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Building Competence. Crossing Borders. 
Learning from the best: Key Messages from the Study: «Swiss Product Management 201...
Master in Physics (University of Konstanz) PhD in Biomedical Engineering (ETH Zürich) Master in Industrial Management (ETH...
Product Management Center 
3 
at ZHAW School of Management and Law 
ZHAW is one of the leading universities of applied sci...
«What you get»: 
What are the differences between «GOLD Performer»- Companies and their less successful competitors regard...
The basis: 
5 
Research Study «Swiss Product Management 2013/14 – Learning from the Best»
The basis: 
6 
Research study «Swiss Product Management 2013/14 – learn from the best»
Organizational anchoring of Product Management: 
− 
Product Management is still rather part of Marketing than part of Sale...
The abilities of successful Product Managers: 
− 
Product Managers more often have a technical background than experience ...
The main challenges of Product Management: 
9 
«I wish I had 4 hands and the day had 48 hours» 
− 
Important: Understand y...
The challenges from the view of GOLD Performers: 
10 
«Give me more information!» 
− 
GOLD Performers sense less pressure ...
«Customer Whisperers» are clearly at an advantage : 
11 
What GOLD Performers define vital for their success 
− 
The usual...
The Product Manager in successful enterprises: 
„At METTLER TOLEDO we defined a structured and integrated Product Manageme...
Success makes sexy: 
13 
But how is success measured in practice? 
− 
Still most important direct economic indicators like...
Measurement of Product Performance: 
14 
How successful companies act differently 
− 
GOLD performers’ strong focus on inn...
Innovation as a factor for differentiation against competition: 
A no-brainer? 
− 
«Only companies who are building up a c...
Potential recognized - process implemented? 
Sometimes… 
− 
Most of the companies don’t have an institutionalized innovati...
«What you get»: 
What are the differences between «GOLD Performer»- Companies and their less successful competitors regard...
Product management 2020: 
18 
The future is bright!
Quo vadis Product Management: 19 
Trends for the next years 
− 
«Business Management of Products»: Product Management as P...
Paradigm shift : 
«Rentalship and Licensing are the new ownership.»* 
* Source: Rachel Botsman: What’s Mine Is Yours: The ...
«Servitization»: 
21 
The new service orientation in Product Management 
«Servitization describes the strategic change fro...
Thank you very much! 
22
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Learning from the best

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Learning from the best: Key Messages from the Study: «Swiss Product Management 2013/14»

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Learning from the best

  1. 1. Building Competence. Crossing Borders. Learning from the best: Key Messages from the Study: «Swiss Product Management 2013/14» Dr. Rainer Fuchs, Head of Product Management Centre Zurich University of Applied Sciences (ZHAW)
  2. 2. Master in Physics (University of Konstanz) PhD in Biomedical Engineering (ETH Zürich) Master in Industrial Management (ETH Zürich) Professional career: − Development Engineer for balloon catheters and stents at Jomed AG (Beringen, CH) −Product Manager Sensor Technology at Mettler Toledo (Urdorf, CH) −Consultant for Strategy, Processes and Organizational Design at K&P AG (Zürich) −Director Product Management «End User Business», Head Business Unit «Clinical Diagnostics», Vice President «Innovation Management» Liquid Handling at Tecan (Männedorf, CH) −Since 2012 Head of Product Management Centre at ZHAW School of Management and Law 2 Dr. Rainer Fuchs
  3. 3. Product Management Center 3 at ZHAW School of Management and Law ZHAW is one of the leading universities of applied sciences in Switzerland. Teaching, research, continuing education, consulting and other services are both scientifically based and practice- oriented. • With the Center of Product Management the Institute for Marketing Management (IMM) maintains the first and only competence center for scientific and operational questions of current Product Management in Switzerland. • Therefore, we offer a broad range of continuing education courses as well as a portfolio of business support services. • We act as an independent and confidential partner for companies and offer them various scientific approaches that they can apply to generate valid and success-relevant results. The goal of the Product Management Center is to advance continuing developments in the scientific research of Product Management and to make these results accessible for our economic partners.
  4. 4. «What you get»: What are the differences between «GOLD Performer»- Companies and their less successful competitors regarding Product Management strategies, processes and organizational design? • Organizational anchoring of PM • Skills of successful Product Managers • Challenges and success factors of PM’s • Measurement of performance in Product Management • Innovation Trends that determine today’s and tomorrow’s success in Product Management: •Overview •Servitization 4 Content and aims of this presentation
  5. 5. The basis: 5 Research Study «Swiss Product Management 2013/14 – Learning from the Best»
  6. 6. The basis: 6 Research study «Swiss Product Management 2013/14 – learn from the best»
  7. 7. Organizational anchoring of Product Management: − Product Management is still rather part of Marketing than part of Sales or R&D − Meaning of PM as independent department is growing − GOLD Performer organize PM less often as staff unit 7 Mans of Action need Empowerment! Key Success Factor for successful Product Management: Broad access throughout the organization Organizational status of Product Management Part of Marketing Part of Sales Staff Unit to CEO Independent Department Part of R&D Staff Unit to CMO
  8. 8. The abilities of successful Product Managers: − Product Managers more often have a technical background than experience in business and economics − Less successful companies seem to value a background in economics much more than SILVER or GOLD Performers − The GOLD Performers shows: It all depends on the right mix! 8 The best out of two worlds How to get successful Product Managers: Invest into target-oriented continuing education! Educational background of Product Managers Rather technical / scientific Technical / scientific AND business / economics Rather business / economics Others
  9. 9. The main challenges of Product Management: 9 «I wish I had 4 hands and the day had 48 hours» − Important: Understand your customers and their idea of innovation − Measurement of success of Product Management: It seems that it isn’t that easy… − Crucial point: Missing financial sources, personnel resources, time pressure − But also: Ambiguity about responsibilities The main challenges of Product Management Important soft skill of a successful Product Manager: Leading without (line-) management responsibility Resources: $, t, man power Difficulty to measure success Not enough innovations Lack of customer understanding Lack of market intelligence Lack of customer orientation Unclear responsibilities Lack of knowledge about competitors Lack of decision-making power Not enough flexibility and FTO Insufficient training and education Lack of top management support others
  10. 10. The challenges from the view of GOLD Performers: 10 «Give me more information!» − GOLD Performers sense less pressure concerning resources − Preferably, they would like to know even more about the market and competitors − Successful companies complain less about a lack of customer orientation − Gold PMs can rather decide on their own, at the same time they wish for more support of the top management. Challenges of Product Management in detail Successful companies grant more resources and freedom to operate to their Product Management Resources: $, t, man power Lack of market intelligence Lack of customer orientation Lack of knowledge about competitors Lack of decision-making power Lack of top management support
  11. 11. «Customer Whisperers» are clearly at an advantage : 11 What GOLD Performers define vital for their success − The usual suspects: Understanding customers needs and enough resources to be able to create innovation − Gold performers consider clearly defined processes as much important than SILVER and BRONZE performers. Main factors for successful Product Management The successful PM doesn‘t show any weakness: Understands customers and the market, knows how to promote the product internally Understanding of customer needs and behavior Innovation Clearly defined processes Broad understanding of the market
  12. 12. The Product Manager in successful enterprises: „At METTLER TOLEDO we defined a structured and integrated Product Management process throughout the Group, which comprises the whole product life cycle – from the product idea until the phase-out. That‘s how we guarantee our high innovation rate as well as the outstanding quality of our products and in order to ensure highest customer satisfaction.“ Dr. Hilmar Brunn, Head Global Product Lifecycle Management, METTLER TOLEDO INTERNATIONAL 12 Jack of all trades in all disciplines along the product life cycle
  13. 13. Success makes sexy: 13 But how is success measured in practice? − Still most important direct economic indicators like revenue, sales, profit / costs. − Customer satisfaction measurement tends to become a standard, evaluation of brand awareness and image increasing − The compatibility / cross selling potential of products is especially important for industrial products Which indicators are used to measure the success of Product Management? There’s no one size fits all solution: The measurement of success of products is and will be complex and situation-related Margin, Profit Customer Satisfaction Cost Targets achieved Turnover with new products Share of volume of new products Market share Relative advantages Portfolio compatibility R&D costs of products to sales Payback time Brand Awareness Image improvement Time-to-Market Media resonance Others
  14. 14. Measurement of Product Performance: 14 How successful companies act differently − GOLD performers’ strong focus on innovation is also reflected in the way they measure performance − The share of sales of new products and time to market are measured significantly more often. − Measurement of market shares is conducive but work-intensive Success is predictable from the beginning: Consider innovation markers in your product performance measurement! Margin / Profit Turnover with new products Market share Time-to-market Which indicators are used to measure the success of Product Management?
  15. 15. Innovation as a factor for differentiation against competition: A no-brainer? − «Only companies who are building up a continuous flow of innovation are able to maintain their sales success in the medium and long term.»* − ZHAW study confirms: Innovation triggers growth of businesses** − Success factors for innovation: − Anchoring in the corporate culture − Encouraging research and creativity − Trend: Open Innovation * Source: Ulrich Eggert: Megatrends Handel II – Trendupdate 2025/30, 2013 ** Source: Mandl et al.: Swiss Product Management 2013/2014- Von den Besten lernen
  16. 16. Potential recognized - process implemented? Sometimes… − Most of the companies don’t have an institutionalized innovation process! − Unused success potentials*: − Prevent interface problems − Integral process responsibility and thereby improved customer orientation − Concentration on value-creating activities − Organizational assignment of Innovation Management has no impact on a company’s success.** Innovation makes a company successful – An Innovation Process makes Innovation successful! * Source: Vahs, Brem, (2013): Innovationsmanagement. **Source: Mandl et al.: Swiss Product Management 2013/2014- Von den Besten lernen
  17. 17. «What you get»: What are the differences between «GOLD Performer»- Companies and their less successful competitors regarding Product Management strategies, processes and organizational design? • Organizational anchoring of PM • Skills of successful Product Managers • Challenges and success factors of PM’s • Measurement of performance in Product Management • Innovation Trends that determine today’s and tomorrow’s success in Product Management: •Overview •Servitization 17 Content and aims of this presentation
  18. 18. Product management 2020: 18 The future is bright!
  19. 19. Quo vadis Product Management: 19 Trends for the next years − «Business Management of Products»: Product Management as Profit Center, Product Manager as «Business-Owner» − Accordingly: Importance of continuing education is growing – technical, economic and soft skills are needed − Organizational centralization of responsibilities, Product Management Teams − Paradigm shift: Product was yesterday, System is today, «Servitization» is tomorrow! * vgl. auch: Aumayer: Erfolgreiches Produktmanagement (2013);
  20. 20. Paradigm shift : «Rentalship and Licensing are the new ownership.»* * Source: Rachel Botsman: What’s Mine Is Yours: The Rise of Collaborative Consumption, 2010 ** Andy Neely, Servitization Working Paper, Cambridge Service Alliance , November 2013
  21. 21. «Servitization»: 21 The new service orientation in Product Management «Servitization describes the strategic change from a producer of goods towards a solution provider with individual services for customers» * −Successful examples: −Rolls Royce «Power by the hour» −Hilti Fleet Management −Canon Copiers * Source: Fraunhofer/ TU Berlin, Servitization Studie 2011
  22. 22. Thank you very much! 22

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