­‐end  Laser  Printer  (opportunity)   •  WorkstaKon  Publishing  (make  vs  buy)   •  2D/3D  graphics  (industry  standard)   •  OperaKng  Systems  (strategic)     17  
  19. 19. Informal/No  Product  Planning   Early-­‐stage/High-­‐growth  examples:   •  Peregrine   – Rapid  expansion  of  product  porlolio   – Mergers/AcquisiKons   – Infrastructure  Management   •  IT,  Telecom,  FaciliKes,  Vehicles,  ..   •  ServiceNow  (soNware-­‐as-­‐a-­‐service)   •  Customer-­‐first  soluKons  (producKzed)   18  
  20. 20. A  few  final   thoughts  on     go-­‐to-­‐market   consideraBons     19
  21. 21. Go-­‐To-­‐Market  Alignment   Market Opportunity Revenue Attainment Target  Market   Customer   Buyer/Influencer   Need/Pain   CompeBtors   MarkeBng  Strategy   Who?  (customer)   Requirements   Use  Cases   Service/Support   PosiBoning/Branding   Value  ProposiBon   Pricing/Packaging   What?  (soluBon)   Demand  GeneraBon   Sales  Model/Channel   OpBmizaBon   Team  OpBmizaBon   Sales  ExecuBon   Measurement/Metrics      How?  (execute)   ü  Poor  alignment  results  in  missed  market  and  revenue  opportuniKes   ü  Good  alignment  requires  organizaKonal  cooperaKon  and  collaboraKon   ü  Agreed  set  of  strategic/tacKcal  goals  and  a  sharp  focus  
  22. 22. PosiBoning  Template   “FOR  (who  is  the  target  customer)   WHO  (what  is  their  need  or  opportunity)   YOUR  PRODUCT  or  SERVICE  NAME   IS  A  (product  category)   THAT  (key  benefits  –  the  compelling  reason  to  buy)   UNLIKE  (primary  compeKKve  alternaKve)   OUR  OFFERING  (statement  of  primary   differenKaKon)”   21  
  23. 23. GoToMarket  Example   For  soNware  vendors  who  develop,  market  and  sell  soluKons/services  to  an  enterprise  customer  and   deploy  on-­‐site  or  as  a  service  (SaaS)     Who  are  focused  on  aligning  their  go-­‐to-­‐market  strategies  and  tacKcs  to  consistently  meet  market   penetraKon  and  revenue  aqainment  goals     GoToMarket  is  a  markeKng/sales  consultancy  and  interim  execuKve  management  company     That  provides  unique  execuKve-­‐level  operaKonal  experience  to  idenKfy  the  go-­‐to-­‐market  gaps  that   affect  the  vendor’s  ability  to  predict  and  meet  revenue/market  aqainment  goals  in  a  sustainable   fashion.     Unlike  other  consulKng  firms,  GoToMarket  provides  highly  successful  and  experienced  professionals   with  deep  soNware  markeKng  and  sales  operaKonal  experience  that  can  idenKfy  go-­‐to-­‐market   revenue  chain  gaps/issues  and  provide  the  operaKonal  leadership  to  implement  needed  changes       Our  Offering  takes  a  pragmaKc  approach  to  the  strategic  and  tacKcal  elements  of  the  go-­‐to-­‐market   revenue  chain  that  rapidly  determines  both  the  internal  barriers  to  sales  success  and  the  associated   remedies  to  align  markeKng  and  sales  for  opKmal  producKvity  -­‐-­‐  expanding  the  opportunity  pipeline,   improving  customer  acquisiKon  and  retenKon,  lowering  the  cost  of  sales  and  ulKmately  ensuring   reasonable  revenue  aqainment  targets  are  achieved.    
  24. 24. Recommended  Reading   •  “Crossing  the  Chasm:  MarkeKng  and  Selling   DisrupKve  Products  to  Mainstream   Customers”  by  Geoffrey  Moore   •  “Inside  the  Tornado:  Strategies  for  Developing,   Leveraging,  and  Surviving  Hypergrowth   Markets”  by  Geoffrey  Moore   •  “Rules  For  Revolu7onaries:  The  Capitalist   Manifesto  for  CreaKng  and  MarkeKng  New   Products  and  Services”  by  Guy  Kawasaki     24  
  25. 25. Thank  You.   I  hope  this   was  helpful.