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WELCOME TO PRODUCT MANAGEMENT SESSION 1 1999. COURSE OBJECTIVES. Role, Responsibilities & Complexity of the PM Position Cover the 3 major Tasks: MARKET ANALYSIS DEVELOPING OBJECTIVES & STRATEGIES MAKING DECISIONS….. Learn Plan Development Process. COMPANY CONCERNS. EXTERNAL ISSUES
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WELCOME TO PRODUCT MANAGEMENT SESSION 1 1999
COURSE OBJECTIVES • Role, Responsibilities & Complexity of the PM Position • Cover the 3 major Tasks: • MARKET ANALYSIS • DEVELOPING OBJECTIVES & STRATEGIES • MAKING DECISIONS….. • Learn Plan Development Process
COMPANY CONCERNS • EXTERNAL ISSUES • WHAT ARE THE KEY ISSUES FACING MANAGEMENT TODAY ? • WHAT ARE THE KEY TRENDS ?
COMPANY CONCERNS • INTERNAL ISSUES WHAT IS TODAYS ROLE FOR: • STRATEGY • MANAGEMENT OF PRODUCT QUALITY • SERVICE • PERSONAL DEVELOPMENT
THE SYLLABUS • LEARNING OBJECTIVE • SCOPE OF STUDY • PROJECT & DELIVERABLES • WEEKLY AGENDA • THE WEBSITE: http://haas.berkeley.edu/ Courses/Spring1999/E262A/
ED JOHNSON 25 YEARS CORPORATE 10 YEARS HIGH TECH 20 YEARS IN CONSUMERPRODUCTS 10 YEARS PROFESSOR MARKETING LATESTMOVIE......
SOPHIA ANTIPOLIS TBWA Management Centre Europe
And Now, Your Turn: • YOUR NAME....... • YOUR COMPANY…… • YOUR PRODUCT & MARKETS • A TOPIC YOU WOULD LIKE COVERED IN THIS CLASS?
WHAT IS TODAY’S TREND IN STRATEGY ? TO MOVE FROM PRODUCTION DRIVEN TO “CUSTOMER DRIVEN”
COMPAC/digital Todd C. Williams Senior Systems Architect Do you use Product Managers? Yes, definitely. Been there forever. Some old world people who haven't been in the field for awhile. Problem. But need a single point of contact for such large projects. .
IBM Stephen A. Murphy Segment Executive, Global Production Solutions 14, 1998 What growth challenges are you facing? We have a little pricing problem - a cash flow problem. But no more than a one year delay for 300 mil. A lot of new competitors are cropping up. “Have to have a small recession to drive them out”
HITACHI • Robert J. Gordon • Director • "People are getting away from face to face. Sitting behind the computer rather than getting out on calls. I hear this a lot from customers. • I don't see your people. The competitor is here all the time. • Let's get back to basics." Do you have a Product Management system in place. Yes. Very important, hand picked. Very special. Some technical. Not enough business Extremely valuable people. But untrained. In place 5 or 6 years.
Canon • Phillip M. Ware • Director, Technical Marketing • Canon U.S.A. Inc. • Irving, Texas • 20 Years of Service How would you define the process of developing strategy? Canon corporate has this grandiose style of 50 year plans. We just finish our first 50 years 5 or 6 years ago. "Now we are into our second 50 years and the grandiose goal of the second 50 years is to move the centre of Canon,California.
KEYTRENDS • CUSTOMER POWER
KEYTRENDS • STRATEGIC ALLIANCES • GLUT ECONOMY • SHORT LIFE CYCLES • NEED STABILITY
KEYTRENDS • DEMAND FOR SERVICE
BEYOND TRADITIONAL BOUNDARIES • THE GLOBAL ENVIRONMENT • “A CLIMATE OF CATASTROPHIC CHANGE • CONSTANT MERGERS AND ACQUISITIONS • REDUCING NUMBER OF BUYERS AND SELLERS
TODAY’S REALITIES • CROSS FUNCTIONAL MULTI-COMPANY • OVERLAYS $
ERNST & YOUNG’S UPSHOT • MANUFACTURING EMPLOYMENT HAS DROPPED FROM 40% TO 15% SINCE 1950 • “BY 2008,’ CONNECTED ASSETS WILL OUTWEIGH “HARD” ASSETS • REAL TIME COLLABORATION IN NETWORKS OF SUPPLIERS TO BEAT THE MAIN COMPETITOR, THE LIFECYCLE • TRUE CONNECTIVITY WILL ONLY BE ACHIEVED WHEN ISSUES OF TRUST, RELIABILITY & LEVERAGE ARE RESOLVED
DESCRIBE YOUR BUSINESS ENVIRONMENT DOING BUSINESS TODAY
ENVIRONMENTAL FORCES • OUT OF YOUR CONTROL • NEED TO IDENTIFY KEY TRENDS
YOUR ENVIRONMENT • Over the past 5 years, what were the three most significant opportunities in the Environment which contributed to the company’s current situation ? • Again, over the past 5 years, what were the three most significant threats which limited success? • Looking ahead 3 years, are these opportunities & threats increasing or decreasing in significance ? • Are new ones appearing ?
MARKETING 2000? DOING BUSINESS TODAY
MARKET ORIENTATION “SATISFYING CUSTOMER NEEDS... CONTINUOUSLY.” E. JOHNSON, 1995
MARKETING'S ROLE PRODUCT CORE CORPORATE BUSINESS UNIT PRODUCT/MARKET MANAGEMENT FUNCTIONAL PLANS
THE NEW ORGANIZATION DOING BUSINESS TODAY
THE ULTIMATE ORGANISTION YOU ARE FINALLY APPOINTED PRESIDENT • YOU CAN CREATE YOUR ORGANISATION TO MAKE MARKETING WORK AND PRODUCT MANAGEMENT INCREDIBLY EFFECTIVE. • DEVELOP THE ULTIMATE ORGANISATIONAL STRUCTURE & TELL US WHY ITS SO GREAT
DEATH OF THE SALESMAN WE HAVE THE LOWEST PRICES!!
INEFFICIENT ORGANIZATION DIRECT CONTACT SALES MARKETING INDIRECT CONTACT PRODUCTION ADMINISTRATION FINANCE DECISION MAKING PRESIDENT
TODAY’S “HOLLYWOOD” OGANIZATION BUYING GROUP DIRECT CONTACT CEO INDIRECT CONTACT PRODUCT MANAGER PRODUCTION NO CONTACT ADM SERVICES
TODAY’S “HOLLYWOOD” OGANIZATION • DIRECTORS • PRODUCERS • Limited short time to develop product and plan
TODAY’S “HOLLYWOOD” OGANIZATION • Executive Director • Business Strategy • Key Account Sales • Alliance Management
TODAY’S “HOLLYWOOD” OGANIZATION • Product Management • Business Case Development • Opportunity Analysis • Function Plans • Development Management
“hp” ANO DEO2 ANO ANO nbv DEO1 MCB ANO ANO Marketspace Creation Business (MCB) Customer Intimacy Intellectual Asset Management “hp” Business Environment Radar Screen Value Creating Technology Assessment DEO3 Virtual Value-Driven Business Designs Relationship Management nbv DEO4 DEO5 Potential Outcomes MCB Customers Selected Marketspace Opportunity A End Customers HP Business Unit(s) Leading DEO1 Selected Marketspace Opportunity B Leading DEO2 Leading DEO3 Selected Marketspace Opportunity C Leading DEO4 DEO: Digital Economy Organization Selected Marketspace Opportunity D Leading DEO5