Competing on the Market Life Cycle Write in the major company projects names on the life cycle. Think not only about what has worked, but has failed, and why. Enterprise Growth Product Line Development and Growth Disruptive Technology Stagnation & Decline Living Dead Copyright © 2004 Marc H. Meyer Do not reproduce without the permission of the author. mhm@neu.edu An Enterprise Growth Engine Strategy Development & Consensus New target market applications, integrated into portfolio manageement processs Refresh team 1st investment: "Series A" Observe Users Create Concepts Rapid Prototype Lead User Feedback Business Plan Development Product and Process Platform Development Focused Test Market Review business plan, prototypes , test market plan with senior management Investment Booard 2nd investment: "Series B" Review results of test market & Capital and R&D expense projections for platforms 3rd investment: "Series C" Scale and Ramp Copyright © 2004 Marc H. Meyer Decision to launc h Sales valume and capital tuned to initial ramp-up requirements.. Do not reproduce without the permission of the author. mhm@neu.edu Ne xt Gen Development The Market Segmentation Grid: Users and Uses Traditional Users Segment A Use / Application 3 Product/Service Market Size Market growth Leading players / share Use / Application 2 Product/Service Market Size Market growth Leading players / share Use / Application 1 Product/Service Market Size Market growth Leading players / share Copyright © 2004 Marc H. Meyer Do not reproduce without the permission of the author. mhm@neu.edu Segment B New Users Segment C Segment D Segment E Developing the Product Strategy Map (Based on a Growth Market Segmentation) A Product Stratety Map for Brand X Users Age Kids/Teens Young Adults Mature Adults Uses Health Product Line 3 Functional Ingredients Gifting Satiation Product Line 2 IndulgentVariety Product Line 1 Flavors and Fun Packaging Copyright © 2004 Marc H. Meyer Do not reproduce without the permission of the author. mhm@neu.edu Best: Better: Good: Best: Better: Good: Best: Better: Good: Developing the Use Case Scenario Before Activities 1 During 3 1 After Activities 2 3 1 2 2 For each activity N Points of Pain Points of Pleasure Pain 1 Pain 2 Etc Competitors Copyright © 2004 Marc H. Meyer Do not reproduce without the permission of the author. mhm@neu.edu Activities Firm A, Offering Firm B, Offering Pleasure 1 Pleasure 2 Etc 3 Perceived and Latent Needs Perceived Needs Needs Users Can Readily Articulate Latent Needs Frustrations: Users Can't See a Solution Perceived Need 1 (Performance) Latent Needs (An Emotion - > Need -> Solution) Consumer Example Fear of getting lost -> real-time locator -> handheld GPS. Perceived Need 2 (Cost) Business Example Cannot charge credit card from my truck -> take a credit card in the field -> cell phone credit card charge device. Perceived Need 3 (Quality) Healthcare Example Patient mortality from wrong medications -> insure that patient X gets medication Y at time Z -> mobile RFID medication cart links to pharmacy Perceived Need 4 (Ease of use) Perceived If the buyer is not the user and middlemen are involved: Copyright © 2004 Marc H. Meyer Do not reproduce without the permission of the author. mhm@neu.edu User Buyer Channel Partner Latent Product Design: Mapping Needs to Product Concepts to Technologies Target User Needs/Frustrations Map Features Address Needs Product Concept Subsystem Innovations (Examples) User Need 1 (Perceived) Prroduct Feature 1 Enhance existing module User Need 2 Product Feature 2 New technology, R&D in progress Unser Need 3 Product Feature 3 New user interface, exterior styling User Need 4 (Latent) Product Feature 4 Components from Supplier X User Need 5 Product Feature 5 Services team. Copyright © 2004 Marc H. Meyer Do not reproduce without the permission of the author. mhm@neu.edu The Product Line Architecture Block Diagram Layer 1 The User Other Systems Subsystem 1 Subsystem 2 Subsystem 3 Layer 2 Layer 3 Subsystem 4 Subsystem 5 Subsystem 6 .... Layer N Subsystem N Other System Resources For each subsystem specify: Purpose, focus Link to specific design documents Internal engineering owner or external partner Potential and/or status of IP (Intellectual property) Copyright © 2004 Marc H. Meyer Do not reproduce without the permission of the author. mhm@neu.edu Strive for one interface mechanism for each subsystem. Some interfaces, such as a User Interface., are major subsystems in their own right. The Product and Platform Roadmap Year 1 Year2 Year 3 Year 4 Year 5 Good Initial features Better Added features Best Added features New "Best" Added features Good Better Best Good Better Products Line(s) Product 1 Product 2 Product 3 Platforms Shared Subsystems or Processes Gen 1 Gen 2 Gen 3 Subsystem A Good Initial capabilities Better Added capabilities Best Added capabilities Subsystem B Good Initial capabilities Better Added capabilities Best Added capabilities Subsystem C Good Initial capabilities Better Added capabilities Best Added capabilities Copyright © 2004 Marc H. Meyer Do not reproduce without the permission of the author. mhm@neu.edu “Bottoms Up” Resource Planning Product Strategy Users A Users B Use C Prod Line 3 Use B Use A Users C TEAM 3 TEAM 2 Prod Line 2 Prod Line 1 TEAM 1 User Research Product Dev Process Dev Package Dev Mft Engineering Sales Total by Team TEAM 1 0.5 1 0.25 0.25 0.25 1 3.25 TEAM 2 1 2 1 0.25 1 1 6.25 TEAM 3 1 2 1 0.25 1 1 6.25 2.5 5 2.25 0.75 2.25 3 Total by Copyright © 2004Function Marc H. Meyer Do not reproduce without the permission of the author. mhm@neu.edu Market-Platform Teams Use this to organize cross-functional market teams, R&D teams, and the interactions between them. Try to make your organization look like the products you make. Current Markets Market Teams New Markets Business/Market Manager Business/Market Manager Business/Market Manager Business/Market Manager Business Planning by Integration Engineer Integration Engineer Integration Engineer Integration Engineer Small, Multifunctional Services Manager Services Manager Services Manager Services Manager Management Teams Sales Expert Sales Expert Sales Expert Sales Expert Finance Finance Finance Finance Engineering Manager Engineering Manager Engineering Manager Engineering Manager Product Req Mgr Product Req Mgr Product Req Mgr Product Req Mgr Staff Staff Staff Staff R&D Teams Vertical Market Products Fill this in if you have Common Product 1 Engineering Manager Product Reqs Mgr Staff common applications. Common Product 2 Engineering Manager Product Reqs Mgr Staff Common Subsystem 1 Engineering Manager Staff Common Subsystem 2 Engineering Manager Staff Common Subsystem 3 Engineering Manager Staff Hope you have these! Copyright © 2004 Marc H. Meyer Do not reproduce without the permission of the author. mhm@neu.edu Cross Functional Team Members Market Research Name Manufacturing - Production Current Job Name Fill in these tables….. Joe Current Job Karen Ralph Sarah Joe D. Team Leaders Name Current Job Steve Engineering - Development Name Art Current Job Rich Scott Rob Support Functions Legal, Finance, HR Lee Copyright © 2004 Marc H. Meyer Do not reproduce without the permission of the author. mhm@neu.edu Sales - Channel Dev. Name Current Job WWW Comp Lit Monthly Detail Engineering Schedule Market Research PR Plan & Activities Sales Plan & Activities Product Family Roll-out Schedule and Resource Plans Architecture Block Diagram Copyright © 2004 Marc H. Meyer Do not reproduce without the permission of the author. mhm@neu.edu The "I DUNNO" Post-it Board Application Story Boards Parallel Activities Use this to define the activities of each team, and who is reponsible for specific projects, and where different functional groups need to work together to solve specific problems. Parallel Activites Unknown Issue & Action to Resolve Issue Production Engineering Core Core Understand market needs Mkt-Eng Competitor research - product breakdow ns Marketing Integrate market data - pick market focus Core Define platform architecture Engineering Cost modeling Eng-Prod Define production plan Production Define business model Core Marketing Etc … Schedules and budgets should support line items. Copyright © 2004 Marc H. Meyer Do not reproduce without the permission of the author. mhm@neu.edu Type Assign Team Members Date Who Status