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9-812-105REV:MARCH18,2013________________________________________________________________________________________________________________SeniorLecturerJeffreyBussgang,ProfessorThomasEisenmann,andIndependentResearcherRobertGopreparedthisnoteasthebasisforclassdiscussion.Copyright©2011,2012,2013PresidentandFellowsofHarvardCollege.Toordercopiesorrequestpermissiontoreproducematerials,call1-800-545-7685,writeHarvardBusinessSchoolPublishing,Boston,MA02163,orgoto’sabilitytodevelopgreatproducts.Theproductmanager(PM)roleisdemandingandcomplicated.AneffectivePMisanentrepreneur,strategist,technicalvisionary,cross-functionalteamleader,andcustomeradvocate,allrolledintoone.Thisnoteprovidesanoverviewoftheproductmanagerroleintechnologycompaniesbothlargeandsmall.ThefirstsectionreviewstheresponsibilitiesofthePM.ThesecondsectiondescribesdifferentwaysinwhichproductmanagementmaybeorganizedandexplainshowtheworkofPMsrelatestothatofotherfunctions.ThethirdsectionlistswaysinwhichthePMrolediffersaccordingtocontext,forexample,instartupsversusestablishedcompanies.Thenotecloseswithadiscussionoftheattributesofstrongproductmanagers.ProductManagerResponsibilitiesAproductmanagerhastwoprimaryresponsibilities:(1)definingthenewproducttobebuilt;and(2)managingitsdevelopment,launch,andongoingimprovement.Tofulfilltheseresponsibilities,aPMleadsacross-functionalteam.Typically,however,noneoftheteammembersreportdirectlytothePM.Hence,aPMhasconsiderableresponsibilitybutlittleformalauthority.Aproductmanager’sdomainwilldependonthenatureofhercompany’sproductline.ManyPMsaresolelyresponsibleforasingleproduct.However,somePMsoverseeoneofseveralcomponentsofacomplexproduct(e.g.,algorithmsforsourcingorpricingbooksfortheonlinetextbookrentalcompanyChegg).Othersmanageasetofrelatedproductsthatsharecommoncomponentsorcustomers(e.g.,PayPal’sofferingsforonlinemerchants).PMsmayalsoberesponsibleforstrategicinitiativesthatcutacrossmultipleproducts,forexample,improvingcustomerretentionorexpandinginternationally.DefiningProductsThefirststepsinproductdefinitionareidentifyinganentrepreneurialopportunityandthenconfirmingthatitisattractive;specifically,thattheproposednewproductwillbedesirabletopotentialcustomers,technicallyfeasibletomake,andeconomicallyviable.1Next,afteracompanyhasThisdocumentisauthorizedforuseonlyinCaseCompetitionsbyProfVIjaySethiatNanyangTechnologicalUniversityfromAugust2014toFebruary2015.812-105TheProductManager2decidedtodevelopanewproduct,aproductmanagerleadstheiterativeprocessofspecifyingtheproduct’sfunctionality,sothatengineeringcanbeginbuildingit.IdentifyingandEvaluatingOpportunitiesEarly-stagestartupsareformedtopursueopportunitiesidentifiedbytheirfounders,oneofwhom,asnotedbelow,typicallyplaystheroleofbothCEOandproductmanager,atleastuntilherworkloadbecomesoverwhelmingandaproductprofessionalishired.Inmorematuretechnologycompanies,thecoreideaforanewproductcancomefromseniormanagement,productmanagement,oranyfunction,includingsales,marketing,businessdevelopment,orengineering.Tobetteridentifyandevaluatenewproductopportunities,productteamswilloftenengageinwhatentrepreneur-turned-educatorSteveBlank,inhisseminalbook,FourStepstotheEpiphany,calls“customerdiscoveryandvalidation.”2Theobjectiveistofigureoutwhethertheproductisworthbuilding,inparticular,whetherpotentialcustomershaveunmetneedsforthesolutionenvisioned.Disciplinedorganizationsinvestheavilyinupfrontcustomerdiscoveryandvalidationbeforewastingresourcesonsoftwaredevelopment.ThePM’staskatthisstageissimilartothatofanentrepreneurintheearlieststagesoflaunchinganewventure.Formoredetail,seethenotes,“Hypothesis-DrivenEntrepreneurship:TheLeanStartup,”HBS812-095;“BusinessModelAnalysisforEntrepreneurs,”HBS812-096;“CustomerDiscoveryandValidationforEntrepreneurs,”HBS812-097;and“CustomerVisitsforEntrepreneurs,”HBS812-098.SeealsoMartyCagan’sbookonproductmanagement,Inspired,whichprovidesdeeperperspectiveonmanytopicscoveredinthisnote.3Whenidentifyingproductopportunitiesandconductinganinitialevaluation,PMscollectmarketdataandsolicitinputfromtheirsalesteamaswellasdirectcustomerfeedbackfromavarietyofsources,includingfocusgroups,on-sitecustomerinterviews,andcustomersurveys.Tohelpbrainstormandtestproductconcepts,MIT’sEricvonHippelsuggestsseekingout“leadusers,”sophisticatedcustomersskilledatidentifyingneedsaheadofthemarket.4Manyorganizationsformcustomeradvisorycouncilstopointouttrendsanddevelopmentsthatcanyieldnewinsightsintofutureproducts.Firmsalsoseekinputfromusersinadjacentindustrieswhocanprovideanoutsider’sperspectivethatmaystimulatecreativesolutions.Butcustomerdatacanonlygosofar.Often,greatproductssolveproblemsthatcustomersarenotawareof.Togaininsight,PMsimmersethemselvesinacustomer’senv