product management 101 a “getting started” guide a “getting started” guide -kapil raizada

Product Management Product Management 101101

A “Getting Started” GuideA “Getting Started” Guide

-Kapil Raizada-Kapil Raizada

Benefits from this workshopBenefits from this workshop

► Benefits for participantsBenefits for participants1.1. Understand the Product Management functionUnderstand the Product Management function

– – Business drivers, role, responsibilities and expectationsBusiness drivers, role, responsibilities and expectations

2.2. Apply skills for a better partner engagement Apply skills for a better partner engagement and delivery managementand delivery management

3.3. Identify potential new business opportunitiesIdentify potential new business opportunities

Benefits from this workshopBenefits from this workshop

► Benefits for the presenterBenefits for the presenter1.1. Learn from your experienceLearn from your experience

2.2. Get feedback about this presentation to make Get feedback about this presentation to make this betterthis better

Frequently asked Frequently asked QuestionsQuestions

Frequently asked Frequently asked questionsquestions

►What is Product ManagementWhat is Product Management►Why is it requiredWhy is it required►What does a Product Manager do?What does a Product Manager do?►How is it different from a Project ManagerHow is it different from a Project Manager►What skills do I need to qualify for this role?What skills do I need to qualify for this role?►Must I be a domain expert to get started?Must I be a domain expert to get started?

Product based businessesProduct based businesses

► To understand this, a good starting point would be to To understand this, a good starting point would be to first understand the characteristics of a product first understand the characteristics of a product businessbusiness

► To highlight the differences, I have also compares To highlight the differences, I have also compares this with similar considerations in the case of a this with similar considerations in the case of a services businessservices business

How is a product business different?How is a product business different?

► Time SpanTime Span The life of a product extends many years - beyond projects, The life of a product extends many years - beyond projects,

programs, releases and even business cycles. Decisions taken programs, releases and even business cycles. Decisions taken today, will affect the product at a later time. Implications:today, will affect the product at a later time. Implications:► Product businesses value considered & mature decision makingProduct businesses value considered & mature decision making► Projects/Services business tend to value relationships and fire-Projects/Services business tend to value relationships and fire-

fighters more!fighters more! PDLC implications: Products go through a lifecycle PDLC implications: Products go through a lifecycle

(more later) and require active planning for the future.(more later) and require active planning for the future.► Changing competitive landscapeChanging competitive landscape► Changing consumer usage patternsChanging consumer usage patterns► Changing technologyChanging technology► Etc.Etc.

Flexibility is the key: Flexibility is the key: Given the longer term perspective, a Given the longer term perspective, a Product Manager typically deals with more unknowns across all Product Manager typically deals with more unknowns across all areas of operations e.g., pricing, positioning, customers, roadmap, areas of operations e.g., pricing, positioning, customers, roadmap, etc. Its hard to predict these all the time. Therefore ability to etc. Its hard to predict these all the time. Therefore ability to change is valuedchange is valued


► Type of customersType of customers Product companies typically do not focus on a customer, Product companies typically do not focus on a customer,

but rather on a category of customersbut rather on a category of customers► Services organizations tend to have a culture of doing exactly as Services organizations tend to have a culture of doing exactly as

toldtold► In a Product business, you may be doing a disservice to other In a Product business, you may be doing a disservice to other

customers, by following the biding of an aggressive customer.customers, by following the biding of an aggressive customer.► Exception: Early stage companies may focus on a single customer Exception: Early stage companies may focus on a single customer

as a boot-strap strategy, and this needs to be understood as such.as a boot-strap strategy, and this needs to be understood as such.

Customers, in general don’t expect tailor made products Customers, in general don’t expect tailor made products either. Instead, they expecteither. Instead, they expect► ConfigurabilityConfigurability► New enhancements and fixes, that come as part of the product New enhancements and fixes, that come as part of the product

releasesreleases► Best in class features and capabilitiesBest in class features and capabilities► Learning from the “product”Learning from the “product”► Domain expertiseDomain expertise


► Lifecycle considerationsLifecycle considerations Almost all products go through a life-cycle (more Almost all products go through a life-cycle (more

details later in this presentation)details later in this presentation) Investment decisions are related to the product Investment decisions are related to the product

lifecyclelifecycle► Before you join an organization as a Product Manager, you Before you join an organization as a Product Manager, you

need to be aware of the stage of the lifecycle for your product. need to be aware of the stage of the lifecycle for your product. This may have significant implications on your decision This may have significant implications on your decision making processmaking process

A few points:A few points:► Cash flow is typically negative at the start of the productCash flow is typically negative at the start of the product► Pay-offs start after a lagPay-offs start after a lag► During the growth phase, focus is typically on increasing During the growth phase, focus is typically on increasing

acceptance, or adding registered users/new customers, etc.acceptance, or adding registered users/new customers, etc.► During the mature stage, focus may shift to retaining During the mature stage, focus may shift to retaining

customerscustomers

How is a product business different?How is a product business different?► Products require Marketing & BrandingProducts require Marketing & Branding

Marketing is essential because you want to send the same Marketing is essential because you want to send the same message to all the potential customers out in the marketmessage to all the potential customers out in the market

Branding is essential to position your product separately from the Branding is essential to position your product separately from the competitioncompetition

► Revenue modelsRevenue models Products may have a one-time revenue + an on-going component. Products may have a one-time revenue + an on-going component.

You need to understand the following to be able to take product You need to understand the following to be able to take product decisionsdecisions► How the product is priced & each component of the pricingHow the product is priced & each component of the pricing► Which component makes moneyWhich component makes money

► Sales processSales process Selling depends largely on product capabilities. You should be Selling depends largely on product capabilities. You should be

able to communicate (marketing) and demonstrate the able to communicate (marketing) and demonstrate the capabilities valued by your prospectcapabilities valued by your prospect► It’s typically hard to add functionalities after you meet a prospect!It’s typically hard to add functionalities after you meet a prospect!► If you don’t already have it, you’re lost. Good Product Managers are If you don’t already have it, you’re lost. Good Product Managers are

able to predict requirements and define target marketsable to predict requirements and define target markets

Summary: Product businessSummary: Product business

1.1. Time SpanTime Span

2.2. Type of customersType of customers

3.3. Lifecycle considerationsLifecycle considerations

4.4. Marketing and brandingMarketing and branding

5.5. Revenue modelsRevenue models

6.6. Sales processSales process

Understanding the Understanding the Product LifecycleProduct Lifecycle

► Introduction: Product is launched. Typically preceded by an intense conceptualization, development and marketing efforts aimed at creating a separate identity and awareness

► Growth: Increasing sales and entry of competition► Maturity: Industry consolidation, competitors exits, steady-state sales, price-cuts► Decline: Declining sales (due to unfavorable business conditions, changing

customer tastes, new technology, etc.)

The “standard” product lifecycle The “standard” product lifecycle curvecurve

► Over the years, I have realized that the standard graph is Over the years, I have realized that the standard graph is perhaps not ideal for capturing the “real” product lifecycle.perhaps not ideal for capturing the “real” product lifecycle.

► The shortcoming that I see are:The shortcoming that I see are: Its too theoretical. Its too theoretical. It represents a successful product launch (Statistics It represents a successful product launch (Statistics

suggest that about 9 out of 10 products that hit the market, do not live to suggest that about 9 out of 10 products that hit the market, do not live to see the standard curve)see the standard curve)

The Y-axis represents sales (which is why it is always positive). The Y-axis represents sales (which is why it is always positive). The The entire early development phase, which requires upfront investment is lost. entire early development phase, which requires upfront investment is lost. Plotting investment/cash-flow would probably give a better ideaPlotting investment/cash-flow would probably give a better idea

It contains only 1 curve – which may give the impression that this is It contains only 1 curve – which may give the impression that this is a likely scenarios. a likely scenarios. PDLC is probably better understood and explained PDLC is probably better understood and explained through a family of curves that show the lifecycle of different product through a family of curves that show the lifecycle of different product familiesfamilies

The “standard” product lifecycle The “standard” product lifecycle curvecurve

The complete product lifecycle The complete product lifecycle curvescurves

► Green: Successful product► Yellow: Marginally

successful product► Red: Unsuccessful product

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► Delay in achieving success can be used to predict Delay in achieving success can be used to predict the duration or extent that the product will be the duration or extent that the product will be successfulsuccessful• Longer is not better. Changing environment. Original assumptions Longer is not better. Changing environment. Original assumptions

regarding business may not holdregarding business may not hold• Emergence of other players. Losing the first mover advantageEmergence of other players. Losing the first mover advantage• Newer technology, etc.Newer technology, etc.• Focus on key features that will generate quick returns initiallyFocus on key features that will generate quick returns initially

► Till after launch, it is hard to predict the success Till after launch, it is hard to predict the success of a productof a product• Most start-ups look good during the pre-launch stage. Even after Most start-ups look good during the pre-launch stage. Even after

close experiences with about half-a-dozen startup products, the close experiences with about half-a-dozen startup products, the issue remains issue remains

Product Lifecycle Product Lifecycle considerations that Product considerations that Product

Managers should be aware of Managers should be aware of ....

Product priorities: Growth PhaseProduct priorities: Growth Phase► Typical goals Typical goals ::

Consolidate sales. New partnerships, reseller agreementsConsolidate sales. New partnerships, reseller agreements► Implications: Good documentation, packaging, usabilityImplications: Good documentation, packaging, usability

Pricing optionsPricing options Feature bundling / packagingFeature bundling / packaging Performance & scalabilityPerformance & scalability Internationalization/Localization supportInternationalization/Localization support Easy to upgradeEasy to upgrade Role based accessRole based access Enhanced administrative console featuresEnhanced administrative console features Product brandingProduct branding

Product priorities: Maturity Product priorities: Maturity PhasePhase

► Typical goals Typical goals :: Feature complexity / configurationsFeature complexity / configurations Increasing focus on maintenance revenuesIncreasing focus on maintenance revenues Feature bundling / packagingFeature bundling / packaging Review branding and positioningReview branding and positioning

► Spinoff new versions focused on specific marketsSpinoff new versions focused on specific markets

Product priorities: Decline PhaseProduct priorities: Decline Phase► Typical goals Typical goals ::

Focus on sustaining maintenance revenuesFocus on sustaining maintenance revenues Harvest product – low cost enhancements for niche Harvest product – low cost enhancements for niche

customerscustomers Review branding and positioningReview branding and positioning

► Spinoff new versions focused on specific marketsSpinoff new versions focused on specific markets► Possible splitting code-base for launching a new productPossible splitting code-base for launching a new product

Product Manager - Product Manager - What skills are required? What skills are required?

Why?Why?

Product Manager - What’s skills are required? Product Manager - What’s skills are required? Why?Why?

► A Product Manager’s skill set requirement can be A Product Manager’s skill set requirement can be directly traced back to the business considerations directly traced back to the business considerations of a product companyof a product company

► In the next few slides, I will take each business In the next few slides, I will take each business attribute and identify the supporting skill-setattribute and identify the supporting skill-set


Attribute #1Attribute #1 Time Span: Long termTime Span: Long term

Required skills …Required skills … Analytical, thinking ability. To be able to visualize all the use-Analytical, thinking ability. To be able to visualize all the use-cases for the problem, that a ‘solution’ needs to be verified cases for the problem, that a ‘solution’ needs to be verified againstagainst

Is demonstrated by Is demonstrated by ……

Asking questions like:Asking questions like:-How does this meet our objectives?How does this meet our objectives?-How will it work if ‘that’ happens?How will it work if ‘that’ happens?-What does this mean the related features?What does this mean the related features?-How does this impact our other assumptions?How does this impact our other assumptions?

Expected Expected Outcomes …Outcomes …

Often, requirements can be simplified (or eliminated) by Often, requirements can be simplified (or eliminated) by considering all scenarios. Team realizes that this is going to considering all scenarios. Team realizes that this is going to require lot more work! Better product designs.require lot more work! Better product designs.

Other possibility: Team realizes how complex this may Other possibility: Team realizes how complex this may actually be. You get more time (or budget!). actually be. You get more time (or budget!).


Attribute #2Attribute #2 Customer typeCustomer type

Required skills …Required skills … Understanding the type of customers targeted, and their Understanding the type of customers targeted, and their usage. Also understand potential different customer groups usage. Also understand potential different customer groups (product roadmap)(product roadmap)


Asking questions like:Asking questions like:-Let’s review how other customers may use this.Let’s review how other customers may use this.-How about the new prospects we are targeting?How about the new prospects we are targeting?-What does this mean to related features?What does this mean to related features?-How does this impact our other assumptions?How does this impact our other assumptions?

Expected Expected Outcomes …Outcomes …

Typically this will result in a more comprehensive solution to Typically this will result in a more comprehensive solution to the problem being addressed. Alternatively, this may re-the problem being addressed. Alternatively, this may re-define the problem statement itself.define the problem statement itself.

Re-definition of a problem statement to a more generic level Re-definition of a problem statement to a more generic level typically goes a long way in the team building confidence in typically goes a long way in the team building confidence in you.you.


Attribute #3Attribute #3 Product Lifecycle considerationsProduct Lifecycle considerations

Required skills …Required skills … Understand the stage at which the product is Understand the stage at which the product is currently in.currently in.


Asking “relevant” questions Asking “relevant” questions -Typically, early stage companies would be less Typically, early stage companies would be less concerned about performance or scalability. More concerned about performance or scalability. More concerned about sustenance & growthconcerned about sustenance & growth-Typically mature companies will be concerned Typically mature companies will be concerned about maintaining customer base e.g., no about maintaining customer base e.g., no regression defectsregression defects

Expected Outcomes Expected Outcomes ……

Demonstrate better understanding of the product Demonstrate better understanding of the product constraints. Increased product ownership.constraints. Increased product ownership.


Attribute #4Attribute #4 Marketing & BrandingMarketing & Branding

Required skills …Required skills … Understanding product positioning in the market Understanding product positioning in the market vis-à-vis competition. Be aware of the reasons for vis-à-vis competition. Be aware of the reasons for the samethe same


-Understanding of the competitors in the marketUnderstanding of the competitors in the market-The kind of priorities associated with a featureThe kind of priorities associated with a feature


(a) Demonstrate better understanding of the (a) Demonstrate better understanding of the product constraints. Increased product ownershipproduct constraints. Increased product ownership


Attribute #5Attribute #5 Revenue ModelsRevenue Models

Required skills …Required skills … Business awareness of these revenue streams and Business awareness of these revenue streams and how this may impact separate customer groups.how this may impact separate customer groups.


Developing product roadmap and new features in a Developing product roadmap and new features in a direction that is validated by the revenue models. direction that is validated by the revenue models.


(a) Successful releases(a) Successful releases


Attribute #6Attribute #6 Sales processSales process

Required skills …Required skills … Ready for surprises! Remember, there will always Ready for surprises! Remember, there will always be a sales requirement that no one can predict.be a sales requirement that no one can predict.


Good business communication skills. Readiness to Good business communication skills. Readiness to respond positively to change. Understanding that respond positively to change. Understanding that this can happen and is an essential part of this can happen and is an essential part of business.business.


Selling better Selling better

Product Manager - Product Manager - Day-to-day RoleDay-to-day Role

Product Manager – Day-to-day roleProduct Manager – Day-to-day role► At a high level there are these 6 areas :At a high level there are these 6 areas :

1.1. Market research (primary, secondary, tertiary)Market research (primary, secondary, tertiary)

2.2. Requirements specification and designRequirements specification and design

3.3. Project ManagementProject Management– What needs to be done, and the best way to implement it so as to meet What needs to be done, and the best way to implement it so as to meet

market requirements. Make it easier for engineering! market requirements. Make it easier for engineering!

4.4. Product MarketingProduct Marketing– One-pagers, case-studies, success stories, specifications docs, etc.One-pagers, case-studies, success stories, specifications docs, etc.

5.5. Product Lifecycle ManagementProduct Lifecycle Management– Licensing & Pricing, product portfolios, reseller tie-ups, technical tie-ups, Licensing & Pricing, product portfolios, reseller tie-ups, technical tie-ups,

etc.etc.

6.6. Product SupportProduct Support

► The extent of actual involvement would depend on each The extent of actual involvement would depend on each organization and its practicesorganization and its practices

Working with Program ManagersWorking with Program Managers► I read the following quote somewhere, and is perfect for what I I read the following quote somewhere, and is perfect for what I

wanted to say:wanted to say:

► Product managers are responsible for ongoing success. Once the Product managers are responsible for ongoing success. Once the project is complete, the product manager remains to manage the project is complete, the product manager remains to manage the product through the entire lifecycle.product through the entire lifecycle. Good product managers know that all the features in the world will not Good product managers know that all the features in the world will not

matter if the project is continually delayed and never makes it to matter if the project is continually delayed and never makes it to market, or if it is too over budget to be completed.market, or if it is too over budget to be completed.

► Project managers are responsible for the successful delivery of a Project managers are responsible for the successful delivery of a project — a one-time endeavor with a goal, scope, deadline, project — a one-time endeavor with a goal, scope, deadline, budget, and other constraintsbudget, and other constraints Good project managers know that the true success of a project is just Good project managers know that the true success of a project is just

not whether it is on time and within budget, but whether it meets the not whether it is on time and within budget, but whether it meets the defined goals and objectives.defined goals and objectives.

Other FAQsOther FAQs

Other FAQsOther FAQs► Do I have to be a domain expert to become a Product Manager?Do I have to be a domain expert to become a Product Manager?

► It certainly helps. However, do rememberIt certainly helps. However, do remember Product development is a team effort. Everybody does not need to be Product development is a team effort. Everybody does not need to be

a domain expert. A large part of the activities may not even require a domain expert. A large part of the activities may not even require domain skills.domain skills.

From a hiring company’s perspective, its always hard to get a person From a hiring company’s perspective, its always hard to get a person in their precise domain. Each domain has sub-domains and each sub-in their precise domain. Each domain has sub-domains and each sub-domain brings its own uniqueness. Most organizations are very happy domain brings its own uniqueness. Most organizations are very happy to get someone who knows the function and can pick the domainto get someone who knows the function and can pick the domain

As there are no well known professional courses for Product As there are no well known professional courses for Product Management, my assessment is that the demand-supply gap for Management, my assessment is that the demand-supply gap for Product Managers favors the candidate. Even more so if you happen to Product Managers favors the candidate. Even more so if you happen to be in India. Based on a recent survey, the total Product Managers in be in India. Based on a recent survey, the total Product Managers in India was a lower end 3-digit number.India was a lower end 3-digit number...

Other FAQsOther FAQs► What are the common roles within Product Management?What are the common roles within Product Management?

► Some of the common Product Management roles areSome of the common Product Management roles are Inbound Product Manager – Internal / Engineering facing roleInbound Product Manager – Internal / Engineering facing role

► Typically this is an engineering facing role. The main job here is to Typically this is an engineering facing role. The main job here is to translate the market requirements / customer feedback across different translate the market requirements / customer feedback across different customers, and ensure that these are in the engineering plans, as per customers, and ensure that these are in the engineering plans, as per the roadmapthe roadmap

Technical Product Manager – Another name for Inbound Technical Product Manager – Another name for Inbound Product ManagersProduct Managers

Outbound Product Manager – Market/Customer facing roleOutbound Product Manager – Market/Customer facing role► Typically, this is the market facing role. The main job here is to Typically, this is the market facing role. The main job here is to

communicate the product’s value proposition to the customer (help communicate the product’s value proposition to the customer (help sales), and pass feedback to the Inbound role.sales), and pass feedback to the Inbound role.

► An Inbound Product Manager can have multiple Outbound Managers An Inbound Product Manager can have multiple Outbound Managers e.g., products in different geographies, industry verticals, etc.e.g., products in different geographies, industry verticals, etc.

Other FAQsOther FAQs► Anything else that is not covered here regarding Product Anything else that is not covered here regarding Product

Management?Management?

► Yes. Product portfolio management (let me know if you spot Yes. Product portfolio management (let me know if you spot other areas too)other areas too) Involves managing a portfolio of products. Additional Involves managing a portfolio of products. Additional

considerations related to inter-relationship between productsconsiderations related to inter-relationship between products There exist different models for managing a product portfolioThere exist different models for managing a product portfolio Typically this is a higher level role. More relevant for a product Typically this is a higher level role. More relevant for a product

organization.organization.

Thanks!Thanks!Kapil RaizadaKapil Raizada

http://http://www.linkedin.com/profile?viewProfilewww.linkedin.com/profile?viewProfile=&key=16308796&trk==&key=16308796&trk=tab_protab_pro

product management 101 a “getting started” guide a “getting started” guide -kapil raizada

Documents

product manager

product lifecycle

product business different

product releases

product businesses value

product domain expertise

product based businesses

product payoffs