Module 15 - LinkedIn - Product Management: Building a Product Strategy
What is not an alternative to buying a Toyota?
buying a Toyota with an extended warranty
Great entrepreneurs
focus on a customer need they wish to solve rather than a particular product or solution
Product strategy
is a set of key choices aimed to achieve the company's business objectives.
It's important to be able to describe your strategy concisely because
it forces you to make some critical, yet difficult choices
It is important to review venture capital investments in your domain because
they can shed light on where others see the industry going in the middle to long term
Elevator Pitch - Determine target customers
** Customer Segmentation -- Age, Gender, Level of Income, Geographic, Company Size, Industry ** What is the size of the segment? ** Everything else flows from this choice. i.e. Salesforce (CRM Market) For small businesses without a CRM solution
Planning a Strategy
- Identify key stakeholders - Seek a variety of perspectives - Pay attention to investors and competitors - Communicate broadly & frequently - Focus on execution
Elevator Pitch - Market Category
- Often misunderstood & underestimated - goes to the core about how customers will think of your product * We make sense of things by categorizing and comparing. -- How do you identify the right category? Talk to your customers and listen to them. i.e. BMW For educated, affluent males, ages 35 to 55, WHO seek excitement and luxury, BMW Series 3 IS A family luxury sedan i.e. Salesforce FOR small businesses without a CRM solution WHO need to control their costs, Saleforce IS A CRM solution
Tenets of a good strategy
- Show you the way to achieving your goals (helps you choose the optimal path) ** What does success look like if everything goes according to plan? Be specific. - What's needed to be successful? - Considers factors that affect success - Explains your competitive advantage - Helps you decide what to do and what NOT to do - Measure your progress along the way - Aligns stakeholders - Everyone must understand the strategy, involve others, consider other perspectives
Effective Product Strategy
- Understand market dynamics - Map out products & services offered - Use technology to your advantage * Chart a clear path & stick to it.
Effective Product Strategy
- Understand market dynamics - Map out products and services offered - Use technology to your advantage
Elevator Pitch - Competitors & Alternatives
- What do competitors consider when forming strategy? - Understand your target customers' options - Understand the alternatives from the customer perspective i.e. BMW For educated, affluent males, ages 35 to 55, WHO seek excitement and luxury, BMW Series 3 IS A family luxury sedan THAT provides a great driving experience. UNLIKE Audi or Mercedes i.e. Salesforce FOR small businesses without a CRM solution WHO need to control their costs, Salesforce IS A CRM solution THAT is financially flexible UNLIKE Siebel or managing customer relations manually
Maintain your strategy
- Your strategy will change over time. - Pay attention to market signals. - Develop a strategy, keep your eyes & ears open & adjust as needed.
How to collect & organize input
Data - Analysis - Decision-Making - Action - Collect Inputs --- Interview key stakeholders --- Read industry publicatoins --- Reach out to thought leaders --- Look at venture capital investments --- Examine market research --- Review financials - Organize Inputs --- Examine key trends --- Review competitors --- Address your position --- Propose a strategic direction - Make strategic choices - Execute the plan
Elevator Pitch Framework
Document your strategy ** Describe it concisely ** Achieve clarity ** Sum it up in one or two sentences
Elevator Pitch - Product Differentiation
Doing something well and standing out. 1 - Know what your competitors are doing. 2 - Try out our options on your customers. 3 - What could you do better? - Price - Level of Service - Design - Brand - Business Model i.e. BMW For educated, affluent males, ages 35 to 55, WHO seek excitement and luxury, BMW Series 3 IS A family luxury sedan THAT provides a great driving experience. UNLIKE Audi or Mercedes BMW is fanatical about engineering quality. i.e. Salesforce FOR small businesses without a CRM solution WHO need to control their costs, Salesforce IS A CRM solution THAT is financially flexible UNLIKE Siebel or managing customer relations manually, Salesforce is quick to setup and easy to use.
Build support for your strategy
Evangelize - to be enthusiastic about something and attempt to share it with others - Engage your stakeholders in the process - Defend your strategy and support it with data - Speak with confidence - Know your audience - Explain your strategy to your organization
Elevator Pitch - Customer Need
Solutions must address real problems or satisfy needs. - A problem that needs solving - Something that benefits the customer ** Customer needs are typically tangible. ** More powerful satisfying one need, rather than a few weak ones. i.e. BMW For educated, affluent males, ages 35 to 55, WHO seek excitement and luxury i.e. Salesforce FOR small businesses without a CRM solution WHO need to control their costs Salesforce IS A CRM solution
Who should present the finished strategy to the broad organization?
The company CEO or division General Manager to demonstrate their buy-in
Product Strategy
The set of choices a company makes to achieve its objectives.
This is a feature, NOT a benefit.
An iPhone lets users stream movies.
Elevator Pitch Framework Formula
FOR (target customer), WHO (customer need), (product name), IS A (market category) THAT (one key benefit). UNLIKE (competition), THE PRODUCT (unique differentiator). i.e. For young Americans who want on-demand entertainment, Netflix is an online subscription TV service that works seamlessly. Unlike HBO or Hulu, Netflix releases original content for binge watching. i.e. pick a favorite product or service and try this
Interviewing key stakeholders can be useful if you're not sure about your strategy. But if you know the right direction you should move quickly and set it yourself.
False
Product differentiation is about adding as much as possible customer benefit to your product.
False
Elevator Pitch - Key Benefit
Features - things the product can do i.e. insurance policy (pays out for a loss) Benefits - value created by the product for the user i.e. insurance policy (provides protection from large financial loss) Customers buy products for their BENEFITS. i.e. BMW For educated, affluent males, ages 35 to 55, WHO seek excitement and luxury, BMW Series 3 IS A family luxury sedan THAT provides a great driving experience. i.e. Salesforce FOR small businesses without a CRM solution WHO need to control their costs, Salesforce IS A CRM solution THAT is financially flexible
Which of the following is NOT a key step in developing a strategy?
Figure out a roadmap: a sequence of meaningful product releases.
What is a good sign that a strategy is useful?
It helps people make day to day decisions on what to do and also what not to do.
Why is choosing a market category important?
It helps you design your product to be well-understood and valued by your target customers.
How to identify key stakeholders
Key Stakeholders * decision makers * influencers (internal & external) * people in finance Who are the key people you need by your side? - approve strategy - fund its implementation - execute it
What is a reason to update your strategy on a regular basis?
Market conditions change as does your understanding of the situation.
Product Strategy
Product Leaders - guardians of product strategy The set of choices a company makes in order to achieve its objectives. - Products - Market segments - How to differentiate - Pricing - Positioning and messaging 1 - Objectives - Strategy - Execution - Organization (start again)
How to implement a strategy
Product roadmap - product development plan This is the rythm section in the roadmap analogy. Marketing produce materials for sales Client Services Define support procedures Public Relations line up media engagements IT Scale infrastructure Finance Set up billing Product Leaders - Ensure clarity around the strategy - Help teams interpret the strategy - Give status & progress updates
How does a product roadmap relate to a product strategy?
Roadmap charts the specific path towards the implementation of the strategy.
A product can be useful for customers both inside and outside the identified target.
True