Crafting Your Product Strategy

23
Crafting Your Product Strategy By Ryan Glasgow rglasgow.com @ryanglasgow

Transcript of Crafting Your Product Strategy

Page 1: Crafting Your Product Strategy

Crafting Your Product StrategyBy Ryan Glasgow

rglasgow.com ▪ @ryanglasgow

Page 2: Crafting Your Product Strategy
Page 3: Crafting Your Product Strategy

The Basics

Page 4: Crafting Your Product Strategy

Three LayersVision

Describes the desired future

position of the product or

customer.

Components:

➔ Vision statement

➔ Business goals

Strategy

A unique and valuable

position, involving a

different set of activities.

Components:

➔ Strategy statement

➔ Guiding principles

➔ Areas of focus

➔ Personas

Tactics

All the decisions and

activities required to turn

the strategy into reality.

Components:

➔ Product specs

➔ User stories

➔ Mockups

➔ Code

Page 5: Crafting Your Product Strategy

Throughout history, strategy often

determines the winner when

competition is involved

Recent Examples:

➔ Southwest Airlines

➔ Ikea

➔ Apple’s iPod

➔ Warrior’s small-ball lineup

Page 6: Crafting Your Product Strategy

What is Strategy?

➔ How you plan to create a sustainable

competitive advantage to maximize

your position

➔ Choosing what not to do

➔ Designate and apply a focus with all

available resources

Page 7: Crafting Your Product Strategy

Strategy is not how you workScrum ▪ Agile ▪ Quality Assurance ▪ Efficiency ▪ Culture ▪ Company perks ▪ Technology ▪ Team

Page 8: Crafting Your Product Strategy

Every product needs a strategyPre product/market fit

➔ A set of assumptions for how you

want to grow and win

Post product/market fit

➔ Also a set of assumptions for how

you want to grow further and win

Page 9: Crafting Your Product Strategy

Crafting Your Strategy

Page 10: Crafting Your Product Strategy

Research

Industry

Lifecycle stage, revenue size, growth rate, profitability,

success factors, barriers to entry, vertical integration

Competition

Profiles, competitive positioning, substitutes, complements,

degree of vertical integration, strategies of key competitors

Customers

Profile, demographic, needs, obstacles/challenges, price

sensitivity

Internal

Monthly usage, daily usage, net promoter score, monthly

recurring revenue, customer lifetime value, churn

Deep dive into areas that affect the product

Page 11: Crafting Your Product Strategy

Determine your goalSmartphone Industry:

iOS owns 94% of profits

Android owns 83% of market share

Page 12: Crafting Your Product Strategy

Strategic Advantage

Stra

tegic

Targ

etUniqueness Perceived by

the Customer

Low Cost Position

Industry

Wide

Particular

Segment Only

Differentiation

Overall

Cost Leadership

Stuck in the Middle

Focus

Goals

Page 13: Crafting Your Product Strategy

Strategic Advantage

Stra

tegic

Targ

etUniqueness Perceived by

the Customer

Low Cost Position

Industry

Wide

Particular

Segment Only

Hyundai, KiaFord, Chevrolet, Honda

Chrysler

Subaru, Tesla Dodge, Scion, Jeep

Cars

Page 14: Crafting Your Product Strategy

Diagnosis

➔ Use research to understand the

situation

➔ Look for major shifts in customer

preference or profile, competitors,

industry, trends

➔ Define one overall challenge you want

to address over next 1-3 years

Page 15: Crafting Your Product Strategy

Key ComponentsWhere to Play

Who should be the customers that define our

target market?

Examples:

● Spending power

● Age

● Location

● Tech savviness

How to Win

What should be the value proposition that

differentiates our products and services with those

customers?

Examples:

● Product vs platform

● Simple vs robust

● Intuitive vs affordable

● Extensible vs secure

● Portable vs powerful

● Quality vs cutting edge

Page 16: Crafting Your Product Strategy

Strategy Statement

➔ 15-words or less

➔ States your target customer and a

compelling value proposition

➔ Easy to understand and communicate

➔ Conveys clarity to to your team

Page 17: Crafting Your Product Strategy

ExamplesIkea

"Offering a wide range of well-designed, functional home furnishing products at prices so low that

as many people as possible will be able to afford them."

SnapChat

An fun and spontaneous product to communicate with your closest friends without repercussion.

Spotify

Music tailored to your mood.

Page 18: Crafting Your Product Strategy

Guiding Principles : SnapChat

Fun Close Friends No repercussions

Filters

Easter eggs

Ghost QR code

Snap time limit

24hr Story

Screenshots

monitored

No feed algorithm Disappearing chat

Key activities that execute your strategy

Page 19: Crafting Your Product Strategy

Degree of Vertical IntegrationProduct

➔ Create value by developing differentiated

products for specific customer needs

➔ Capture value by charging money for those

items

➔ Meeting specific customer needs

➔ Competitive advantage stems from product-

related sources such as differentiation

Platform

➔ Create value primarily by connecting users

and third parties

➔ Capture value by charging fees for access to

the platform

➔ Maximize the number of interactions

➔ Competitive advantage stems from the

network effects of connecting many users

and third parties

Page 20: Crafting Your Product Strategy

ImplementBenefits

➔ Clearly document and share the context for

your product decisions

➔ Increased autonomy for cross-functional

team

➔ Team can make better decisions

independently

➔ Ensures company alignment across product,

design, engineering, marketing, customer

support, etc

Circulate

➔ Presentation or wiki that’s presented

annually or bi-annually

➔ Regularly reviewed

➔ Integrated into daily, weekly, and monthly

communication

Page 21: Crafting Your Product Strategy

Lean Strategy CanvasVision

➔ Overarching goal for

creating the product

➔ Long-term business goals

Challenge

➔ Identify a long-term

business opportunity that

needs to be addressed

Target Customer

➔ Market and audience

group that your product

addresses

Value Proposition

➔ How you plan to

differentiate from

competitors and appeal to

an audience

Strategy Statement

➔ 15-words or less that

summary

Guiding Principles

➔ Focused set of key

activities that support

your strategy

Page 23: Crafting Your Product Strategy

Questions?

Connect:

rglasgow.com ▪ @ryanglasgow