Product mgmt 101 for bioentrepreneurs
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[email protected] Product Management For Health Care Entrepreneurs April 18, 2012 L. VanArsdale [email protected]
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Transcript of Product mgmt 101 for bioentrepreneurs
Product Management For Health Care Entrepreneurs
April 18, 2012L. VanArsdale
What Is Product Management?
Product Management constitutes everything necessary to provide sustainably differentiated value to one or more target markets.
IMHO
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Conceiving: Innovation, the Fuzzy Front End
The Whole Picture!
I have a strength There is a need
I have an idea
Who needs my idea?
What leads those who need it to my idea?
What is the value they would derive?
What next?
How can I grow my market?
Stage Gate Product Management Lifecycle
Source: Kahn, Kenneth B., Editor, The PDMA Handbook of New Product Development
Con
cept
Str
ateg
y
Des
ign
Dev
elop
NP
I
Lear
n
Impr
ove
Tra
nsiti
on
Iterative, Agile Product Management
Strategies
DescriptionBusiness Type or Firm Strategy
Reactor
• Maintain a secure position in a stable market
Defender
Analyzer
Prospector
Le
vel o
f In
no
va
tio
nL
ow
H
igh
• Growth through new products• First to market
• Rapid deployment of well conceived products
• Fast Follower
• Responds when forced to do so• Passive
Case: Telehealth projects in the San Luis Valley
Identify Markets and Their Needs
• Market research – Demographics– Needs Assessment– Analysis
• Primary, secondary• Qualitative, quantitative• Exploratory, confirmatory
Voice of the CustomerCustomer VisitsFocus groupsEthnographicsSurveysCrowdsourcingConjoint analysisQuality Function DeploymentFunctional RequirementsProgram of DemandFailure Mode Effect AnalysisValue EngineeringProduct use testingTarget CostingMarket testingHire a market analyst…
Roadmaps, Markets and SegmentsCharter: Research and Initial Engagement• Who are the real customers?• Where have they been and where are they going?• Why can you win?
– Market opportunity– Factual customer information– Defined customer needs– Relative competitive position– Customer value– Match with your core strengths and strategy
Key ActivitiesMarket and competitive researchInitial market participant relationshipsReports and consensusProduct and portfolio directions/strategy refinementProduct line and solution mapping
ConceptsFeasibility
• What has been done?
• What possibly could be done?
• What have we done?
• What could we do?
• What are we best at doing?
• How would we produce this product?
Priorities
• Market sizing and timing
• Risk assessment
• Competitive landscape
• Alignment
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Pricing• Value-based pricing
– Assess value to intended benefactors• Comparative / substitution• Ask them, but not directly
– “whole” value• Longitudinal factors
– Match market maturity• Truisms
– Downward rigidity of prices
Early adopters
Market growth
Maturity
High price
Competitive Pricing
Commoditized
New Product Introduction• Internal buy-in from organization and partners
– Training on product AND its value– Involve in launch plan and execution
• Buy-in from key market players– Current customers and champions– Analysts, mavens
• Messaging and market promotion– Timing, phases, stages– Appropriate content for each segment– Great expectations – inspire hope, fulfill promises (no vaporware)
• Market test and adjustment• Transitions – internal and external
Support• Customer relationship management
– Get software and use it!• Ample and clear warning
– Change, bad stuff, opportunities• Easy-to-understand-and-use answers• Planning for the hard problems
– Risk management– Plan to be reasonable and fair
Support: Transitions• Market testing• Product launch• New Revisions
– Minor– Major
• End of Life• Substitutions• New product lines
Summary• Sustainable Differentiated Perceived Value• Use innovation best practice – lots of choices• Methods and roles are important
– Strategy, concept, development, support!!• Focus
– Customer/Market– Knowledge– Agility– Resilience
More information: www.pdma.org, www.aipmm.org, www.pragmaticmarketing.com
Case Study #1• Dr. John Casestudy practices and teaches at the University Hospital.• He has a great idea for a kiosk product that can be made available for patients
waiting for their appointments in clinics to automate history collection and administration of screening and other appointment prep questionnaires prior to time with the doctor / PA. His family and friends love the idea and think he’ll make millions. In fact everyone he’s told about it has really loved the idea and has great advice for him. Sometimes the advice is conflicting, but the feedback shows market interest in John’s eyes, making John really happy.
• He has assembled a development team in India and hired a highly experienced project manager to keep that team on task, delivering to required deadlines. John has also contracted with a top-notch sales guy, Wayne, who has a great track record for successfully growing market share for new products.
• On October 6, 2011 the project manager told John that the product was “pretty much done and ready for prime time.” John saw a demo of the product and just loved what the team had done!
• A truly beautiful website was created and multiple marketing campaigns were conducted from October through the end of January. By February 21, 2012 there were no sales or anything concrete in the sales pipeline. John needed to go out for additional funding in order to keep the company afloat, and he was worried.
Case Study #1 Questions
• What strategic improvements could John make?• How might John better understand the market potential
so that he can make some reasonable sales forecasts?• What product risks does he face? How best could he
manage those risks?• What are the three best next steps he should take?• What are your predictions for John’s company’s future
and what could he do to improve the odds for success?
Case Study #2• Lisa DeBrie, MD created a small company to produce a mobile app
that allows a patient to report HbA1c levels through a personal device that automatically feeds data to a secure database. After two years of hard work, her team achieved approval from the FDA. They had a roadmap of new features they were hoping to release within three months. These new features would bring huge new value to their customers.
• They advertised the device in all the right places and the market flocked to them in droves. They were not only having trouble keeping up with shipments, but their two support engineers were having an order of magnitude more trouble keeping up with support trouble tickets. The product engineers were starting to spend more time fixing than driving new features. Lisa was totally frustrated, but hopeful if they could just improve processes, they’d be able to grow their workforce and get back on track.
Case Study #2 Questions
• What is Lisa’s strategy and is it aligned well with her company’s capabilities and market need?
• How might Lisa satisfy market demand?• How might Lisa address her quality
problems?• What is Lisa’s best path to get back on
track with her roadmap?
Thanks!
Questions?
Lynne VanArsdale is a PhD student at the University of Colorado, Anschutz campus studying health information technology within the Clinical Sciences department. Her experience ranges from systems engineering, to software engineering to product marketing and management.
She holds Project Management Professional Certification from the Project Management Institute (www.pmi.org). She completed black belt training in transactional six sigma methodology, which she applies to innovation and new product development processes. She has achieved New Product Development Professional certification from the Product Development and Management Association (www.pdma.org), as well as Pragmatic Marketing certification (www.pragmaticmarketing.com).
She currently works for the Colorado Business Group on Health at the Director of Health IT, implementing a payment reform pilot in two Colorado counties. She served as Product Director for Payer Products within Ingenix’s Claims Integrity and Connectivity group. Prior to Ingenix, Lynne was Director of Marketing and Product Management for Rolta TUSC Software Center of Excellence where she lead a program to create a service oriented technology platform. Before joining Rolta TUSC, Lynne held senior director and manager positions with data storage and software technology companies.
Lynne holds an MBA from the University of Houston, a MS in Agricultural Engineering from North Carolina State University and a BS in Engineering from Cornell University. For more information on her background go to http://lynnevanarsdale.com.
