Software companies, as well as development teams in IT departments within companies of other industries have, for years, struggled to find better tools, methodologies and training process for software development. Yet, most medium and small organizations, as well as some large ones, still struggle with the processes that define WHAT the software to be developed should be and how it will evolve over time. Proper processes are not established and most times organizations cope with conflicting roles and stressing day-to-day decisions. Product management for software requires a company-wide understanding of goals, opportunities and required discipline related to product management and is fundamental to maximize all development and ongoing maintenance efforts. This session will address why product management is crucial to maximize revenues and reduce costs in the short, medium and long terms; what the role of a product manager is; how to unfold company strategies into product strategies; what the several business aspects to be considered at product planning are; how to define productization artifacts; and how to orchestrate product releases across a software company to improve corporate communication and overall financial results. Main Message: Software organizations have improved HOW they develop and support their products – they have also to improve how to, on an ongoing basis, optimize WHAT those products should be.

1. BETTER SOFTWARE CONFERENCE EAST
ProductManagement:Optimizingthe What to Develop
ErnaniFerrari ernani.ferrari@mondostrategies.com
ChiefConsultant

2. CONTEXT

3. “3 Rules for Success”
Better before cheaper
Revenue before costs
There are no other
rules

4. Two Rules. Two Drivers
Better before
cheaper
Revenue
before costs
There are no
other rules
Better
Revenue
Superior
Quality
More sales
Higher
prices
Adequate
Quality
Superior
Quality

5. Aspects
Functionality
Usability
Reliability
Performance
Design
Testability
Maintainability
Supportability
…Xbility
What is Quality?
The definition of quality
is conformance to
requirements.
Phil Crosby

6. Software Product of
Superior Quality
Objective
“Promote gains through
the model of one-time
development and
maintenance for multiple
sales.” Ernani Ferrari
Software Product
“Software of
predefined scope
and characteristics
developed to be
commercialized.”
What is a
software product?
Processes
What ensures
good quality?
PEOPLE
PROCEDURES
TOOLS
GOALS
Product
management
process
What process
provides the key
requirements to a
product?

7. Product Management
THE PROCESS

8. Product Management
Objective
“Increase revenue through added value and increased
sales and reduce costs from all processes in the software
cycle.”
Software Product Management
“Systematic process for the definition of scope and
characteristics of software and productization
artifacts to be developed, commercialized and
maintained.”
Source: Ernani Ferrari

9. Interdependence of
Software Business Processes
Product
Manag.t
Customer
Support
Development
&
Maintenance
Technology
&
Architecture
Services
Life Cycle
Manag.t
Knowledge
Manag.t
Alliances
&
Partnerships
Customer
Relationship
Manag.t
Marketing
Sales
Channel
Manag.t
Source: Mondo Strategies

10. Product Management
– Objectives
Increase
revenue
• +Sales
• +Value/Price
Reduce
costs
• Maintenance
• Customer
Support
• Sales
• Services
• Product
evolution
Customer
retention
• Satisfying needs
• Lower TCO
Objectives

11. Optimizing Resources
GOOD
Option A
Option B
Option C
Option D
Option E
BEST
?

12. Product Management Cycle
3. Evaluate
benefits and
costs
2. Identify
opportunities
and
limitations
1. Research
4. Prioritize
5. Define
scopes
and roadmaps
6. Monitor
7. Make
adjustments
Source: Ernani Ferrari

13. Product Management Objectives
–Operationally…
Understand and respond to client
communication
Address client needs
Understand and respond to market
demands – faster than the competition,
if possible
Increase client share-of-wallet through
current and new products
Gain market share
Support initiatives for new markets
Provide an adequate framework for
Services
Reduce total costs of product
maintenance
Simplify marketing initiatives
Generate demand through innovation
Manage product life cycles (sustaining
products in profitable phases longer)
and version life cycles
Simplify product development cycles
and reduce costs
Reduce the impact of legislation
changes on products
Support the creation of a positive
product image – functionality,
technology, design, usability –
especially if product leadership is a
corporate strategy
Facilitate customer support activities
and reduce their costs
Make internationalization and
localizations feasible
Facilitate sales and presales
processes at product roll-outs and in
everyday activities
Support the activities of Field
Services
Guide infrastructure management –
environments for development, tests,
maintenance, support and presales
Facilitate knowledge management
for company teams and end users
Support management teams in
damage control and situations of
client crisis

14. Product Planning
From Business Strategies
to
Product Plans

15. Everyday Routine of a
Product Manager
Daily routine will include:
Client issues
Support to Marketing
Business presentations
Participating in meetings with Product Development and many
other areas
Most work should be focused in 3 key activities:
MappingResearch Analysis

16. Guidance &
Decision
Parameters
Key Information Areas
Customers Competitors
Sales
Financial
Results
Market
Analysts
Services
Technology
Customer Support
& Maintenance
Source: Ernani Ferrari

17. Putting Together the Product Plan
– Priority Setting
Analyses Aspects
Sales appeal for existing products (more revenue and
less TCO for customers)
Sales potential – customer base and new customers
Current costs for sustaining products
Competitors – differentials, limitations
Technology – short and long terms
Development, roll-out and maintenance – costs, difficulties, risks
Satisfaction of current customers
Solution gaps
Target markets
Institutional image
Focus
Return over investment to be made

18. Productization Artifacts
From Software
to
Product

19. Phone
Battery
Charger
Manual
Quick reference guide
Headset
Packaging, etc.
Productization Artifacts
Software
Online help
Install / update tools
Training materials
Release Notes
Sales kit
Packaging, etc.

20. Product Manager
Profile and
Responsabilities
of a
Product Manager

21. Product Manager—Profile
Summary:
Market knowledge
Knowledge about the product
and its competitors
Knowledge about marketing
concepts and dynamics
Great people skills
?
Beneficial abilities and
personal characteristics:
Excellent self-presentation
Writing and documentation ability
Presentation skills
Negotiation skills
Solid undestanding of corporate
finances–costs, cash flow,
investments, risks and ROI
Self-control
Ability to deal with uncertainties
Experience with facing clients
Experience in team leadership
Familiarity with the software
development process

22. Product Manager
—Responsibilities - A
Research for market requirements (internal/external/clients)
Evaluations
Requirements
• Market requirements
• Enhancement requests
• Translations / localization — requirements / impacts
• Existing product limitations – functionality, design, performance, usability
• Product documentation and other productization artifacts
• Impacts from new and retiring technologies
Opportunities and product profitability
• Revenue forecasts related to new clients and customer installed base
• Client satisfaction (TCO reduction, further support to clients’ business,
enhanced product support, simplified product upgrades)
• Opportunities for field services (company, channels, partners)
• Opportunities to improve institutional image – company, products
• Potential product life cycles
Costs and their impacts
• Direct costs (development, documentation, maintenance, roll-out, etc.)
• Indirect costs (training, customer support, partner support, actions along
the customer installed base, etc.)
• Impacts on network / customers – partners, alliance products, etc.

23. Product Manager
—Responsibilities - B
Planning and control
Product master plans – current and future releases, alliance products
Releases planning and support for product roll-out
Budgeting, monitoring and deviation analysis
Analysis of revenue and sales force feedback – deviation analysis and
inputs for course corrections
Definition of product strategies according to company-wide
business and marketing strategies
Creation and maintenance of product plans. Priority setting, scopes
and conflict management
Support to marketing operation and collaterals
Product briefings
Events
Corporate visits
Communication planning and execution
Planning and reviews
Relevant market information gathered through daily routines
Information on costs/revenue by product

24. Product Manager
—Responsibilities - C
Interaction with technical architecture group for requirements and
analysis related to aspects such as:
Product interoperability
Networking
Distributed environments
Databases
Tools and procedures for software deployment
Systems administration
User interfaces
Support for analysis, definition of contracts and management of
product alliances
Interaction with production staff – feasibility analysis, project follow-
up, production program reviews, conflict resolution and evaluation of
unplanned opportunities
Participation in meetings with end users and user groups
Analysis / responses to customer enhancement requests
Definition of the “productization” requirements – products and projects

25. Product Manager
—Responsibilities - D
Participation in dry-run meetings for inspection of software design
Risk management related to commitments to the market and
deadlines for product releases
Management of the product life cycles
Coordination of version life cycles and their impact for product
partnerships
Product naming
Support to pricing of products and services

26. Conclusions
 Defining what to do comes before defining how to do it
 Product Management is about strategy, marketing and optimization
of the development efforts
 Managing products demands research, analysis and prioritization
– which in turn demand skill, dedication and processes
 Product Management supports the orchestration
of a software company and simplifies corporate communication
 Since your resources are limited, identifying what is good is
far less efficient than identifying what is best to be developed
 Proper Product Management improves company-wide efficiency
 Product planning drives innovation, allows for systemic solutions
and improves overall product quality

27. Action Items
 Ensure all areas of the company understand the objectives and
dynamics of product management
 Establish structured processes and communication mechanisms
 Assign people with the right profile and proper time allocation
 Extend planning horizons to explore more systemic, corporate
opportunities
 Explore opportunities that will open up in other corporate process
areas due to enhanced product management

28. QUESTIONS?

29. Ernani Ferrari
ernani.ferrari@mondostrategies.com
www.mondostrategies.com