Red7 Introduction to Product Management

1

Red7 :|: product management
A SHORT
INTRODUCTION TO
PRODUCT MANAGEMENT
The Role of Product Management
within the Organization
Product Manager, Business Analyst, Product Marketing Manager,
Project Manager – who does what ?

robertGrupe, CISSP, CSSLP, PE, PMP

© Copyright 2012-03 Robert Grupe. All rights reserved.

Disclaimer
• Summary of industry best practices frameworks and tools
• Organizations do things differently
• Jobs titles and responsibilities varies
• This is not a presentation about how your company is
structured, or necessarily how it should be
• >> If you have something that already works better 


Table of Contents
• Roles, Focus, and Tools
• Product Management
• Business Analysis
• Project Management
• Putting It All Together
• Discussion


PRODUCT MANAGEMENT
Responsibilities and Roles


What Is A Product?
Well, it depends upon whom you ask
• Project Management definition
• The outcome of an activity, especially in contrast to a process by which it
was created or altered.
• The amount of an artifact that has been created by someone or some
process.
• Marketing definition
• A commodity offered for sale.
• Any tangible or intangible good or service that is a result of a process
and that is intended for delivery to a customer or end user.
• Product  Systems + People
• System - not just software applications, but also any process used to deliver a service.
• i.e. automated and manual processes to provide valuable customer services


Product Management
• Planning, forecasting, or marketing of a product or
products at all stages of the product lifecycle.
• Consists of product development and product marketing.
• Objective to maximizing sales revenues, market
share, and profit margins.
• Responsible for analyzing market conditions and defining
features or functions of a product.
• Spans many activities from strategic to tactical and varies
based on the organizational structure of the company.
• Product management can be a function separate on its
own, or a member of marketing or engineering.


Product Management in the Organization
Production

Engineering Advertising

Executive
Support
Management

Product
Production Sales
Management

Finance Purchasing

Marketing
Customers
Research

Legal


Product Management Roles
• Product Manager (PM)
Product strategy & planning (in-bound / strategic marketing)
• Market Research, Analysis, and Strategy
• Competitive differentiation, positioning
• Market Requirements Document (MRD)
• Gathering and validate Voice-of-the-Customer (VoC) market requirements
• Defining new products
• Defining and prioritizing product roadmaps
• Product Requirements Document (PRD)
• Product Life Cycle considerations
• Stages: introduction, growth, mature, saturation/decline
• Major accounts support (feature requests and roadmap)
• Product Marketing Manager (PMM)
Product marketing (outbound / tactical marketing)
• Product positioning and outbound messaging
• Promotion: press, customers, and partners
• Packaging and delivery
• Competition messaging monitoring
• Product demonstrations in trade shows, creating marketing collateral like data sheets and white
papers.
• RFP responses standard


• Product Management Program Manager
Internal and cross-functional project management
• Leads projects for Product Management
• cross-function coordination
• Internal coordinated projects
• Facilitation of whole Product Life Cycle (PLC)
• Skilled project manager (MS Project, scrum, facilitation, collaboration, etc.)
• Projects status reporting


Execution Administration

• Product Manager • Director / Group PM
• Prerequisites • Prerequisites
• 3-5 years multi-department business • 2+ years experience as senior PM
experience • Responsibility:
• Internal (finance, operations)
• Group of products
• customer facing (sales, support, marketing)
• Supervise, QA, and mentoring of PMs
• Business math (NPV, financial
forecasting, trend analysis) • Senior Director
• Communications: • 2+ years as PM Director
Presentation, writing, organization
• Department Budgetary Responsibility
• End-User skills proficiency
• Product Portfolio Management
• Responsibility
• Product expert • QI leadership: P&P/Best Practices
• Market analysis • Chief Product Manager / Head / VP
• Senior Product Manager
• Prerequisites
• 3+ years experience
• 2+ release cycles (PRD-Launch)
• MRD
• Able to work completely independently


Market Adoption Process Phases &
Market Trend Hype Cycles


Product Life Cycle Stages

Stages Introduction Growth Maturity Decline
Audience Early Adopters Early Majority Late Majority Laggards
Market Small Growing Large Contracting
Sales Low High Flattening Moderate
Competition Low Moderate High Moderate
Business Focus Awareness Market Share Customer Retention Transition
Design Focus Tuning Scaling Support Transition
Marketing Objective Gain Awareness Stress Differentiation Maintain Brand Loyaty Harvesting, Deletion
Competition Few More Many Reduced
Product One More versions Full product line Best sellers
Price Skimming or penetration Gain market share, deal Define market share, Stay profitable
profit
Promotion Inform, educate Stress competitive Reminder oriented Minimal promotion
differences
Place (distribution) Limited More outlets Maximum outlets Fewer outlets


Example Product Line Life Cycle


Strategic Marketing Plan and
Marketing Requirements Document (MRD)
• CURRENT MARKET SITUATION • MRD Sections
• Company Historical Background • Business Opportunity
• Market Analysis • Recommended Product Strategy
• Customer Analysis • Product Family Positioning Statement
• Competitive Analysis • Competitive Landscape
• Company Analysis • Market Requirements Summary
• Company Analysis • Target Market Segmentation Priorities
• Current Product Analysis (if applicable) • Business-Oriented Use Cases
• MARKETING OBJECTIVES • Financial Impact
• Company Objectives • Risk and Consequences
• Sales Objectives
• Profitability Objectives
• Consumer Objectives
• STRATEGY
• Product/Service Strategy (MRD/PRD)
• Pricing Strategy
• Distribution Strategy
• Promotional Strategy
• Financial Strategy
• TACTICS
• Distribution Tactics
• Promotion Plan Tactics
• Support Plan Tactics
• Financial Plan Tactics (Business Plan)
• EXECUTION SCHEDULE
• Introduction Schedule
• Post Introduction Schedule
• PROJECTED PROFIT AND LOSS STATEMENT


Some Market Analysis Tools
• Checklist Scoring Models • Mapping Approaches / Bubble
• Fit with corporate objectives Diagrams
• Competitive advantage • Boston Consulting Group Matrix
• Market attractiveness • GE/McKinsey
• Financial / Economic Models position vs attractiveness
• Risk Reward
• Payback period
• Ansoff Matrix
• Break even analysis
• ROI • Probabilistic Financial Models
• Discounted cash flow (DCF) • Monte Carlo Simulation
• Net Present Value (NPV) • Decision Tree Analysis
• Internal Rate of Return (IRR); ECV • Options Pricing Theory (Real
• Financial Ratios Options)
• Productivity Index


Strategic Alignment
GE/McKinsey Directional Policy
Leader Growth Improve or Quit

High

Industry
Attractiveness
Try Harder Proceed with Care Phased Withdrawal

Medium Share

Cash Generator Phased Withdrawal Withdrawal

Low

High Medium Low
Enterprise Strength

Risk-Benefit Balance

Maintenance
(fixes)

New Product
Projects

Enhancements
& Extensions


New Product Development (NPD)
Life Cycle Model
Ideaisation Go:No-Go

Scoping Go:No-Go

Planning Go:No-Go

Development Go:No-Go

Testing Go:No-Go

Launch Go:No-Go

Maintenance

Retirement
Project Lifecycle EOL
Framework

What Are Requirements?
• Product Requirements - attributes of the final product
• Functionality
• Computer application user interfaces,
• Communications
• Reports
• Customer services
• User help manuals & self-help tutorials,
• Service delivery staffing licensing/certifications
• etc.
• Project Requirements - things that need to be done
• Types of testing & validation
• Product launch promotion
• User support readiness
• Customer/user training development
• Etc.


Types of Product Requirements
Product Requirements Document (PRD)

• Functional Requirements
• What a product/service must do for the customer and users
• i.e. “The product shall do…”
• Nonfunctional Requirements
• Product attributes (appearance, performance, legal, legal/regulatory
compliance, etc.)
• i.e. “The product shall be…”
• Look and Feel
• Usability
• Performance
• Operational
• Maintainability and Portability
• Security
• Cultural and Political
• Legal
• Upgrading
• User Documentation.


Product Requirements
• The Product Requirements Document (PRD)
• Defines the overall objectives and scope of the project
• Specification for a project end-deliverable
• Created and maintained by the Product Manager
• The [Business/Marketing/Brand] “Owner”
• Starting point for the product design (high level requirements)
• Baseline for QA acceptance testing criteria

• Why Product Projects Need a PRD
• Defines the scope for the project
• Provide a historical record for retrospective review and process audits
• Agreed definition
• Project performance reviews for process improvement
• Can be thought through, reviewed and edited
• Easily shared with others
• Reduces developer gold plating


Services Product Design
Marketing and Product Design Top Service Companies

• Marketing Strategy • Strategic Concept
• Clear target market, needs, and enduring
• 4P’s of External Marketing customer loyalty
• Product, Price, Promotion, Place • Leadership Quality Commitment
• Plus • Not only financial, but monthly customer
satisfaction/service metrics review
• Internal Marketing
• High Standards
• Employee training and motivation
• Customer and employee satisfaction
• Interactive Marketing targets
• Employee handling of customers • Service Performance Monitoring
• 3P’s Competitive Differentiation • Own and competitors, regular

• People: more able and reliable • Customer Complaints System
• Generous responses to complaints
• Place: attractiveness
• Satisfying Employees as well as
• Process: more convenient customers
• Employee satisfaction reflects on
customer relations


Product Requirements Development
Tools & Process Requirements
Backlog

VoC High Level
Research Requirements

Product Use Release
Cases Roadmap

Product
Requirement
Documents

Project
Mockups Release
Summary

Product
Context
Process Work
Diagram
Flows


BUSINESS ANALYSIS
Roles often confused with Product Management


Business Analysts
• An internal consultancy role that has responsibility for
investigating business systems, identifying options for
improving business systems and bridging the needs of the
business with the use of IT.
• BCS, The Chartered Institute for IT
• A liaison among stakeholders in order to understand the
structure, policies, and operations of an organization, and to
recommend solutions that enable the organization to achieve
its goals.
• International Institute of Business Analysis (IIBA)
• Uniquely placed in the organization to provide a strong link
between the Business Community and Information Technology
(IT).
• The Certified Software Business Analyst (CSBA) Common Body of
Knowledge


Business Analysis Tiers
1. Planning Strategically
• The analysis of the organization's strategic business needs
2. Operating/Business Model Analysis
• The definition and analysis of the organization's policies and
market business approaches
3. Process Definition and Design
• The business process modeling (often developed through process
modeling and design)
4. IT/Technical Business Analysis
• The interpretation of business rules and requirements for technical
systems (generally within IT, sometimes referred to as Systems
analysis)


Operations Service Strategic Alignment
BUSINESS INFORMATION MANAGEMENT TECHNOLOGY MANAGEMENT

STRATEGY

SERVICE STRATEGY

CONTINUAL
SERVICE IMPROVEMENT

TACTICS
SERVICE
DESIGN

SERVICE
TRANSITION
OPERATIONS
SERVICE
OPERATION


ITIL & MOF Lifecycles

ITIL Service ITIL Service ITIL Service ITIL Service ITIL Continual
Strategy Design Transition Operation Service
Improvement

PLAN
Business IT Portfolio
Alignment,
Reliability, Policy ,
Financial mgt

Service
Alignment DELIVER
Envision, Project Planning, Build, Stabilize,
Deploy

Project
plan
OPERATE
approved Operations,
Release Service Monitoring &
Readiness
Control,
Customer service,
Opera-
Problem mgt tional
health

Policy &
Control

MANAGE
GRC, Change & Configuration, Team


IT Services Operations Design
• The MOF 4.0 IT Service Lifecycle, showing phases, SMFs
and management reviews


Deming’s Plan-Do-Check-Act
Management Cycle Quality Improvement


Business Requirements Document (BRD)
• Executive Summary • Actors
• Overview • Workers
• Background • Business Actors
• Objectives • Other Systems
• Requirements • Role Map
• Proposed Strategy • Business Rules
• Product/Solution Scope • State Diagrams
• Included in Scope
• IT Requirements
• Excluded from Scope
• User Requirements
• Constraints • User Task Overview Diagram
• Business Case • User Task Descriptions
• Business Services and Processes • IT Service Level (Non-Functional)
Requirements
• Impact of Proposed Changes on
Business Services and Processes • System State Requirements
• Testing State
• Business Service and Process
Overview Diagrams • Disabled State

• Business Process Workflow • Static Model
Requirements • Static Model: Diagrams
• Multiplicity Rules Table
• Business Service Level (Non-
Functional) Requirements • Entity Documentation


Business Analyst Tools
PRD  BRD details
• Activity Diagram • Requirements Attributes Table
• Block Diagrams (swim lanes) • Requirements Traceability
• Business Process Diagram (BPD) • Role Model
• Business Process Modeling • Root-Cause Analysis
• Business Use Case • Sequence Diagram
• Cause-and-Effect Diagrams • State Machine (Harel Statecard) Diagram
• Class Diagrams and Static Model • Structured Walkthrough
• Communication Diagram • System Use Case and Diagrams
• Data Flow and Context Diagram • Use Case Analysis
• Decision Tree/Table • Six Sigma
• Entity Relationship Diagram (ERD) and • Taguchi methods
Data Model • axiomatic design
• Flow Charts • TRIZ
• Design for X
• Functional Decomposition Chart
• design of experiments (DOE)
• FURPS
• tolerance design
• Object Diagram • Robustification
• Pareto Analysis • response surface methodology


PROJECT MANAGEMENT


Project Management
• Achieve all of the goals of the • 9 Knowledge Areas:
project charter while adhering to • integration management,
Project constraints: • scope management,
• scope, • time management,
• time, • cost management,
• cost and • quality management,
• quality. • human resource
• Project management life cycle management,
• 5 Process Groups: • communications
• Project Initiation, management,
• Project Planning, • risk management and
• Project Execution, • procurement management.
• Project monitoring and
control, and
• Project closeout.


Project Management


Program Management
[& Product Portfolio Management]
• Layer above project management focusing on selecting the best group of programs [and products]
defining them in terms of their constituent projects and providing an infrastructure where projects
can be run successfully
• Governance: The structure, process, and procedure to control operations and changes to
performance objectives.
• Standards: Define the performance architecture.
• Alignment: The program must support higher level vision, goals and objectives.
• Assurance: Verify and validate the program, ensuring adherence to standards and alignment with
the vision.
• Management: Ensure there are regular reviews, there is accountability, and that management of
projects, stakeholders and suppliers is in place.
• Integration: Optimize performance across the program value chain, functionally and technically.
• Finances: Tracking of finances is an important part of Program management and basic costs
together with wider costs of administering the program are all tracked.
• Infrastructure: Allocation of resources influences the cost and success of the program.
Infrastructure might cover offices, version control, and IT. Planning: Develop the plan bringing
together the information on projects, resources, timescales, monitoring and control.
• Improvement: Continuously assess performance; research and develop new capabilities; and
systemically apply learning and knowledge to the program.


CODA


Why Is This Important?
• Without clearly defined and integrated
• product management,
• product marketing, and
• project management,
• innovation will be
• haphazard,
• chaotic, and
• un-scalable
• with complexity and growth.
• You can’t improve or accelerate what you can’t
understand or control.
• Putting random people on a galley ship won’t ensure you will get
where you want to go or make it go faster.


Roles Summary
Product Manager Product Marketing Manager

Focus: External revenue generating Focus: Product Promotion
products & customer services (internal & external audiences)

Marketing Requirements Document (MRD) Marcoms Strategy
Product Requirements Document (PRD) Launch Plan
Campaigns / Collateral

Business Analyst Project Manager

Focus: Internal users, cost savings, Focus: product development
process improvements and delivery based on
resources, time, and budget
objectives

Business Requirements Document (BRD) Project Plan
Traceability Matrix

Putting It All Together
Market Research

[Product Managers
& Researchers]
Product Definition
Product Market Product
(with VoC research Technical Design Build, Test, Deploy
Strategy Requirements
& validation)
[Engineering] [Development]
[Product Manager] [Product Manager]
[Product Manager]

Corporate Strategy
& Plans
Operations Design

[Business Analyst]

Marketing
Promotion Design

[Prod Mkg Mgr]

Improvement Production
Analysis Performance
Measurement
[Product Manager, (Sales, service
Six Sigma] levels)


Forrester Research: Most PM’s not being
used effectively
• Distracting challenges

Customers
Product and and market Internal
company 8%
process and
strategy organization
10% 28%
Development
process
16%
Time and
resources
Prioritization 22%
and Focus
16%


Forrester Recommendation:
Product Management for Strategic
Advantage
• Focus on inbound tasks
• Decision-making power
• Roadmap, release contents, release acceptance
• Report to CEO/GM
• i.e. not through Marketing or Engineering


DISCUSSION
Alignment with your experiences?


Finis
• This Presentation & Further Resources
• www.red7managementsolutions.com

• Questions, suggestions, & requests
• Robert Grupe, CISSP, CSSLP, PE, PMP

• robert.grupe@red7managementsolutions.com

• +1.636.236.8434


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