Product Management: Optimizing the What to Develop

BETTER SOFTWARE CONFERENCE EASTProduct Management: Optimizing the What to Develop

Ernani Ferrari [email protected]

CONTEXT

“3 Rules for Success”

Better before cheaper

Revenue before costs

There are no other rules

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

AspectsFunctionality

Usability

Reliability

Performance

Design

Testability

Maintainability

Supportability

…Xbility

What is Quality?

The definition of quality is conformance to

requirements.

Phil Crosby

Software Product of Superior Quality

Objective

“Promote gains through the model of one-time development and maintenance for multiple sales.”

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?

Product Management

THE PROCESS

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.”

Interdependence of Software Business Processes

Product Manag.t

CustomerSupport

Development& Maintenance

Technology&Architecture

ServicesLife CycleManag.t

KnowledgeManag.t

Alliances&Partnerships

CustomerRelationshipManag.t

Marketing

SalesChannelManag.t

Product Management– Objectives

Increase

revenue

• +Sales

• +Value/Price

Reduce

costs

• Maintenance

• Customer Support

• Sales

• Services

• Product evolution

Customer

retention

• Satisfying needs

• Lower TCO

Objectives

Optimizing Resources

GOOD

Option A

Option B

Option C

Option D

Option E

BEST

?

Product Management Cycle

3. Evaluatebenefits and

costs

2. Identify opportunities

and limitations

1. Research

4. Prioritize

5. Define scopes

and roadmaps

6. Monitor

7. Makeadjustments

Product Management Objectives–Operationally…

Understand and respond to client communication Address client needsUnderstand and respond to market demands – faster than the competition, if possibleIncrease client share-of-wallet through current and new products Gain market shareSupport initiatives for new markets Provide an adequate framework for Services Reduce total costs of product maintenanceSimplify marketing initiativesGenerate demand through innovationManage product life cycles (sustaining products in profitable phases longer) and version life cyclesSimplify 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 feasibleFacilitate sales and presales processes at product roll-outs and in everyday activitiesSupport the activities of Field ServicesGuide infrastructure management – environments for development, tests, maintenance, support and presalesFacilitate knowledge management for company teams and end users Support management teams in damage control and situations of client crisis

Product Planning

From Business Strategies

toProduct Plans

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 concentrated in 3 key activities:

MappingResearch Analysis

Guidance & Decision

Parameters

Key Information Areas

Customers Competitors

SalesFinancialResults

MarketAnalysts

Services

TechnologyCustomer Support

& Maintenance

Product Management

Sales

Market Analysts

Technology

Competitors

Financial Results

Services

Product guidelines proposals

Product CommitteeProduct

guidelines

Product Planning Workflow

Customers

Support / Maintenance

Business andMarketing Guidelines

ProposedProduct

Plans

Revised / ApprovedProduct

Plans

Company-wide Release Management

Putting Together the Product Plan– Priority Setting

Analyses AspectsSales 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

FocusReturn over investment to be made

Productization Artifacts

From Software

to

Product

PhoneBatteryChargerManualQuick reference guideHeadsetPackaging, etc.

Productization Artifacts

SoftwareOnline helpInstall / update toolsTraining materialsRelease Notes Sales kitPackaging, etc.

Product Manager

Profile and Responsabilities

of a

Product Manager

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 skillsNegotiation skills Solid undestanding of corporate finances–costs, cash flow, investments, risks and ROI

Self-controlAbility to deal with uncertaintiesExperience with facing clientsExperience in team leadershipFamiliarity with the software development process

Product Manager—Responsibilities - AResearch 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.

Product Manager—Responsibilities - B

Planning and controlProduct master plans – current and future releases, alliance products Releases planning and support for product roll-outBudgeting, 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 collateralsProduct briefingsEventsCorporate visits

Communication planning and executionPlanning and reviewsRelevant market information gathered through daily routinesInformation on costs/revenue by product

Product Manager—Responsibilities - C

Interaction with technical architecture group for requirements and analysis related to aspects such as:

Product interoperabilityNetworkingDistributed environmentsDatabasesTools and procedures for software deploymentSystems administrationUser 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

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

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 demands 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

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

QUESTIONS?

All the best in Product Management!

All the best in Business!!

All the Success!!!

Ernani Ferrari [email protected]

www.mondostrategies.com