product management business_model_20140120
TRANSCRIPT
Product Management and Business Models
20th January 2014
Mike Henry
Time to Market
TtM Product Solutions Ltd
Tel: +44 1462 337461
Mob: +44 7802 323678
The purpose of this presentation is to discuss the
principles and tools associated with: Product Management
Business Models
Inter-relationship between them
How Product Management can integrate them
Accountabilities and responsibilities of Product Management
“We accelerate growth”
PM and BM
© 2000 to 2014 TtM
2
© 2000 to 2014 TtM
Contents
Product Management Principles and Processes
Business Model Principles
Product Management and Business Model Canvas Toolkit
Types of Business Model
Relationships between Product Life Cycle Model and Business Model Canvas
Product Management‟s responsibilities relating to Business Models
“We accelerate growth”
PM and BM
© 2000 to 2014 TtM
3
© 2000 to 2014 TtM
Time to Market Product Management and Business Model
Framework
“We accelerate growth”
PM and BM
© 2000 to 2014 TtM
4
© 2000 to 2014 TtM
Product Management Principles and Processes
True „End to End‟ Product Management comprises: A set of Core Processes occurring at stages of Product
Life Cycle)
Ongoing set of Supporting Processes which provide
information for Core processes
Linkage between In-bound (to company) Product
Management and Out-Bound Product Marketing and
Sales
Toolkit to help implementation
Integrated Accountabilities and Responsibilities with
Product management as the „spider in the web‟
Product Management (a working definition): a set of management processes, responsibilities, skills and
tools dealing with strategy, planning, development and marketing
of products or product portfolios at all stages of the product lifecycle (from conception to
grave) Linked to product, market, technology and Business model
innovation to maximise sales revenues, market share, and profit
margins.
“We accelerate growth”
PM and BM
© 2000 to 2014 TtM
5
© 2000 to 2014 TtM
Product Management Processes and Toolkit
True „End to End‟ Product Management comprises: A set of Core Processes occurring at stages of Product
Life Cycle)
Ongoing set of Supporting Processes which provide
information for Core processes
Linkage between In-bound (to company) Product
Management and Out-Bound Product Marketing and
Sales
Toolkit to help implementation
Integrated Accountabilities and Responsibilities with
Product management as the „spider in the web‟
Product Management Toolkit : An integrated set of Tools each with a specific purpose
Aligned with Core and Supporting Processes
Tuned to level of Product Management e.g. Foundation,
Intermediate, Advanced
Core tool is Customer Product Value Proposition (PVP)
Some tools are for Product Portfolio Management
Tools form a database which evolves through Product Life
Cycle
“We accelerate growth”
PM and BM
© 2000 to 2014 TtM
6
© 2000 to 2014 TtM
Product Management: Customer Product Value Propositions (PVP)
Customer Product Value Propositions (PVP): Based on “Whole Product” – not just the „techie bit”
Describes WHO (Market Segment/ Target Customer) the PVP
is for
WHAT they want (Requirements/ Benefits/ Expectations)
HOW we will provide it in terms of Key or Unique Selling Points
Opportunities and Threats relative to competitive offerings
Consumers
End Users
End Choosers
„Jo Public‟Person in the Street B2C
Business Users
„Technical‟ Buyers
„Economic‟ Buyers
„Business People‟ B2B
Customers
Product Value = Benefits – Price – Effort – Risk
Propositions = packages of:
•product, service
•Marketing tangibles and intangibles
•price or total cost of ownership
•effort and risk reduction
which are better than the competitive propositions
which are distinctive and compelling
WHO
WHATdo they want
HOW do we provide
Against WHATdo we compete
“We accelerate growth”
PM and BM
© 2000 to 2014 TtM
7
© 2000 to 2014 TtM
Business Model
Defines the way a business
delivers value to customers
entices customers to pay for value
converts payments/ revenue into profits
Reflects a business hypothesis about:
What customers want
How they want it
The ways a business can deliver it
Get paid for doing it
Make a profit
Business Model Canvas is a tool which is used to describe:
Business Model Building Blocks
CS: Customer Segments
Countries/ Cultures
Groups of Customers served.
B2B and/or B2C
Countries in which customers are based
Different cultures which Customers belong to.
VoC: Voices of Customers How customers requirements are collected
Their priorities needs and wants
PVP: Product Value Propositions Descriptions of products, services and solutions comprising:
Who, What (do they want), How (do we provide), Against What (do we
compete)
PP: Product, Service and Solution
Portfolio
Bunch of products, services and solutions which we offer to our customers
(B2B, B2C) in the various segments, industries and countries.
CP: Competitors Those competing companies or other entities comprising:
Industry or Direct Competitor; Customers; Suppliers; New Entrants; Substitutes
CP: Competitive Products The bunches of products, services and solutions which are offered by
competitors.
TP: Technology Portfolio The bunches of product, solution, manufacturing, operational or other
technologies which provide value to customers or partners.
CSR: Sales Channels/
Routes to Market/
Customer Relationships
Ways in which products, services or solutions are offered, sold and supplied to
customers comprising direct and indirect channels, physical and on-line routes.
The ways we establish relationships with customers for acquisition and
retention.
CSR: Market Communications Ways used to do outbound market communications with customers,
prospective customers, market influencers
DSP: Demand Side Partners or
Collaborators
Strategic Partner companies or other entities which are involved in the Go to
Market side of the Product Value Network. Sometimes referred to as Peer
Partners.
CIR: Contingents: Influencers/ Regulators Regulators, standards and other influencers on markets.
ICS: Internal Colleagues/Stakeholders Key to Product Management colleagues or co-workers within the internal
Product Value Network.
SSP: Supply Side Partners
(Collaborators & Suppliers)
Strategic Partner companies or other entities which are involved in the Supply
side of the Product Value Network.
£R: Reward/ Revenue Streams Reward streams comprising Revenue, Market Share, …. Which result from
Product Value Propositions and Portfolios successfully offered and delivered to
customers.
£R: Price and Profit Price structures which provide profits and margins after taking into account
cost structure.
£C: Cost Structure (including Risk) Product and other Cost elements such as fixed and variable costs which are
required to provide and deliver Product Value Propositions and Portfolios
successfully.
KAP: Key Activities & Processes Key Business Processes and Product Management activities which are
required to gather knowledge relating to market, customers, competitive,
regulatory etc. and do the work to provide and deliver Product Value
Propositions and Portfolios successfully.
KR: Key Resources Critical assets in terms of facilities, people, knowledge, intellectual property,
money, capital etc. required to gather knowledge relating to market,
customers, competitive, regulatory etc. and do the work to provide and deliver
Product Value Propositions and Portfolios successfully.
“We accelerate growth”
PM and BM
© 2000 to 2014 TtM
8
© 2000 to 2014 TtM
The different types of Business Models describe an „eco system‟ for
Product ManagementTypes of Business Model : there are hybrids!!
Example Business Model Canvas:
„eco system‟
“We accelerate growth”
PM and BM
© 2000 to 2014 TtM
9
© 2000 to 2014 TtM
Time to Market Framework
Integrating Product Management and Business Model
„eco system‟
Core Tool for
Product
Management
Core Tool
for Business
Model
Tools for
Product
Management
Tool for Product
Management
“We accelerate growth”
PM and BM
© 2000 to 2014 TtM
10
© 2000 to 2014 TtM
Product Management Responsibilities
and Business Model
Business Model Definition and Update If a Business Model has not been defined then Product
Management needs to take Accountability and Responsibility
for working with Key Stakeholders to generate a Business
Model Canvas and keep it updated
Product management need to position Product Management
tasks within an evolving Business Model
Business Model Implementation Product Management need to take Accountability and
Responsibility for some parts of a Business Model
They need to take Responsibility with other stakeholders in
other parts.
In the rest of a Business Model Product management need to
be consulted, at the least.
Business Model Canvas
Business Model Canvas
Key areas for Product
Management Accountability
and Responsibility
Key Building Blocks for Product
Management Accountability and
Responsibility
“We accelerate growth”
PM and BM
© 2000 to 2014 TtM
11
© 2000 to 2014 TtM
That‟s all Folks – Thank you
Mike Henry
Time to Market
TtM Product Solutions Ltd
www.ttm.co.uk
Tel: +44 1462 337461
Mob: +44 7802 323678
Mike will be very happy to
receive:
Any Questions
Comments orFeedback