Easyto buyandsell product camp 2013

MODULE 3

Creating Products that are
Easy to Buy and Easy to Sell
presented at Product Camp Silicon Valley 2013
Patrina Mack
Managing Partner
325M Sharon Park Drive
Menlo Park, CA 94025
www.visionandexecution.com

Your Favorite Products
• Describe one of yours
– Why did you “need” it?
– Why did you choose it over others?
– How long did it take you to make

your decision to buy?
– What price did you pay?

What does
this tell
you about
designing
products?

– What influences affected your buying decision?
– How do you feel owning it?

– Would you buy it again?

• Now describe your worst product experience
– Answer all of the above + what you did and how you felt
3/25/2013
© 2003 - 2013 Copyright Vision & Execution

Question for Your Company
Has your team thought of
everything that your favorite
product company thought of
to win you as a customer?

3/25/2013

Finding a Market Worthy of Investment
• Problem
– Not defining a sizeable enough market

• Solution
– 3 mandatories of market viability
• Large & growing
• Clear customer need & willingness to pay
• Opportunity you can fulfill—defensibly
3/25/2013

What is Your Value Proposition?
•

Why would anyone buy this
general type of product or service?

•

Why will someone buy our
product/service?

•

Why will we meet our volume and
profit goals?

•

If this new product was not
available, what would someone do
instead?

Solution

– Buy something else?
– Make something?
– Do nothing?
3/25/2013

Validate Your Market Opportunity
• Total addressable market size + the segments
• Market & growth trends
• Tech, regulations, environmental trends
• Your “ecosystem” & differentiated value
• Purchasing characteristics/process
– By segment

• Most receptive geographic region

• Customers buying expectations
– From where / from whom / in what form?

• Target market developmental stage
3/25/2013

Prioritize for Maximum Market Opportunity
Region 1
…Channel 1

Region 2
…Channel 2

Region 3
…Channel 3

Region 4
…Channel 4

Segment 1

Market size
Market growth
Likelihood to adopt
Key features

Market size
Market growth
Likelihood to adopt
Key features

Market size
Market growth
Likelihood to adopt
Key features

Market size
Market growth
Likelihood to adopt
Key features

Segment 2

Market size
Market growth
Likelihood to adopt
Key features

Market size
Market growth
Likelihood to adopt
Key features

Market size
Market growth
Likelihood to adopt
Key features

Market size
Market growth
Likelihood to adopt
Key features

Segment 3

Market size
Market growth
Likelihood to adopt
Key features

Market size
Market growth
Likelihood to adopt
Key features

Market size
Market growth
Likelihood to adopt
Key features

Market size
Market growth
Likelihood to adopt
Key features

Market size
Market growth
Likelihood to adopt
Key features

Market size
Market growth
Likelihood to adopt
Key features

Market size
Market growth
Likelihood to adopt
Key features

Market size
Market growth
Likelihood to adopt
Key features

Segment 4

3/25/2013

Leveraging Customers
• During which phase of product development
would be the best time to ask this question
of customers?
• Does the product deliver on the value proposition?
– …Vision phase

How do you refine
your business model
to make it easier for
customers to buy or
adopt?

– …Define phase

– …Develop phase
– …Delivery phase

3/25/2013

Customer Input Matters at Every Stage
VISION
 Ethnographic

Customers

research
 Concept

evaluations
 Strategic client

requirement
 Sales/account

management
 Support

DEFINE

DEVELOP

 Demand

 Working

validation
 Feature

Prioritization/
Trade-offs

prototype
evaluations
 Process

engineering

 Prototype

evaluations

DELIVERY
 Beta test
 Pilot program
 User groups
 Bug data
 Feature request

button
 Usability/

human factors

 Customer

satisfaction

CONTINUOUS PROCESS OF INDUSTRY RESEARCH, COMPETITIVE
ANALYSIS, COST / BENEFIT ANALYSIS & METRICS

3/25/2013

Deliver a Superior Customer Experience
•

Problem
–

•

Not creating value for customers by
failing to deliver the “whole” product

Solution
–

Develop the product from customer
need and market demand
•

Not just because it’s new technology

3/25/2013

Create a Compelling Customer Experience
•

Design for the whole product
–

Deliver on external customer needs
•
•

–

Customers
Channels/partners

Deliver on internal customer needs
•
•
•
•
•
•

Marketing
Development
Manufacturing
Operations
Sales
Finance

Crossfunctional
Requirements
Create
Compelling
Customer
Experiences

3/25/2013

Best Practices: Cross-Functional Teams
• Fully cross-functional
team delivers a
complete product

Product Marketing
Corporate Marketing
Channel Marketing
Regional GMs
Business Dev
Partners

Marketing
Sales

Global
Team
Lead

Finance
Billing
Reporting
SLA Management

Engineering
QA
Documentation
Beta Program

Operations/
Manufacturing
Infrastructure
Support
Sourcing

Engineering

Prof.
Serv.

Account Mgmt
Regional Leads

– Needs of external
customers met
– Needs of “internal
customers” met
– Global requirements
embedded in initial
design
3/25/2013


“Whole” Products Deliver Solutions

What “gaps” in
functional considerations do
you have in creating a
“whole” product
for your company?

3/25/2013

Pace Development to Adoption
• Understand what the
minimum feature set is to
gain initial trial
CUSTOMER’S RATE
OF ADOPTION

• Understand what the
minimum feature set is to
gain widespread adoption
• Build a product roadmap
• Get customer agreement
with your roadmap
• Understand how to prioritize
maintenance vs. Version 2.0

TIME
= YOUR ABILITY TO DELIVER
= CUSTOMER’S ABILITY TO ABSORB


3/25/2013

Process Has its Place
•

Problem
–
–

Is late to market

–

•

Missed customer expectations
Has cost over-runs

Solution
–

Apply a disciplined product development process to
deliver a product or service that:
•

Satisfies the customer’s entire ownership experience

•

Is on time

•

Is on budget
3/25/2013

Product Development Best Practices
Holistic, effective cross-functional teams

37 .4

Lean, scalable, and adaptable State Gate process

15.4

38.5

Metrics, accountable teams

10.3

Spiral development -- loops with users
throughout development
Focus and portfolio management

25.2

9

0

20

Average Productivity Businesses

70.7

44.8

52.1

48.3

25.2

44.9

25.3

7 .7

72.2

69

33.4

Heavy front end-end homework before
development begins

Low Productivity Businesses

54

41.4

Customer focused

Source: APQC Study

58

40.2

40

60

80

High Productivity Businesses
3/25/2013

Key Customer/Industry Inputs by Phase
Concept
Approval

Development
Approval/POR

Beta
Launch
Approval PRTApproval GA

EOL
Approval

EOL

Planning

Propose

• Market Opportunity
Validation
• Industry Forecasts
• Qualitative
Exploratory
Research

Define

• Paper
prototype
testing
• Customer
PRD reviews

• Prototype
testing
• Usability
testing
• Ongoing
concept
validation
testing

• Ongoing
concept
• Quantitative Demand
testing
Research/ Concept
Testing
• Risk Analysis

Develop

Stabilize

Launch

Sustain

• Alpha test

• Customer satisfaction

• Beta test

• Business metrics

• Pilot
programs

• Bug data

• Market test

• Feature request data
• Lead user groups ( new
uses for current
technology)
• Closed Loop Marketing

• Competitive
Analysis
• Feasibility Analysis
• Financial Analysis

3/25/2013

Product Development Lifecycle
Concept
Approval

Define
Business

Vision

Market &
product
strategy vision
 Platform
strategy
 Segmentation
strategy
 MRDs

Approval for
Development

Define
Product

PRD including
Product concept “glocalization”
requirements
proposal /
business case  Engineering
response
 Preliminary
technology
 Architecture
assessment
& HL system
design
 Risk analysis
 Technology
assessment &
readiness
report
 Third-party
LOI
 Market plan

 Must-Do for Startups

Approval
for Beta

Develop
Product

Approval
for Release

Test
Product

Approval
for EOL

Deliver
Product

Sustain
Product

Complete beta  Announce
distribution plan
test
product
 Integrated test plan  Complete
 Transition to
customer
sustaining duties
 Systems integration
service /
& disband the
Alpha testing
support &
product delivery
 Beta test plan & exit
logistics
team
criteria
testing
Implement post Documentation
Implement
launch marketing
 Customer service & pre-launch
deliverables
support plan
marketing
 Implement post Manufacturing plan deliverables
launch training
 Launch plan
 Implement
deliverables
pre-launch
 EOL & migration
 Localize software
training
plan
deliverables
 3rd party contracts
 Production/


Ongoing product
support
 Achieve or exceed
program
objectives
(metrics capture)
Achieve product
support / value
objectives
(customer
feedback
mechanism)
 Execute end-oflife plan

3/25/2013

MRD—Business Case—PRD: How They Interrelate
MRD

BUSINESS CASE

PRD

 Written by Marketing



 Vision phase

 Business Definition phase

 Product Definition phase

 Major functional input

 Major functional input

 Customer value proposition
 Key product functions,

features, benefits (general)
 Market: size, growth rate,

trends, other characteristics
 Competition, competitive

differentiation
 Pricing, margin

requirements
 Other: market plan, sales

channels, distribution,
service, etc.

from Eng., Mfg., Fin.
 Customer value proposition
 Market opportunity, trends

from Eng., Ops., Sales, Fin.
 Detailed product functions

& features

over 3-5 year period
 Costs / expenses:

development, marketing,
manufacturing, support
 Forecasts: pricing, sales,

margins, profits for 3-5 years

 Product cost targets
 Customer user experience
 Service, support & other

requirements

 ROI

3/25/2013

Getting Agile
•

Problem
–
–

•

Not anticipating change
Not planning for your next phase

Solution
–

Develop flexible/agile leadership skills
•

Anticipate your options for growth

•

Monitor your market & competitors

•

Monitor your business

3/25/2013

Enrich Product

Anticipate Options for Growth

Core
Product
Extend Business

3/25/2013

Contingency Plans
•

Prepare for change agents
–

Monitor for unexpected competition

–

Track shifts in customer behavior/needs

–

Monitor for new game changing delivery mechanisms

–

Track changes in regulatory environment

–

Monitor for changes in supplier sourcing/costs

3/25/2013

Monitoring Your Business Pays Dividends

Timeliness
Timeliness

Quality

Productivity

Time to
Market

Customer
satisfaction

Patents

Time to
Revenue

First-time right

Function
points for
software

% on-time
Delivery

Warranty costs

% Part reuse

Financial

R&D as % of
revenue
Margin
ROI
Profitability

Engineering
Change Cycle
Time

Market
Impact
% Revenue
from new
products
Market share
Days to close
sales

3/25/2013

Key Points to Remember
•

Define a large market you can dominate

•

Understand what drives your customer to buy and your
channel to sell

•

Consider the entire “ownership” experience and how
emotional the decision making process is

•

Remember good process gets to market faster, on
budget, especially when you focus on the minimal viable
feature set

•

Stay agile by investing in monitoring your business and
anticipating market changes

3/25/2013


What Will You Do Next?
 Create value proposition
 Size market opportunity
 Conduct customer research

Visit
http://www.visionandexecution.com
/downloads_tools.html

for tools to
complete next
steps

 Write MRD
 Write PRD

 Prioritize features
 Identify metrics to measure your business by
3/25/2013

How to reach Patrina
•
•
•
•
•
•

Phone: +1 650 233 0256
Cell: +1 650 380 2627
Skype: patrina.mack
eMail: pmack@visionandexecution.com
Twitter: @visionexecution
Blog: www.visionandexecution.com/blog

3/25/2013

Easyto buyandsell product camp 2013

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Easyto buyandsell product camp 2013