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© 1993-2004 Pragmatic Marketing, Inc. Page 1
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The Strategic Role of Product ManagementPDMA of Orange County November 16, 2004
www.PragmaticMarketing.com – about our seminarswww.ProductMarketing.com – resource sitewww.ProductMarketing.com/eb – today’s downloads
PragmaticMarketing®
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!hey software inc.@hand corporation01 Communique Laboratory, Inc.12 Entrepreneuring, Inc.2Vox360Commerce, Inc.3Com Corp.3eTI, Inc.3M Health Information Systems724 Solutions Inc.Aatrix Software, Inc.Abbasoft TechnologiesABC TechnologiesABT CorporationAbvent, Inc.Acadio Corp.Accelerated Technology, Inc.Access 360AccountMate Software Corp.ACCPAC International ManagerAccruent, Inc.AccuWeather, Inc.Ace* CommAcer Internet Services, Inc.Achieve Healthcare Information SystemsACIACOM Solutions, Inc.Acres Gaming IncorporatedAcroprint Time Recorder CompanyACS Software, Inc.ActionPoint, Inc.ActionWareActivCard, Inc.Activerse Inc.ActiveState Corp.AcucobolAcuity CorporationAcumation, Inc.Acxiom CorporationAd OPT Technologies, Inc.adam.comAdaptec, Inc.Adaptive MediaAdaptive Micro Systems, Inc.Adaptivity, Inc.Adexa, Inc.Adobe Systems, Inc.ADPADP - CSGADP CanadaADP Claims Solutions GroupADP Dealer ServicesADP Parts ServicesADP Securities Industry SoftwareADP-HollanderADP/StockvalADS Associates, Inc.Advanced Data SystemsAdvanced Solutions International, Inc.Advanced Visual Systems, Inc.AdvanceMedAdvantage kbs, Inc.Advent Software, Inc.AdventNet, Inc.Advisor Technology ServicesAegis Industrial SoftwareAEgis Technologies Group, Inc.Aether Systems, Inc.Affinnova, Inc.AFSagentGOAgile Software CorporationAgilent Technologies
Agilera, Inc.Agilisys, Inc.Agillion Inc.AgilQuestAgilTech, Inc.AGRIS Corp.AIFPAkamai TechnologiesAladdin Systems, Inc.Alamode, Inc.Alcatel Network SystemsAlerts.com, Inc.Alfa Laval Inc.Alias|WavefrontAlis TechnologiesAllaire Corp.ALLDATA LLCAllegis CorporationAllen Systems GroupAllenbrook, Inc.Alliance Data SystemsALLTEL Information Services, Inc.Alogent Corp.Alpha Software CorporationAlphaBlox Corporation, Inc.Alta VistaAltamar NetworksAltaworks CorporationAltris Software, Inc.Alventive, Inc.AMCIAmdahl Corp.Amdocs LimitedAmerican AriumAmerican Fundware, Inc.American International Facsimile Prods.American Internet Corp.American Software, Inc.Ameritech Library ServicesAmeritradeAmicus, Inc.Amplitude Software Corp.AMR ResearchAmtec Engineering, Inc.Amteva TechnologiesAnalytical Graphics, Inc.Ancestry.comAndale, Inc.AndersenAndersen ConsultingAndromedia, Inc.Annuncio SoftwareAnritsu CompanyAnswerSoft, Inc.AOL MobileAPAC Customer Services, Inc.Aperture Technologies, Inc.Apollo Group, Inc.Appfluent TechnologyApple Computer, Inc.Applied Automation Techniques, Inc.Applied BiosystemsApplied Digital Access, Inc.Applied Systems Intelligence, Inc.Applied Visions, Inc.Applied Voice Technology, Inc.Apply TechnologyAPPRO Systems, Inc.apps4biz, Inc.AppWorxApricorn, Inc.Aprisma Management TechnologiesAPTEXAqueduct Software, Inc.
ARAMARK CorporationArborText, Inc.ARC InternationalArcada Softwarearcplan, Inc.ArcSight, Inc.ARI Network ServicesAriba Technologies, Inc.ARINC, Inc.Aristocrat Technologies, Inc.ARM Ltd.ArmatureArrowsight, Inc.Arsenal Digital SolutionsArtemis Management Systems, Inc.Artesia Technologies, Inc.Arthur AndersenARTISTdirect, Inc.Ascend Communications, Inc.Ascension Technology CorporationAscential SoftwareAsera Inc.ASIAspect Development, Inc.Aspen Technology, Inc.Assentive SolutionsAssessment.comAsset IntertechAstea, Inc.Astrum Software CorporationAtex Media Solutions, Inc.Athene Software, Inc.ATIO Corp.Atlas DMTAtomica CorporationAtraxis North America, Inc.Atreus Systems CorporationAttachmate CorporationAtWork Technologies, Inc.Augeo SoftwareAumtechAurigin Systems, Inc.Aurum Software, Inc.Authentica, Inc.Authoria, Inc.Auto-Soft Corp.Autodesk, Inc.Automation Technology, Inc.AutoSimulationsAutoSiteAutoTester, Inc.AvailantAvantGo, Inc.Avaya, Inc.Aventail CorporationAvenue A, Inc.Aveo, Inc.Avery DennisonAvesta Technologies, Inc.AvolentAVT Corp.Award Software International, Inc.Axent Technologies, Inc.Axiohm Transaction SolutionsAxis CommunicationsAXIS Computer Systems, Inc.Axon Instruments, Inc.Azron, Inc.B&L Associates, Inc.B2eMarkets, Inc.Baan CompanyBackWeb Technologies, Inc.Baker Hill CorporationBaltimore Technologies
BancTec, Inc.Banta Integrated MediaBaranof Software, Inc.Barco Medical Imaging SystemsBarco View, Inc.BardBard Electrophysiology - C.R. Bard, Inc.Barr Systems, Inc.Barra, Inc.Basis International, Ltd.Bass, Inc.BatteryPro Systems, Inc.BAV Software, Inc.Bottomline Technologies, Inc.Bowne Internet SolutionsBradmark TechnologiesBrainbench, Inc.Brainium.comBrickstream CorporationBridgePoint Inc.Bridgeway Corp.Bridgeway Software Inc.Brightmail, Inc.Brightspark Ventures, L.P.Brightware, Inc.Brio TechnologyBristol Technology, Inc.Broadband Services, Inc.BroadJump, Inc.Broadway & Seymour, Inc.Brock International, Inc.Brodart AutomationBrooks Automation, Inc.Brooks-PRI AutomationBrooktrout Technology, Inc.BTIBusiness Engine SoftwareBusiness Objects, Inc.Business Resource SoftwareBusiness Software, Inc.Buystream Inc.Buzzeo, Inc.C-MoldCable & WirelessCabletron Systems, Inc.Cadence Design Systems, Inc.CADKEY CorporationCaere Corp.CalcompCaldera Systems, Inc.Calico Commerce Inc.Calico Technology, Inc.CallWare Technologies, Inc.Camelot-IS2CAMM, Inc.Campbell Services, Inc.Campus Management Corp.Canadian Technology NetworkCandle CorporationCanon Computer Systems, Inc.Canon Information SystemsCanto Software, Inc.Capital Access InternationalCapital Stream, Inc.CAPS Logistics, Inc.Capsoft Development Corp.Capstan Systems Inc.Captaris, Inc.Captiva Software CorporationCardiff SoftwareCardinal Health, Inc.Care InsiteCareer Builder, Inc.CareScience, Inc.
CareTools, Inc.Carlson Wagonlit TravelCartesia SoftwareCasco DevelopmentCASI-RUSCOCass Logistics, Inc.Castek Inc.CastelCatalpa SystemsCatalyst International, Inc.Catalyst USA, Inc.Cayenta Inc.CB Technologies, Inc.CBF Systems, Inc.CBT SystemsCCC Information Services, Inc.CCH IncorporatedCCI/TriadCD Group, Inc.CDA/InvestnetCDC SolutionsCDNOW, INC.Cedara Software Corp.Centerline Software, Inc.Centra Software, Inc.Central Design Systems, Inc.Centrata.comCentraxCentric Software, Inc.Century AssociatesCerent CorporationCeridianCeridian Benefit ServicesCeridian Canada Ltd.Ceridian CorporationCeridian Performance PartnersCeridian TesserAct HRMS Solutions, Inc.Cerner Corp.Certicom Corp.Cerulean TechnologyCES InternationalCEYONIQ, Inc.CFD Research Corp.CFI ProServices, Inc.CHAMPS Software, Inc.Chancery Software, Ltd.Chang ConsultingChangepoint Corp.ChannelPoint, Inc.ChannelWaveCheck Point SoftwareCheckFree CorporationCheckFree Investment ServicesCheckpoint SoftwareChela Financial, Inc.Chemical Abstracts ServiceCheyenne SoftwareChilliware, Inc.Chingari, Inc.Chrome SystemsChrystal Software, Inc.CigitalCIMLINC, Inc.Cincinnati Bell Information Systems, Inc.Cincom Systems, Inc.Cipher Systems, Ltd.Cirris Systems Corp.Cisco SystemsCitadon Inc.CITATION Computer Systems, Inc.Citrix Systems, Inc.CJDSCLAM AssociatesClarify, Inc.
Claritas, Inc.Clarus CorporationClass Software Solutions, Ltd.Classroom ConnectClear Communications Corp.Clear Technology, Inc.ClearOrbit, Inc.Clearway TechnologiesClientSoft, Inc.Clinical Reference Systems, Ltd.Clustra Systems, Inc.CMI-Competitive Solutions, Inc.CMS Information Services, Inc.CMS/Data Corp.CNTCODA, Inc.Cofiniti, Inc.Cogit Corp.Cohera CorporationCoherent Communications Systems Corp.Cole-Somers, Inc.Colorado Memory SystemsCoManage CorporationComdisco Professional ServicesCommerce OneCommerce.TVCommercialWare, Inc.Commerx, Inc.CommVault SystemsCompaq Computer Corp.Competitive Automation, Inc.CompInfo, Inc.Comprehensive Software Systems, Inc.CompucareCompulink Management Center, Inc.Computer AssociatesComputer Dimensions, Inc.Computer I/O Corp.Computer Information ServicesComputer Mail Services, Inc.Computer Network Technology Corp.Computer Sciences Corp.Computerm Corp.ComputerprepComputing Information ServicesCompuTrac, Inc.Computron Software, Inc.Compuware CorporationCOMSAT Mobile CommunicationsComsearchComshare, Inc.Comstock Systems CorporationComuniq Inc.Comverse Network SystemsConcentrexConcept Five TechnologiesConceptual SystemsConceptware AGConcerto Software, Inc.Concord CommunicationsConcur Technologies, Inc.ConexantConnect, Inc.Connected CorporationConnectSouth Communications, Inc.ConneXt, Inc.Consilient, Inc.Consilium, Inc.Consist International, Inc.Constellar Corp.Consul National de Recherches CanadaConsul Risk Management B.V.Consul Risk Management, Inc.Content Technologies, Inc.
About Pragmatic Marketing, Inc.
We are recognized experts in technology product management and product marketingWe specialize in training and consultingSince 1993, we have trained over 25,000 people at thousands of companiesPragmatic Marketing certification program available
© 1993-2004 Pragmatic Marketing, Inc. Page 2
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What we hear from executives
We are missing our targetsDevelopment can’t ship on scheduleSales can’t sell profitablyMarketing can’t communicate our value
There is too much fighting among the groupsWhat value does Product Management deliver?
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What we hear from product managers
Give me access to customersTell us the strategy so that we can focus on what is importantA clear understanding of the role of Product Management is sorely needed
© 1993-2004 Pragmatic Marketing, Inc. Page 3
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These are symptoms of lack of…
FocusTrustClear roles and responsibilities
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Peter Drucker
The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself.
© 1993-2004 Pragmatic Marketing, Inc. Page 4
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What is a product?
A combination ofExecutablesDevicesExpertise
that solves a problem for a market segment.
8
Are product managers the janitor or CEO of the product?
© 1993-2004 Pragmatic Marketing, Inc. Page 5
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Responsibilities
What are the lines between Product Management and…
Development & ServicesMarketing CommunicationsSales Channel
Dev Sales
Marcom
ProductMgmt
10
The new P’s
Product Managementfinds and quantifies the problem
Development & Servicessolve the problem
Marketing Communicationscommunicates the solution
Sales Channelsells it profitably
Product
Promotion
Placement
Problem
© 1993-2004 Pragmatic Marketing, Inc. Page 6
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If product managers don’t do their jobs, the
other departments will fill the void.
12
© 1993-2004 Pragmatic Marketing, Inc. Page 7
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TacticalStrategic
14
Market Analysis
Product Strategy
Program Strategy
Product Planning
Quantitative Analysis
Channel Support
SalesReadiness
Stra
tegi
c Tactical
LessTechnical
MoreTechnical
© 1993-2004 Pragmatic Marketing, Inc. Page 8
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Pricing
Buy, Build or Partner
Operational Metrics
BusinessCase
SalesProcess
Thought Leaders
Market Requirements
MarketSizing
MarketingPlan
Product Roadmap
Awareness Plan
Market Research
Market Problems
Distinctive Competence
Product Performance
Customer Acquisition
Positioning
Customer Retention
LaunchPlan
Product Contract
Innovation
Market Messages
Channel Training
Win/Loss Analysis
Competitive Write-Up
EventSupport
Collateral & Sales Tools
Presentations & Demos
WhitePapers
User Personas
“Special”Calls
Release Milestones
AnswerDesk
Technology Assessment
Competitive Analysis
Lead Generation
Buyer Personas
Pragmatic Marketing® Framework
A market-driven model for managing
and marketing technology products
Market Analysis
Product Strategy
Program Strategy
Product Planning
Quantitative Analysis
Channel Support
SalesReadiness
Stra
tegi
c Tactical
16
Pricing
Buy, Build or Partner
Operational Metrics
BusinessCase
SalesProcess
Thought Leaders
Market Requirements
MarketSizing
MarketingPlan
Product Roadmap
Awareness Plan
Market Research
Market Problems
Distinctive Competence
Product Performance
Customer Acquisition
Positioning
Customer Retention
Channel Training
Competitive Write-Up
EventSupport
Collateral & Sales Tools
Presentations & Demos
WhitePapers
“Special”Calls
AnswerDesk
LaunchPlan
Product Contract
Innovation
Market Messages
Win/Loss Analysis
User Personas
Release Milestones
Technology Assessment
Competitive Analysis
Lead Generation
Buyer Personas
Market Analysis
Product Strategy
Program Strategy
Product Planning
Quantitative Analysis
Channel Support
SalesReadiness
Stra
tegi
c Tactical
© 1993-2004 Pragmatic Marketing, Inc. Page 9
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Competitive Write-Up
Collateral & Sales Tools
Presentations & Demos
WhitePapers
AnswerDesk
Channel Training
EventSupport
“Special”Calls
Typical approach
Market Analysis
Product Strategy
Program Strategy
Product Planning
Quantitative Analysis
Channel Support
SalesReadiness
Stra
tegi
c Tactical
Pricing
Buy, Build or Partner
Operational Metrics
BusinessCase
SalesProcess
Thought Leaders
Market Requirements
MarketSizing
MarketingPlan
Product Roadmap
Awareness Plan
Market Research
Market Problems
Distinctive Competence
Product Performance
Customer Acquisition
Positioning
Customer Retention
LaunchPlan
Product Contract
Innovation
Market Messages
Win/Loss Analysis
User Personas
Release Milestones
Technology Assessment
Competitive Analysis
Lead Generation
Buyer Personas
Pricing
Product Roadmap
Operational Metrics
Lead Generation
Competitive Analysis
Release Milestones
Pricing
Buy, Build or Partner
Operational Metrics
BusinessCase
SalesProcess
Thought Leaders
Market Requirements
MarketSizing
MarketingPlan
Product Roadmap
Awareness Plan
Market Research
Market Problems
Distinctive Competence
Product Performance
Customer Acquisition
Positioning
Customer Retention
LaunchPlan
Product Contract
Innovation
Market Messages
Channel Training
Win/Loss Analysis
Competitive Write-Up
EventSupport
Collateral & Sales Tools
Presentations & Demos
WhitePapers
User Personas
“Special”Calls
Release Milestones
AnswerDesk
Technology Assessment
Competitive Analysis
Lead Generation
Buyer Personas
Market Analysis
Product Strategy
Program Strategy
Product Planning
Quantitative Analysis
Channel Support
SalesReadiness
Stra
tegi
c Tactical
Typical approach
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Kristen Lippincott, Curator, National Maritime Museum, Greenwich, England
There's a difference between being busy and being productive.
© 1993-2004 Pragmatic Marketing, Inc. Page 10
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LaunchPlan
Product Contract
Innovation
Market Messages
Channel Training
Win/Loss Analysis
Competitive Write-Up
EventSupport
Collateral & Sales Tools
Presentations & Demos
WhitePapers
User Personas
“Special”Calls
Release Milestones
AnswerDesk
Technology Assessment
Competitive Analysis
Lead Generation
Buyer Personas
Pricing
Buy, Build or Partner
Operational Metrics
BusinessCase
SalesProcess
Thought Leaders
Market Requirements
MarketSizing
MarketingPlan
Product Roadmap
Awareness Plan
Market Research
Market Problems
Distinctive Competence
Product Performance
Customer Acquisition
Positioning
Customer Retention
BusinessCase
Market Problems
Distinctive Competence
Market Analysis
Product Strategy
Program Strategy
Product Planning
Quantitative Analysis
Channel Support
SalesReadiness
Stra
tegi
c Tactical
20
LaunchPlan
Product Contract
Innovation
Market Messages
Channel Training
Win/Loss Analysis
Competitive Write-Up
EventSupport
Collateral & Sales Tools
Presentations & Demos
WhitePapers
User Personas
“Special”Calls
Release Milestones
AnswerDesk
Technology Assessment
Competitive Analysis
Lead Generation
Buyer Personas
PreferredApproach
Pricing
Buy, Build or Partner
Operational Metrics
BusinessCase
SalesProcess
Thought Leaders
Market Requirements
MarketSizing
MarketingPlan
Product Roadmap
Awareness Plan
Market Research
Market Problems
Distinctive Competence
Product Performance
Customer Acquisition
Positioning
Customer Retention
Market Analysis
Product Strategy
Program Strategy
Product Planning
Quantitative Analysis
Channel Support
SalesReadiness
Stra
tegi
c Tactical
© 1993-2004 Pragmatic Marketing, Inc. Page 11
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Pricing9,7
Buy, Build or Partner
9,7Operational
Metrics8,1
BusinessCase8,5
SalesProcess
5,4
ThoughtLeaders
7,3
Market Requirements
9,1
MarketSizing
8,3
MarketingPlan7, 2
ProductRoadmap
9,5
AwarenessPlan4,1
MarketResearch
9,2Market
Problems10,1
Distinctive Competence
10,1Product
Performance8,3
Customer Acquisition
7,1
Positioning10,4
Customer Retention
7,3
LaunchPlan6,4
ProductContract
8,4
Innovation8,3
MarketMessages
6,3
ChannelTraining
5,4
Win/Loss Analysis
10,1
Competitive Write-Up
6,4
EventSupport
3,7
Collateral & Sales Tools
5,6Presentations
& Demos8,5
WhitePapers
6,6
User Personas
9,1“Special”
Calls3,6
Release Milestones
7,5Answer
Desk3,7
Technology Assessment
9,1Competitive
Analysis8,2
LeadGeneration
3,1
BuyerPersonas
6,1
Market Analysis
Product Strategy
Program Strategy
Product Planning
Quantitative Analysis
Channel Support
SalesReadiness
Stra
tegi
c Tactical
Gap analysis example
How important is the activity?
How well are you doing it?
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Listen to the market
© 1993-2004 Pragmatic Marketing, Inc. Page 12
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Your opinion, although interesting, is irrelevant.
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Yogi Berra, American PhilosopherYou can observe a lot just by watching.
Adrian Slywotsky, “The Art of Profitability”
You’ll learn more by meeting a real, live customer and spending an hour with him than you can learn from fifty research studies or analysts’ reports.
© 1993-2004 Pragmatic Marketing, Inc. Page 13
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Total addressable market
Product managers must know who is not shopping and why
Customers
Potentials
Evaluators
Ours Competitor1
Competitor2
Competitor3
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Market-driven prioritization
Quantified problemsto solve
GoalsPersonasMarket SegmentsDistinctive Competence
By listening to customers, evaluators, and potentials
© 1993-2004 Pragmatic Marketing, Inc. Page 14
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The building is full of product experts.
Your company needs a market expert.
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CEO of the product
© 1993-2004 Pragmatic Marketing, Inc. Page 15
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What the role is not…
Demo boyCopy writerSecretary to development
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The role of Product Management
As companies grow, executives don’t have the bandwidth to manage the details of every productA market-driven product manager is the messenger for the marketIf you’re not going to be market-driven, you don’t need product managers. You merely need project managers and sales engineers
© 1993-2004 Pragmatic Marketing, Inc. Page 16
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Define profitable products
Understand company’s distinctive competence Know what is possible with technologyCollect and quantify market problems
Know your market better than they know themselvesCommunicate market problems to the organization
…using the grid
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Requirements
Development
Positioning
Marcom
Product Manager
Sales Process
Sales
Messenger for the market
BusinessCase
Executives
Architect PMM SE
© 1993-2004 Pragmatic Marketing, Inc. Page 17
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Action Plan
Do a gap analysis of product management at your companyAssess your own product management skills Sign up for the Pragmatic Marketing seminars
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A market-driven model for managing
and marketing technology products
Market Requirements
Product Roadmap
Product Contract
User Personas
Release Milestones
Pricing
Buy, Build or Partner
Operational Metrics
BusinessCase
SalesProcess
Thought Leaders
MarketSizing
Market Research
Market Problems
Distinctive Competence
Product Performance
Positioning
InnovationWin/Loss Analysis
Technology Assessment
Competitive Analysis
MarketingPlan
Awareness Plan
Customer Acquisition
Customer Retention
LaunchPlan
Market Messages
Channel Training
Competitive Write-Up
EventSupport
Collateral & Sales Tools
Presentations & Demos
WhitePapers
“Special”Calls
AnswerDesk
Lead Generation
Buyer Personas
Market Analysis
Product Strategy
Program Strategy
Product Planning
Quantitative Analysis
Channel Support
SalesReadiness
Stra
tegi
c Tactical
Effective Marketing Programs
Pragmatic Marketing® Seminars
Practical Product Management
Requirements That Work