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
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
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”
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
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. 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. 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. 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. 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. 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
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. 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. 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
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. 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. 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. 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. 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. 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. 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.
Notas do Editor
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: