2 nd Class - Continued Product Portfolio Strategy - Individual Product Strategy

1. 2nd Class- Continued Product Portfolio Strategy- Individual Product Strategy Bus100: Building Software Products: From Strategy to Sales John Gibbon

2. Define • Design • Develop • Partner • Market • Sell

3. Classes 1 & 2 • What Business? • Product Portfolio Strategy • Which Product? • Trade-offs and Business Cases • Define

4. How Do We Build It? – Class 3 • Product Development and Requirements Best Practices • How Do We Manage It? – Class 4 • Product Management, Lifecycle, Discovery • How Do We Make it Usable? – Class 5 • User Experience Design • Design and Develop

5. What Tools Do We Use? – Class 6 • Web Technologies, QA • What Organization Works? – Class 6 • Teams • How Do We Manage the Process? – Class 7 • Project Management • Design and Develop

6. How Should We Partner? – Class 7 • Business Partnerships Best Practices • How Should We Tell The World? – Class 8 • Product Marketing • How Do We Sell It? – Class 9 • Sales Models; Web Based Advertising • What Have We Done Right/Wrong - Class 10 • Mistakes in Growing Your Business • Partner, Market, & Sell

7. Company or Product Portfolio Strategy Where should we go? Why will we be successful there? How do we get there?

8. Advisors / Finders • Mark Losh - Prevail Ventures • Jett Winter – Winter Consulting • Venture Capitalists • Early Stage Companies Company or Product Portfolio Strategy

9. Problem? • Opportunity • Solution? • Unique offering or breakthrough (IP) • Why you? Competition? • Business Model • How make money? • Money need? • Team Company or Product Portfolio Strategy Where should we go? Why will we be successful there? How do we get there?

10. Where Should We Go? -Market Analysis -Financial Plan -Success Metrics

11. Market and Competitive Analysis -Clients -Industry Experts -Internet -Published Sources

12. Surveys, Client visits, Informal conversations In your company, in your network, Trade associations, conferences, Industry periodicals, Identifying clients that are market influencers Competitor websites, Google, Company listings (Hoovers, Tradevibes), Annual reports, Newspaper articles, tradeshows Market and Competitive Analysis -Clients -Industry Experts -Internet -Published Sources

13. Product Strategy • Market trends • Market problems/needs • Product competition • Your product perception • Sales Roadblocks and Workarounds • Changes Effecting Market • Users / demographics trends • Industry / demographics trends Why Market and Competitive Analysis?

14. Market Segment Analysis Linda Gorchels: “The Product Manager’s Handbook

15. Basic Competitive Analysis

16. Assess key success factors in your industry and how others stack up Competitive Analysis Via Advertised Positioning Lawson Abinanti “Messages That Matter”

17. Competitive Analysis Alternatives Linda Gorchels: “The Product Manager’s Handbook

18. Where Should We Go? -Market Analysis -Financial Plan -Success Metrics

19. Porter’s Five Forces: Market Competitiveness

20. How to Create Uncontested Market Space and Make Competition Irrelevant – Kim and Mauborgne

21. Financial Plan -Costs -Benefits

22. Assumptions 2009 2010 2011 • # Customers / Unique Visitors • # Employees • Revenue • Subscription / License • Advertising / Partnership • Professional Services • Cost of Goods (Sales/Service) • Gross Profit (Rev – COG) • Operating Expenses • Product Development • Marketing • General and Administration • EBITDA (Gross Profit – Expenses) (basic P&L) • Cash Needs Basic Financial Plan

23. Success Metrics -Revenue -Market Share -New Users -Increase Usage -Increased Customer Satisfaction: NPS -Other?

24. Spicy Mayonnaise

25. Why will we be successful there? -Core Competencies / Differentiation -Mission -Competitive Analysis

26. eBay’s Mission • Older: eBay's mission is to provide a global trading platform where practically anyone can trade practically anything. • Now: eBay Inc. pioneers communities built on commerce, sustained by trust, and inspired by opportunity. eBay brings together millions of people every day on a local, national and international basis through an array of websites that focus on commerce, payments and communications. • Skype is the world’s fastest-growing Internet communication offering, allowing people everywhere to make unlimited voice and video communication for free between the users of Skype software.

27. Apple’s Mission • 1997: Apple will be a leader in providing simple, powerful, high-quality information products and services for people who learn, communicate, and create. • Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings. • eApple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, and iLife and professional applications. Apple is also spearheading the digital music revolution with its iPod portable music players and iTunes online music store. • Current: Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.

28. Why will we be successful there? -Core Competencies / Differentiation -Mission -Competitive Analysis

29. How do we get there? -Financial / Dev Plan -Tech Strategy -Partnering Strategy

30. But rarely do we play on green fields

31. 20%- 18%- 16%- 14%- 12%- 10%- 8%- 6%- 4%- 2%- 0 Stars Question marks 4 ? 1 ? 3 ? 5 2 Market Growth Rate Dogs Cash cows 8 7 6 10x 4x 2x 1.5x 1x .5x .4x .3x .2x .1x Relative Market Share The Boston Consulting Group’s Growth-Share Matrix Accelerate a Few Divest Most Invest Harvest Liquidate

32. Ansoff Matrix: Product Strategy Market Penetration Product Development Market Development Diversification

33. Trade-Offs New Product vs. Mature Product New Market vs. Existing Market Short Term vs. Long Term Revenue Usage vs. Revenue Client A vs. Client B Research vs. Development High Risk vs. Low Risk

34. Your Value Proposition

35. Ansoff Matrix: Product Strategy Market Penetration Product Development • New Product vs. Mature Product • New Market vs. Existing Market • Short Term vs. Long Term Revenue • Usage vs. Revenue; Client A vs. Client B • Research vs. Dev; High Risk vs. Low Risk Market Development Diversification Porter’s Five Forces: Market Competitiveness