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Software Product Management - PPT Presentation

Organizational Structure and Productization Lecture 17 Sjaak Brinkkemper Garm Lucassen 1 Juni 2017 Outline Organizational growth and structures Positioning the product manager ID: 782155

project product software features product project features software requirements customer standard market amp management maintenance custom release portfolio productization

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Slide1

Software Product ManagementOrganizational Structure and Productization

Lecture 17

Sjaak

Brinkkemper

Garm

Lucassen

1

Juni

2017

Slide2

Slide3

OutlineOrganizational growth and structuresPositioning the product managerProductization from a service firm to a product business

Slide4

Growth phases

Size

Large

Small

Age of the organisation

Young

Grown

Phase 1

Startup

Phase 2

Survival

Phase 3

Success

Phase 4

Expansion

Phase 5

Optimal

From: Churchill, N.C. en V.L. Lewis (1983), The five stages of small business growth, Harvard Business review, May-June, pp 30-50.

Slide5

Characteristics of phasesStartup: first release, first customers, arranging companySurvival: second release, getting more customers, hiring first employee, create cashflow

Success

: more customers, exposure in market

Expansion

: redefining the company, hiring personnel, internationalization, company exit strategy

Optimal

: customer satisfaction

Most

startups

Fosbury

,

Nubiko

, EitriAFAS, Quinity, Mendix

Planon, TomTomExact, Unit4

Slide6

6Structuring an organization

Slide7

7Structuring an organization

Slide8

8Structuring an organization

Slide9

Baan R&D DepartmentProductManagementRelease

Management

Processes

Finance/Legal

HRM

Common

Architecture

Research

BaanTech

Workflow

Common

Technologies

ERP

Service&

Project

E-ERPBackOfficeApplications

Financials

CRMSupply ChainApplicationIntegration

EmergingApplications

ConfigurationManagementProduct TestingMulti-Byte

ProductAssemblyDocumentationand Training

Business

Intelligence

Localizations

Product

Delivery

Chief Technology

Officer

The organizational structure of Baan

R&D Department in

1998; 1500 employees

Acquisitions

Slide10

Organizational structuresOrganizational structures are needed becauseGrowing organisations need functional specialistsManagement has limits in numbersCategories:F:

Functional

HRM, Development, Sales, Marketing, …

P

:

Product

ERP, Middleware, BIS, Localizations, …

M

:

Market

Large accounts, SME, Public, Banking and Insurers, …

G: GeograficBenelux, Nordic, UK, France, …

Slide11

Standard F-structureBoardR&DMarketing

Sales

Services

Support

Slide12

Investments and profitsBoardR&D

Marketing

Sales

Services

Support

-

-

+

+

+

S

-

S

+

Profit:

Slide13

SubstructuresBoardR&DMarketing

Sales

Services

Support

P-structure

Generic,

P-structure

P-structure

P-structure

P-structure

G-structure

M-structure

Slide14

P-type for R&DR&D departments are responsible for a product lineProduct Management: Functional responsibilityLiaison with MarketingArchitecture BoardTechnical responsibility

Interfacing of products

R&D

mgr

Product 1

Product 2

Product 3

Product 4

Architecture

Board

Product

Management

Slide15

DiscussionWhat is the stage of your assignment company?Do you have insight in their organizational structure?

Slide16

OutlineOrganizational growth and structuresPositioning the product managerProductization from a service firm to a product business

Slide17

Position product managementThe positioning of Product Management determinesResponsibilitiesActivitiesExternal and internal communicationsFive

positioning scenarios

Within R&D: as overall function

When functional integration of products is essential

Within R&D: inside product development teams

When products are relatively independent

Within Marketing

When customer value and market presence are important

Partly within Marketing and partly within R&D

When customers have complex technical requirements

Under the Board

When CEO/CTO are heavily involved in product functionality

Slide18

Organizational variabilityBoardR&D

Marketing

Sales

Services

Support

Product 1

Product 2

Product 3

Quality

& Delivery

Product

Management

Product

Management

MarketingCommunication

ProductManagementProduct

ManagementProductManagementProductManagement

Slide19

DiscussionWhat is the position of the product manager in your assignment company?

Slide20

OutlineOrganizational growth and structuresPositioning the product managerProductization from a service firm to a product business

Slide21

Introduction on ProductizationProductization: from project/customer driven to product/market driven businessIT Service firms have difficulty managing product businessProject: billable hours, project acquisitionProduct: market share, next release launchSpin-off of Acision

from

Logica

Earlier

study

Productization

from

within

one company (Artz et al. 2010)Research questionTo what extent is the productization process applicable in an IT service firm when transforming from developing customer specific software solutions to standard product software for a market?

Slide22

Generic view on productization

Slide23

Towards product organization

Customized Standardized

Product Organization

No Product Organization

Slide24

Research approachInvitation by IT service companyCase study: theory testing 7 products selected from candidate setLiterature backgroundSemi-structured interviewingDetermination of initial positionGap analysis

Advise

to

case

study

firm

Overall

findings

Slide25

Productization processIndependent projectsReuse across projectsProduct recognitionProduct basisProduct platforma. Customizable product (enterprise solution)b. Standard product (packaged mass-market)

Artz

et al (2010)

Slide26

Two end stages:For some software there is a need for customization in order to integrate software in a customer-specific situation Aspects of productization (Hietala

et al., 2004)

- Product market

- Concepts

- Benefits

- Positioning

- Selling

- Marketing

Productization

Process 2/2

adopted from Hoch et al., 1999

Degree of standardization

Slide27

Literature: Dimensions of Productization

Slide28

Focus dimensionsDimensionsCustomized software

Standard software

Software

Customized software project

Standard software product

Business focus

Meeting the customer needs within budget and time, contractual fulfillment

Gaining market share

Requirements gathering

Gathered from one customer

Gathered from whole market

Requirements selection

Select requirements per project (More or less fixed list of requirements)

Optical selected subset of requirements

Marketing goals

Interaction, relationship and networks

Product, price, place and promotion (4P’s), branding and differentiation

Software development philosophyWaterfallSCRUM agile development

LifecycleOne release, then maintenanceSeveral releases based on market requirements

Development teamsProject focused, people are assigned to multiple projectsProduct-focused, self-managed, Involved in the entire development cycle

Stakeholder involvementHigh external, barely internalHigh internal, low external

Slide29

Productization processIndependent projectsReuse across projectsProduct recognitionProduct basisProduct platforma. Customizable product (enterprise solution)b. Standard product (packaged mass-market)

Artz

et al (2010)

Slide30

Stage 1: Independent projectsIndependent relations between projects.Projects differ in budget, technology, and functionalitySoftwareCustom features

Software

Custom features

Customer Project

2

Software

Custom features

Maintenance

Software

Custom features

Maintenance

Maintenance

Maintenance

Customer Project

4

Project PortfolioDelivery

DeliveryDeliveryDeliveryRequirements Engineering

Requirements EngineeringRequirements EngineeringRequirements Engineering

Customer Project 1Customer Project 3

Slide31

Stage 2: Reuse across projectsFocus on feature reuse across projectsMore custom than standardSoftwareCustom features

Software

Custom features

Software

Custom features

Software

Custom features

Maintenance

Maintenance

Maintenance

Customer Project

4

Delivery

Delivery

DeliveryCustomer Project 2

Standard featuresStandard features

Standard featuresCustomer Project 4Project Portfolio

MaintenanceDelivery

Customer Project 1Customer Project 3Standard featuresRequirements Engineering

Requirements EngineeringRequirements Engineering

Requirements Engineering

Slide32

Stage 3: Product recognition Shared features between projectsMore standard than customIntroduction of portfolio managementSoftwareStandard features

Software

Standard features

Customer Project

2

Software

Standard features

Maintenance

Software

Standard features

Maintenance

Customer Project

1

Maintenance

MaintenanceCustomer Project 4

Customer Project 3Custom features

Custom featuresCustom featuresCustom features

DeliveryDeliveryDeliveryDelivery

Product PortfolioRequirementsEngineeringRequirementsEngineering

RequirementsEngineeringRequirementsEngineeringPortfolio management

Slide33

Stage 4: Product basisGeneric product platformIntroduction of product roadmappingCustomer specific maintenance

Software

Standard features

Software

Standard features

Customer Project

2

Software

Standard features

Maintenance

Software

Standard features

Maintenance

Customer Project 1

MaintenanceMaintenance

Customer Project 4Customer Project 3

Custom featuresCustom featuresCustom featuresCustom features

Product RoadmappingDelivery

DeliveryDeliveryDeliveryRequirements

EngineeringRequirementsEngineeringRequirementsEngineering

Requirements EngineeringProduct Portfolio

Portfolio management

Slide34

Stage 5: Product platformIncreasing generic product platformIntroduction of requirements managementRequirements gathering based on market trendsEvent based customized releases per customer

Software

Standard features

Product Roadmapping

Software

Standard features

Customer Project

2

Software

Standard features

Releases

Software

Standard features

Releases

Customer RequirementsCustomer Project 1Releases

ReleasesCustomer Project 4Customer Project 3

Custom featuresCustom features

Custom featuresCustom features

DeliveryDelivery

DeliveryDeliveryDelivery

Product Portfolio

Requirements

Management

Portfolio management

Customer

Requirements

Customer

Requirements

Customer

Requirements

Slide35

Stage 6a: Customizable product software One standard product with small additional customized layerIntroduction of release planningStructured standardized releasesCustomer requests are handled as market requirements Product software aiming at selling services

Software

Standard features

Software

Standard features

Customer Project

2

Software

Standard features

Software

Standard features

Customer Project

1

Customer Project

4

Customer Project

3Custom featuresReleasesReleasesReleases

ReleasesProduct Roadmapping

Launch & deliveryLaunch & delivery

Launch & deliveryLaunch & deliveryCustom features

Custom featuresCustom features

Release Planning

Product Portfolio

Requirements

Management

Portfolio management

MarketRequirements

Market Requirements

Market Requirements

Market Requirements

Slide36

Stage 6b: Standard productOne generic product for all customers and build for a specific marketIntroduction of release planningStructured standardized releasesSoftware is completely configurableProduct software aiming at selling licenses

Releases

Releases

Releases

Releases

Product

Standard features

Customer Project

2

Product

Standard features

Product

Standard features

Customer Project

1

Customer Project

4Customer Project 3Market Product

ProductStandard featuresLaunch & delivery

Launch & deliveryLaunch & deliveryLaunch & delivery

Requirements Management

Release Planning

Product Portfolio

Portfolio management

Product Roadmapping

Market Requirements

Market Requirements

Market Requirements

Market Requirements

Slide37

Case studies 7 theory testing case studies Varying intervieweesService perspective (project mgr, delivery mgr)Potential productsMarket sector

Product A

Telecom market

Product B

Telecom, Transport and Utility

Product C

Local government

Product D

Utility firms

Product E

Oil Companies

Product FLocal government

Product GLocal government

Slide38

SPM Maturity MatrixFocus area0

1

2

3

4

5

6

7

8

9

10

Portfolio management

Market analysis

 

 

 

 

A B

CD 

EPartnering & contracting 

   

 

A

B

 

C

D

E

Product lifecycle management

 

 

 

 

A

B

 

 

C

D

E

Product planning

Roadmap intelligence

 

 

 

A

 

B

C

 

D

E

 

Core asset roadmapping

 

 

 

 

A

 

B

 

C

 

D

Product roadmapping

 

 

A

B

 

 

C

D

 

E

 

Release planning

Requirements prioritization

 

 

A

 

B

C

D

 

 

E

 

Release definition

 

 

A

B

C

 

 

 

D

 

E

Release definition validation

 

 

 

 

A

 

 

B

 

C

 

Scope change management

 

 

 

A

 

B

 

C

 

D

 

Build validation

 

 

 

 

A

 

 

B

 

C

 

Launch preparation

 

A

 

B

 

C

D

 

E

 

F

Requirements management

Requirements gathering

 

A

 

B

C

 

D

E

F

 

 

Requirements identification

 

 

A

 

 

B

 

C

 

 

D

Requirements organizing

 

 

 

A

 

B

 

C

 

 

 

Slide39

Maturity resultsFocus areaAdvanced (2)Emerging (5)Avg(%)

Portfolio management

21,9

14,2

16,4

Product

planning

19,3

15,3

16,5

Release

planning

45,624,730,7Requirements management41,722

27,6

Slide40

DiscussionLanguage and vocabulary problems due to service versus product perspectiveSPM maturity assessment interpreted differently: make SPM more SMARTService firm finds Productization difficult due to different business model and cultureFocus on IP creation and buy-out

Slide41

ConclusionsValidation of productization process Immaturity of product business inside a service businessMany advises for service company to arrange product teamsBut then the IT service firm got acquired …

Slide42

Questions?