How Product Management and Business Model fit together in terms of tools and responsibilities

1. Product Management and Business Models
20th January 2014
Mike Henry
Time to Market
mikehenry@ttm.co.uk
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:
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Product Management
Business Models
Inter-relationship between them
How Product Management can integrate them
Accountabilities and responsibilities of Product Management

2. PM and BM
Contents
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© 2000 to 2014 TtM
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
© 2000 to 2014 TtM
“We accelerate growth”

3. Time to Market Product Management and Business Model
Framework
PM and BM
3
© 2000 to 2014 TtM
© 2000 to 2014 TtM
“We accelerate growth”

4. PM and BM
Product Management Principles and Processes
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© 2000 to 2014 TtM
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.
True „End to End‟ Product Management comprises:
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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‟
© 2000 to 2014 TtM
“We accelerate growth”

5. PM and BM
Product Management Processes and Toolkit
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© 2000 to 2014 TtM
True „End to End‟ Product Management comprises:
Product Management Toolkit :
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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‟
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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
© 2000 to 2014 TtM
“We accelerate growth”

6. PM and BM
Product Management: Customer Product Value Propositions (PVP)
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Customers
„Jo Public‟
Person in the Street B2C
Customer Product Value Propositions (PVP):
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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
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„Business People‟ B2B
Product Value = Benefits – Price – Effort – Risk
Propositions = packages of:
Business Users
„Technical‟ Buyers
„Economic‟ Buyers
•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
Against WHAT
do we compete
WHAT
HOW
do they want
do we provide
© 2000 to 2014 TtM
“We accelerate growth”

7. PM and BM
Business Model
Defines the way a business
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delivers value to customers
entices customers to pay for value
converts payments/ revenue into profits
Reflects a business hypothesis about:
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What customers want
How they want it
The ways a business can deliver it
Get paid for doing it
Make a profit
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© 2000 to 2014 TtM
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
Descriptions of products, services and solutions comprising:
Who, What (do they want), How (do we provide), Against What (do we
compete)
Bunch of products, services and solutions which we offer to our customers
(B2B, B2C) in the various segments, industries and countries.
PVP: Product Value Propositions
PP: Product, Service and Solution
Portfolio
CP: Competitors
CP: Competitive Products
TP: Technology Portfolio
CSR: Sales Channels/
Routes to Market/
Customer Relationships
CSR: Market Communications
DSP: Demand Side Partners or
Collaborators
CIR: Contingents: Influencers/ Regulators
Those competing companies or other entities comprising:
Industry or Direct Competitor; Customers; Suppliers; New Entrants; Substitutes
The bunches of products, services and solutions which are offered by
competitors.
The bunches of product, solution, manufacturing, operational or other
technologies which provide value to customers or partners.
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.
Ways used to do outbound market communications with customers,
prospective customers, market influencers
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.
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)
£R: Reward/ Revenue Streams
Strategic Partner companies or other entities which are involved in the Supply
side of the Product Value Network.
£R: Price and Profit
£C: Cost Structure (including Risk)
KAP: Key Activities & Processes
KR: Key Resources
Reward streams comprising Revenue, Market Share, …. Which result from
Product Value Propositions and Portfolios successfully offered and delivered to
customers.
Price structures which provide profits and margins after taking into account
cost structure.
Product and other Cost elements such as fixed and variable costs which are
required to provide and deliver Product Value Propositions and Portfolios
successfully.
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.
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.
© 2000 to 2014 TtM
“We accelerate growth”

8. The different types of Business Models describe an „eco system‟ for
Product Management
PM and BM
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© 2000 to 2014 TtM
Types of Business Model : there are hybrids!!
Example Business Model Canvas:
„eco system‟
© 2000 to 2014 TtM
“We accelerate growth”

9. Time to Market Framework
Integrating Product Management and Business Model
PM and BM
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© 2000 to 2014 TtM
Tools for
Product
Management
Tool for Product
Management
Core Tool for
Product
Management
„eco system‟
Core Tool
for Business
Model
© 2000 to 2014 TtM
“We accelerate growth”

10. Product Management Responsibilities
and Business Model
PM and BM
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© 2000 to 2014 TtM
Business Model Canvas
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
Key areas for Product
Key Building Blocks for Product
Management Accountability
ManagementAccountability and
Responsibility
and Responsibility
© 2000 to 2014 TtM
“We accelerate growth”

11. PM and BM
That‟s all Folks – Thank you
Mike Henry
Time to Market
mikehenry@ttm.co.uk
TtM Product Solutions Ltd
www.ttm.co.uk
Tel: +44 1462 337461
Mob: +44 7802 323678
11
© 2000 to 2014 TtM
Mike will be very happy to
receive:
Any Questions
Comments or
Feedback
© 2000 to 2014 TtM
“We accelerate growth”