Slides presented by Garry Avery (Tarigo) at the the CPMN meeting on 4-March-2021

1. Product Manager Challenges!

2. 2
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Top 10 Greatest Challenges
- Improve on Innovation
- Segmentation will get ‘sharper’
- Portfolio becomes more important
- The use of data and machine learning for customer insight
- Biggest skills gap is ‘market and customer focus’
- Commercial mindset
- Keeping ahead of technology
- Breakdown the barriers to adoption
- Stakeholder Management across the internet
- Breaking up the PM role

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Improve on Innovation
“Product Managers prefer to enhance a solution, than innovate”
We need innovators!

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The design thinking model
Design Thinking is a design
methodology that provides
a solution-based approach
to solving problems.
The six stages of Design
Thinking:
• Empathise
• Define (the problem)
• Prioritise
• Ideate
• Prototype
• Test

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How Might We?
The How Might We framework
is a way to reframe a problem.
HMW questions drive ideation
sessions where product teams
explore ideas which can help
solve problem statements in an
innovative way.

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Segmentation will get sharper
Firmographic Segmentation
What is the primary
business of the
organisation.
Where does this
organisation sit
geographically.
How many staff
does the
organisation
employ.
What specific
markets does the
business serve.
What is the job title
of our target
customer.
Which
department are
we targeting.
Firmographic segmentation is the
process of analysing B2B
audiences and grouping them
based on their shared
characteristics.
Firmographic data is gathered and
analyzed in order to better
understand and isolate the target
audience
Businesses use firmographics for
organisations in the same way that
B2C companies use demographics
for people.
What stage of
buying are they
at.
What stage is the
business.

7. 7
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Portfolio Analysis - Segmentation
Firmographic Segment map
Characteristics laid out in order
of ‘refinement’
Volume reduction per criteria
Select criteria.
Note: Library can
be added to.
Define the
characteristics to use
1
2

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Portfolio Management
The world is more connected. Portfolio impacts are more visible
You need Organised, Big Picture Product Managers!

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Portfolio Management

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Portfolio Management
The lifecycle view gives
a view of portfolio
balance.
Unbalanced portfolios
cluster around lifecycle
stages, magnifying
lifecycle risk
Balanced portfolios
spread across the
lifecycle stages
Limited competition
Market domination
potential
Low volume
High cost
High failure rate
Try-this’ marketing
Rapid volume increase
Competitors increase
Economies of scale
Slightly lower prices
Buy-me’ marketing
Limited growth
Lower prices
Replacement products
Volumes drop sharply
Competitors withdraw
Prices can rise
Marketing effort reduced
Product cluster.
Balanced Portfolio

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Portfolio Management
Multifactoral analysis is a technique
used to assess product opportunities.
The model comprises of a suite
segment attractiveness measures and
product potential measures.
The model gives a strategic evaluation
of a portfolio or product
Segment
Attractiveness
High
INVEST
OR
GROW
Medium ?
Low
DIVEST
OR
HARVEST
High Medium Low
Product potential
Invest if there’s money left
and the situation of
business unit could be
improved
5 1
1
5

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Portfolio Management
The attractiveness of a market is
demonstrated by how beneficial it is
to enter and compete within this
market.
It is based on various factors; the
size of the market and the rate at
which it is growing, the possibility of
profit, the number of competitors
within the industry and their
weaknesses.
Factors can be added to the list.
A subset of factors is used for the
analysis
WHAT MAKES A SEGMENT ATTRACTIVE?
• Short-term profit
• Long-term profit
• Growth rate of market
• Size of market after growth
• As a step towards a more attractive market
• Value of current products to market members
• Cost of entry into market
• Competition within market
• Ease of reaching market members
• Openness of market members to products and communications
• Ability to build a defensible position within the market
• Readiness of suppliers and other partners to enter market
• Political stability and governmental support
• Alignment with business strategy

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Portfolio Management
Selected factors are prioritized and
weighted so that add up to 1.00
The weighted score total describes
that attractiveness of that segment.
Each product is rated per segment it
competes in.
Segment Attractiveness
Product 1 Product 2
Factor Weight Rating
Weighted
Score
Rating
Weighted
Score
Industry
growth rate
0.25 3 0.75 4 1
Industry size 0.22 3 0.66 3 0.66
Industry
profitability
0.18 5 0.90 1 0.18
Industry
structure
0.17 4 0.68 4 0.68
Trend of
prices
0.09 3 0.27 3 0.27
Market
segmentatio
n
0.09 1 0.09 3 0.27
Total
score
1.00 - 3.35 - 3.06

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Portfolio Management
The potential of a product gives an
indication of our capability to
compete in the given markets. It can
be determined by current factors
such as the share it holds in the
market and the development of this
share, the position in the market of its
brand and the loyalty of customers to
the brand
It can also use forward facing factors
such as innovation capability and
ability to adapt.
WHAT GIVES A PRODUCT POTENTIAL?
• Short-term profit
• Long-term profit
• Revenue
• Market share
• Market dominance
• Stickiness
• Uniqueness
• Protectability
• Resource capability
• Barriers to entry
• Fit to business
• Brand value

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Portfolio Management
Selected factors are prioritized and
weighted so that add up to 1.00
The weighted score total describes
the product potential
Product potential can be different per
segment (e.g. resources may be
more or less capable of delivering to
a segment need.
Product Potential
Product 1 Product 2
Factor Weight Rating
Weighted
Score
Rating
Weighted
Score
Market
share
0.22 2 0.44 2 0.44
Relative
growth rate
0.18 3 0.48 2 0.38
Product
profitability
0.14 3 0.42 1 0.14
Brand value 0.10 1 0.10 2 0.20
Resource
Capability
0.20 1 0.20 4 0.80
Stickiness 0.16 2 0.32 5 0.80
Total
score
1.00 - 1.96 - 2.74

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Portfolio Management
Products are represented as a circle.
the size denotes the size of the
market.
Market share is shown in a pie chart
within the arrow indicating anticipated
direction of travel of market share
Segment
Attractiveness
High
INVEST
OR
GROW
Medium ?
Low
DIVEST
OR
HARVEST
High Medium Low
Product potential
Invest if there’s money left
and the situation of
business unit could be
improved
1
5

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Use of Data and Analytics
“Product Managers need to use Analytics to improve user experience!”
Need Data Product Managers!

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Market and Customer focused
“Product Managers need to be customer centric and not led – Too many times
Product do not see customers”
Need Product Managers who are Empathetic and
Strong listeners!

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Market and Customer focused
EMPATHY MAP
PRODUCT: TARGET SEGMENT:
NAME:
ROLE:
ABOUT:
LEXICON:
WANTS AND NEEDS THINK AND FEEL PAINS & GAINS
DO

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Commercial Mindset
“Product Management focus on the technical….
….we need Product Managers who balance technical and strategic!

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Strategic pillars
Our vision at Nespresso is to be recognised as the
ultimate coffee experience worldwide. For us, that
means a relentless commitment to excellence in all
that we do, and a commitment to continuous
innovation, aiming to consistently create moments
of pleasure for our Club Members.
INNOVATIVE &
SUSTAINABLE
PRODUCTS.
A MARKET LEADING
GLOBAL SERVICE
EXPERIENCE
DELIVERY.
ELIMINATE WASTE &
SMART WAYS TO
RECYCLE END OF
PRODUCT LIFE
DIFFERENTIATING
CUSTOMER
ENGAGEMENT FOR
CLUB MEMBERS.
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PRODUCT PORTFOLIO PILLARS
Initiatives: Usually set by Product Managers
Initiatives
Initiatives
Initiatives
Initiatives
Initiatives
Initiatives
Initiatives
Initiatives
Initiatives
Initiatives
Initiatives
Initiatives
3 4

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Concept assessment
3/4/2021
Powered By
Initiative Canvas
Initiative description
Brief description of the
Initiative. This could be a
market, product, platform or
service Initiative, etc.
Target Audience
Who are the main
benefactors/stakeholders?
Market overview
What does the market landscape look like?
How is the problem being solved today
How will we differentiate?
Core value
Who are the key personas?
What are the major pain
points?
What’s the core Value Prop?
Strategy fit
Describe the fit with strategy and objectives
Success Metrics How do we measure this
initiative? Both inputs and outputs?
Define the key metrics output metric for success
(results)
Define the key input metrics
Plan
What does the initiative look like three years ahead?
What are the key delivery themes?
Costs
What are the funding requirements for this
Initiative ?
Dependencies
Dependencies:
Enabler:
Owne
r
PM
PMM

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Keeping ahead of Technology
“Technology is moving faster than adoption”
Need Product Managers who can future gaze and
land the technology

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Look for the 3am issue!

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Break down the barriers to adoption
“Customer adoption is left late, the Product comes first”
Need Product Managers who can put themselves in
others shoes and break down barriers!

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Break down the barriers to adoption
The six stages of buying
RECOGNIZE
RESEARCH
EXPLORE
SELECT
BUY
REVIEW
Do I have an issue I need to solve?
Who is best placed to help me solve it?
We help by….
• Establish thought leadership
• Establish product acceptance
• Add product depth
• Evaluate alternates
• Keep the customer on site
Have I compared the options?
• Reinforce the reasons to buy
• Reinforce thought leadership
• Reinforce product acceptance
Am I ready to purchase?
• Test the purchase process
How do I purchase?
Did the solution meet my needs?
Customer is thinking…
• Follow up surveys
• Focus on 3am pains
• Drive testimonials that relate to the need
• Deliver question driven messaging
Being relevant
Being a leader
Being transparent
Being frictionless
Being communicative
Being ready to restate

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Break down the barriers to adoption
The six stages of buying
RECOGNIZE RESEARCH EXPLORE
SELECT BUY REVIEW
Jim the
Project Manager
Should I be looking for a new tool or
system for project management?
Jim is tired of his team using an
outdated method of Excel
spreadsheets for keeping track of their
projects.
What happens if I don’t manage project data?
Does it really save time to and reduce risk? Are
my peers doing this? Does an application give
me the flexibility to handle my complexity? What
changes will I need to make if I do this? Who are
the experts?
Jim starts researching topics about improving project
management and may find multiple software
solutions that could improve his processes
Do we have the ability to manage my
complex set of requirements? Does it have
experience delivering value in a similar
customer environment?
Jim is at the point where he is doing product
demos to see which software best fits his
needs.
What’s the ROI for the solution? How will
this change help to provide a competitive
advantage? Is ACME the right provider for
us? How will we mitigate business
disruption during this period of change?
How will we support this plan of action?
Jim may need final approval for making his
purchase, but he will also be eager to get going,
so a free trial may be the way to get him through
this phase.
Is it making the difference? What’s working
well? Where could we help?
Jim is utilizing the tool, distributing it to his
team, and hearing feedback from his
colleagues. Seeing articles about how this
software has helped people like him will likely
improve his perception of the product.
How do I make the
purchase?
Jim is ready to buy! Have we
made the buying process friction
free?

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Stakeholder Management across
Internet
“Is management of stakeholder online? From your shed!!”
Need Product Managers with a strong EQ, who can
read body language and ask the right questions,
without seeing the customer

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Do we break up the PM role?
“Is it too hard to find a single person with all the qualities needed in the 2020’s”
Do we need to employ people with specific skillsets?

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Do we break up the PM role?
The framework is made up of under
39 tiles that describe the tasks we
engage in when we take a product to
market.
We work as a team, but each tile has
clarity of role and ownership:
• Responsible
• Accountable
• Consulted
• Informed

31. PM challenges