Upload
rick-berzle
View
290
Download
0
Embed Size (px)
DESCRIPTION
Shared experiences of delivering new software products from start-ups to well established companies -- from no process to very formal stage gates. Presented to University of San Diego Business class.
Citation preview
New Product Development Experiences and Stage Gates
Guest Speaker April 3, 2014
Rick Berzle | President |GoToMarket LLC
Agenda
• Background/Experience • Company Maturity and Product Planning • Formal New Product Planning Processes • Limited/No New Product Planning • Considering GoToMarket Alignment • ParKng Thoughts
Speaker Background
• BS Computer Science/MBA MarkeKng • 8 years in SoNware Development • 10 years in SoNware Product Management • 15+ years in VP-‐level MarkeKng PosiKons • 12 MarkeKng/Business Consultant
2
My Story/Career TransiBons • Math major -‐> 1st job Engineer’s Aid • Back to school for Computer Science • Honeywell (LA) -‐> Digital (Boston) • Development -‐> Product Management – Graduated to Product Line Management
• To Apple -‐> Taligent • Taligent -‐> Start-‐ups -‐> GoToMarket • To Peregrine -‐> GoToMarket • Lots of early/mid-‐stage soNware companies
3
70’s
80’s
90’s
20’s
Today
Product Planning Processes Factors that influence product planning: • Company size/maturity • Financial stability/shareholder expectaKon • Leadership • Market dynamics • Time-‐to-‐market • Category (soN vs hard) • Capability (experKse)
4
Size/Maturity: Product Focus
• Sales leadership • Product suites • Revenue growth • Brand awareness • Integrated sales/mkting
• Technical leadership • One Product Company • Reference Accounts • Sales & Sales Support • Minimal Marketing
Start-up $0-5M
Early-Stage $5-20M
Mid-Stage $20-50M
Growth $50-100M
• Financial leadership • Product lines • Predictable revenues • Brand value • Market/Product Strategy
Mature 100+M
Product Planning Maturity Informal Formal
Maturity/Size: GoToMarket Focus
Start-up $0-5M
Early-Stage $5-20M
Mid-Stage $20-50M
Growth $50-100M
Mature 100+M
• Focus is account acquisition • Product defined by engineering • Marketing is describing what was built • Product Management is non-existent
• Focus is market expansion • Product Management/Marketing blended role • Product strategy and roadmap fundamental • Marketing is about awareness and value proposition
• Product and Product line strategy • Specific marketing disciplines exist • Product management is fundamental • Well-defined marketing/sales boundaries
Digital Equipment Corp
• Formed in late 50’s • Leading suppler of mini-‐computers • Grew to be a complete systems provider – desktop to servers
• $14B in sales; $1B in soNware • Squeezed out of the market – IBM, Dell, Compaq at the low-‐end – IBM at the high-‐end
• Acquired by Compaq (98), merged with HP (02)
7
Phase Review Process
• Product Lifecycle Model and Process • Spans all corporate funcKons • Owned by Product Management • Planning and ExecuKon of all phases and phase transiKons of the product lifecycle
• Specific EXIT criteria for each phase • Public Exit Phase Reviews
8
6 Phases to the Lifecycle
• Phase 0 – Strategy and Requirements • Phase 1 – Planning & Feasibility • Phase 2 – ImplementaKon • Phase 3 – QualificaKon • Phase 4 – ProducKon and Support • Phase 5 – ReKrement
9
Phase 0 – Strategy & Requirements
• IdenKfy a market problem or opportunity
• Propose a product soluKon
• Consistent with Corporate Product Strategy
• Primary deliverable is the Business Plan
10
Phase 1 – Planning
• FuncKonal specificaKon and engineering plan
• Preliminary product design
• Integrated implementaKon Plan
• Company fully commits at Phase 1 Exit
11
Phase 2 – ImplementaBon
• Design complete • Prototypes built • Product meets phase 0 requirements
• Full funcKonality is tested
• Product launch plan developed
12
Phase 3 – QualificaBon
• Qualify producKon-‐level copies of the product
• IniKate field tests • Demonstrate product meets requirements of Phase 0 and specificaKons of Phase 1 and 2
13
Phase 4 – ProducBon/Support
• Achieve and maintain steady-‐state volume producKon, sales and service
• Phase 4A – Ramp-‐up • Phase 4B – Steady-‐state
• Monitor/adjust to meet product and market performance targets
14
Phase 5 – ReBrement
• Implement Product Phase Down Plan
• Fulfilling internal and external commitments
• Require the same level of complexity as new product development
15
Challenges for Tech Products
Point of Sale Sold direct to customer by sales/channel
Capability/ROI Emphasized, demonstrated ROI
Pre-‐Sale EvaluaKon Demos, Pilots (months)
Post-‐sale support DocumentaKon, training, service, support
Purchasing risk High (many products don’t meet their hype)
Intangible factors Trust, reputaKon, references, financial stability
Product/Technology Roadmap Lifecycle and extendibility
Must consider go-to-market cost/risk in the Tech Market
Formal New Product Planning
Digital Equipment CorporaBon examples: • Low-‐end Laser Printer (opportunity) • WorkstaKon Publishing (make vs buy) • 2D/3D graphics (industry standard) • OperaKng Systems (strategic)
17
Informal/No Product Planning
Early-‐stage/High-‐growth examples: • Peregrine – Rapid expansion of product porlolio – Mergers/AcquisiKons – Infrastructure Management
• IT, Telecom, FaciliKes, Vehicles, ..
• ServiceNow (soNware-‐as-‐a-‐service) • Customer-‐first soluKons (producKzed)
18
A few final thoughts on go-‐to-‐market consideraBons
19
Go-‐To-‐Market Alignment
Market Opportunity Revenue Attainment
Target Market Customer Buyer/Influencer Need/Pain CompeBtors MarkeBng Strategy
Who? (customer)
Requirements Use Cases Service/Support PosiBoning/Branding Value ProposiBon Pricing/Packaging
What? (soluBon)
Demand GeneraBon Sales Model/Channel OpBmizaBon Team OpBmizaBon Sales ExecuBon Measurement/Metrics
How? (execute)
ü Poor alignment results in missed market and revenue opportuniKes ü Good alignment requires organizaKonal cooperaKon and collaboraKon ü Agreed set of strategic/tacKcal goals and a sharp focus
PosiBoning Template
“FOR (who is the target customer) WHO (what is their need or opportunity) YOUR PRODUCT or SERVICE NAME IS A (product category) THAT (key benefits – the compelling reason to buy) UNLIKE (primary compeKKve alternaKve) OUR OFFERING (statement of primary differenKaKon)”
21
GoToMarket Example For soNware vendors who develop, market and sell soluKons/services to an enterprise customer and deploy on-‐site or as a service (SaaS) Who are focused on aligning their go-‐to-‐market strategies and tacKcs to consistently meet market penetraKon and revenue aqainment goals GoToMarket is a markeKng/sales consultancy and interim execuKve management company That provides unique execuKve-‐level operaKonal experience to idenKfy the go-‐to-‐market gaps that affect the vendor’s ability to predict and meet revenue/market aqainment goals in a sustainable fashion. Unlike other consulKng firms, GoToMarket provides highly successful and experienced professionals with deep soNware markeKng and sales operaKonal experience that can idenKfy go-‐to-‐market revenue chain gaps/issues and provide the operaKonal leadership to implement needed changes Our Offering takes a pragmaKc approach to the strategic and tacKcal elements of the go-‐to-‐market revenue chain that rapidly determines both the internal barriers to sales success and the associated remedies to align markeKng and sales for opKmal producKvity -‐-‐ expanding the opportunity pipeline, improving customer acquisiKon and retenKon, lowering the cost of sales and ulKmately ensuring reasonable revenue aqainment targets are achieved.
Recommended Reading
• “Crossing the Chasm: MarkeKng and Selling DisrupKve Products to Mainstream Customers” by Geoffrey Moore
• “Inside the Tornado: Strategies for Developing, Leveraging, and Surviving Hypergrowth Markets” by Geoffrey Moore
• “Rules For Revolu7onaries: The Capitalist Manifesto for CreaKng and MarkeKng New Products and Services” by Guy Kawasaki
24
Thank You. I hope this was helpful.
[email protected] linkedin.com/in/rickberzle