innovation day 2012 9. dany robberecht - verhaert - 'product management; turning pain into...
TRANSCRIPT
CONFIDENTIAL
26.10.2012 Slide 1
CONFIDENTIAL
Product Management: turning pain into gain
Dany Robberecht
Director Consulting Office
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26.10.2012 Slide 2
What is it about? How to get it done?
What does it take?
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26.10.2012 Slide 3
Understanding the walk
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26.10.2012 Slide 4
Product management – common understanding
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26.10.2012 Slide 5
He’s becoming in fact the innovation manager
Innovation driven Front end activities
Increasing expectations Different toolchain
Time pressure Converging world
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26.10.2012 Slide 6
The fuzzy-front-end …
Source:Based on Verhaert
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26.10.2012 Slide 7
The key role of the product manager
Complex interdisciplinary management of diverse
roles and orientations
Need for hollistic ”mushroom” profile
For “new” product:
Often link to (corporate) business problem is required.
Product Management must drive return on innovation
Product Strategy
Product Develop-
ment
Product Manage-
ment
Product Marketing
Toegevoegde waarde
Cost = ROI
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26.10.2012 Slide 8
But the goal remains the same …
“build products people want to buy”
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26.10.2012 Slide 9
Is it really so difficult?
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26.10.2012 Slide 10
Would you buy this?
Toilet Snorkel
US Patent
How would a good product for the problem look like?
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26.10.2012 Slide 11
The world is moving as well
Globalisation Fierce competition
Shorter life cycles Social media power
Novel distribution models
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26.10.2012 Slide 12
New-value
proposition
Stage 1
Stage 2
Stage 3
Stage 4
Pro
du
ct in
no
va
tio
n
Bu
sin
ess in
no
va
tio
n
Op
tio
ns
Op
tio
ns
Op
tio
ns
Op
tio
ns
Design,…
Mech.eng,..
Elec& sw,..
Business
modeling
User ,..
Marketing,..
Managing in a concurrent environment
“The nature of how companies are organised inhibit cross disciplinary collaboration”
“The nature of how companies are organised inhibit cross disciplinary
collaboration”
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26.10.2012 Slide 13
Getting the job done
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26.10.2012 Slide 14
Driving innovation – what entry points to consider?
Business
Process Voice of the
customer
Job-to-be-done
What customers demand
What customers in fact need How customers have
access to a solution
Source:Based on Verhaert
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26.10.2012 Slide 15
Technology
Change
Meaning to users
Lo
w
Hig
h
Known Novel
Coke Cooler Innovations at glance …
Source:Based on Verganti
Hug me cooler
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26.10.2012 Slide 16
Technology
Chance
Meaning to users
Lo
w
Hig
h
Known Novel
Coke Cooler Innovations at glance …
Source:Based on Verganti
Hug me cooler
Low energy cooler
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26.10.2012 Slide 17
Technology
Change
Meaning to users
Lo
w
Hig
h
Known Novel
Coke Cooler Innovations at glance …
Source:Based on Verganti
Hug me cooler
Low energy cooler POP Cooler
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26.10.2012 Slide 18
Technology
Change
Meaning to users
Lo
w
Hig
h
Known Novel
Coke Cooler Innovations at glance …
Source:Based on Verganti
Hug me cooler
Low energy cooler POP Cooler
Glacier Cooler
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26.10.2012 Slide 19
when product performance is good enough…
Focus on a) desire-ability: life style-design, branding, communities,…
b) use-ability, convenience throughout the life cycle
-Look for User Centered Design (UCD)
-Look for potential in service innovation
TIME
PR
OD
UC
T P
ER
FO
RM
AN
CE
From a market strategy perspective
start an innovation strategy from the situation
Source:Based on
Christensen
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26.10.2012 Slide 20
From a product development perspective
leverage from platform thinking
An example …
An important ‘top-level’ specification step :
How do we diversify the product towards different client
groups -”jobs to be done”?
What do we deliver and what de we leave for our
partners?
What’s the baseline? What are options (how do we
construct our price list)?
What are the technical building blocks?
Which components / subsystems are driving
performance?
Which components / subsystems are sensitive for
technology evolution?
What will probably be personalised?
How is the product handled throughout the value chain?
(transport, installation, …)
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26.10.2012 Slide 21
From a product strategy perspective
build differentiating value propositions
An example …
In our product economy we
often tell bizarre stories. Stories that
not engage our users, neither
they improve our competitive position.
Despite the efforts of a whole company
they don’t deliver anything.
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26.10.2012 Slide 22
The new product management framework
MARKET STRATEGY BUSINESS PLANNING PROGRAMS READINESS SUPPORT
Understand market problems and your unique ability to address them.
Create a product strategy integrated with your organisation’s products
Formalise your product plans to deliver profitable solutions for market problems
Create go-to-market programs aligned to the buying/making process
Support the sales channels with market and product expertise
Connect your business plans with the organisations that develop, promote and deliver to the market
Ensure the ability to sell and support your product
ST
RA
TE
GIC
TA
CT
ICA
L
Source:Based on Verhaert
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26.10.2012 Slide 23
The new product management framework
MARKET STRATEGY BUSINESS PLANNING PROGRAMS READINESS SUPPORT
ST
RA
TE
GIC
TA
CT
ICA
L
Market problems
Techno-logy knowledge
Competive landscape
Distinctive compe-tence
Win/Loss analysis
Distribution strategy
Market definition
Product roadmap
Product portfolio
Business plan
Profitability monitoring
Buy, build, partner
Pricing
Innovation compe-tencies
Customer Buying process
User personas
Buyer personas
Use scenarios
Status boards
Positioning
Require-ments
Referrals & references
Customer acquisition
Program effective-ness
Customer rentention
Thought leadership
Lead generation
Marketing event plan
Launch plan
Collateral
Sales Tools
Sales process
Channel training
‘Special’ calls
Event support
Presenta-tions & demos
Channel support
? your fit
Strategy
Technical
Marketing
Source:Based on Verhaert
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26.10.2012 Slide 24
NPM’s must manage return on innovation
Innovation
value curve
investment
cumulative
cash
traction
multiple
valuation
Source:Based on Verhaert
€
time
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26.10.2012 Slide 25
Establish a framework
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26.10.2012 Slide 26
Companies must create differentiated roles …
Senior Mgm
Sales
Marketing
Product Director
Product
Marketing Mgr
Engineering
Technical
support
Presales
Technical
product mgr
Solutions
architect
Product
Management
focus
technical business
# persons
# locations
Source:Based on Verhaert
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26.10.2012 Slide 27
Example of a medical company’s perspective
Existing
treatments
Technology
Interventional
cardiology
Solutions
Interventional
radiologist
Vascular
surgeon
New treatments
+ S
T
O
Source:Based on Verhaert
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26.10.2012 Slide 28
The product management organisation
Organised from a
Technology perspective
Organised from a product
champion perspective
Organised from a market
/ application perspective
Most companies need all of them
or
or or
LEADERSHIP
1) General product mgm function
2) From one of the components
Source:Based on Verhaert
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26.10.2012 Slide 29
A driver needs a dashboard
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26.10.2012 Slide 30
•Maximizing fit with user / market requirements
•Minimizing the development cycle
•Controlling development & product costs
To Inform all stakeholders
Dashboard as a basis for communication
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26.10.2012 Slide 31
New-Products pipeline CONFIDENTIAL
12/07/02 last update initiator FW
last print
Product candidate/ Project Stage Value
idea startegic fit added value bus model business case Lead user ID Funding Euro
General Total (N°) 13 22 10 21 13
General Total (KEuro) 24.000 38.250 50.000 287.898 156.057 1.258.852
Project A x 17.124
Project B x 26.400
Project C x 14.285
Project D x 15.000
Project F x 20.000
Project G x 27.300
14.285
x 55.400
x 15.000
x 15.000
x 40.100
x 20.000
x 60.000
•Provides overview of the initiatives, status, and potential
•Make sure your pipeline is not back or front loaded (distribution)
•Each project described as NABC (New Application & Business Concept)
New Products Pipeline
is yours connected to your business strategy?
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26.10.2012 Slide 32
Elements of a product candidate description of eight key elements:
1. Title
2. Summary of the problem/need and approach (useful?)
3. Description of the situation the customer/user was facing (value?)
4. What we will do to solve their problem (feasibility?)
5. Description of the impact of the solution (usability?)
6. An appropriate illustrative visualisation (desirability?)
7. Differentiation concept (positioning / competition)
8. Business concept
N-ABC New application & business concept
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26.10.2012 Slide 33
Illustration of N-ABC (product model)
Need
350 million smokers – 5000 million cigarettes/y
Packaging is very expensive
Main functions are marketing and product
preservation
Increasing regulations to stop advertising /
smoking
Approach
Launch project in marketing driven projects
(Music festivals, …)
Prototype development required of blister
concept
Benefit
Blister will unleash a marketing tornado =
branding
Improved performance to getting wet, less
cracks in pocket, etc.
Better fit to jeans pocket
Competition
Traditional packs
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26.10.2012 Slide 34
Building a common language is essential – visual thinking
System diagrams – artist impressions, moodboards,exploded views, collages,…
“Product Managers need to connect the dots. Visual thinking, on all
aspects, provides very good communication abilities.”
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26.10.2012 Slide 35
Conclusions
• The nature of new products management requires an
exploratory attitude, out-of-the-box thinking, but
focused on a business challenge; so very result driven at
the end.
• Companies must creates some ‘air’ to connect the dots,
hence the innovation strategy and the measures taken
within must be aligned to a company’s business strategy / ambitions.
• Innovation requires multi level decisions, hence a
separate reporting structure is required, managing both
horizontal and vertical streams
• Communication is essential and visual thinking is
very useful to create a common communication
language
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26.10.2012 Slide 36
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