Products and services define a company and are a significant part of its Market Effectiveness. Yet, many companies don’t have world class product management processes or product managers who have been trained on how to properly manage a portfolio of products. Often, companies view product management as finding customers, selling product and filling orders. This applies equally as well to products as it does to services.
Product and portfolio management is a very important part and less understood business process for many companies and has a much more holistic responsibility to the enterprise, its customers and stakeholders. This is especially true for lower middle market companies. World-class product management has multiple parts:
- A complete understanding of the company’s strategic plan and “Where to Play” and the company’s Most Important Goal.
- Customer insight through analysis of market data and customer behavior
- Defining the products through a rigorous product development process.
- Product systems that consist of product and service bundles that create recurring revenue and stickiness.
- A detailed understanding of the Customer Journey Map for the company
- Managing products through their full life cycle with a focus on maximizing revenue and profitability both at the sale and after the sale. Something we call “The Product Life Cycle Revenue Model“.
The biggest obstacle to implementing world-class product management is letting go of traditional organizational practices and moving to a more structured product management process. Product management must be involved in all aspects of product creation, development and management through the product’s life cycle.
At Group50® we have worked with clients to identify gaps in their current product development process and to design a world class process that suits their needs utilizing a series of assessments, workshops and training. Companies that have fully addressed those gaps will have:
- Elevated product management to its proper place
- Created a fully integrated product management process.
- Designed and implemented a product development process that is integrated with product management.
- Integrated the product life cycle revenue model into their business with a focus on how to optimize the sales value of a product or service throughout its life cycle.
- Have post sales revenue strategies for every product in their portfolio.
- Fully trained their product managers on the art of “Product Management.”
- Significantly higher revenue and profit.