Product Management Certificate Program Week 7–Developing a release theme/driver

Agenda Current events (5 min) Where are we? (5 min) Roadmap for Fall Plan for tonight Team presentations (30 min) 3-min presentation Brief Q&A Class feedback Today’s Topic (60 min) Define Product Vision & Scope Business Objectives Target Features & System Diagram Breakout activity (20 min) Homework assignment (10 min)

Presentation Order Dropcam Facebook Fitbit Hotel Deal Finder MakerBot Starbucks

CURRENT EVENTS Market Segmentation

Agenda Current events (5 min) Where are we? (5 min) Roadmap for Fall Plan for tonight Team presentations (30 min) 3-min presentation Brief Q&A Class feedback Today’s Topic (60 min) Define Product Vision & Scope Business Objectives Target Features & System Diagram Breakout activity (20 min) Homework assignment (10 min)

WHERE ARE WE?

Introduction to strategy and PdM frameworks (Week 2) Customer research (Week 3) Market opportunity analysis; begin competitive analysis (Week 4) Intro to Strategy & Research Finish competitive analysis; market segmentation (week 5) Defining target customer (week 6) Target Customer Define problem to be solved (Week 6) Define competitive positioning (week 6) Problem Statement & Competitive Positioning Developing a release theme/driver (week 7) Release Theme/Driver Sales Channels and Pricing Strategy (week 8) Creating Business Value (week 9) Business Value Fall 2014: Where are we?

Learning Objectives Define your Product Vision & Scope Identify business objectives for your vision Identify target features & system diagram Sit with your study group

Agenda Current events (5 min) Where are we? (5 min) Roadmap for Fall Plan for tonight Team presentations (30 min) 3-min presentation Brief Q&A Class feedback Today’s Topic (60 min) Define Product Vision & Scope Business Objectives Target Features & System Diagram Breakout activity (20 min) Homework assignment (10 min)

QUICK BREAK NEXT UP: PRESENTATIONS

Agenda Current events (5 min) Where are we? (5 min) Roadmap for Fall Plan for tonight Team presentations (30 min) 3-min presentation Brief Q&A Class feedback Today’s Topic (60 min) Define Product Vision & Scope Business Objectives Target Features & System Diagram Breakout activity (20 min) Homework assignment (10 min)

Presentation Order Dropcam Facebook Fitbit Hotel Deal Finder MakerBot Starbucks

Agenda Current events (5 min) Where are we? (5 min) Roadmap for Fall Plan for tonight Team presentations (30 min) 3-min presentation Brief Q&A Class feedback Today’s Topic (60 min) Define Product Vision & Scope Business Objectives Target Features & System Diagram Breakout activity (20 min) Homework assignment (10 min)

TODAY’S TOPICS Developing a release theme/driver

Competitive Analysis Define Product Vision & Scope Business Objectives Target Features & System Diagram Discuss Examples Breakout activities

Bringing It All Together Market Opportunity Business Objectives Solution Plan Target Segment Target Problem Competition Business Goals MeasurementsTimeframes Features Value Prop Positioning Product Vision & Scope

Product vs Project Product Vision Imagining the big picture Expanding the opportunities Project Scope Reducing the field of view Constraining the activities Vision V1 V2 V3 V4 VX

Vx Realizing Product Vision Product Vision The BIG idea of what you think your product could be V2 V1 Line Extension Reality It might take 2-3 years to fully develop it For now, keep you your focus on V1!

A Product Vision Starting Point For (target customers) Who (have the following problem) Our product is a (summarize the solution) That provides (measurable benefit). Unlike (reference competition), Our solution (describe the key point of competitive differentiation).

For urban consumers who are cost or environmentally-sensitive Who don’t want the hassle or impact of owning a car but need occasional use of one, Car2Go provides short term auto rental service That provides economical wheels when you need them for typical errands and trips. Unlike traditional car rental companies that rent all classes of cars by the day or week from their staffed locations, We rent only compact, environmentally friendly Smart Cars by the minute, from on-street locations close to where you are.

For cost or environmentally-sensitive consumers Who don’t want the hassle or impact of owning a car but need occasional use of one, ZipCar provides short term auto rental service That provides economical wheels when you need them for typical errands and trips. Unlike traditional car rental companies that rent all classes of cars by the day or week from their staffed locations, We rent only environmentally friendly vehicles by the hour from convenient self-service locations close to where you are.

For consumers who rent movies to watch in their homes Who don’t want the hassle of going to stores or kiosks, Netflix provides a movie rental service That provides convenient and affordable rentals from home with delivery directly to you. Unlike retail locations or vending machines with lines, limited selection, blind choices and return hassles, We provide online selection and recommendations for a huge library of movies delivered on-demand or through the mail.

Vision Molecule VisionVisionVision Where to go Where to go (2-5 Years) (2-5 Years) Strategy Element Strategy Elements Major stepping stones Major stepping stones (Pillars of Value Prop & Positioning) (Pillars of Value Prop & Positioning) Objective Objective Objective Objective Objective Objective Objective Objective Objective Objective Objectives What is success What is success (SMART) (SMART) Adapted from The Vision Molecule

Establishing SMART Objectives SMART The Objective should … SpecificState exactly what is to be achieved MeasurableDemonstrate whether (or how far) it has been achieved AchievableBe realistic given the circumstances in which it is set and the resources available to the business RelevantBe relevant to the people responsible for achieving them Time BoundBe set with a realistic time-frame or deadline

Strategy Elements For …. Who don’t want … Car2Go provides short term auto rental service That provides economical wheels when you need them for typical errands and trips. Unlike traditional car rental companies that rent all classes of cars by the day or week from their staffed locations, We rent only compact, environmentally friendly Smart Cars by the minute, from on-street locations close to where you are. For …. Who don’t want … Car2Go provides short term auto rental service That provides economical wheels when you need them for typical errands and trips. Unlike traditional car rental companies that rent all classes of cars by the day or week from their staffed locations, We rent only compact, environmentally friendly Smart Cars by the minute, from on-street locations close to where you are. Economical short term rentals Practical & Environmentally Responsible When you need them Convenient, self-service locations Pillars of value prop & positioning

Strategy Elements For …. Who don’t want … ZipCar provides short term auto rental service That provides economical wheels when you need them for typical errands and trips. Unlike traditional car rental companies that rent all classes of cars by the day or week from their staffed locations, We rent only environmentally friendly vehicles by the hour from convenient self-service locations close to where you are. For …. Who don’t want … ZipCar provides short term auto rental service That provides economical wheels when you need them for typical errands and trips. Unlike traditional car rental companies that rent all classes of cars by the day or week from their staffed locations, We rent only environmentally friendly vehicles by the hour from convenient self-service locations close to where you are. Economical short term rentals Practical & Environmentally Responsible When you need them Convenient, self-service locations Pillars of value prop & positioning

Defining Objectives for V1 How could you measure the success of V1? (at launch or shortly after) By Your Customer (Delivering the value prop) By Your Boss (Delivering business value) By Your Team (Achieving stretch goals) Trials Downloads Purchases Usage Referrals Etc. Dates Budgets Revenue Users Savings Etc. Features Locations Performance Inventory Press Etc.

Objectives For …. Who don’t want … Car2Go provides … That provides, … Unlike traditional car rental companies… We …. For …. Who don’t want … Car2Go provides … That provides, … Unlike traditional car rental companies… We …. Economical short term rentals Practical & Environmentally Responsible When you need them SmartCar has high MPG and parks well in tight spaces Self-service reservations in place at launch Car always available within walking distance Achieve 10,000 annual memberships in 2015 Convenient, self-service locations Innovative solution for secure lock/ unlock at launch Achieve 4 hours average daily use per vehicle in 2015

Objectives For …. Who don’t want … ZipCar provides … That provides, … Unlike traditional car rental companies… We …. For …. Who don’t want … ZipCar provides … That provides, … Unlike traditional car rental companies… We …. Economical short term rentals Practical & Environmentally Responsible When you need them 1 high mileage vehicle style available at launch, 3 by end of 2012 Launch Online self-service reservations & availability site by 6/2012 Available in 5 downtown metro cities in 2012 Achieve 5,000 annual memberships in 2012 Convenient, self-service locations Innovative solution for secure lock/ unlock at launch Achieve 4 hours average daily use per vehicle in 2012

Establishing SMART Objectives SMART The Objective should … SpecificState exactly what is to be achieved MeasurableDemonstrate whether (or how far) it has been achieved AchievableBe realistic given the circumstances in which it is set and the resources available to the business RelevantBe relevant to the people responsible for achieving them Time BoundBe set with a realistic time-frame or deadline

Results of Having No Objectives Prioritization fights Lack of team & exec alignment Imposed objectives Feature creep What does “DONE” mean? Subjective performance reviews Feeling lack of accomplishment

Team Activity Develop your vision molecule… – From your opportunity summary today, identify 3-4 strategy elements (pillars) of your value prop & positioning – For each strategy element, identify 1-2 measurable objectives as success drivers for your V1 release Be prepared to share your strategy elements & some objectives – NOTE: you do not need to reach consensus! 20 minutes

Vision Molecule VisionVisionVision Where to go Where to go (2-5 Years) (2-5 Years) Strategy Element Strategy Elements Major stepping stones Major stepping stones (Pillars of Value Prop & Positioning) (Pillars of Value Prop & Positioning) Objective Objective Objective Objective Objective Objective Objective Objective Objective Objective Objectives What is success What is success (SMART) (SMART) Adapted from The Vision Molecule

Competitive Analysis Define Product Vision & Scope Business Objectives Target Features & System Diagram Discuss Examples Breakout activities

What’s a Software Feature? Any observable characteristic Functionality Platforms Amounts of something Look & Feel How/where purchased Price, rules, availability Etc.

Picking the Feature View Customer View Find and reserve cars online See pickup locations near me Reserve for now or next month For an hour or 2 days Newer, gas efficient cars iPhone App for reservations Roadside assistance Developer View Runs on SQL &.Net Written in HTML5 Clustered SAN storage Web Services 4G Mobile Network Cybersource payments Ruby on Rails

Strategy Drives Features For …. Who don’t want … Car2Go provides … That provides, … Unlike traditional car rental companies… We …. For …. Who don’t want … Car2Go provides … That provides, … Unlike traditional car rental companies… We …. Economical short term rentals Practical & Environmentally Responsible When you need them 38 Rental rate includes gas, insurance, mileage Vehicle selection for running common errands Smart Car vehicle fleet Self-service reservations & availability via mobile app Rent by minute! (or by the day) Pickup/drop-off at neighborhood locations Small sign-up fee with no minimum usage commitments Convenient/ad hoc, self- service locations Reserve before- hand or check out on the fly Secure access only by you during your reservation

Strategy Drives Features For …. Who don’t want … ZipCar provides … That provides, … Unlike traditional car rental companies… We …. For …. Who don’t want … ZipCar provides … That provides, … Unlike traditional car rental companies… We …. Economical short term rentals Practical & Environmentally Responsible When you need them 39 Rental rate includes gas, insurance, mileage Vehicle selection for running common errands Vehicle fleet is high mileage or hybrids Self-service reservations & availability online Rent by the hour or the day Pickup/drop-off at neighborhood locations Small annual fee with no minimum usage commitments Convenient, self-service locations Reserve an hour or a year in advance for up to 4 days Secure access only by you during your reservation

Block Diagrams Communicate Your Idea Purpose is to communicate a high level view of your product Purpose is to communicate a high level view of your product Identify major components & external systems Identify major components & external systems

Simple But Informative Find & Reserve Cars Online Web & Mobile Access Cars parked in your neighborhood Zipcar Web Your assigned access card

Not Usually Appropriate Too much technical design (Unless parts of this system already exist and you’re just copying it)

Context Diagram Describes the major external systems and data flows

Simple Context Diagram

Competitive Analysis Define Product Vision & Scope Business Objectives Target Features & System Diagram Discuss Examples Breakout activities

Examples The BIG idea of what you think your product could be…

Examples The BIG idea of what you think your product could be…

Agenda Current events (5 min) Where are we? (5 min) Roadmap for Fall Plan for tonight Team presentations (30 min) 3-min presentation Brief Q&A Class feedback Today’s Topic (60 min) Define Product Vision & Scope Business Objectives Target Features & System Diagram Breakout activity (20 min) Homework assignment (10 min)

Team Activity Develop your vision molecule… – From your opportunity summary today, identify 3-4 strategy elements (pillars) of your value prop & positioning – For each strategy element, identify 1-2 measurable objectives as success drivers for your V1 release Be prepared to share your strategy elements & some objectives – NOTE: you do not need to reach consensus (today)! 20 minutes

Team Activity Create your Feature list & system diagram – Develop a high level feature list supporting your identified strategic elements – Develop a high level block diagram to illustrate the major components of your system Be prepared to share some features – NOTE: you do not need to reach consensus! 20 minutes

Agenda Current events (5 min) Where are we? (5 min) Roadmap for Fall Plan for tonight Team presentations (30 min) 3-min presentation Brief Q&A Class feedback Today’s Topic (60 min) Define Product Vision & Scope Business Objectives Target Features & System Diagram Breakout activity (20 min) Homework assignment (10 min)

Homework for next week Complete your Vision & Scope – Complete the Vision Molecule including Vision Statement (Moore’s positioning statement), identified strategic elements, and V1 objectives – Develop a high level feature list supporting your identified strategic elements – Develop a high level block diagram to illustrate the major components of your system – Post to team site. Individual submissions required for credit, but please feel free to collaborate as a team.

Team Project: Upcoming Due Dates Interview Results due by Oct 19 Competitive Analysis due by Oct 26 Problem statement and value proposition due by Nov 2 (present in class on Nov 5) Vision and scope due by Nov 9 Revenue forecast due by Nov 30 Concept Presentation: Dec 10 (last class)

Team Project: Upcoming Milestones Empathy Interview results due by Oct 19 Competitive Analysis due by Oct 26 – Individual submission: Complete a SWOT and Feature Matrix Analysis of 2 of your closest competitor Post your findings on the team site, read/comment on others posts Problem statement and value proposition due by Nov 2 – Individual submission: post analysis/comments on team site – Team submission: Prepare a 3-minute presentation summarizing your opportunity Target segment, target customer, problem, value prop, positioning, desired benefits, and segment size. Be prepared to present in class on the 5 th – Tips for preparing the presentation Best to select one or two teammates to present Slides are optional (keep it simple and brief—you only have 3 minutes!) Think of your Customer as the person you need to engage, in order to be successful Vision and scope due by Nov 9 – Individual submission Revenue forecast due by Nov 30 – Individual submission Concept Presentation: Dec 10 (last class) – Team submission (details + template will be forthcoming)

Preparing your Final Concept Pitch Deck (Dec 10) Task: Define an opportunity to improve an existing product. Desired Outcome: Persuade your audience (i.e., management) that the problem is real and actionable by your team, and the expected business value is worthy of investment. Elements of your presentation (~10-15 slides TOPS) Identify your target customer segment (2-3 slides) Define the problem to be solved (2-3 slides) Establish your competitive positioning (4-5 slides) Recommend a release theme/driver (1-2 slides) Demonstrate how it will create business value (1-2 slides) “Don’t bring a knife to a gunfight” Keep the presentation lean and to the point, but load up the appendix with backup material (analysis, data, contingency/alternate proposals, etc).

BACKUP – VISION/SCOPE TEMPLATE

Vision & Scope Document 1.Business Requirements 1.Background 2.Business Opportunity 3.Business Objectives and Success Criteria 4.Customer or Market Requirement 5.Value Provided to Customers 6.Business Risks 2.Vision of the Solution 1.Vision Statement 2.Major Features 3.Assumptions and Dependencies 3. Scope and Limitations 1. Scope of Initial Release 2. Scope of Subsequent Releases 3. Limitations and Exclusions 4. Business Context 1. Stakeholder Profiles 2. Project Priorities From Karl Weigers