Day 7: Product Management Glossaries

Before proceeding further, lets get acquainted with Product Management Glossary. Even though, the terms are explained by only definition, the complete explanation for each term shall be described later, when we encounter these terms in respective key areas:

Terms Definition
Actual Relative Value The ratio of benefits and costs[expenses] the product factually delivers to customers.
Actual Resultant Value A fixed combination of gains in time, cost, and business the product factually delivers to customers.
Actual Value The measured and validated worth that the customer or similar customers factually obtain from owning and using the product.
Actual Value Formula Actual value = actual resultant value + actual relative value
Advertising Non-personal communication from an identified sponsor using mass media.
Allowances A conditional refund in form of a deduction from the list price in exchange for customer action.  Allowances are often accomplished in two forms:

a.       Trade-in (pricing) – an item of property given in part payment upon purchase;

b.       Rebate (pricing) – customer receives reimbursement for a portion of the purchase price, in exchange for customer information.

Analyst Relations The bi-directional information exchange with financial analysts and industry analysts to inform and favourably influence them.
Asset Assessment An asset condition assessment is a report outlining how an organization can manage capital assets to improve its asset management operations.
Bait Pricing Pricing that aims to attract customers with low prices with intent to sell higher-priced items.
Base Price The initial price of a product before any alteration.
BDM Buyer Business Decision Maker buyer.  The person who has the ultimate decision-making power to purchase a product or not.
Benefits Product features that are desirable to the customer.
Brand An identity, made of symbols and ideas, which portrays a specific offering from a known source.
Brand Awareness A measure of whether a brand is correctly identified by potential customers. Typically expressed as a percentage of a target market. There are many different approaches to measuring this statistic, but it typically means that a customer can respond to a brand after viewing its logo or packaging. Business Case A decision support
Business Case A justification for a proposed project or undertaking on the basis of its expected commercial benefit.
Business Competence The set of professional skills and knowledge that relate directly to performing product management.
Business Development Actions that improve the performance of the enterprise, its access to markets, and its ability to compete by creating strategic relationships with logistical, content, and technological partners.
Business Model Description of the rationale of how an organization creates, delivers and captures value by interacting with suppliers, employees, customers and partners.
Business Model Archetype A basic pattern of doing business. Available archetypes are creator, distributor and broker.
Business Plan A business plan is a written document that describes in detail how a business, usually a new one, is going to achieve its goals. A business plan lays out a written plan from a marketing, financial and operational viewpoint. Sometimes, a business plan is prepared for an established business that is moving in a new direction.
Business Plan Examination of a potential business opportunity on a company level.
Business Products Products intended for resale, for use in producing other products, or for providing services in an organization.  Business products are used for making money.
Business Strategy Decisions that support being a leader, follower, or innovator in a specific line of business.
Business To Business The transaction of goods or services between businesses (B2B).
Business To Consumer The transaction of goods or services between businesses and private individuals (B2C).
Buy, Build or Partner To Buy, Build or Partner for Learning. … The decision to buy, build or partner on learning usually goes in cycles. A leader may start building internal team resources and skills only to shift to a vendor strategy as business stakeholders become more demanding
Buyer The entity that decides to obtain the product.
Buyer Experience Understand and document the buyer’s journey for the key segments and buyers we have identified.
Buyer Persona A buyer persona is a semi-fictional representation of your ideal customer based on market research and real data about your existing customers. When creating your buyer persona(s), consider including customer demographics, behavior patterns, motivations, and goals. The more detailed you are, the better.
Captive Product (Pricing Tactic) An imbalanced price ratio between a product’s components which are sold separately.  The main system component is under-priced and the consumables or support services are overpriced.  The captive product pricing tactic can be quickly and easily accomplished via product system decoupling.
Category Maturity Life Cycle A model that describes the rise, duration, and decline of a category of product or service in terms of total revenue or number of users.
Client The entity that is the receiver of goods or services.
Cloud Computing Service and delivery model for the provisioning of IT components through the internet based on an architecture that enables a high level of scalability and reliability.
Company Board The entity of a company which is responsible for the definition and communication of strategy, vision and mission to the rest of the company. Also, it has the managerial supervision of the different departments, including product management.
Company Core Competency A company’s unique ability to deliver value, while differentiating itself from the competition.
Competitive Advantage A depiction that the company or its products are each doing something better than their competition in a way that could benefit the customer.

Competitive advantage = corporate quality + product quality

Competitive Landscape Competitive landscape is a business analysis which identifies direct or indirect competitors and at the same time, it permits the comprehension of their mission, vision, core values, niche market, strengths and weaknesses.
Conditional License Expiring ownership and usage rights to a product.  Can be renewable and non-renewable.
Constraint Business, project or design decisions taken in advance to ensure the solution fits business, managerial and contextual concerns. These decisions limit the solution space.
Consumer An individual or household that buys and uses goods and services created by industries.
Consumer Problem A marketplace situation in which consumer needs remain unsatisfied (B2C).  The solution is a whole product.
Consumer Products Products intended for use by household consumers for non-business purposes.  Consumer Products are used for personal gain.
Continuous Delivery Automated push of software into the production environment or delivery to customers.
Continuous Deployment Combination of continuous integration and continuous delivery to automatically deliver code changes to customers.
Continuous Integration Automated integration, build, and test of software in the development environment.
Conversion Rate Metric for the number of customers who have completed a transaction on a web site divided by the total number of website visitors.
Copyright A form of intellectual property right that gives the author of an original work exclusive rights for publishing, distributing and adapting the work.
Corporate Branding The process of building and maintaining a brand at the institutional level.
Corporate Marketing An outbound activity aimed at generating awareness and differentiation to the company.
Corporate Mission Statement A formal statement that a company makes about its reason for existing briefly describing the company’s general business direction and the value customers should expect to receive.
Corporate Quality A state in which the company delivers a relationship more rewarding than customers expected.
Corporate Strategy The basic long-term goals of an enterprise and the courses of action for carrying out these goals.
Corporate Vision Statement A message that summarizes the company’s purpose and intent and describes how, in the future, its products and activities shall affect the world.
Cost Per Lead Metric for the average amount of money invested to acquire a new lead.
Cost Structure The types and relative proportions of fixed and variable costs connected to a business model.
Costs[Customer] The aggregate expenses incurred by the customer from buying and using the product (essentially Total Cost of Ownership or TCO).
Credibility The quality of being believable or trustworthy.
Credit Terms Schedule for delayed payment(s).
Customer The entity (consumer or company) that takes (financial) responsibility for purchasing the product.  Often the realm to which the buyer and user belong.
Customers’ Expectations The hopes for deriving benefits from the product and establishing a rewarding relationship with the vendor.
Delivery Model A description of the mechanisms in which a product is made available to customers. Examples: Licensed product vs. Software-as-a-Service (SaaS).
Demand (Economics) Quantity of a product that will be bought in the market at various prices for a specified period.
Demand (Marketing) Wants for specific products coupled by an ability to pay for them.  The demand formula is Demand = want + buying power.
Demand-based Pricing (Pricing Tactic) Rapidly adjusting prices per customer according to market characteristics.
Derived Price Price that is determined based on attributed benefit.
DevOps Tight cooperation of Development and Operations with the objective to significantly increase the speed and quality of software deployment.
Disclaimer Denial of responsibility to events occurring during product ownership to discourage current or future legal action.
Discrimination (Pricing Tactic) Charging different market segments different prices for same product.  There are several levels of discrimination: First Level – price discrimination that is based on the ability to pay (charge per income).  Second level – price discrimination that is based on artificial obstacles (same price yet coupons, advance purchase, restricted use).  Third level – price discrimination that is based on external factors (gender, age, geography, or profession).
Distinctive Competencies A distinctive competency is a competency unique to a business organization, a competency superior in some aspect than the competencies of other organizations, which enables the production of a unique value proposition in the function of the business.
Distribution Strategy Distribution Strategy is a strategy or a plan to make a product or a service available to the target customers through its supply chain. … A company can decide whether it wants to serve the product and service through their own channels or partner with other companies to use their distribution channels to do the same.
Diversification (Pricing Tactic) Creating product variants with distributed price points.
Domain Expertise Knowledge in the technical and business aspects of the product, industry, market, and technology.
Durability (Product) How long the product maintains a level of performance without degradation.
Dynamic Pricing (Pricing Tactic) Rapidly adjusting prices per customer according to customer characteristics.
Embedded Software Software parts of software-intensive systems that are not marketed and priced as separate entities.
End-user License Agreement (EULA) Perimeters of usage and ownership rights granted to the customer.
Events Providing needed market and solution information to support marketing events such as marketing, conference, trade shows and webinars.
Expert User A user that has considerable experience with the product and utilizes many advanced features (power user).
Functional Expertise Knowledge in processes, tools, and techniques to plan/market products.
Functional Requirement A statement that identifies what a product or process must accomplish to produce required behavior and/or results.
Functional Support Plan Describes the activities, deliverables, budgets, dependencies, and schedules for a business function to members of a cross-functional product team, on behalf of a product.
Global Discount Universal, non-discriminatory, non-conditional deduction from the list price, for enticement purposes.
Goods Tangible products we can possess.  Segmented to durable and non-durable.
Graphic Arts The conception and copywriting of all collateral material.
High-tech Company A business entity that either develops technology that is incorporated in a product or is used in the assembly or manufacturing of a product, or manufactures a product that contains technology and that same product relies on that technology to perform its core function.
Impact A positive or negative consequence that will most likely occur when embarking on a product development and delivery project.
Industry A group of companies which produce and sell a particular product type.
Innovation Innovation can be simply defined as a “new idea, creative thoughts, new imaginations in form of device or method”. However, innovation is often also viewed as the application of better solutions that meet new requirements, unarticulated needs, or existing market needs. The introduction of a product that is new or substantially improved.  Innovation is the process of converting and commercializing an invention into a product.
Innovation (Formula) Innovation = invention + utilization
Innovation Management The discipline of managing processes related to innovation. Innovation management allows the organization to respond to external or internal opportunities, and use its creative efforts to introduce new ideas, processes or products.
Intellectual Property Exclusive rights that are granted by law to the owner(s) of intangible assets that result from creations of the mind, such as inventions, literary and artistic works, and symbols, names, and images used in commerce.
Invention An idea which represents a revolutionary or evolutionary change.  Invention improves an existing solution or offers a conceptually new solution to a problem.
Kano Analysis A technique for understanding which product features will help drive customer satisfaction.
Key Performance Indicator (KPI) A specific numerical measure that represents the progress towards a strategic goal, objective, output, activity, or further input.
License A set of rights concerning a licensor’s intellectual property which a licensor grants to a licensee.
License Agreement A legal document that describes a license and the related financial conditions.
Licensing A method of providing rights to usage and ownership to a product, for a specified price and/or term.
Licensing Mix A combination of perpetual and term licenses relative to a particular product.
Longevity (Product) How long a product lasts.
Loss Leader A product that is priced below cost to attract consumers to buy other items.
Management By Objectives (MBO) A systematic approach for instilling flow and structure in one’s work by setting clear, achievable, measurable, and challenging goals.
Manufacturer The entity that produces the product or service.
Margins Direct financial gains by selling.
Market (a) The area of economic activity in which buyers and sellers of goods and services come together, and the forces of supply and demand affect prices.

(b) A geographic area of demand for commodities or services.

(c) A specified category of potential buyers.

Market Analysis Analysis of all aspects relevant for a market in its current state and over the strategic time frame including market structure, competitors, market shares, customer preferences and behavior.
Market Definition the action or business of promoting and selling products or services, including market research and advertising.
Market Intelligence An ongoing real-time market data collection and analysis process.  Market intelligence builds a body of knowledge.
Market Opportunity A lucrative, lasting, and sizable market problem.  Market opportunity = market problem + volume + duration + earning potential
Market Plan A description of the long-term goals and messages delivered to the target market relative to a particular company or product.
Market Problem A consumer, product, or technology problem in the target market.
Market Requirement An aggregate unit of information which represents with sufficient detail the functionality that is sought to address a specific facet of a particular market problem.
Market Requirements Document (MRD) A written representation of the overall functionality that users seek in order to address a particular market problem.
Market Segmentation A division of the overall market for a product into groups of common characteristics.
Market Strategy Decisions that define target markets, set marketing objectives, and outline how to build a corporate competitive advantage.
Market-driven A product delivery strategy that is based on producing and delivering products that the market needs.
Marketing An instructive business domain that serves to inform and educate target markets about the value and competitive advantage of a company and its products.
Marketing Communications The employment of a mix of media vehicles that support marketing objectives.
Marketing Growth Revenue growth is the increase (or decrease) in a company’s sales from one period to the next. Shown as a percentage, revenue growth illustrates the increases and decreases over time identifying trends in the business.
Marketing Mix A combination of product, price, place [distribution], and promotion activities that are applied to a particular target market.
Marketing Plan A marketing plan may be part of an overall business plan. Solid marketing strategy is the foundation of a well-written marketing plan. While a marketing plan contains a list of actions, without a sound strategic foundation, it is of little use to a business.
Marketing Program A short-term marketplace effort designed to obtain a specific marketing goal.
Marketing Strategy The decisions that determine how to achieve marketing’s goal in a particular target market, through the selection and application of marketing mixes.
Matrix Organization Organizational structure in which individuals report to more than one person
measurement
Mission Statement Definition of the present activities or purpose of an organization by saying what it does for whom and how.
MSRP Manufacturer’s Suggested Retail Price.  The price the manufacturer recommends that the seller offers the product for.
Need A state of felt deprivation (condition or motivation in which something is sought after to effect a change).
Net Promoter Score Method to measure customer loyalty by asking a single 0-10 scale question: “How likely is it that you would recommend $BRAND$ to a friend or colleague?”. Your promoter score is the percentage of customers who answer 9 or 10 subtracted by those who answer 0-6.
Niche Market A small overall market or small market segment.
Non-Functional Requirement A requirement that pertains to a quality concern that is not covered by functional requirements. Also referred to as -> Quality requirement.
Novice User A user that is new to the product (newbie).
Odd/Even Pricing Ending the price with certain numbers to influence buyers’ perceptions of the price or product.
One-time Fee (Licensing) A one-time fixed charge that enables constant use of the product.
Open Source Software Software that can be freely accessed, used, changed, and shared (in modified or unmodified form) by anyone. Open source software is made by one or more people, and distributed under licenses that comply with the Open Source Definition
Overall Market All customers who share a common need.
Patent A patent is an exclusive intellectual property right for an invention granted to the inventor for a defined timeframe by an authorized body of a sovereign state. The right is granted for the territory of that sovereign state. It is the right to exclude others from making, using, offering for sale, or selling the invention. The types of inventions covered by patent law can be different from state to state.
Payment The actual economic sacrifice a customer makes to acquire certain rights to a product.
Payment Forms Means of payment such as cash, credit card, check, or wire transfer.
Payment Terms Payment conditions such as currency type, letter of credit and purchase prerequisites.
Penetration (Pricing Tactic) Briefly charging a relatively low price upon product launch.
Perceived Value An unsubstantiated estimation of worth that the customer obtains or could potentially obtain from owning and using the product.

Perceived value = resultant value proposition + relative value proposition

Performance Management Continuous tracking and analysis of selected KPIs relevant for business success, plus timely action taking if needed
Perpetual License Non-expiring ownership and usage rights to a product.
Personal Competence The set of individual personality traits which enable individuals to manage themselves independently and capably.
Positioning Market positioning refers to the process of establishing the image or identity of a brand or product so that consumers perceive it in a certain way.
Price A specification of what a seller wants in exchange for granting right of ownership or use to a product.  The price formula is Price = costs + margins.
Price Discounts Deductions from the list price.
Price Elasticity of Demand Percentage change in quantity demanded that occurs in response to a percentage change in price.
Price Lining Pricing of products in a product family with corresponding price points.
Price Mix A price-related aggregate of information and conditions that the customer is presented with.
Price Modifiers Conditional deduction from the list price.
Price Psychology Dynamic human reasoning process which infers from a product’s price, price comparisons, and price changes, diverse messages about the product and company, and accordingly influences buying decisions.
Price Reductions Universal, non-discriminatory, and non-conditional official list price decreases.
Price Variables Price changes based on product characteristics.
Pricing Establishing a pricing model, schedule, guidelines and procedures.
Pricing Formula A calculative structure that allows the application of pricing changes to specific markets or competitive regions.
Pricing Objectives A description of what a company wants to achieve through pricing its products.
Pricing Scheme An outline of the overall pricing approach which encompasses the principles for pricing the specific product.
Pricing Strategy The primary method to pricing that relies on a particular pricing decision factor.
Pricing Tactics Pricing actions which are dependent on the particular life cycle stage of the product that is being priced.
Problem A difficulty.  A situation that requires change.
Product Any offering that satisfies needs.  Represents a collection of tangible and intangible assets.
Product Analysis Analysis of all business aspects relevant for a particular product in its current state and over the strategic time frame including KPIs like revenue, revenue distribution, footprints, and market shares.
Product Attribute A real characteristic or property of the product.
Product Branding The process of building and maintaining a brand at the product level.
Product Bundling An aggregate of products sold collectively at a price that is lower than the sum of their prices.  The price of the set of products is lower than the total of individual products.  Bundling is often accomplished in two forms: Direct bundling – customer must buy the entire package.  Indirect bundling – customer cannot buy product X without also buying Y, in fixed proportions.
Product Category A term synonymous with product line in the context of competing products.
Product Family A set of derived products that share the same technological foundation.  Members of a product family are called product variants.
Product Feature A product capability that satisfies a specific user/buyer need.
Product Group A set of products coupled or packaged together to form a new unified offering.  Members of a product group are called product members.
Product Life Cycle Management The management of the business and technical aspects of a software product with regard to its position in its life cycle.
Product Line A set of products that are technologically different yet provide similar functionality that serve the same target market needs.
Product Management An occupational domain that is based on general management techniques that are focused on product planning and product marketing activities.
Product Marketing Outbound activities aimed at generating product awareness, differentiation, and demand.
Product Mix An entire set of products offered by a company.  A collection of product units, product lines, product families, and product groups.
Product Planning The ongoing process of identifying and articulating market requirements that define a product’s feature set.
Product Portfolio A product portfolio is the collection of all the products or services offered by a company. Product portfolio analysis can provide nuanced views on stock type, company growth prospects, profit margin drivers, income contributions, market leadership and operational risk.
Product Problem An industry situation in which product requirements are unmet (B2B).  The solution is a product component.
Product Profitability difference between the revenues earned from, and the total costs associated with, a product over a specified period of time
Product Quality The market’s perception of the degree to which the product can consistently meet or exceed customers’ expectations.
Product Requirements Document (PRD) A high-level description of the solution, intended use, and the set of features it provides that address the market problem and satisfy needs.
Product Review An independent inspection, analysis, and evaluation of a product by a trusted industry thought leader (often a journalist).
Product Roadmap A product roadmap is a powerful tool to describe how a product is likely to grow, to align the stakeholders, and to acquire a budget for developing the product. But creating an effective roadmap is not easy, particularly in an agile context where changes occur frequently and unexpectedly.
Product Strategy (a) Combination of the strategic goals and measures for the product, i.e. aspects that need to be defined and managed for the strategic timeframe of the product. See corresponding column in ISPMA’s SPM Framework.

(b) Consistent documentation containing the following items and their evolution during the strategic timeframe:

• Product vision

• Product definition

• Target market, potential segments

• Delivery model

• Product positioning

• Sourcing

• Business plan

• Roadmap

Product Type A set of products that serve the same specific target market needs, which are technologically and functionally similar.
Product Unit An individual product that may be offered separately from any other product.
Productivity (Product) The product’s scope of useful features.
Public Relations The actions that promote and distribute information for a company.  Focused on encouraging media coverage of the company and its products, and building a virtual relationship between the company and its target audience.
Quality (Marketing) The market’s perception of the degree to which the company or product can consistently meet or exceed customers’ expectations.
Quality (Technological) The highest MTBF (mean time between failures) and lowest MTTR (mean time to repair) of a product.
Recurring Fee (Licensing) A fixed charge that enables limited time use of the product, but is renewed periodically at regular intervals.
Relative Value Proposition An implicit promise a product holds for customers to deliver a desired ratio of benefits and costs[customer].
Release (a) Product release: an instance of the product that is delivered to customers and maintained as part of product maintenance.

(b) Pre-release: a result of development activity that is testable, e.g. the result of a sprint in Scrum.

Release Definition The result of selecting the requirements to be implemented in the next release. Usually this result is documented including statements about the relationship between the selected requirements and strategic objectives.
Reliability (Product) How long before the product malfunctions.
Reliability (Service) The company’s record of promising and delivering.
Requirement (a) A condition or capability needed to solve a problem or achieve an objective. (b) A condition or capability that must be met or possessed by a system or system component to satisfy a contract, standard, specification, or other formally imposed document.

 

Requirements Management Planning, executing, monitoring, and controlling any or all of the work associated with requirements elicitation and collaboration, requirements analysis and design, and requirements life cycle management.
Requirements Prioritization The activity during which the most important requirements for the product are determined. As priorities change over time this activity is often targeted at the next release of the product.
Requirements Triage An activity for early and fast acceptance/rejection of requirements.
Resultant Value Proposition An implicit promise a product holds for customers to deliver a fixed combination of gains in time, cost, and status.
Revenue Retention Revenue refers to product sales, service sold, interest income and other cash inflows. … To achieve revenue growth, a small business needs to maintain and grow its customer base. Customer retention usually leads to revenue retention, which in turn can lead to revenue growth.
Risk A factor or event that may jeopardize the product/project from achieving the anticipated benefits or increase the cost and/or schedule of the product/project.
Risk Contingency Actions and incurring cost to be used in the future should the risk occur, thereby ceasing to be a risk and becoming a fact (after damage occurs).
Risk Mitigation Actions and incurring cost to proactively change exposure to a risk while it is still a risk (before damage occurs).
Sales The act of interacting with and persuading potential customers to buy the product.
Sales Alignment Marketing & sales alignment focuses on the agreement between the marketing and sales department on common goals, metrics and deliverables. It’s especially crucial in SaaS where the main job of the marketing department is to produce actionable marketing qualified leads (MQLs).
Sales tools The techniques and materials used by those who are involved in the promotion of goods and services. Most business that need to sell their goods or services to the public will make extensive use of various marketing tools, such as market research and advertising to help further their success.
Sales-driven A product delivery strategy that is based on producing and delivering products that a customer wants.
Scenario A succession of uses cases.
Seller The entity that sells the product or service.
Service (a) Useful labor that does not produce a tangible commodity (as in “professional services”).

(b) A provision for maintenance and repair (as in “software maintenance service”).

(c) The technical provision of a function through a software component that can be accessed by another software component, often over a network and executed on a remote server (as in “web services” or “Software-as-a-Service”).

Service Level Agreement (SLA) Agreement between two or more parties about the target values a service-giving party must achieve for the defined measures that are relevant for quality and cost of the service.
Site License Discount Discount provided to a large quantity purchase.  The number of product licenses acquired is estimated.
Skilled User A user that is comfortable using the product to perform job tasks (average user).
Social Competence The set of human interaction skills which relate directly to communicating and managing relationships with others in a professional environment’s social structure.
Soft Skills Non-technical, communicative, and personal abilities used in business.
Solution An answer which removes or controls the problem.
Stakeholder communication Stakeholder engagement is the process by which an organization involves people who may be affected by the decisions it makes or can influence the implementation of its decisions.
Strategic Aptitude The long-term planning and decision-making abilities that help achieve corporate objectives.
Subscription Fee (Licensing) A one-time fixed charge that enables limited time use of the product.
Superior Perceived Value A state where customers perceive the product gives a net value more positive than its alternatives.

Superior perceived value = competitive advantage + value

Supply Quantity of a product that will be offered to the market by suppliers at various prices for a specific period.
Tactical Activities Assignments, usually self-contained and specific that fulfill short-term business needs.
Tactics A set of actions taken to fulfill a strategy.
Target Market(s) The group or groups of customers selected by a firm to sell to.
TDM Buyer Technology Decision Maker buyer.  The person who has the authority to decide what technology will be used by the company to do work or to develop products.
Technical Specification (Tech. Spec.) A highly detailed description of the solution’s design, attributes, and standards.
Technology Problem Challenges in applied science.  The solution is scientific research.
Technology-driven A product delivery strategy that is based on producing and delivering products that we conceive.
Unique Selling Proposition (USP) A key statement that describes the distinct and compelling value of the product, which sets the product apart from other competing products.
Usability Ease of operation.
Usage Fee (Licensing) A charge per unit of measure that is tallied at regular intervals.
Use Case A specific way of using the product by performing some part of its functionality.
Value The worth derived by the customer from owning and using the product.

Value = benefits – costs[customer]

Voice Of The Customer (VOC) The process for eliciting needs from customers.  It embodies a market-driven approach that involves spending time with current and future customers to determine past, present, and future market problems that customers need to solve in order to meet their business goals and objectives.
Volume Price (Discount) Discount provided to a large quantity purchase.  The exact number of product licenses acquired is stated.
Want A request for specific objects that might satisfy the need.
Win/Loss Strategy A negotiation based on an attempt to divide up an amount of resources, resulting in a win-lose situation. When choosing this strategy, one takes on an adversarial or competitive view. The focus is on achieving immediate goals, with little or no regard for building future relationships

 

Day 6: Product Management Key Areas

As we discussed about Product Life cycle, then next comes to our mind that how we are managing our product in different phases of a product. If we follow a framework, then it becomes helpful and easy to adhere to the key areas with expected output, meeting  specific product roles and identifying gaps in our day to day job.

The key areas are as below:

  1. Vision and Leadership:
  2. Product Life Cycle Management:
  3. Product Strategy and Market Research:
  4. Business Model and Financials:
  5. Product Roadmap:
  6. User Experience and Product Backlog:

More or less, all these key areas are used in each and every phase of a Product’s life cycle.

The core areas are particularly important for doing a great job as a product manager or product owner. You should hence strive to become knowledgeable in all of them. The supporting areas are also important for your work, especially when you manage commercial products, but generally not as crucial.

Vision and Leadership: Like everyone does have a vision, similar each product should have a vision, without that we cannot manage it or it cannot sustain in the market. With this, working as an effective product manager requires the appropriate leadership skills, by which we can be able to establish a shared vision, set realistic goals, and describe the benefits that our product should deliver. A skillset of active listening skill to others and negotiate to reach agreement and get buy-in. At the same time, we should not shy away from making the right product decisions even if they are tough and do not please everyone. We should be able to manage the stakeholders including customers and users, senior management, development, marketing, sales, support, and other business groups that must contribute to the product success, which needs an effective communication, influencing and managing a broad range of people from diverse backgrounds including a cross-functional development team skillset.

Product Life Cycle Management: Managing a product successfully involves more than getting it built and released. We should know how the lifecycle helps us maximise the benefits our product creates across its entire life; this includes the life cycle’s impact on the product performance (revenue and profits), the product goals, the pricing and the marketing strategy; the options to revive growth as your product matures and growth starts to stagnate; and the process best suited for each lifecycle stage.

Product Strategy and Market Research: Our product exists to serve a market or market segment, a group of people whose need the product addresses. We therefore should be able to identify our target users, customers and segment the market accordingly; clearly state the value proposition of our product, why people would want to use and buy it and why our product does a great job at creating value for them. We should be able to carry out a competitor analysis to understand their respective strengths and weaknesses; we should be able to position our product, and determine the values the brand needs to communicate. We should be able to perform the necessary market research work to test our ideas and assumptions about the market segment and the value proposition. This includes qualitative and quantitative methods including problem interviews, direct observations, and employing minimum viable products (MVPs); we should be able to leverage data to make the right decisions.

Business Model and Financials: To provide an investment incentive for our company and to make developing and providing the product sustainable, we must be able to determine the value the product creates for our firm, should be able to formulate and prioritise business goals, for instance, enter a new market, meet a revenue or profit goal, save cost, or develop the brand, how our product’s value proposition is monetised and capture, how the business model works including the revenue sources and the main cost factors, to create a financial forecast or business case that describes when a break-even is likely to occur and when your product may become profitable.

Product Roadmap: To provide a visibility of how our product is likely to evolve, we should be able to create and use a product roadmap, which includes formulating realistic product goals, metrics and key performance indicators (KPIs), release dates or timeframes, and key features (deliverables or results). For this, we should be able to differentiate between the product strategy and the product roadmap, also formulate a relation between these two and our product roadmap should portray a go-to-market strategy.

User Experience and Product Backlog: A great product has to offer a great user experience (UX), which includes describing users and customer as personas, capturing the user interaction, the visual design, the functional and the non-functional aspects of the product together with the help of the cross-functional team (a UX/UI expert should be part of the team). We should be able to create scenarios, epics, user stories, storyboards, workflow diagrams and storymaps, and be able to work with user interface sketches and mock-ups. Product Backlog is about prioritising and managing the scope, putting it into various sprints and managing it in a periodic basis. It describes to develop a product with the right features, the right UX, how to test the appropriate aspects of our product and how to collect the relevant feedback and data. This includes the ability to perform product demos, solution interviews, usability tests, A/B tests, and direct observation.

My first Love: The Moon

Oh moon
The friend of mine
In my dark mood you shine
In my lone place you are present
To accompany me in my yearning
Your presence I feel the comfort
A good buddy of mine
Thanks a lot pal
Oh moon

 

Since the day when I got my sense and came to know about the Moon, I fell in love with it. What is this…? A mystical substance hanging somewhere near to me, feeling to touch it, but cannot as my father says that it is situated so far from me, the distance of which i can never imagine…! A white light which comes only during night and i have to wait for it till evening, to tell about the scold that i used to get from my mother during daytime. In the evening, i used to complain against my mother in front of my father and the Moon, when I could see both. It was something, which I could not designate as my parents or sister, but a family member, as I love it very much. This was my first love! So, day by day, that attachment started growing.

When i grew up and during my early days of the school, one day my mother said that i belonged to Cancer moonsign...! What did it mean…? She explained me that in my birth horoscope, the moon is present in Cancer sign, so I belonged to cancer moonsign. Okay, fine, but why is the moonsign named after the placement of the Moon not the Sun or the Jupiter or any other planet…! And why there is no other concept named as Jupiter Sign or Saturn sign in astrology, about which i should know like the way she told me about moonsign which plays a vital role in a person’s life. It was a question in my mind, though i didnot get its answer, at that moment, i had to be happy by getting the reason why i love the Moon so much, because i belonged to Cancer moonsign.

There was always a curious mind playing in my mind to find out the justification of presence of these astronomical objects and their effect in our life, proving it scientifically.

As i grew up in my life, started taking interest in Astrology. At that time, there was no internet, books were the only one source of knowledge and i used to get a very little knowledge from the books read by my mother, which were used by my paternal grandfather, who had a keen interest in Astrology. And whenever i was getting a horoscope, i used to spend hours together to analyse it. As i grew and involved in a professional education and then had to start my professional career, i kept myself away from it, as this was taking myself to a very depth of finding out the true relationship between these astronomical solar system and the human body, for which i had to spend a lot of time and once i get involved into this, it was becoming very difficult for me to come back the the normal mechanical life.

Life continued like this…Many years passed by this time.

Few years back, again I started taking interest in astrology to analyse my birth horoscope to find out what is the true significance of my birth, what is the destiny of my life, how was my life affected by karma done in this life and done in previous life, how could i rectify the bad karma and how could i start moving towards the Paramatma. All this started when i came out from a traumatic event happened in my life. Whereas my father believes only in the karma of this life. He doesn’t believe the karma of past life which we generally say Luck or Bhagya. So, all of my these activities had brought a kind of dissatisfaction towards me and for which he was scared that one day, i should not say that i would like to be a Sanyashini, which he didnt like. So, for all these reason, i had to be very careful while doing all these studies. And one day, i came to know about the true destiny of my life, leading a mechanical life with profession and personal life. By this time, i had explored that the effect of Ascendant of a person on its life. Ascendant is the place of first house in a person’s horoscope. And I am a Leo ascendant person, and the Sun is the lord of Leo sign. Even though i dont love the Sun at all, as it hurts me a lot, but i had to accept it, as i got another friend to talk in the daytime.

One day, when i was talking with one of my friend, he told me “Suchi, control your mind”. Generally, I am a very free, naughty, open-hearted and blunt kind of person and I say whatever comes to my mind whether positive or negative about the opposite person and i dont care at all how he takes it. I am far away from the fake person. Simultaneously, i always keep my self very open to accept any valid negative feedback towards me too. By doing this, i feel that i can detach myself immediately from the negative thought coming to my mind about the once i say in front of the person. So, i have very few friends circle. I love my friendship the most.  He said me so because my this kind of speech may be considered as very rude for the opposite person. He was right and he wanted me not to say the right words in front of the opposite person, which may hurt him and as a result i may lose his friendship with me. But, i can never be a fake person. After coming back to my house, i started analyzing about the reason of the destruction of a person and how that can be controlled.

What i found is that mind is the only reason of all kind of destruction of a person. Each and every destruction comes out from the emotion, whether it is positive or negative, if its positive, but in a destructive way, then again it becomes negative. For example, being in Love is an emotion, but too much of emotional is not good and being in emotional and spending so much of money is also a reason of destruction for us. So, once we control our mind, we can control the negative consequences happen in our life. And this is a practice, not a job of one day. I dont know whether that friend of mine would be reading this or not, but here, i would like to thank him, because of whom i  realized that controlling mind is good. I had a crush towards a person and told in front of him, and after few days i came out from that feelings. So, i always feel that telling my feelings in front of a person is a great way to detach myself from that feeling. But, before that why cannot i control my mind to not roam in that feelings. And that is best way of getting attached towards my Paramatma. And now i came to know what is the significance of moonsign, why moonsign is so important and why there is no concept as Jupitersign or Saturnsign :).

Every thing around us has an effect on something within us – be it our exposure to the sun’s ultraviolet radiation (UVR), looking at the morning sky, taking a walk in the forest, or swimming in the sea – nature’s beauty prompts the flow of hormones and energy in our body. But not everything that’s present in nature is fundamentally good for human beings. As part of my analysis of my horoscope, i had found out that I belong to 4th Pada of Cancer moonsign. Cancer is ruled by the Moon. When the Moon sits in its own sign, it becomes very strong in its own behavior. Means i am a very emotional person, as the moon only reflects the light of the sun, its energy affects the water, and the mind of human body. And this is scientifically proven, which is why when someone goes crazy, they are called lunatics. The word lunatic is derived from the word ‘lunar’ because the mind is connected to the moon. Ancient people did an in-depth study about  how the moon affects the mind, how the moon is moving around in different constellations; how different degrees of the moon has a definite impact on the mind. That’s what they use the words ‘Tara-bal’ and‘Chandra-bal’. The moon is in one constellation for two and a half days, then it moves to the other constellation. So in two and half days there are changes in the mood of the mind. The moon has an effect on water and our body contains a lot of water. Hence on the day of Purnima or Full Moon it is beneficial to do meditation, as a strong vibration happens in our body and meditation is much required to control our mind during that time. This is most applicable for the people born on Cancer moonsign and cancer ascendant. And it is suggested to these people be in a deep meditation during this time, to calm down the effect of these strong vibrations.

Let us see how the moon effects our body: Indian ancient scriptures such as Vishnu Purana talk about the origin of the moon. According to this Purana, the moon has emerged from the Milky ocean with his soft and snowy beams. Food that we consume is converted into 2 parts – Mind energy and Prana. The mind energy is centered in the pineal gland area from which vital hormones get secreted. The moon enters this gland to take control of all our activities from night till the time we wake up. The rays of the moon affect human beings, animals, plants, water and so on. Our body consists of 60% water. So, the full moon meditation helps the seekers in going inward, transcend the mind, and feel the divinity within.

Medical professionals often report that more injuries occur during a full moon, and law enforcement officers note that people often point to the full moon as an explanation of their “bad behavior.” In 2005, researchers from the Mayo Clinic found no increase in the number of visits to a psychiatric emergency department they studied during the three nights when the moon was full as compared to other nights. However, Elizabeth Loftus, a professor who teaches cognitive science at UCI, did concede that perhaps the full moon makes people who are already mentally unstable feel a bit more uneasy than usual, which might cause them to act out in unusual ways.

According to Quantum Physics, everything in the Universe – stars, planets, satellites or even the moon has an operating frequency. The frequency emanated by the moon affects the frequency of the mind that exerts control over our feelings, emotions and desires.

The mind, which consists of conscious and sub-conscious mind, reacts to the standing and positioning of the moon in the sky. Neuroscience has recognized that the subconscious controls 95% of our lives.

Untitled

Subconscious mind is the collective storehouse of impressions, memories and thoughts accumulated over the years and lifetime and it has a higher operating frequency in comparison to that of the moon. One needs constructive thinking and observatory skills to get into the realms of the sub-conscious mind.

The moon frequencies have the power to make the thought frequencies in our sub-conscious mind to surface to the conscious mind. Since our sub-conscious mind consists of unnecessary and necessary, positive and negative imprints, their combined rise to the conscious mind, can leave us feeling exasperated, crazy and mindless.

 

 

Day 5: Evolution of Product Management

Why the Product Management is so important today? If we try to get the definitive history of the vague, challenging but fast-moving role of product manager having so much crossover with other roles such as Marketing and User Experience, it’s useful to consider the roots of the role and how it has evolved, which will help us to understand the organizational shift that has happened drastically since last few decades, with a change in concept, capabilities, thinking around product management and some of the underlying conflicts that still exist today.

Birth of Product Management

Modern product management was conceived in 1931 with a memo written by Neil H. McElroy at Procter & Gamble. The memo was a justification for hiring a “Brand Person”, who can take the responsibility for a brand from tracking sales to managing the product, advertising, and promotions the deficient of which in the team was a the pain point for all leaders but became a cornerstone in modern thinking about brand management and ultimately product management. So this led to the birth of Product Management and made P & G into a brand-centric organization and to the birth of the product manager in the FMCG (fast-moving consumer goods) field.

Hewlett and Packard implemented the concept of  “Brand Person” as the decision making person by closely working with the customer and termed it as “Voice of Customer” providing the organisation 20% year-on-year growth between 1943 and 1993.

Post World War II, the shortage of cash-flow forced industries in Japan, to develop Just-In-Time (JIT) manufacturing. Taiichi Ohno and Eiji Toyoda, evolved the concept of “Brand Person” and developed the Toyota Production System and the Toyota Way after continuous improvement, which includes not just on eliminating waste in the production process but also on two important principles any modern product manager should apply: kaizen, improving the business continuously while always driving for innovation and evolution, and genchi genbutsu, going to the source to find the facts to make correct decisions.

Then, in West, Hewlett-Packard was one of the first to recognize its value and embrace it, bringing this customer-centric, brand-vertical, and lean manufacturing way of thinking with them to their future jobs, quickly permeating the growing Silicon Valley with the same ethos.

From here, the concept of  product management spread into every hardware and software company to become the global and evolving role.

Technical Product Management

The original product managers, in FMCG today, were very much a part of the marketing function, who focus on the Market Mix with 4 P’s: the right product, in the right place, at the right price, using the right promotion.

As the product management role moved into the tech world, this separation from the development and production of the product created a gap in understanding the complete product and which made the alignment of product development along with understanding the customer and their needs. This split between marketing and product management is still felt in many tech organizations today, where both departments feel they own the customer and understand the marketplace. However, in most tech organizations, marketing has evolved to be more about owning the brand and customer acquisition, while product owns the value proposition and development.

Agile Product Management

Initially, in Waterfall model, the Product Manager had to write a long Product Requirement Document (PRD), which was taking several months for him to complete, after that it was given to Engg team to develop and when the implemented product was coming out from the desk of engg team, it was something different, which was leading the start the process all over again.

In 2001, 17 software engineers got together in a ski resort and wrote the Agile Manifesto, which articulated the principles behind all the various methodologies (Scrum, Kanban etc…) and is still incredibly influential and valuable today.

Agile Manifesto provided a clear definition of software development by defining the below:

AM

The Agile Manifesto added a great value in product development by giving an information about what to be developed with the business need to the software developers and making free the product managers from preparing a long specification document, allowing him to focus on customer collaboration.

The above approach changed the technical product management into many folds.

Firstly, it changed the relationship between product management and engineering from adversarial to collaborative. Scrum invented the role of product owner, but Agile methods all embraced frequent and in-person communication between product management and engineering as the foremost way to find and build the best solution to a customer problem.

Secondly, focusing on the customer eased the gap between the research, specification, and development phases of a project and introduced the vital role of User Experience (UX), in the ongoing process of discovery and development. It’s clear that our industry’s transition to a fully integrated customer-focused process is not complete.

 

Day 4: Types of Product Managers

The job of a product manager is to discover a product that is valuable, usable, and feasible. So, a good product manager must be experienced in at least one, passionate about all three, and conversant with practitioners of all three.

PMBusiness: Product management is above all else a business function, focused on maximizing business value from a product. Product managers should be primarily focused on optimizing a product to achieve business goals while maximizing return on investment.

User experience (UX): Most importantly, the product manager is the voice of the customer inside the business because of customer the product exists. So, the product manager must be passionate about customers and the specific problems they’re trying to solve. Even though, many organisation have a different role as UX Manager, who involves in UX based on the customer’s requirement, but its the responsibility of  the product manager to talk to customers, testing the product, and getting feedback firsthand, as well as working closely with internal and external UX designers and researchers, are all part of this process.
Technology: There’s no point in defining what to build if you don’t know how it will get built. This doesn’t mean a product manager needs to be able to code, but understanding the technology stack—and most importantly, the level of effort involved—is crucial to making the right decisions. This is key in an Agile world where product managers spend more time with the development team than with anyone else inside the business, and need a shared language and understanding with their engineers.

Other functions, like team development, marketing, and strategic planning, play a part too, but business, UX, and technology form the core of what product managers do every day.

 

Chapter 3: Product Lifecycle Management

In our previous discussion, we discussed a high level definition of Product Management, where a PM has to get involve in the Product Life Cycle. So, what is Product Life Cycle?

Products have a limited life whether it is a mobile phone or Software product used in an investment bank and thus every product has a life cycle. Product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller.Products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage.

A life cycle of product consists of four phases:

Introduction: This is the stage in which the product has been introduced first time in the market and the sales of the product starts to grow slowly and gradually and the profit received from the product is nominal and non-attained. The market for the product is not competitive initially and also the company spends initially on the advertisement and uses various other tools for promotion in order to motivate and produce awareness among the consumers, therefore generating discerning demands for particular brand. The products start to gain distribution as the product is initially new in the market and in this stage the quality of the product is not assured and the price of the product will also be determined as low or high.

Growth: In the growth stage, the product is present already in the market and the consumers of the products are habitual of the product and also there is quick growth in the product sales as more new and new customers are using and trying and are becoming aware of the product. The customers are becoming satisfied from the product and they bought it again and again. The ratio of the product repetition for the trial procurement risen and also at this level, the competitors have started to overflow the market with more appealing and attractive inventions. This helps in creating increased competition in the market and also results in decreasing the product price.

Maturity: In maturity stage, the cost of the product has been decreased because of the increased volume of the product and the product started to experience the curve effects. Also, more and more competitors have seen to be leaving the market. In this way very few buyers have been left for the product and this results in less sales of the product. The decline of the product and cost of attaining new buyers in this level is more as compare to the resulted profit. The brand or the product differentiation via rebating and discounts in price supports in recalling the outlet distribution. Also, there is a decline in the entire cost of marketing through enhancing the distribution and promotional efficiency with switching brand and segmentation.

Decline: In this stage, the profit as well as the sales of the product has started to decline because of the deletion of the product from the market. The market for the product in this stage, started to show negative rate of growth and corroding cash flows. The product at this stage may be kept but there should be fewer adverts.

Product_life-cycle_curve

So, now our duty to identify the phase in which our product is and based on that the strategy for the product should be formulated. There are many softwares in the market to manage the Product life cycle such as  ArenaPLM, SAP PLM and Aras PLM etc…

Chapter 2: What is Product Management

What is Product Management: As discussed in our previous article, Product Management is an organisational lifecycle function within a company dealing with its general business structure supports and manages all the activities related to developing, marketing and selling a product – or even more than one – all through its lifecycle. Managing a product encompasses everything related to a specific product, from creating a concept and studying the targeted audience to developing, producing and marketing it and providing customer support afterwards. Product management’s general business purposes are to make the product valuable for its targeted customer (creating customer value) while producing measurable benefits that make every business viable such as revenue, profit margins, etc.

Chapter 1: Product Management- A Samarinda Fruit

I had never heard about the term Product Management since 2012, before getting interview call from my current Organisation. My first round of interview was taken by the Sr. Product Manager and I was quite impressed by his roles, responsibilities and personality. Keeping that as my future goal, I decided to join with the Organisation. This was my first Product Organisation, where I had to get involved in the Product Development R&D team, as a Business Analyst, where Product Management was a hugely used term. Due to a smaller number of years of experience, I was designated as Senior Business Analyst, to adhere to the Organisation’s policy. But I had to own the responsibilities of complete offshore work and I need to closely work with my Subject Matter Expert (SME) to get all kind of requirements, who was residing in the Head Quarter of the Organisation.

Lets go to the story, how I explored the concept of Product Management, got acquainted with it, performed, where I faced the challenges and how I was able to overcome it. The complete story will be published in a series of blogs. So, stay tuned with me…

On the first day, I joined in the Organisation, the Director, Delivery of my Product, called me and said me to triage some customer reported defects. I was completely unaware about the Product and was quite new to the Life Science domain, even though before I had worked in Payer and Provider model of Health Care domain. In the middle of the day, my manager told me to review the Release note of the release which was about to go on the same day and I had to send the Acceptance into Production email. I was unaware about the scope of the release; then how could I review the release note…!!! And at last at the end of the day, my SME asked me to analyse the FDA AERS data, so that we could add that as another data source for our product. I did never have heard about Post Marketing Adverse Event reporting system before, did not have any idea about the minimum attributes required to validate an adverse event case…! Then how could I able to analyse FDA AERS data.

At the end of the day, I learn that Product Management is like an Avocado, which looks very attractive and prestigious from outside but when you go inside it, you found it very difficult. Product management is an important organizational role. Product managers are typically found at companies that are building products or technology for customer or internal use. And a Product Manager should be enough patient to meet the reasonable expectation of all the customers in a validated manner. Product management’s general business purposes are to make the product valuable for its targeted customer (creating customer value) while producing measurable benefits that make every business viable such as revenue, profit margins, etc. Since its goal is to deliver value to the business, product management professionals play an essentially strategic role in determining the necessary actions for achieving these goals.

In short, Product management is a multi-faceted, complex discipline that can be difficult to grasp and hard to master.