Many Products, One Direction
The vast majority of high technology product companies today are a mishmash of products that have been brought together through mergers or acquisitions. Every acquisition throws one more iron into the fire that further stovepipes strategies, product plans, R&D, marketing and sales.
The $64,000 question is, "how do you transform a bunch of products into solutions where the whole is more valuable than the sum of the parts?"
It's nothing less than difficult when each legacy product caters to slightly different markets, is built on different technology and the core competencies of each legacy organization vary.
Here are 5 steps that offer a simple and logical approach to this dilemma.
See our new PM Framework.
1. Analyze the Markets & Educate
Change your perspective. Think of each product line as a single feature that solves one big problem. Considering the collective problems solved, assess which market segments have the greatest need to solve those problems and perform a quick analysis on each segment to determine revenue potential for the next 2-3 years. Evangelize the results across the organization and followers will form in your wake.
2. Define the Plot
What do you want to be when you grow up? Define it in the form of a strategic plan that outlines how you'll get there and why you'll be successful. The plan should encompass elements such as a market roadmap, a product roadmap and the initiatives in each functional area. Sell the plan to get consensus. If you get 75%, you're on a roll.
3. Integrate Products
You're no longer in the business of products. Integrated solutions are the name of the new game, therefore your product planning and development priorities should be heavily weighted toward integration. History has proven that integrated solutions have far greater value than niche functionality. Think iPod & iTunes.
4. Integrate People & Processes
Get yourself into a predictable regimen of delivering products by using a consistent process across all product lines. It's analogous to a factory - limited production capacity, machines that perform specific tasks and interdependencies between machines. Consider the ebb and flow of the entire factory and plan realistically, including emergencies and unplanned downtime.
5. Think Solutions Instead of Products
Data security solutions for banks...customer service solutions for telecom...document management solutions for healthcare...you get the picture. What are your equivalents? Keep the value message to third grade vocabulary and emphasize "why" more than "what." It will be easier for the market to understand and easier for the sales team to sell.
If your mishmash of products has the organization running in too many directions, signup for Product Management University Onsite, Online or Open Enrollment. You'll learn a simple framework for growing revenue by delivering solutions instead of products.
