Creating a Product Road Map

“Follow the yellow brick road” - this is the instruction that Dorothy got in order to get to Emerald City.

Product managers are responsible for building the product’s yellow brick road – the Product Road Map.

The road map generally should normally be planned for a 3 year period at a high level and for 18 months in a more detailed manner.

Probably the most important starting point for the road map process is the outcome of the strategic business process of the company. This is a critically important process performed periodically (often annually) by the senior management of the company together with the marketing team and actually drives the entire company. When we start to create or update the road map the last version of the strategic process is a major input.

Often this will be replaced or supplemented by a product strategic process where we systematically look at all aspects of the product and the market and set key business objectives within the overall corporate strategic framework.

The road map process starts with information collection which should include the following:

• Market trends
• Regulatory trends
• Technology directions
• Competitive analysis
• Customer requirements and suggestions

In the next step we need to analyze what is the likely impact of each item on the product and what we can or should be do in order to give the best response to the probable impact. The best way is to create a product requirements matrix with all the needed activities, new features, platform changes, etc. and then to prioritize this list.

Having done that, we need to figure out what is required in the development of each element in the matrix. We must get the rough effort estimation and / or the budget needed. Now we have the information needed in order to make decisions and to create a road map release plan, if possible for a 3 year period, but not less than 18 months.

Needless to mention that during all the process described here we need to drive internal collaboration and buy in by involving and getting the opinions of many other groups from within the organization for example marketing, R&D, sales, operations and so on.

This is a cyclic process, since we need to do it again at least once or twice a year and adjust the road map if needed.

The decision whether to let our customers be involved in the road map or more precisely to what extent they should be involved is not an easy one. See this article for some of our thoughts in this area. Generally we need to make the product ready for market, but at the same time, we need to be careful not to let the road map drift in the direction of one or two (big) customers, but, is not in line with the general market direction.

We should be very careful when externalize the road map document since it is has some legal status as a kind of contract and as such we need to enter all the needed legal and financial disclosures.

Hopefully this road map will lead us to Emerald City.

In subsequent blogs we will look at ways to share the roadmap internally and externally, getting internal buy in and some of the methods available to do competitive analysis and technology reviews.

The Craft of Product Management & Marketing

The Product Management & Marketing (PM&M) profession presents significant challenges to its practitioners. The main challenge of our profession is: making good product decisions in an environment of uncertainty to drive long term sales, profitability and competitive positioning.

There are many methods and best practices that one can learn and use in the challenging world of PM&M, in order to to help. Occasionally there might be some fortunate PM&Ms facing projects where all the parameters are available, obvious and accurate, for most of us most of the time this is not the case.

Once we are over the decision making challenge, we have to face the organization and manage the “internal marketing” of the decisions within the various functions in the company. The PM&M has to coordinate and collaborate with almost all internal organizations – Sales, Marketing, Operations, Delivery, Support, Legal and R&D. To be able to do all this cooperation the PM&M has to build matrix management skills, but more than this relay on excellent human relationship capabilities.

Finally… after we have managed to make the decision and get buy in within the company, then we reach the critical stage (& our original objective) – going to the market and meeting our customers. In my view, the PM&M must face the customers. This is the way to “feel” and learn the market, find out what the customers are looking for, what are the advantages and disadvantages for our product and how to make it a winner with clear differentiation. Close engagement with the customers is essential to enable the right decision making. However, meeting customers successfully isn’t always an easy task, and the PM&M needs to have the human and technical capabilities to interact with the customers, to present the product and to face the challenges the customers present.

The Customer is King – But are they Always Right?

The customer is the king – they buy our product. We also know that the customer is always right. However, sadly they are not always right or at least not completely right; especially if (fortunately) there are many different customers with different needs. After we have engaged with the customer we will often be left with a conflict – do we meet the customer’s requirements or do we take them into account yet specify other product goals? Generally we are time limited and resource restricted and so our decisions will be (to a large extent) between mutually exclusive options.

As in many situations in life, there is the “easy way out”. When making decisions the PM&M can rely on what the customers demand. It will make everybody happy; internally in the organization no one can argue with the logic of satisfying the requirements coming from customers and the sales people will be delighted to go to the customers and tell them that all their requests are fulfilled. The customers will be delighted to get their exact requirements and to have their views influence the product. But, the “easy way” is not necessarily the “right way”, the popular decision will give the PM&M a friendlier environment in the short run, but will it be justified by the business performance in the long run? Did we sacrifice the future of the product for the comfort of making easy decisions? One of the classic PM&M dilemmas or minefields is letting one or a few key customers dictate the product design. Our responsibility is to make the best product decision in an environment of uncertainty and we need our customers to buy our product, but, we also need to ensure that one or two key accounts do not set the product back in terms of its wider market acceptability.

The PM&M is usually at the eye of the storm. The customers have their requests and crisis, the sales people demand that we satisfy our customers and also give the sales people some new exciting things to sell and to meet their quotas, the operations and support are complaining on the product capabilities and R&D is always short on resources. There are methods and tools that help sort things out in this chaos, but often there are no easy or even obviously right answers. The “craft of PM&M” is to be able to observe the surroundings, analyze the conflicting information, to assess the situation and in the end make the right product decisions that will maximize long term sales, profitability and competitive positioning.