Company
Product Plan Template
Internal and Confidential Document
Date
Version X.X
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Revision History
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Company Confidential Document
Description
i
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Table of Contents
1.
2.
Introduction and Executive Summary .............................................................................. 1
1.1
Product and Project Overview .................................................................................................... 1
1.2
Project Objective ......................................................................................................................... 1
1.3
Project Summary and Scope ...................................................................................................... 1
1.4
Product Team Organization ........................................................................................................ 1
1.5
Key Risks .................................................................................................................................... 1
1.6
Recommendation ........................................................................................................................ 1
Market Analysis and Product Strategy ............................................................................. 1
2.1
Market Overview ......................................................................................................................... 1
2.2
Target Markets ............................................................................................................................ 2
2.3
Product Strategic Fit ................................................................................................................... 2
2.4
Market Introduction Strategy ....................................................................................................... 2
2.5
Market Expansion Opportunities ................................................................................................. 2
3.
Competitive Analysis ......................................................................................................... 3
4.
Product Requirements ....................................................................................................... 3
4.1
4.2
Overview ..................................................................................................................................... 3
Product Features and Functionality ............................................................................................ 3
4.2.1
4.2.2
4.3
4.4
Platform Requirements ............................................................................................................... 3
Performance Requirements ........................................................................................................ 4
4.4.1
4.4.2
4.5
Feature/Function 1 ......................................................................................................................... 3
Feature/Function n ......................................................................................................................... 3
Sub-system performance ............................................................................................................... 4
Processor and System Performance .............................................................................................. 4
User/Deployment Environment ................................................................................................... 4
4.5.1
4.5.2
4.5.3
Installation Procedures ................................................................................................................... 4
Configuration Options ..................................................................................................................... 4
Uninstall Process ............................................................................................................................ 4
4.6
Technical Approach .................................................................................................................... 4
4.7
Key Dependencies and Internal Requirements .......................................................................... 5
4.8
Risk Assessment and Management ........................................................................................... 5
4.9
Standards and Agency Approvals............................................................................................... 5
4.10 Precedence and Priority .............................................................................................................. 5
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5.
Documentation Requirements .......................................................................................... 5
6.
Product Configurations and Compatibility....................................................................... 6
6.1
Basic Product .............................................................................................................................. 6
6.2
Enhanced Product ...................................................................................................................... 6
6.3
Compatibility................................................................................................................................ 6
7.
Customer Support Plan ..................................................................................................... 6
8.
Project Schedule and Resource Requirements ............................................................... 7
9.
8.1
Project Overview and Detail ........................................................................................................ 7
8.2
Resource Requirements and Gaps............................................................................................. 7
8.3
Resource Table ........................................................................................................................... 7
8.4
Labor Expense Table .................................................................................................................. 7
8.5
Non-Labor Expense Table .......................................................................................................... 7
Financial Analysis .............................................................................................................. 8
9.1
Price Target Requirements ......................................................................................................... 8
9.2
Project and Product Sales .......................................................................................................... 8
9.3
Project Return Analysis ............................................................................................................... 8
9.4
Quantify Risk Assessment .......................................................................................................... 9
9.5
Critical Financial Assumptions .................................................................................................... 9
10. Requirements Approval ................................................................................................... 10
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1.
INTRODUCTION AND EXECUTIVE SUMMARY
The Executive Summary allows the reader to quickly understand the essence of the proposed
project including the market opportunity, product idea, recommendation, project scope, and
change history. The Executive Summary provides highlights focused on objectives, timing,
benefits, risks, and commitments required. The section should be concisely written with an
emphasis on context, not details and is typically written after all other sections are complete.
1.1
Product and Project Overview
Summarize in a few succinct paragraphs an overview description of the product and market
opportunity.
1.2

Market environment and opportunity

Market timing

High level product description and the product's key elements

Product's key success factors

Benefits to customers

Product's strategic fit

Value statements
Project Objective
Describe the key project objectives.
1.3
Project Summary and Scope
Describe the boundaries of the proposed project. Clarify what is not included in the project scope.
Define the product elements and release(s), which are in the project scope.
1.4
Product Team Organization
Identify the team members and functions represented
1.5
Key Risks
Identify the biggest potential risks ("showstoppers") from a business and technical view.
1.6
Recommendation
Provide a clear recommendation on whether to proceed to the next phase. The conclusions
should be based on the analysis summarized above
2.
MARKET ANALYSIS AND PRODUCT STRATEGY
2.1
Market Overview
Briefly characterize the total available market.

What is the size of the market and its growth rate?

Who are the major customers and what are the purchase criteria?

Where is the market geographically?

What are the industry trends?

What is the expected product life cycle in this market?
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
2.2
What market window exists?
Target Markets
Characterize the target market segments.
2.3
2.4
2.5

What are the target market segments and customer preferences within each? What was the
basis for the selection of these target markets? Which of these are new to Company?

What is the size of the target market and its growth rate? Is this expected to change over
time?

Define the customer needs and required applications.

In what geographies will the product be marketed? What geographies will be excluded?
Which countries will be supported? Which languages will be supported?

How are the market requirements and customer preferences prioritized?

What are Company's current and desired market positions and market share within each
target segment?

How will differences across target markets be handled in the product (e.g., cultural and/or
language differences across geographic markets)?
Product Strategic Fit

How does the product fit and work with current and future Company products and services?

How does the product protect current market segments or enable Company to enter new
market segments?

How can we minimize product-switching costs for the customer?

What is the fit with the corporate product roadmap strategy?

How will current Company and competitive products be differentiated from this solution?

What current products does this product cannibalize? Describe the expected effect (e.g.,
volume, revenue, product life, etc.)

Identify any unique site requirements.

Discuss product name and packaging.
Market Introduction Strategy

What channels will be used to sell the product?

What are the requirements of these channels (features, terms and conditions, sales support,
etc.)?

Describe the distribution strategy?

Describe the pricing strategy?

Describe the approach to product release? What are the Beta and Early Release plans?

What are the feedback mechanisms for the Beta and Early Release cycles?
Market Expansion Opportunities
Provide a brief, forward-looking discussion of market expansion opportunities (i.e., the "what
next?") following completion of this project. What are the anticipated opportunities and how might
Company take advantage of those opportunities (e.g., professional services)?
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3.
COMPETITIVE ANALYSIS
Identify major competitors relative to each target market segment. The current position of
competing products should be considered in addition to the expected position of competing
products at the time of release. The competitive analysis should include the following:
4.

Identify existing and potential competitors.

Describe current and expected competing products.

Document the competitiveness of the proposed product relative to identified competition. On
what dimensions does the product need to compete, e.g., price, performance, quality, etc.

Analyze market shares of competitors in target markets.

Identify strengths and weaknesses of Company and the competition; include product
features, access to channels, distribution capabilities, quality and reliability, etc.

Compare performance, features, quality, and price trends for competing products.

Discuss the strategies, future direction, and anticipated responses of competitors.

For each target market, how will Company differentiate its product from the competition?
What is Company's competitive advantage?

If this is not a replacement product, will Company be first to market?

If this is a replacement product, how will Company "redefine" the market such that we are first
to the redefined market?
PRODUCT REQUIREMENTS
This section is designed to provide readers detailed information about the product including
functional requirements, product description, and high-level design. Project boundaries should
also be addressed. Clearly identify mandatory aspects of the product (versus nice-to-have).
4.1
Overview
Provide a summary profile of the product features, functionality, and performance objectives and
the corresponding customer benefits or needs that are addressed. Reference the Product
Definition/Requirements document for more detail.
4.2
Product Features and Functionality
4.2.1
Feature/Function 1
From a customer perspective, describe in detail, the content and operations of Feature/Function
1. If the list of features and functions is lengthy, develop logical groupings to present the
information in an orderly fashion.
4.2.2
Feature/Function n
4.3
Platform Requirements
Describe compatibility requirements. Be sure to indicate what platform the software is required to
run on. This includes not only the hardware platform but also other required software such as an
operating system. Do not forget to consider all other software and the minimum and recommend
configurations.

Determine platform hardware requirements for the product (e.g. CPU, memory, local storage,
graphics sub-system, sound boards, input and control devices, 3rd Party components, etc…)

Determine software requirements for the product (e.g. OS, additional software applications,
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libraries, codecs, etc…)

4.4
Determine network requirements for the product (e.g. bandwidth, protocols, connection type
Performance Requirements
Describe performance requirements for the product and the various sub-systems.
4.4.1
Sub-system performance
Provide target sub-system performance. For example, provide CPU performance
sustainable) targets in % of processor used.
4.4.2
(peak and
Processor and System Performance
Provide aggregate system performance. For example, provide aggregate system performance of
all sub-systems combined.
4.5
User/Deployment Environment
Describe the user environment for this product. Where will this product most likely be used?
Describe in detail how the user will interact with the product, including keyboards and screen
inputs and other such necessary devices to get information into and out of the product.
4.5.1
Installation Procedures
How will the end user get the software? (Download for local installation, remote installation over
network, portable storage media)
If it is a download, what is the download process?
If it is a remote installation, what is the process?
Will the user have to register the software during installation? If so, what is the process?
Will the user have to accept a license agreement during the installation? If so, what is the
process?
If addition 3rd party software is needed and not present, what is the installation procedure for the
additional software?
4.5.2
Configuration Options
What configuration options will the user have?
When will the configuration be set?
What are the default settings and how will they be determined?
How will the user change the configuration settings after installation?
4.5.3
Uninstall Process
What is the uninstall process?
4.6
Technical Approach
This section summarizes the technical approach. The focus is only on the approach; reference
other documents for high-level and detailed designs. This section summarizes the system
specification sufficiently to permit an informed decision, without overburdening the reader with
detail. The following are key points that should be covered:

Define key technologies that will be used. How developed are the technologies, and are they
ready to be used in a development effort?
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4.7

How does the use of these technologies fit with the Company strategy?

To what extent are the technologies new? Why?

How will previous technologies be leveraged?

Recommendation of "make versus buy"?

What are the alternatives? Why were they chosen?

What architectural work has been completed? What remains to be completed?

Describe any special process requirements.

Describe the roles and qualification process for key partners, suppliers and vendors.

Identify opportunities for innovation patents, copyrights, trade secrets, licensing, and
trademarks. Identify and plan to resolve any possible infringements.

Describe any standards to be complied with.
Key Dependencies and Internal Requirements
Identify any dependencies within Company:
4.8

Dependencies on other product teams

Describe the plan for managing the dependencies

Do other Product Teams depend on the work of this Product Team?

What are the ramifications of missed completion dates?

Are there any unique internal requirements?
Risk Assessment and Management
This section summarizes the market, technical, legal, or other risks and issues, assesses the
priority of each (high, medium, or low) and provides brief plans for mitigating the risks or resolving
the issues during the next phase.
4.9

Identify any major unresolved technical risks and relationship issues in priority order.

Discuss trade-offs in meeting market needs and product goals.

Provide risk management and uncertainty resolution plans. What will be done to resolve
uncertainties?
Standards and Agency Approvals
Identify all industry standards that must govern design and development work. Outline any
regulatory approvals needed prior to offering the product into specific markets. These standards
and approvals include those domestic and international bodies that may impact the determination
as to whether the product can be accepted into the market.
4.10
Precedence and Priority
Provide an overview of the various product features in table form that assigns each feature or
function to a specific version of the product. If this is a large table, attach it as an appendix at the
end of the document.
5.
DOCUMENTATION REQUIREMENTS
Describe documents that will be included with the product. Consider both user documents and
manuals that are required to train and support factory authorized service personnel. Consider
language version requirements, which will be different depending on the geography. The
documentation deliverables may include:
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
User's guides

Programmer's guides

Administrator's guides

Developer guides

Service guides

Customer letters

Flyers

Installation guides

Online Help

ReadMe Files

Release Notes
6.
PRODUCT CONFIGURATIONS AND COMPATIBILITY
6.1
Basic Product
Describe the base offering to the customer, including all components that are sold in the most
basic configuration. Include items developed in this project, developed in another in-house effort,
or acquired from a third-party vendor.
6.2
Enhanced Product
Describe any additional components that will be added to the base product that are sold in an
enhanced configuration. If there are multiple enhanced configurations, provide a description of
each version separately.
6.3
Compatibility
Describe those items not offered as part of the base or enhanced product, but with which the
base and enhanced product must be compatible (that is, applications, utilities, infrastructure
elements, and other products).
7.
CUSTOMER SUPPORT PLAN
This section summarizes the approach and philosophy to guide the customer support effort for
each target market.

Discuss the overall customer support objectives.

For each target market, discuss the customer preferences for initial customer support.

Address any unique customer support requirements that Company has not dealt with before.
Will additional support training be required?

Describe testing procedures to ensure maximum customer usability of the product.

Describe the warranty plan. Estimate warranty costs for the product.

What is the support plan? Will new support programs or processes be required?

Does the product require customer education and training?

How will upgrades be provided?

Will Company receive revenues from support and service of this product? If so, how much
and why? If not, why?
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8.
PROJECT SCHEDULE AND RESOURCE REQUIREMENTS
This section lays out the best estimates of the overall process, schedule, and staffing
requirements for the entire product development effort. For projects with relatively long
development efforts, the project schedule may reflect the need for interim reviews which correlate
to key development milestones.
8.1
8.2
Project Overview and Detail

Attach the project schedule to the appendix of this document.

Prepare an accompanying list of assumptions for the project schedule.

Identify each functional area's interdependencies and key linkage areas.

Compare the project schedule with competitively or internally benchmarked best-in-class
project schedule data.

Define a detailed plan for completing the project, including definition of tasks and activities
associated with each step on the overview chart.

Identify the timing of activities, dependencies, milestones, and major "show stopper" issues.
Resource Requirements and Gaps
Prepare a short summary, which identifies the skill mix required to achieve the project objectives
and note any potential staffing issues. Note any potential resource gaps.
8.3
Resource Table
Summarize the person-month staffing by function by phase. A person-month (PM) is a unit
equivalent to one person working full time (40 hours per week) for four weeks. For example, an
employee working on a design full time for eight weeks would yield 2 PM's (note, overtime is not
a factor when calculating PM's for permanent employees).
8.4
Labor Expense Table
Summarize the labor expenses (loaded dollars including salary, benefits, etc.) by function by
phase.
8.5
Non-Labor Expense Table
State the non-labor expenses associated with this project (i.e., those directly attributable to a
decision to undertake the project) by phase. Include in the table any incremental requirements
that are directly attributable to a decision to undertake the project. It may be useful to break down
each phase by quarter.

Determine technology development costs if any and if they have been allocated to this
project.

Determine any project start-up expenses with respect to capital equipment and investments
(development hardware platforms, software tools, specialized hardware, training, etc…)

Estimate any commitment expenses (licensing fees, etc…)

If this product is replacing another product, assess whether any disposal costs for the
replaced product needs to be included in the table (CD-ROM, packaging, manual disposal,
etc…).
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9.
FINANCIAL ANALYSIS
This section identifies key financial variables and assumptions and provides a financial summary
covering the product life cycle. projections should be good estimates of the best, most likely, and
worst case scenarios. Each update of the IBP should relate back to estimates from the previous
phase or interim review. The information should be presented in a standard financial
spreadsheet.
The information used to drive the calculations should tie back to the information presented in prior
sections of the MRD. For example, if a certain market size is projected to yield sales of $100
million annually, and the proposed product is projected to garner up to 40% of that market, the
estimated annual sales calculation should not exceed $40 million. The calculations should be
accompanied by a set of assumptions which either tie back to prior MRD sections or are
standard.
9.1
Price Target Requirements
Provide the following information with respect to price targets:
9.2

Specify the range of price points to satisfy customer needs for entry, for maximum volume,
etc.

Specify target price points where marketing wants to focus.

What are the expected competitive price points?

Describe the window for maximum revenues.
Project and Product Sales
Address the following points:
9.3

Identify 3-year projections of market share and worldwide volumes based on the target price
and date of introduction.

Determine sensitivity of forecast to changes in the introduction date and higher price points.

Determine volume impact to existing programs (cannibalization or drag).
Project Return Analysis
Analyze project costs, returns, and timing to determine profitability.
provided by the Finance organization.
Use the discount rate

Analyze market measures, including the percentage of the market expected to be achieved
during project life and revenue growth objectives compared to the market.

Perform a cash flow analysis of the project forecast including: all related cash flows, expected
timing of cash flows, and impact of cannibalization or drag on other programs.

Estimate project return using: net earnings before tax (NEBT), internal rate of return (IRR),
net present value (NPV), gross profit, peak funding, total cash investment required before
positive cash flows, operating contribution as % of revenues, and payback period.

Analyze time-based measures: time to release, time to break even, and time to meet
acceptable return.

Analyze total cost of ownership.
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9.4
Quantify Risk Assessment
Once the project risks are identified, the impact of the risks must be evaluated and folded into the
business case. Financial model(s) should be established that enable the team to assess
sensitivity to key variables and risks and establish best case, most likely, and worst-case
scenarios. As appropriate, incorporate detailed alternative or sensitivity analysis information in an
appendix to this document.
9.5
Critical Financial Assumptions
Identify the critical financial assumptions and provide detail to support them. For assumptions that
create critical risks to the financial plan, provide potential management solutions. Additionally,
identify key drivers of profit and loss.
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10.
REQUIREMENTS APPROVAL
NOTE: The Product Manger is responsible for the maintenance of this document. All required
changes to this document should be collaborated through Company Product Marketing.
Once the Product Marketing and Engineering Teams have completed a diligent review process
and come to an agreement on the features and functionalities described herein, signatures are
required from responsible parties involved in the described project.
Signing this document acknowledges an agreement to complete development of the product and
features described within. Requests for changes and additions to the features described will be
required to follow standard Company procedures for requesting products and features.
Approved:
Date:
CEO
Approved:
Date:
CTO
Approved:
Date:
V.P. Marketing
(Name)
Approved:
Date:
V.P. Engineering
(Name)
Approved:
Date:
Engineering Team Manager
(Name)
Approved:
Date:
Product Manager
(Name)
Approved:
Date:
Quality Assurance Manager
(Name)
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