software product management – optimizing what to develop
TRANSCRIPT
BETTER SOFTWARE CONFERENCE EASTProduct Management: Optimizing the What to Develop
Ernani Ferrari [email protected]
Chief Consultant
CONTEXT
“3 Rules for Success”
Better before cheaper
Revenue before costs
There are no other
rules
Two Rules. Two Drivers
Better before
cheaper
Revenue
before costs
There are no
other rules
Better
Revenue
Superior
Quality
More sales
Higher
prices
Adequate
Quality
Superior
Quality
Aspects
Functionality
Usability
Reliability
Performance
Design
Testability
Maintainability
Supportability
…Xbility
What is Quality?
The definition of quality
is conformance to
requirements.
Phil Crosby
Software Product of
Superior Quality
Objective
“Promote gains through
the model of one-time
development and
maintenance for multiple
sales.” Ernani Ferrari
Software Product
“Software of
predefined scope
and characteristics
developed to be
commercialized.”
What is a
software product?
Processes
What ensures
good quality?
PEOPLE
PROCEDURES
TOOLS
GOALS
Product
management
process
What process
provides the key
requirements to a
product?
Product Management
THE PROCESS
Product Management
Objective
“Increase revenue through added value and increased
sales and reduce costs from all processes in the software
cycle.”
Software Product Management
“Systematic process for the definition of scope and characteristics of software and productizationartifacts to be developed, commercialized and
maintained.”
Source: Ernani Ferrari
Interdependence of
Software Business Processes
Product Manag.t
CustomerSupport
Development& Maintenance
Technology&Architecture
ServicesLife Cycle
Manag.t
KnowledgeManag.t
Alliances&Partnerships
CustomerRelationshipManag.t
Marketing
SalesChannel
Manag.t
Source: Mondo Strategies
Product Management
– Objectives
Increase revenue
• +Sales
• +Value/Price
Reduce costs
• Maintenance
• Customer Support
• Sales
• Services
• Product evolution
Customer retention
• Satisfying needs
• Lower TCO
Objectives
Optimizing Resources
GOOD
Option A
Option B
Option C
Option D
Option E
BEST
?
Product Management Cycle
3. Evaluate
benefits and
costs
2. Identify
opportunities
and
limitations
1. Research
4. Prioritize
5. Define
scopes
and roadmaps
6. Monitor
7. Make
adjustments
Source: Ernani Ferrari
Product Management Objectives
–Operationally…
Understand and respond to client communication
Address client needs
Understand and respond to market demands – faster than the competition, if possible
Increase client share-of-wallet through current and new products
Gain market share
Support initiatives for new markets
Provide an adequate framework for Services
Reduce total costs of product maintenance
Simplify marketing initiatives
Generate demand through innovation
Manage product life cycles (sustaining products in profitable phases longer) and version life cycles
Simplify product development cycles and reduce costs
Reduce the impact of legislation changes on products
Support the creation of a positive product image – functionality, technology, design, usability –especially if product leadership is a corporate strategy
Facilitate customer support activities and reduce their costs
Make internationalization and localizations feasible
Facilitate sales and presales processes at product roll-outs and in everyday activities
Support the activities of Field Services
Guide infrastructure management –environments for development, tests, maintenance, support and presales
Facilitate knowledge management for company teams and end users
Support management teams in damage control and situations of client crisis
Product Planning
From Business Strategies
to
Product Plans
Everyday Routine of a
Product Manager
Daily routine will include:Client issues
Support to Marketing
Business presentations
Participating in meetings with Product Development and many
other areas
Most work should be focused in 3 key activities:
MappingResearch Analysis
Guidance &
Decision
Parameters
Key Information Areas
Customers Competitors
SalesFinancial
Results
Market
AnalystsServices
TechnologyCustomer Support
& Maintenance
Source: Ernani Ferrari
Putting Together the Product Plan
– Priority Setting
Analyses Aspects
Sales appeal for existing products (more revenue and
less TCO for customers)
Sales potential – customer base and new customers
Current costs for sustaining products
Competitors – differentials, limitations
Technology – short and long terms
Development, roll-out and maintenance – costs, difficulties, risks
Satisfaction of current customers
Solution gaps
Target markets
Institutional image
FocusReturn over investment to be made
Productization Artifacts
From Software
to
Product
Phone
Battery
Charger
Manual
Quick reference guide
Headset
Packaging, etc.
Productization Artifacts
Software
Online help
Install / update tools
Training materials
Release Notes
Sales kit
Packaging, etc.
Product Manager
Profile and
Responsabilities
of a
Product Manager
Product Manager—Profile
Summary:
Market knowledge
Knowledge about the product
and its competitors
Knowledge about marketing
concepts and dynamics
Great people skills
?
Beneficial abilities and personal characteristics:
Excellent self-presentation
Writing and documentation ability
Presentation skills
Negotiation skills
Solid undestanding of corporate finances–costs, cash flow, investments, risks and ROI
Self-control
Ability to deal with uncertainties
Experience with facing clients
Experience in team leadership
Familiarity with the software development process
Product Manager
—Responsibilities - AResearch for market requirements (internal/external/clients)
Evaluations
Requirements • Market requirements
• Enhancement requests
• Translations / localization — requirements / impacts
• Existing product limitations – functionality, design, performance, usability
• Product documentation and other productization artifacts
• Impacts from new and retiring technologies
Opportunities and product profitability• Revenue forecasts related to new clients and customer installed base
• Client satisfaction (TCO reduction, further support to clients’ business, enhanced product support, simplified product upgrades)
• Opportunities for field services (company, channels, partners)
• Opportunities to improve institutional image – company, products
• Potential product life cycles
Costs and their impacts• Direct costs (development, documentation, maintenance, roll-out, etc.)
• Indirect costs (training, customer support, partner support, actions along the customer installed base, etc.)
• Impacts on network / customers – partners, alliance products, etc.
Product Manager
—Responsibilities - B
Planning and control
Product master plans – current and future releases, alliance products
Releases planning and support for product roll-out
Budgeting, monitoring and deviation analysis
Analysis of revenue and sales force feedback – deviation analysis and inputs for course corrections
Definition of product strategies according to company-wide
business and marketing strategies
Creation and maintenance of product plans. Priority setting, scopes
and conflict management
Support to marketing operation and collaterals
Product briefings
Events
Corporate visits
Communication planning and execution
Planning and reviews
Relevant market information gathered through daily routines
Information on costs/revenue by product
Product Manager
—Responsibilities - C
Interaction with technical architecture group for requirements and
analysis related to aspects such as:
Product interoperability
Networking
Distributed environments
Databases
Tools and procedures for software deployment
Systems administration
User interfaces
Support for analysis, definition of contracts and management of
product alliances
Interaction with production staff – feasibility analysis, project follow-
up, production program reviews, conflict resolution and evaluation of
unplanned opportunities
Participation in meetings with end users and user groups
Analysis / responses to customer enhancement requests
Definition of the “productization” requirements – products and projects
Product Manager
—Responsibilities - D
Participation in dry-run meetings for inspection of software design
Risk management related to commitments to the market and
deadlines for product releases
Management of the product life cycles
Coordination of version life cycles and their impact for product
partnerships
Product naming
Support to pricing of products and services
Conclusions
Defining what to do comes before defining how to do it
Product Management is about strategy, marketing and optimizationof the development efforts
Managing products demands research, analysis and prioritization– which in turn demand skill, dedication and processes
Product Management supports the orchestration of a software company and simplifies corporate communication
Since your resources are limited, identifying what is good is far less efficient than identifying what is best to be developed
Proper Product Management improves company-wide efficiency
Product planning drives innovation, allows for systemic solutions and improves overall product quality
Action Items
Ensure all areas of the company understand the objectives and dynamics of product management
Establish structured processes and communication mechanisms
Assign people with the right profile and proper time allocation
Extend planning horizons to explore more systemic, corporate opportunities
Explore opportunities that will open up in other corporate process areas due to enhanced product management
QUESTIONS?
