Digital Product Management

Introduction

Atanu Ghosh
[email protected]

1
 Genesis of Product Management
Product management is the practice of planning, developing, marketing and
continuous improvement of a company’s product or products.
The idea of product management first appeared in the early 30s with a memo
written by the president of Procter & Gamble, Neil H. McElroy, where he
introduced the idea of a product manager - a “brand man” who is completely
responsible for a brand and instrumental to its growth.
Decades later, in the 1980s, modern product management started to take shape
with the explosive growth of the software market. Since then, product
management has been closely connected and typically found in companies
creating software.

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 What is Product Management
The main objective of product management is the development of a new
product.
Its ultimate goal is making sure you’re building the right product and building
the product right.

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 What is Product Management
Product management is linking the development team on the one side and marketing, sales
and customer success teams on the other side, while ensuring the process is aligned with the
business vision.
Product management is supposed to translate business objectives into engineering
requirements and vice versa, explain the product functionalities and limitations to the
commercial teams who are responsible for marketing, sales, and customer communication.

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Inbound vs Outbound Product Management

Since product management is such a large concept, organizations usually

split responsibilities across departments so that each one can focus on
their areas. That’s why we can differentiate between inbound and
outbound product management.

Inbound product management involves market research, industry trends

and competitive analysis as well as the overall strategy and product
roadmap.

Outbound product management, on the other hand, focuses on product

marketing - branding, messaging, positioning, product launches, PR,
advertising, etc.

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Inbound vs Outbound Product Management

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Product vs Project vs Service Management
Product Management Project Management Service Management
involves the end-to- focuses on planning, involves managing
end lifecycle of a organizing, and ongoing services and
product, from its executing specific support activities to
conception to its projects to achieve ensure the smooth
eventual retirement. predefined objectives functioning of an
It is concerned with within a set timeframe organization's
creating products that and budget. operations.
meet market demands Projects are temporary It focuses on delivering
and deliver value to endeavors with distinct and maintaining high-
customers. start and end dates. quality services to
customers and
stakeholders.
Example: Example: Example:
Development of a new Building new airbases or Maintenance and support
fighter jet or a new conducting joint exercises services for its aircraft
unmanned aerial vehicle with international fleet.
(UAV) partners
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Problem vs Solution Space

3 Idiots Space Pen Scene

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 Digital vs Physical Product

Digital products Physical products

are intangible goods or services are tangible items that can be
that are delivered electronically seen, touched and physically
and exist in a virtual or digital handled.
form.
They can be easily replicated, They require physical
distributed, and accessed through manufacturing, distribution, and
various digital platforms. storage.

Example: Example:
Software applications, training Aircraft, weaponry and physical
modules, and digital training equipment
communication tools

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 Digital vs Physical Product

Digital Products Physical Products

Nature: are intangible and can be Nature: are tangible and require
delivered electronically physical handling

Replicability: can be easily replicated Replicability: often require significant

and distributed without additional resources for production and
manufacturing costs distribution

Storage and Distribution: can be Storage and Distribution: need physical

stored and distributed electronically storage and logistics for distribution

Lifecycle and Maintenance: can be Lifecycle and Maintenance: have a

updated and maintained through specific lifecycle, including
software upgrades manufacturing, maintenance and
retirement

Training and Simulation: offer safe and Training and Simulation: involve higher
cost-effective training opportunities risks and operational costs during
training exercises 11
 Types of Digital Products

B2B
Product Only
External
Business
Digital
B2C
Product Product
Internal Enabled
Business

(Digital) Product Only and (Digital) Product Enabled Business

constitute the bulk of Digital Product Management space
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 Role of a Product Manager
Product Lifecycle Management:
• Identifying requirements, conceptualizing new products, overseeing their
development and production, and eventually phasing out obsolete products.

Identifying User Needs:

• Identifying the specific needs and requirements for new products.
• Understanding user needs and translating them into clear product specifications

Market Research and Technology Scouting:

• Conducting market research and technology scouting to stay abreast of
advancements in technologies, global trends and potential opportunities for
collaboration with others
• Helps in making informed decisions about adopting cutting-edge technologies and
modernizing their equipment

Vendor and Supplier Management:

• Engage with various vendors, suppliers and contractors to facilitate the
procurement of materials and components necessary for the development and
production of products
• Effective vendor management ensures receiving of high-quality components within
the specified timelines and at reasonable costs.
…contd. 13
 Role of a Product Manager
Project Coordination:
• Collaborating with project managers and engineering teams to ensure that the
development and production of products adhere to the set timelines, budgets, and
quality standards.
• Overseeing the coordination of efforts among different teams to achieve successful
product outcomes

Testing and Validation:

• Being involved in the testing and validation phases of products
• Ensuring that new products meet stringent performance, safety, and reliability
standards before being deployed for operational use.

Product Support and Lifecycle Management:

• Overseeing ongoing product support, maintenance, and updates to extend the
product's lifecycle and ensure its continued effectiveness and relevance in the
operations.

Risk Management:
• Assess and manage risks associated with the development and deployment of new
products.
• Identifying potential risks, developing contingency plans, and ensuring that products
are designed with appropriate safety measures.
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 Disruptive Innovation in Products

Clayton Christensen studied the behaviour of such firms and

formulated his theory of disruptive innovation.
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 Characteristics of Disruptive Innovation

• Over serviced market

• Inferior product for a new market

• Rapidly adds value and moves up the

performance trajectory

• Disrupts incumbent’s value network

Can you apply this model in some of the well

known disruptions prior to the digital age?

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Thank You
 Digital Product Management

Product Strategy and Vision

Atanu Ghosh
[email protected]

1
 Product Vision and Strategy

Source: Roman Pichler

Product management is relevant and important where the product

is an intrinsic part of the business
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 Product Vision and Strategy

Product Vision
• Is a concise and inspiring statement that captures the long-term
goals and aspirations for a product.
• It paints a vivid picture of the future and provides a shared
understanding and direction for everyone involved in the product's
development and deployment.
• A compelling product vision fosters motivation, creativity, and
alignment within the organization.

Product Strategy
• It refers to the overarching plan and set of decisions that outline the
direction of a product throughout its lifecycle.
• It involves understanding the market, identifying customer needs,
and aligning the product's features and capabilities to meet those
needs while achieving the organization's objectives.
• A well-crafted product strategy provides a roadmap to address
current challenges and capitalize on future opportunities.

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 Vision, Strategy and Tactics

Source: Roman Pichler

Like a business, a product may also have a vision, strategy and tactics
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Product Strategy: Key Elements

Source: Roman Pichler

Key elements of a product strategy

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 Product Strategy and Roadmap

Source: Roman Pichler

Product strategy and roadmap are detailed for core innovation

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 Tactics for Execution of Roadmap

Source: Roman Pichler

Tactics help in executing the Product Roadmap derived

from Product Vision and Strategy
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 Business and Product Strategy

Source: Roman Pichler

Tactics help in executing the Product Roadmap derived

from Product Vision and Strategy
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 Building vs Scaling

Scaling
1 N
Maturity

Building

Users
Source: Product Management’s Sacred
Seven

Building a new product is going from “0 to 1” while

scaling an existing product takes you from “1 to N”
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Innovation Ambition Matrix

Source: Roman Pichler

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 New Market

Product Unavailable

Latent demand, Disruptive

Penetrate innovation,
market Achieve PMF

Product Known Product Unknown

Mature market, Underdeveloped

Grab market market, Develop
share market

Product Available

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 New Product

Application New

Application Technology
discovery epiphany

Technology Existing Technology New

Technology Technology
enhancement discovery

Application Existing

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Innovation Types and Impact

Source: Roman Pichler 13

The Lean Canvas

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 Class Exercise

Build Lean Canvas

Use Leanstack or PowerPoint

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 Finding a Motivated Market
Importance of Problem
Hi

Lo Hi User Satisfaction

Lo 16
Stakeholder Analysis and Engagement
Interest
Hi

Lo Hi Power

Lo
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 Segmentation Strategies

• Customer based segmentation –

Demographics, psychographics, etc. of
customers

• Benefit based segments – The type of benefits

the customers will get from the product. For
example, in Uber the customers can be
segmented based on the benefits they get i.e.
finding and availing of a cab (rider) and that of
earning by providing cab services (driver)

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Innovation Strategy and Segmentation

Benefit-First

Benefit-First

Customer-First

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 Business Strength and
Segment Attractiveness
Segment Attractiveness
Hi

Lo Hi Business Strength

Lo
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Strategy Canvas

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Eliminate, Raise, Reduce and Create Grid

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Strategy Canvas - iPhone

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 Variants vs Unbundling

• Variants – A variation or a specialisation of a

product e.g. Tableau Desktop and Tableau
Public

• Unbundling – When some features of a product

are taken out and spun off as an independent
product e.g. Facebook Messenger

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 Benefits and Drawbacks of Unbundling

Benefits Drawbacks
Makes it easier to grow the product Customers and users may be given
and add new features; improves the too much choice; leaving them
user experience by simplifying the feeling confused and overwhelmed
product

Enables you to take the product to a Existing products may be

new market or segment or to address cannibalised
the needs of a specific group
Helps you generate more business Portfolio management is required to
benefits; creates an opportunity to coordinate development of members
evolve the business model and open of a product family
up new revenue streams

Can increase the product’s Shared assets and possibly a platform

competitiveness and help you needs to be developed
respond to market changes

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Platform (Shared Asset) and Product

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Strategy Validation Effort

High Effort

Medium Effort

Low Effort

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 Class Exercise

Build Vision Canvas

Use Aha! Product Roadmap

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Thank You
Digital Product Management

Feature Prioritisation

Atanu Ghosh
[email protected]

1
 Feature Prioritisation Framework

• Value vs Effort

• Value, Cost and Solvability

• MoSCoW (Must Have, Should Have, Could Have, Won’t

Have)

• RICE (Reach, Impact, Confidence, Effort)

• Weighted Shortest Job First (WSJF) (CoD/ Job

Duration), CoD = Cost of Delay

• Kano Model

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 Feature Prioritization for MVP

Value

Hi

Cost
Lo Hi

Hi
Solvability

The features that the customer is “assumed” to be most desperate to

get (highest value), the ones that require least cost to develop (cost
effectiveness) and the ones most easily solvable must go into the
feature list of MVP.
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Weighted Shortest Job First

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Cost of Delay (CoD)

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 KANO Model

• Must Have Quality – Requirements that customers expect, take for

granted and are extremely unhappy if not provided. They may reject the
product altogether.

• One Dimensional Quality – Requirements that lead to satisfaction if

provided but dissatisfaction if not provided. Normally customers do not
expect this feature. But if the expectation is given, not meeting the
expectation will lead to dis-satisfaction.

• Attractive Quality – These attributes provide satisfaction if achieved

fully but do not lead to dis-satisfaction if not fulfilled

• Indifferent Quality – These attributes are those that if provided do not

result in either satisfaction or dis-satisfaction

• Reverse Quality – This attributes may lead to dis-satisfaction if provided

to a certain section of customers, if not all.

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 KANO Model

• Attributes’ place on the model can change over time

• As customer expectations on level of performance change due to
exposure from competing products
• Attributes can move from delighters, to performance needs and then to
basic needs
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Kano Model for Feature Prioritisation

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Kano Model for Feature Prioritisation

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Thank You