66thth Class Class

Intellectual PropertyIntellectual PropertyRoadmapsRoadmaps

TeamsTeams

Bus100: Building Software Bus100: Building Software Products:Products:From Strategy to SalesFrom Strategy to Sales

John GibbonJohn Gibbon

•DefineDefine

•Design Design

•Develop Develop

•PartnerPartner

•MarketMarket

•Sell Sell

1-3: Company & Product Strategy1-3: Company & Product Strategy

3: Development & Requirements 3: Development & Requirements 4: Product Management4: Product Management5: User Experience5: User Experience6: IP, Roadmaps, Teams 6: IP, Roadmaps, Teams 7: Web Tech, QA, Project 7: Web Tech, QA, Project

ManagementManagement 7: Partnering7: Partnering 8: Product Marketing8: Product Marketing 9: Sales & Advertising 9: Sales & Advertising 10: Mistakes / Review 10: Mistakes / Review

Classes:Classes:

Where should we go?Where should we go?

Why will we be Why will we be successful there?successful there?

How do we get How do we get there?there?

Company or Product Portfolio Company or Product Portfolio StrategyStrategy

•Problem?Problem?▫OpportunityOpportunity

•Solution?Solution?▫Unique offering or Unique offering or

breakthrough (IP)breakthrough (IP)▫Why you? Competition?Why you? Competition?

•Business ModelBusiness Model▫How make money?How make money?▫Money need?Money need?▫Team Team

Why will we be Why will we be successful there?successful there?

Company or Product Portfolio Company or Product Portfolio StrategyStrategy

•Solution?Solution?▫Unique offering or Unique offering or

breakthrough (IP)breakthrough (IP)▫Why you? Competition?Why you? Competition?

Competitive Advantage or Competitive Advantage or DifferentiationDifferentiation

Ansoff Matrix: Ansoff Matrix: Product StrategyProduct Strategy

Current Products

Future Products

Current Markets

Future Markets

Market Penetratio

n

Product Developme

nt

Market Development

Know Customers

and Market

Rich Product Offerings

Defensibility in Early / Web 2.0 Defensibility in Early / Web 2.0 CompaniesCompanies

• Head StartHead Start▫ Early Customer ValidationEarly Customer Validation▫ Difficult to replicate functionalityDifficult to replicate functionality

• From Previous ExperiencesFrom Previous Experiences▫ Similar Products or Similar BusinessSimilar Products or Similar Business▫ Customer Base FamiliarityCustomer Base Familiarity▫ Market Knowledge: Domain Expertise and ConnectionMarket Knowledge: Domain Expertise and Connection

• Distinct Partners, Investors, Employees, Business Distinct Partners, Investors, Employees, Business ModelModel

- http://blog.guykawasaki.com 10/06- http://blog.guykawasaki.com 10/06

Defensibility: Intellectual Defensibility: Intellectual PropertyProperty

• Patents, Copyrights, Trademarks, Trade Patents, Copyrights, Trademarks, Trade Secrets Secrets

• Patent: Patent: ▫Rights to inventor for new machine, Rights to inventor for new machine,

process, business methods, etc process, business methods, etc ▫Not idea, mathematical algorithm, law of Not idea, mathematical algorithm, law of

nature, functional material (source code) nature, functional material (source code) ▫Claims must be new (novel, non-obvious, no Claims must be new (novel, non-obvious, no

“prior art”), useful / industrially applicable. “prior art”), useful / industrially applicable.

Defensibility: Intellectual Defensibility: Intellectual PropertyProperty

• Exclusive rights Exclusive rights ▫ for set time (US Software 20 years). for set time (US Software 20 years).

Encourages disclosure, but provides Encourages disclosure, but provides protection protection

• Others can’t Others can’t ▫make, sell, import, etc.make, sell, import, etc.

• Process will cost Process will cost ▫$5k - $10k+ take 2 – 4+ years $5k - $10k+ take 2 – 4+ years

Patents: Part of Your Defensibility Patents: Part of Your Defensibility Strategy? Strategy?

• Part of your Industry? Part of your Industry? ▫ Biotech, Pharama, Medical Device Industry Biotech, Pharama, Medical Device Industry

• Offense: Offense: ▫ Competitive Barrier Competitive Barrier

• Defense: Defense: ▫ Keeping competitors from filing and suing you Keeping competitors from filing and suing you ▫ Use as bargaining chipUse as bargaining chip▫ OutsourcingOutsourcing

• Revenue: Revenue: ▫ Use for Licensing / OEM StrategyUse for Licensing / OEM Strategy▫ Sell PatentSell Patent

• Market Value: Market Value: ▫ Marketing Value “Patented Technology”Marketing Value “Patented Technology”▫ Attract Investor Attract Investor

Patents: Why You Shouldn’t? Patents: Why You Shouldn’t? • Value?Value?

▫ Is it a big portion of value of company?Is it a big portion of value of company?▫ Often too narrow in scope to be of high valueOften too narrow in scope to be of high value

• Suing? Suing? ▫ Big companies not great business modelBig companies not great business model

• High CostHigh Cost▫ Big time and money investment (30 months, 10 years?)Big time and money investment (30 months, 10 years?)▫ Difficult and expensive to defend Difficult and expensive to defend

• SW Industry?SW Industry?▫ Questionable value and respect in software / web Questionable value and respect in software / web

industry industry

•Protects Protects investments made investments made to commercialize to commercialize inventionsinventions•Like other patents, Like other patents, promotes useful promotes useful inventionsinventions•Promotes public Promotes public disclosuredisclosure•Creates economic Creates economic benefit: jobs, benefit: jobs, companies, companies, national industriesnational industries

Software Patent DebateSoftware Patent Debate

•Slow, costly to file Slow, costly to file and defend, and defend, uncertain uncertain

•Disadvantage to Disadvantage to SME, OpensourceSME, Opensource

•Patent trolling Patent trolling stifles businessstifles business

•Scope of a patent is Scope of a patent is unclear in SW unclear in SW industry industry

Patents: ProcessPatents: Process

• Process will cost $5k - $10k+ take 2 – 4 years (US Process will cost $5k - $10k+ take 2 – 4 years (US only).only).▫ Also European patent office, Japanese patent office, etc. Also European patent office, Japanese patent office, etc.

• Research and get a lawyerResearch and get a lawyer▫ Nolo.com, Nolo.com, http://www.uspto.gov/

• Be weary about searching for other patents Be weary about searching for other patents (google.com/patents); talk to your lawyer first.(google.com/patents); talk to your lawyer first.

• Consider provisional patent – gives you 1 year to Consider provisional patent – gives you 1 year to decide decide

• Create DraftCreate Draft• FileFile

Patents: ExamplesPatents: Examples

• Adobe Premier Video EditingAdobe Premier Video Editing▫Display time lineDisplay time line

▫Display representing video clipsDisplay representing video clips

▫Editing by modifying displayEditing by modifying display

• Software: To Patent or Not? – Jeffrey KushanSoftware: To Patent or Not? – Jeffrey Kushan

CoolEarth SolarCoolEarth Solar

Other Examples?Other Examples?

CopyrightsCopyrights

• Protect Code (Copyright); Protect Protect Code (Copyright); Protect Functionality (Patent)Functionality (Patent)

• Copyright protects particular work Copyright protects particular work ▫Only manifestation of idea, not ideaOnly manifestation of idea, not idea▫Piece of art, source code (should affix) Piece of art, source code (should affix) ▫Not the ideas around it, functionality Not the ideas around it, functionality

• Exist automaticallyExist automatically▫Can register US Copyright Office (cheap)Can register US Copyright Office (cheap)

• Duration generally author lifespan + 70 Duration generally author lifespan + 70 yearsyears

Trade SecretsTrade Secrets

• Can’t be easily discernedCan’t be easily discerned▫ Although can be reverse-engineeredAlthough can be reverse-engineered

• Economic benefitEconomic benefit• Kept secret Kept secret

▫ limited access, lives in vault, etc.limited access, lives in vault, etc.• Lasts indefinitelyLasts indefinitely

▫ Coca-Cola formula Coca-Cola formula • Value lost if published (leaked) Value lost if published (leaked)

TrademarksTrademarks• Distinguishing attribute by which company easily Distinguishing attribute by which company easily

identified identified ▫ Mark, Brand, Logo, Packaging, ColorMark, Brand, Logo, Packaging, Color

• Can be registered, but just needs to be usedCan be registered, but just needs to be used▫ identified by the symbols ™ (not yet registered) and ® identified by the symbols ™ (not yet registered) and ®

(registered)(registered)▫ Search and Register: US Patents and Trademark OfficeSearch and Register: US Patents and Trademark Office

• Lasts indefinitely (re-register every 10 years) but must Lasts indefinitely (re-register every 10 years) but must be usedbe used

TrademarksTrademarks• Stay away from Stay away from

▫ Generic “PhotoSharing“Generic “PhotoSharing“▫ Merely descriptive trademarks “Sharing“Merely descriptive trademarks “Sharing“

• Use Use ▫ Suggestive “Elegant” “Confidence” Suggestive “Elegant” “Confidence” ▫ Arbitrary “GrassLands” Arbitrary “GrassLands” ▫ Coined Terms “Privatizer” “GenShare” Coined Terms “Privatizer” “GenShare”

“Agilent” “Verizon” “Agilent” “Verizon”

• http://thinkvitamin.com/features/webapps/trademark-tips-for-your-web-http://thinkvitamin.com/features/webapps/trademark-tips-for-your-web-app/app/

RoadmapsRoadmaps

RoadmapsRoadmaps

• Product VisionProduct Vision

• Product ThemesProduct Themes

• Specific Enhancements Specific Enhancements ▫Market PenetrationMarket Penetration

▫Market DevelopmentMarket Development

▫Product DevelopmentProduct Development

2008

Products Portfolio / Feature Products Portfolio / Feature RoadmapRoadmap

* Items in italics are tentative and subject to further planning

2009 2010

Improved Analytics

Product Line B (with product B1 , B2, and B3)

Investigating in ‘08 & ‘09; releasing some in ’09 & ‘10:China, Latin America, Italy, Brazil, Russia,

Partner X – Analytics / Biz Intelligence

Partner Y (CRM), Partner C (ERP)

New Algorithms Introduced

UpgradesImproved Reporting

Last updated 10-Sept-08

Localization (New Markets)

Improved Analytics SaaS Version Available

Upgrades

Third Party

Integration

Product Line A (with product A1 and A2)

SaaS Version Available

Product A1 – Integration with Data Integrator product

Also investigating mobile …

Product Vision “Strengthen the Standard by growing products and markets for our product” or “Enabling CFOs …” “making the joy of giving fun and easy to experience….”

ClientClientServerServerOfficeOfficeBusiness Business SolutionsSolutions

ClientClientServerServerOfficeOfficeBusiness Business SolutionsSolutions

64-Bit

Tell a StoryTell a Story(depends on your message and your audience but (depends on your message and your audience but …)…)

Other Roadmap FormatsOther Roadmap Formats(Brian Lawley 280Group “Expert Product (Brian Lawley 280Group “Expert Product Management”)Management”)

• Internal or External Facing

• Trends:

• Competitive, Market, and Technology

• Technology:

• External Factors / Internal Dev

• Checkout 280Group Product Roadmap Toolkit

3 Year Technology Roadmap3 Year Technology Roadmap

2006 2007 2008

Platform

Products

Tools

Release 1 Release 2 Release 3

Product 1Product 2

Product 3

Product 4

©2006 280 Group LLC. All rights reserved.

Team Roles and ResponsibilitiesTeam Roles and Responsibilities

Where should we go?Where should we go?

Why will we be Why will we be successful there?successful there?

How do we get How do we get there?there?

Company or Product Portfolio Company or Product Portfolio StrategyStrategy

Simple Communication Simple Communication TemplateTemplateAreas of Responsibility

Since Last Report

Before Next Report

Quarterly Goals

Area 1 1)….2)….3)….

1)….2)….

1)…2)…

Area 2 1)….2)….

1)….2)….

1)…

Area 3 1)….2)….3)….

1)….2)…3)….

1)….2)…

•DefineDefine

•Design Design

•Develop Develop

•PartnerPartner

•MarketMarket

•Sell Sell

Tech:Tech:

Some Some

Most Most

NoneNone

Word-of-Mouth Word-of-Mouth (Blog, etc.)(Blog, etc.)More (support)More (support)

Non-Tech:Non-Tech:

Some Some

Little Little

MoreMore

More More

MoreMore

1 Person Software Product Companies1 Person Software Product Companies

•DefineDefine

•Design Design

•Develop Develop

•PartnerPartner

•MarketMarket

•Sell Sell

All / Biz Guy All / Biz Guy

3 3

1 Biz Guy 1 Biz Guy (w/ admin) (w/ admin)

All All

1 UX/PM1 UX/PM

1 CTO 1 CTO (outsour(outsource rest) ce rest)

1 Biz Guy 1 Biz Guy (w/ admin) (w/ admin)

4 Person Software Product Companies4 Person Software Product Companies

•DefineDefine

•Design Design

•Develop Develop

•PartnerPartner

•MarketMarket

•Sell Sell

PM/CEO PM/CEO

6 (QA and IT)6 (QA and IT)

Or CTO, UX/PMOr CTO, UX/PMoutsource outsource

1 CEO (w/ Admin)1 CEO (w/ Admin)1 other Sales 1 other Sales

8 Person Software Product Companies8 Person Software Product Companies

Contract:Contract:

Marketing/PR Marketing/PR

Level 1 Level 1 SupportSupport

CFO CFO

Product Feature Requests / Ideas

New Customer /Market Market

Requirements

Organization from a Product Process Organization from a Product Process ViewpointViewpoint

Existing Customers Requests

Deployment

Pro. Services

/ Support

Executive Team

MR

Ds

/ Biz

Cas

e

App

rova l

QA/ReleaseDevelopmentProductManagement Doc/Support

PostDeploySupport

SalesSupport

Market CommProduct Info

Features Test Results

Function / UI RqmtsDocs

Functional /UI Requirements

Releases

Rele

ase

s

What are your core competencies / value-add? What can you contract?

Financial, Legal, Admin, HR, IT, Support

Product Responsibilities Product Responsibilities SpectrumSpectrum• Engineering Engineering

- How- How

• Project / Program Management Project / Program Management

- Organizing development and release/launch tasks- Organizing development and release/launch tasks

• Product ManagementProduct Management

- What / Inbound (“product owner/GM”)- What / Inbound (“product owner/GM”)

- Agile “Product Owner” and “Product (Marketing) Manager”- Agile “Product Owner” and “Product (Marketing) Manager”

• Product Marketing Product Marketing

- Messaging / Outbound- Messaging / Outbound

• Marketing Communications Marketing Communications

– – Company level communications: branding and advertisingCompany level communications: branding and advertising

Matrixed OrganizationsMatrixed Organizations• Teams aligned by function? product? Teams aligned by function? product?

project? geography? project? geography?

• Product and geography alignedProduct and geography aligned

-Let non-corporate office own “X product”, -Let non-corporate office own “X product”, not outpost where throw pieces of worknot outpost where throw pieces of work

Matrixed OrganizationsMatrixed Organizations• However grouped, build complementary However grouped, build complementary

structure structure

- If function oriented (“all engineering”) create - If function oriented (“all engineering”) create product team pride with group goals and rewards. product team pride with group goals and rewards.

- If product oriented, create “chief” roles for - If product oriented, create “chief” roles for common structures and career guidance.common structures and career guidance.

Chief Interaction DesignerChief Interaction Designer

Chief Software ArchitectChief Software Architect

Chief Data ArchitectChief Data Architect

VP Product ManagementVP Product Management

Matrixed OrganizationsMatrixed Organizations▫Project alignment Project alignment

+ Flexible, Adaptive + Flexible, Adaptive

- Product, personnel development, - Product, personnel development, infrastructureinfrastructure

Matrixed OrganizationsMatrixed Organizations▫Smaller product teams in large companies Smaller product teams in large companies

Org and App similaritiesOrg and App similarities

Virtual and technical (API) interface to rest of Virtual and technical (API) interface to rest of company (Amazon) company (Amazon)

Inefficiencies and lack of connectiveness Inefficiencies and lack of connectiveness after certain size: dozens, hundreds?after certain size: dozens, hundreds?

What is optimal size / structure of a What is optimal size / structure of a company?company?

Depends on ….Depends on ….