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TheDisciplineofProductManagementPhillipJ.Windley,Ph.D.ChiefInformationOfficerOfficeoftheGovernorStateofUtahProductdevelopmentistheprocessofdesigning,building,operating,andmaintainingagoodorservice1.SoftwareandInternetcompaniesuseaproductdevelopmentprocesstoensurethattheyarenotjustmanufacturingatechnology,butcreatingaproductthatpeoplewillwanttobuyandcontinuetouse.Tobesure,abasetechnologyisattheheartoftheproduct,butproductdevelopmentensuresthatthecustomer’svoiceisnotlostintherushtoanexcitingtechnology.Productdevelopmentaddsthingslikepricing,marketing,andcustomersupporttothetechnologytocreateacompleteproduct.Withoutaproductmanagementphilosophyanddiscipline,anITorganizationbecomesfocusedonthetechnologyinsteadofthecustomersandisoftenorganizedalongtechnologylinesratherthaninwaysthatbenefitthecustomer.Ultimately,anITorganizationmustserveitscustomersoritwillgooutofbusiness,eitherbecausethecustomersgoawayorbecausetheycomplaintoexecutivemanagementuntiltheorganizationischanged.ThispaperdiscussestheproductmanagementdisciplineandhowitcanbeappliedtocreatingacustomerdrivenITorganization.ProductDevelopmentProductdevelopmentisperformedbyamulti-disciplinaryteamwhosegoalisbuilding,operating,andmaintainingtheproduct.Teammembersmayincludeproductmanagers,softwaredevelopers,projectmanagers,productoperationsengineers,customersupportmanagers,softwarequalityassuranceengineers,userinterfacedesignengineers,marketers,financialpersonnel,andgraphicartists.Theproductmanagerservesastheleaderofthiscrossfunctionalteam.Whiletheproductmanagerdoesnotnecessarilyfunctionastheoperationalmanagerforthesepeople,shedoeslead,coordinate,andsupervisetheirworktowardtheendgoalofmakingtheproductareality,launchingit,operatingit,andmanagingitthroughoutitslifecycle.Copyright2002,PhillipJ.Windley.Allrightsreserved.Reproductionofallorpartofthisworkispermittedforeducationalorresearchuseprovidedthatthiscopyrightnoticeisincludedinanycopy.UnconditionaluseisgrantedtotheStateofUtah.1Forpurposesofthisdocumentwewillrefertoallservices,goods,orotherthingsofferedforsalebyanorganizationtobea“product.”Productmanagementasadisciplineisaboutwhattheproductshouldbe.Productmanagersareadvocatesforthecustomer’sneedsanddesires.Alargeproductmighthavenumerousproductmanagersworkingtowardsitssuccessatavarietyoflevels,allthewayfromthejuniorproductmanagerwritingspecificationsaboutsinglefeaturesetstoaproductstrategydirectorwhohasoverallresponsibilitytoexecutivemanagementfortheproductdirection.Aproductmanager’sresponsibilitiesincludethefollowing:•Definingandplanningproductlinesandproductenhancements•Managingproductcontractsandsales•Settingstrategicdirectionbasedoncustomerneedsandbusinessgoals•Interpretingstrategicgoalsintooperationaltasks•Makingproposalstoseniormanagementregardingimplicationsofproposedplans•Servingasarepresentativetointernalandexternalclients.Takingtheleadinestablishingtacticalplansandobjectives•Developingandimplementingadministrativeandoperationalmattersensuringachievementofobjectives•Evaluatingrisksandtrade-offs•Proposingcontingencyplans•Analyzingbusinessprocessesandcreatingapplicationstoimproveorsupportthoseprocesses•Branding•Workingwithgraphicdesignerstocreatelookandfeel•Definingnavigationalflowanduserexperience•DefiningfeaturesetsandscoopingreleasesPeoplenotfamiliarwiththedisciplineofproductmanagementfrequentlygetaproductmanagerconfusedwithotherplayers.Itsusefultolookatwhataproductmanagerisnot.Aproductmanagerisnot:Adeveloper–Developersarefocusedonthetechnologyandnottheoverallproduct.Somegreatproductmanagersareformerdevelopers,butitisdifficulttodobothatonce.Thereisanaturaltensionbetweendevelopersandproductmanagersthatshouldbemaintainedtocreateabalancedproduct.Asoftwaremanager–thesoftwaremanagerisafunctionalmanagerandusuallynotfocusedontheproductorthecustomers.Aprojectmanager–projectmanagersareabouthowandwhen,whiletheproductmanagerisaboutwhat.Projectmanagersworkcloselywithproductmanagerstoensuresuccessfulcompletionofdifferentphasesintheproductlifecycle.Amarketer–whileproductmanagementisusuallyseenasamarketingdiscipline,marketersarefocusedonthemarketingplanandareusuallynotdrivingtheoverallproductdirection.Productmanagersareaccountabletoexecutivemanagementforoverallproductdirection,keydecisions,productbudget(andsometimeseventhecompleteproductP&L),ensuringthatfinalproductmeetsspecifications,andevangelizingproducttointernalandexternalstakeholders.Productmanagersalsohaveaccountabilitytousersforfeaturesets,navigation,quality,andoverallexperience.Beforewecandiscussproductmanagementasadisciplineandhowitfunctionsintheorganizationwemustconsidertwoimportantlifecycles:Inthenextsection,we’lltalkabouttheproductlifecycle;inthefollowingsectionwe’lldiscussthecustomerlifecycle.ProductLifeCycleInitssimplestform,theproductlifecycleconsistsofthreephases:1.Developtheproduct2.Operatetheproduct3.DecommissiontheproductObviouslythissimplisticmodelleavesanumberofquestionsaboutchanges,procedures,etc.Figure1givesamorecompleteviewoftheproductlifecycle.ProductInitiationFeasibilityDesignandPlanDevelopm