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TRANSCRIPT
Product Strategy Statement Template
andStrategies Across
the Product Lifecycle
©2006 Pivotal Product Management, LLC. 2
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. 3
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?
© 2013 Pivotal Product Management, LLC 4
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.
©2006 Pivotal Product Management, LLC. 5
Product Strategy Statement
Establishes a framework for the product roadmap: how we will get from “A” to “B”
Explains why the company should invest in the product
Gives Product Team a clear sense of what the product means to the company and to them: effort and reward
Expresses key criteria for prioritization
Makes a great “elevator pitch” to use internally
© 2013 Pivotal Product Management, LLC 6
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
©2006 Pivotal Product Management, LLC. 7
Elements of a Product Strategy Statement for Commercial Software
Primary objective
Key strategy for achieving the objective
Target segments
Target competitors
Positioning
Marketing mix (4Ps)
Required resources and functional programs
©2006 Pivotal Product Management, LLC. 8
Example Strategy Statement Format
Delivery approach and decision drivers, for example:Address key market
segments firstSolve particular problems first
Fast iterations vs. longer and fewer cycles
Target price, margin, cost
Why it will be successful
Competitive target and positioning
How the company will make money (business model,
pricing strategy)
Marketing and channel strategies
Why this product is being developed
How it fits with company mission & strengths Target market and size of opportunity
©2006 Pivotal Product Management, LLC. 9
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 $4.5MM 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.
PLC Stages & Strategies for Internal Applications
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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 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!
Introduction Growth Maturity DeclineTime
PLC Stage
Sale
s
Profit
©2006 Pivotal Product Management, LLC. 10
PLC Stages & Strategies for Commerical Products
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Customers Innovators Early Adopters Middle Majority Laggards
Customer Goal
Competitive edge via risk
Safety, pain avoidance
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 profitDistribution Selective Broaden Extended Profitable onlyPromotion Targeted;
educateBroader; differentiate
Sustaining; loyalty Minimize
Introduction Growth Maturity DeclineTime
PLC Stage
Sale
s
Profit
From Kotler, Marketing Management©2006 Pivotal Product Management, LLC.
©2006 Pivotal Product Management, LLC.
For More Strategy Help
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