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Product Management as a Service Organization


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Product Management as a Service Organization by Judy Kirkpatrick at SVPMA Monthly Event March 2004

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Product Management as a Service Organization

  1. 1. Product Management as a Service Organization Judy Kirkpatrick VP, Global Product Management March 2004
  2. 2. Agenda• What Does “Service Organization” Mean at eBay?• The PDA Organization• Where Product “fits” at eBay• The Product Development Process• Product and Design Principles• What We’ve Accomplished 2
  3. 3. Definition of ServiceMain Entry: ser·vicePronunciation: s&r-v&sFunction: nouna : the work performed by one that serves <good service>b : HELP, USE, BENEFIT <glad to be of service>c : contribution to the welfare of others ©Meriam-Webster 3
  4. 4. Whom Does PM “Service” at eBay?• Product Strategy and Vision• Our eBay Community – Buyers – Sellers• Our eBay Business Partners – U.S. – International – PayPal• Our Cross-Functional Partners – Trust and Safety – Billing and Collections – Customer Support 4
  5. 5. The Four Types of Service Businesses Service Task Routinized Knowledge Integrated Service Service Service Delivery Factory Shop Service Service Decoupled Store ComplexBusiness Horizons © 1999 by Indiana University Kelley School of Business. 5
  6. 6. eBay PM as a Service Complex• We provide a broad range of customized, knowledge-based services that are delivered by various team members• We must be flexible and adaptable to respond to varying business and community needs• We add value through innovation and expertise, so creativity and initiative are critical• Interactions with our community and business partners are close, very personal and very intense• Our “clients” want to deal with specialists whom they know and trust 6
  7. 7. Key levers for achieving “AAA” growth Key Growth Levers “AAA” Category Management Activity Website Activation Merchandising Marketing Acquisition 7
  8. 8. Delivering Excellent Service at eBay• Base decisions based on what the customer wants and expects.• Think and act in terms of the entire customer experience.• Continuously improve all parts of the customer experience. 8
  9. 9. Checkout/Multi-Item PaymentsBefore After 9
  10. 10. Delivering Excellent Service at eBay• Base decisions based on what the customer wants and expects.• Think and act in terms of the entire customer experience.• Continuously improve all parts of the customer experience.• Avoid failing your customers twice.• Empower members to “co-produce” their own experiences.• Create and sustain a strong mission and vision. 10
  11. 11. Global PM’s Vision and Mission Vision – We enable eBay’s Global Economic Opportunity – We empower eBay’s Community to reach higher levels of success – We provide a world-class core-competency to eBay’s business Mission We design and build the people’s most efficient and abundant marketplace. ‒ We own and drive product vision and strategy and partner in business strategy ‒ We translate business and Community needs to product requirements, while providing thought leadership, community advocacy and scalability to our global product platform ‒ We deliver innovative world-class products that grow eBay’s global business, making significant daily contributions to our Community and eBay’s success through our seamless execution. 11
  12. 12. PDA | Product Development Architecture Product Development & Architecture Acquisition Advanced Architecture Global Process Eng Product Integration Technology Product & Metrics Development Planning Product Product Program Systems User Management Strategy Management Development Experience & Design 12
  13. 13. Global Product Management Areas Global GlobalPRODUCT Product Product Management ManagementSTRATEGY Judy Kirkpatrick Judy KirkpatrickShri Mahesh TnS/CS/ BUYING SELLING COMMUNITY Amy Smith Anne Raimondi BILLING Vikram Subramaniam PLATFORM & INTERNATIONAL INFRASTRUCTURE Michael Buhr Anette Auyang, AAA Mark Inkster, China Jim Ambach, Europe MOTORS Kirstin Hoefer 13
  14. 14. Where the Product organization “fits” Community Help ensure our community is front and center in everything we do. The “BUs” The U.S. Business Unit Grow the US business andProduct categories Product Strategy International Product Management Drive international business and global expansion. User Experience Design Development & Architecture Marketing Manage the eBay brand and Advanced Technology attract users to the site. Project Management Trust & Safety Product Planning The Site Ensure a safe trading Process Engineering environment. Acquisition Integration Customer Support Support end users Deliver features and new PayPal capabilities to the site. Provide a seamless payment Operations option for eBay and become Site Operations the dominant player in e- Quality Assurance commerce payments. IT Run the business side of the site. Support the site – make sure its operational for users. 14
  15. 15. eBay product principles• It’s about buying and • Deliver world class quality, selling quickly and efficiently• Growth is essential • Follow all design principles• Level playing field • Enable open and safe• Think globally, solve locally trading• Create the “operating • Stay true to the brand system” for global e- • Evolution not revolution commerce• Data driven decisions• Satisfy the business, the user and the Community 15
  16. 16. View Item/Bidding Before After 16
  17. 17. Stores & Store Builder Store Builder 17
  18. 18. UED | Roles and Responsibilities UI Design Creative Design Usability Engineering• Design User Interaction • Create visual style guide • Champion the user• Design Information • Design visual interface • Inform user-centered Architecture design • Concept and design creative• Design Information Flow solutions for marketing • Provide holistic site material assessment Content Management Prototyping• Champion usability through • Build high-fidelity prototypes content • Develop UED productivity• Provide editorial guidelines tools• Establish content processes • Provide technical consultation 18
  19. 19. eBay design principles• Its about buying and • Make it personal selling • Help should be helpful• Know your customer • Think globally• Keep things simple • Evolution not revolution• Dont make the user • Build trust work • Stay true to the brand• Be consistent • Design for the future• Provide a well lit path • See the forest and the• Do not divert users trees• Performance by design • The user has the last• Optimize for the 80% word 19
  20. 20. Merchandising 20
  21. 21. Sell Your Item (SYI) 21
  22. 22. The Product Development Process The Product Development Process The Product Development ProcessBusiness Needs Features “Trains” The Site (Our Product) We look at the site as a product. We are constantly enhancing it to make it better. We call these enhancements “features”. Multiple features get bundled together into software releases that are rolled to the site each week. We call these releases “trains”. After features launch, we assess their success by tracking their affect on key metrics. 22
  23. 23. Community Involvement Planning Planning Scoping QA Concept Scoping Requirements Development QA Rollout Concept NPV NPV Requirements Development Testing Rollout Booking Testing Booking• Member Suggestions • Announcement Post-Launch Support (emails) • Moderated Boards Boards • CS events (emails)• Online Panels • Voices • Boards • Onsite Previews• Moderated Boards • Usability Studies • Voices • Onsite Education • Answer Center• eBay University • Prototyping • Workshops • eBay University• Voices • Comps and • Email • Online surveys• Usability Studies Mockups • Usability Studies• US/Intl Surveys • Global • Online surveys • Product Exit Polls Communication• US/Intl Field Studies • Help We also engage our Community throughout our product lifecycle. 23
  24. 24. My eBay 24
  25. 25. Thousands of features & functions… Major Site Functions Registration Buying Search Browsing/Categories Selling My eBay Stores Checkout/Payment Muli-Item Payment Feedback Merchandising Formats: Bid, BIN, Ad Other Tools Selling Manager Turbo Lister TnS & CS Tools 25
  26. 26. How The Process Works Planning Planning Scoping QA Concept Scoping Requirements Development QA Rollout Concept NPV NPV Requirements Development Testing Rollout Booking Testing BookingThe BUs have a business objective to meet: BUs discuss idea with PM, they vet the idea and the BU writes a Business Requirements Document (BRD). PM translates the BRD into a scope request with high level requirements outlined Technology scopes the project BUs develop the business justification (NPV) and priority of the project, and work with the Product Council to get it approved based on company priorities. Product Planning works with development to ensure development resources are available to work on the project. After this is confirmed the project (feature) is “booked”. PM writes a Product Requirements Document (PRD) detailing product functionality User Experience Design (UED) creates user interface prototypes, graphics, and conducts usability testing. Development and architecture create the technical design and code the feature. QA tests the feature The feature is rolled out to the site Receive user feedback and react Assess success to original metrics and NPV 26
  27. 27. Some Key Statistics of Our Process Feature Regression Regression Requirements Design Development Feature RolloutRequirements Design Development Testing Testing Testing Testing Rollout e221 Feature Regression Regression Requirements Requirements Design Design Development Development Feature Testing Testing Rollout Rollout e221_Intl Testing Testing Feature Regression Regression Feature Requirements Requirements Design Design Development Development Testing Testing Testing Testing Rollout Rollout e223 Trains release every week -- alternating between US and international every other week. Our average train is 60,000 lines of code. With ~7 US (core) trains releasing per quarter, our throughput is roughly a half million lines of code per quarter (not including international). The total site is about 5 million lines of code. (In comparison, Microsoft Windows NT 3.1 was 4 million lines of code.) This code supports over 90 million registered users from more than 200 countries, doing business on 20+ internationalized sites. On a daily basis, we support 700 million page views and $70 million in business transactions (Gross Merchandise Sales, GMS). Even with this significant volume, our quality statistics are quite good: open production bugs are only a few hundred (>5 sigma), our site availability is 99.93%, and our customer support emails due to system issues is about 2% of our total volume. 27
  28. 28. Another Key Metric: Train Seats Business Technical QA Business Technical Development QA Rollout Requirements Design Development Testing Rollout Requirements Design Testing Total Development Cost = Development Effort (Train Seats) + % of all supporting activities Creative QA Train Seat = Development Effort UI/Usability Project Mgmt Release Mgmt Product Mgmt (1 Train Seat = 15 Developer Days) Operations• Each “Train” at eBay has a specific amount of capacity on it – train seats. Train seats reflect the amount of development effort associated with each train.• Train seats also help communicate the quarterly development capacity of the Product organization.• Train seats are a commitment to the business – they are not just effort spent, but rather effort “earned”.• To determine the cost of a train seat, eBay bundles in the effort required by non- development resources such as product management, usability testing, QA and project management. 28
  29. 29. What we’ve accomplishedIn a typical day… June 1999 Dec 2003 GrowthOutbound e-mails 1.0+ M 21 M 21x 1. ScalabilitySearches 6.5 M 120 M 18x 2. AvailabilityPeak Network utilization 268 Mbps 7.8 Gbps 17x 3. ProductivityTotal Registered Users* 6M 93 M 15x 4. CapacityPage views 54 M 700 M 13xNet Revenue Per Day $532 K $6.4 M 12x 5. PlatformGMS Per Day $6.5 M $70 M 10xBids 0.9 M 6.3 M 7xListings 532 K 3M 6xAvailability ~97% 99.93% 3%Developers 40 300 8xTrain Seats Per Quarter 40 1,120 28xWeb Service API calls 0 13 M NA* Total registered uses is the cumulative total, not per day or quarter. 29
  30. 30. Yet, Still Early Stage of eBay’s Growth eBay is a young, exciting company. It has infinite opportunities which create an unpredictable, rapidly changing environment. eBay’s employees are driven and excited about changing the world. They work hard and strive to capitalize on the many opportunities the company has to grow. P&G Pepsi Gap Mature / Slow Maintainers growth Microsoft • Solid execution of known strategy • Guardians of legacy Implementers • Low to no hiring • Savvy competitors • Internal mgt development • High execution of proven strategy • Protectors of growing legacy • Moderate hiring needsStage of EntrepreneursCompany • Bold entrepreneurs to go after white space • High risk/high reward/high output eBay • Fast to deliver, fast to respond • Strategy under rapid change • Experienced at building to last • Rapid hiring ramp -- exec bench building PayPal Explorers thru ‘02 • Survivalists Early / High • Extremely high risk/high reward growth • Can deal with no infrastructure • Lean staff High risk / Lower risk High reward lower reward Employee Profile 30
  31. 31. Relative gross merchandise sales – US Q303 Annualized GMSBillions $14 Auction Fixed Price Next leading online retailer Source: eBay Inc. estimate 31
  32. 32. Outpacing Leading Growth Companies 2002 MM$ (log scale) 1,000,000 100,000 GMS 10,000 1,000 100 10 1 1 5 10 15 20 25 30 35 40 Years from incorporation(1) Sales and GMS adjusted to 2002(2) Source: eBay; Company Filings; US Department of Commerce Deflators 32
  33. 33. Thank You!