This presentation will discuss how you can develop your product market strategy to align with corporate operational objectives to drive meaningful development while demonstrating investment value and alignment.
BioRobert Grupe is an experienced international business leader with a background in engineering, sales, marketing, PR, and product support in the software, digital marketing, health care, electro-optic and aerospace industries. From Fortune 100 to start-up companies, Robert has worked for industry leaders including Boeing, McAfee, Text 100 PR, and Express Scripts. Management experience includes working with and leading local, as well as internationally distributed, teams while implementing best practices to maximum organizational and market performance. Robert is a registered Certified Information Security Professional (CISSP), Certified Secure Software Lifecycle Professional (CSSLP), Professional Engineer (PE), and Product Management Professional (PMP).
Update listing of new product ideas and enhancements to existing productsPrioritize the list based on executive decision influenceEngineering preferencesNew sales commitments (whale / major account proposal needs)Renewal sales customer dissatisfaction issues‘Visionary’ leap to new uncontested market opportunitySelect next projects based on development resource availabilityAdd to portfolio management dashboardDevelop product<<Preform web research and revenue projections for business case>>Launch productRepeatProduct Portfolio Management is actually Project Program Management
New Product Life Cycle (NPLC) ProcessPhase-Gate Process Well understood, good process to generate and process new product ideasChallengesCorporate strategy mapping usually happens at the end of effortsLong process from Ideas Discovery to development kickoffHow to determine and demonstrate corporate strategic alignment?Small mention of market positioning strategyWhat your future, current non-customers, will want
Primary FocusCorporate strategy – weak for innovationProduct Strategy – Technology Star-upsMarcomms Strategy – mid-sized / aggressive growth (Dot.Coms)What other tools are needed? How do they fit together?But Then What, How Do you Do that?Here is a view based on the toolsProcess Steps
Financial ModelsUsesGo/No-Go decision: Kill if too weakRanking: Resource allocation from strongest-weakest, others killed or put on hold (positive, but not enough resources)Best PracticeUse with other methodsLimitation: worst real-work performance = lack of research rigorChecklist Scoring: UsesGo/No-Go decisions, especially in early phasesRanking of resourcesBest PracticesRequires well informed management group to assessBehavior: Bringing managers to team consensus
WARNINGStudy 129 firms found that those who follow portfolio planning models like the BCG matrix had lower shareholder returns.Doesn’t evaluate profitabilityDepends on how “market” is definedLeads to conclusion to funnel money from cows to stars (so that cows turn into dogs)This should only be attempted for real lines that have a sufficient history to allow some prediction; if the corporation has made only a few products and called them a product line, the sample variance will be too high for this sort of analysis to be meaningful.Use GE/McKinsey Strategic Alignment instead
P31 – need another arrow
http://www.strategy2act.com/solutions/bsc_toolkit/02-building-balanced-scorecard.htmhttp://www.schneiderman.com/Concepts/Scorecard/How_to_Build_a_Balanced_Scorecard/how_to_build_a_BSC_intro.htmDrucker ThoughtsBalanced Objectives: market standing, innovation (10% invest), productivity, physical and financial resources, profitability, manager performance and development, worker performance and attitude, and public responsibility (patient outcomes)
Marketing Strategy is more important than product featuresthink insurance, coffee, heavy machinery, airlines, etc.You need to lead or follow your corporate marketing strategyWhat are your organization’s strengths and weaknesses?What will this product need to succeed?Positioning Direct ResearchSurveysCustomer firmographic & physchographic profilesIndirect ResearchAnalyst market researchMarket & Competitive Analysis Promotional TacticsVoC / QFDSales channel development & incentivesPhyschographic: IAO variables (for Interests, Activities, and Opinions). They can be contrasted with demographic variables (such as age and gender), behavioral variables (such as usage rate or loyalty), and firmographic variables (such as industry, seniority and functional area).
Effective Product Portfolio ManagementMaximize return on investmentsBalance of project types Strategic alignment of all effortsRight number of projectsPMP = focusing strategic vision into realityAnything worthwhile will face oppositionreassess, but stay focused if opposition is destructively motivated.Learn from mistakesStay aligned into sponsorsPersonal Professional FocusExtended into your own personal objectives and plansTeam to personal Scorecard
From The DailyDrucker, 3/13Bonus – apply this same principle to your own life (God’s purpose for your life, we your plans)