Product Strategy Statement Template and Strategies Across the

Product Strategy Statement Template and Strategies Across the Product Lifecycle

What’s Included in this deck • • • Definition of Strategy Why create a strategy statement? Elements to consider in crafting a strategy Strategy statement template Example strategy statement See the NOTES view in PPT for additional information © 2006 Pivotal Product Management, LLC. 2

Strategy: A guiding theme for decisions • How will we get from here, to there? • Do we say yes or no to this opportunity? • Is this tactic a higher priority than others? © 2006 Pivotal Product Management, LLC. 3

A Sample of Strategic Business Drivers • First to market • Market leader (most market share) • Best in class - quality (broad market, or specific segment/industry) • Lowest cost/best “value” • Best in class - innovative Strategy’s ultimate expression is in how we decide to spend money. © 2013 Pivotal Product Management, LLC 4

Product Strategy Statement ü Establishes a framework for the product roadmap: how we will get from “A” to “B” ü Explains why the company should invest in the product ü Gives Product Team a clear sense of what the product means to the company and to them: effort and reward ü Expresses key criteria for prioritization Ø Makes a great “elevator pitch” to use internally © 2006 Pivotal Product Management, LLC. 5

Elements of Product Strategy Statement for Internal Applications Primary business objective Key business strategy for achieving the objective Key IT application objectives Key IT application strategy for meeting IT objectives Target competitors Positioning Required resources and functional programs © 2013 Pivotal Product Management, LLC 6

Elements of a Product Strategy Statement for Commercial Software Primary objective Key strategy for achieving the objective Target segments Target competitors Positioning Marketing mix (4 Ps) Required resources and functional programs © 2006 Pivotal Product Management, LLC. 7

Example Strategy Statement Format Why this product is being developed How it fits with company mission & strengths Target market and size of opportunity Why it will be successful Competitive target and positioning How the company will make money (business model, pricing strategy) Marketing and channel strategies Delivery approach and decision drivers, for example: Address key market segments first © 2006 Pivotal Product Management, LLC. Solve particular problems first Fast iterations vs. longer and fewer cycles Target price, margin, cost 8

Strategy Statement Example Product X is targeted at the estimated 8, 500 organizations in the US who have software development teams of 100 or more. In addition to contributing $4. 5 MM to top-line revenues in the next 24 months, Product X is the first in a line of products that will help us transition to a product-focused company. Product X is the means by which we and our clients will measure the impact of adopting Agile methods. No such product currently exists in the market. We will deploy the product during consulting engagements and clients will want to continue using it to measure their progress after the engagement ends. Product revenues will be based on an annual subscription fee based on the size of the development teams being tracked. We have an opportunity to be first to market, so we will use an MVP strategy organized around our Agile transformation engagement model. We anticipate releasing core baselining functionality first, followed by diagnostic capability and then management and financial reporting. We need to demo at least diagnostic capability by Agile 2011. © 2006 Pivotal Product Management, LLC. 9

Sales PLC Stages & Strategies for Internal Applications Profit PLC Stage Introduction Growth Maturity Decline Time Phase Introduction Growth Maturity Decline Customer Goal Validate planned benefits Maximize benefit Minimize TCO Replace it Product Basic/MVP Build toward “complete” Reduce issues, steady state Dated, unstable, un-supported platforms Investment Enough to prove value Maximize ROI Don’t spend any more! Prioritization Highest business value in least time Next level business value Stability, supportability Critical bugs only Launch Strategy Pilot: educate, validate Full roll-out, fast adoption, frequent updates Update only as needed to meet customer goal None! © 2006 Pivotal Product Management, LLC. 10 10

Sales PLC Stages & Strategies for Commerical Products Profit Introduction Growth Customers Innovators Early Adopters Middle Majority Laggards Customer Goal Competitive edge via risk Safety, pain avoidance and a good price Don’t want it, regardless Marketing Objective Awareness/ trial Market share Maximize profit Retire/replace Product Basic Extensions Full line Best sellers Price Intro/skimming Penetration Competitive Maintain profit Distribution Selective Broaden Extended Profitable only Promotion Targeted; educate Broader; differentiate Sustaining; loyalty Minimize © 2006 Pivotal Product Management, LLC. Maturity From Kotler, Marketing Management Decline Time PLC Stage 11

For More Strategy Help • Pivotal Product Management provides award-winning product management training, consulting, coaching, and skills assessment. Please contact us if you have questions about using this tool. Visit our website for more Product Management best practices, free tools, and templates. • Pivotal Product Management www. pivotalpm. com 866 -647 -5397 © 2006 Pivotal Product Management, LLC. 12