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Propose to the Business
"The great thing about fact-based decisions is that they can overrule the hierarchy." 
Jeff Bezos

Propose to the business helps the organization to highlight risks and rewards. Validate urgent, pervasive and willing to pay in this two-step process below:

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Business Plan
The Business Plan
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The Numbers
The Numbers
The method should match the purpose.

  • Discovery

    • Onsite interviews and observations

    • Focus groups

    • Secondary research

  • Validation

    • Surveys

    • Choice Models

    • Experiments

Surveys

  • Quantify market problems

  • Test your assumptions

  • Write clear, unbiased questions

    • Avoid compound questions that use "and"

  • Get feedback from a colleague before you send it out

Cautions

  • Test the survey

    • Do the answers tell you what you need to know?

  • Know what you will do with the information

    • Who wants to know?

    • What will you change?

  • Only valid samples generate valid data

 

Estimate and Document Market Size
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1.

Understand the size of the market, use assumption based modeling

2.

Find a segment of market challenged with this problem

3.

How fast is that market segment willing to adopt a solution

4.

How many of them are going to buy from us, make assumptions

Use Problems to Set Prices

Incorrect ways to price

    • Cost plus

    • Competitor "me too"

  • The correct way to price: willingness to pay

    • Higher impact --> higher willingness to pay

    • Value-based pricing

    • Conjoint analysis - In a scale of 1-10 how does this opportunity may change your life

Price Based on Impact
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Estimating Profit
 

  • Estimated revenue

  • Estimated expenses

    • Product team

    • Development

    • Marketing communications

    • Sales

    • Customer support

    • Cost of goods sold

  • Revenue - Expenses = Profit

Key Performance Indicators (KPI)

​

  • External

    • Customer retention

    • Customer acquisition

    • Revenue

    • Profit

    • Market share

​

  • Internal

    • Product quality

    • Customer support

    • Development cycle

    • Marketing programs

    • Sales productivity

Business Strategy
Business Strategy
Decisions Should Be Market Driven​
​

  • FIND a problem

  • DETERMINE  the optimal solution

  • THEN make a buy, build or partner decision

Buy, Build or Partner​
​

  • BUY basic technologies

  • BUILD to your distinctive competencies

  • PARTNER for the rest

Partnerships (stay focused on your core business)
​

  • Partnerships extend

    • Technology

    • Promotion

    • Sales channel

​

  • Challenges

    • Golfing partnerships

    • Under-resourcing​

Launch Planning

Goals

Set goals based on market knowledge

Timing

Time the launch based on market needs and appetite

Outcomes

Articulate desired outcomes before creating a list of deliverables

Fastest

Focus on the portions of the market that will help you reach your goals the fastest

Corporate Fit
 "Every product needs product management and a business plan"
Portfolio Management
 

  • Define the portfolio by the market it serves, not the organization that created it

  • Treat the portfolio as a product

    • Business Plan

    • Positioning

    • Marketing requirements

    • Marketing plan

    • Buying process

The Marketing Plan
 

  • Align business goals

  • Based on market knowledge

    • Buyer Personas

    • Buying Process

    • Buying Criteria

  • Strategy and Programs

Strategic Fit
 

  • Distinctive competencies

  • Strategic initiatives

  • Complience requirements

  • Technology Direction

Financial Impact
 

  • Revenue

  • Internal cost savings

  • Profit over time

  • Return on investment

Project Evaluator
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Plot your features in this matrix to evaluate ​​
The Output Of All The Above Preparation Is The Business Plan
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