Value Proposition

Value proposition is probably the trickiest work that a product manager would have to do. Recently I worked with several colleagues on the value propositions for their products and it was fun.

Good value proposition should be a simple one sentence describing the product and compelling enough for readers to take the next step. Yet, it should not be too laden with jargons, "warm and fuzzy feeling", or full of big empty words… Tangible results in one sentence.

I wrote about a process to come up with a value proposition a couple of years back in this blog and now looking back, I don't think it has changed that much. Here's the pictorial view of the process:

The process is simple:

• Market segments: which target market segment(s) that the product will serve
• Key Product messages/statements: these are the benefits that will solve customers' problems
• Features: this is how the product will solve the problems
• Competitors: the main competitors in the target segments
• Competitive Analysis Differentiators: the product's differentiators deriving from the product's strong benefits that competitors do not have

Of course, you can always "word smith" it to make it fit your product and your company brand strategy. Also, what I have found is that the competitive piece is best for your sales force and the rest is the key value proposition for your customers. Here are the two examples that I found:

• Weak value proposition: "ABC Corp. is the premier B2B portal for small businesses looking to grow" – very subjective (premier of what) and did not deliver tangible results to its customers (growing businesses how)
• Strong value proposition: "XYZ Corp. is the exclusive provider of patent-pending project management software for paving contractors, saving US contractors over $34M in 2005" – Market segment is paving contractors; Benefit: saving contractors $34M; Features: patent-pending project management software. It has all the elements above plus a differentiator: patent-pending.

I welcome comments and suggestions to make this process better.

Update on UlluTek

It has been interesting to get an open source project off the ground... Everything that I learned in the MBA school is pretty much tossed out of the window. We have a high level mission "creating simple products to accelerate the adoption of complex technologies that we love" but outside of that, it has been a constant change.

Ultimately, we want to make UlluTek a commercial success. However, we want people to adopt cool technologies as well. It's a balance between opening it up our design and a desire to get cash flow. In a way, I think it's very refreshing. We get to communicate EVERYTHING that we do to the public. If we were behind schedule, everyone knows... No need to spin anything.

In additon, I get to test out the social media channel - specifically with Facebook, Twitter, and LinkedIn. I am seeing that our traffic to the website spiked after each status that I posted on these websites - another proof that businesses can really get closer to their customers through social media. Let's see how the visits to our website improve if all of our team members utilize their own social network.

For now, we are getting more team members to join us through connections that we know. We want to give the public more useful products to play with soon. Please come and visit us at UlluTek.

An Open Source Hardware Project - UlluTek

I recently launched UlluTek, an open source hardware project, with a few engineer friends. Over the years, we discovered that there are many simple and useful hardware products that are not built because companies deem that they are - well - too simple and the ROI did not justify it. ROI strikes again!!!

Since we are bootstrapping the project (no venture capital firms in their right minds would invest in an open source company nowadays), we have to figure out the cheapest way to get the website up and running. To my surprise, there are so many options to choose from. I settled on a few tools to start:

• Web creation and hosting: Weebly - I was able to setup the site in less than half an hour. I registered the domain with Weebly and got 50-user Google Apps Standard Edition. I got 6 users up and running in less than 15 minutes.
• Instant Messaging: even though Google Apps comes with Chat application, we chose Skype since it gives us a better conferencing capability. Besides, I am already using Skype to call my family in Vietnam and loving the service.
• Wiki/Forum: I have not picked an application yet but WetPaint looks very interesting. Ning is in the running as well.
• Code revision: I am going to use LaunchPad for code depository and revision.
• Drawing: I am using Inkscape for homemade logos and other drawing needs. Inkscape has tons of tutorials on the web so it was very helpful learning the tool.
• 3D Drawing: Google Sketchup fills this need although Inkscape has some basic 3D capability as well. Sketchup is a lot more fun and my 8-yr old son loves to play with the program.

So for now, I have enough tools to get the project up and running. My engineering friends are still looking for a low cost CAD tool. Any recommendation out there?

Kitchen PC - Take Two

So what would an ideal kitchen PC look like? First, it should not look like a PC. Secondly, it should be stylish. Last but not least, it has to be cheap.

HP TouchSmart PC come very close. It's stylish and doesn't scream "I am a PC". However, it has an anti-recession price. The starting price is $1299 but you can't watch TV yet. If you want to watch TV and wall mountable, you are looking at almost $2000. Ouch...

I feel that PC makers are approaching this "final frontier" upside down. They want people to buy a PC and turn it into something else. In my last post, I talked about PC as a "lonely" experience. TV in a kitchen is a social experience. Imagine this, NCAA basketball championship game is on. Mr. and Mrs. Partyfun are throwing a bash. As usual, the guys and maybe some gals gather around the 50" plasma in the living room or family room enjoying the HDTV and surround sound experience. The rest are hanging out in the kitchen with the game on in the TV - talking and once in a while checking the score. Do you think they care if this is a $2000 PC or a $300 appliance?

I would propose building a TV that happens to have a PC brain. With the introduction of Atom processor, an OEM can offer an appliance that gives people the social experience first - TV - and other convinences later - ondemand content streaming, sticky notes, grocey lists, etc. And by the way, please don't charge us an arm and a leg. The netbook is less than $400... Hmm... May be I'll buy one of those netbooks and mount it upside down under my kitchen cabinet???

Kitchen PC

Asus recently just announced a touch PC that is kitchen friendly. Another PC maker goes after the kitchen crowd. I would love to get my hand on this PC and play around with it but with the budget constraint, I don't think I would be able to anytime soon. Asus... can you spare one for test??? Not to be left behind, Dell has one as well. And if you are not afraid of tinkering with parts, you can build your own.

Anyhow, I am not sure if the PC makers really understood about the purpose and usefulness of a kitchen PC. Kitchen is increasingly becoming the place for social gathering. At our house, our kids can do their homework, eating snacks or informal meals, or just hanging out in the kitchen. Every time we have guests, 90% of the guests will gather in our kitchen (good food and wine do help, by the way).

At the same time, PC experience is an "alone" experience. Think about it: one display, one keyboard, one mouse... When one surfs the web, that is basically it. The other person or people would just look over the shoulder. We just take something wonderful - social gathering - and destroy it with a PC. I understand the so-called benefits of a kitchen PC: downloading recipes, looking up something quick on the web, IM, calendar planning, scheduling, and so on. Believe me, I am a gadget geek and I'd love to have another gadget to play. But I think PC makers need to understand how the kitchen PC can fit with the social gathering aspect of today's kitchen.

I read an article in the past about Intel hiring anthropologists to find the keys to tech adoption. That's the step to the right direction - really understands the cultures and what makes people to use certain technologies. I wonder if Asus, Dell, and HP apply the same techniques - deploying their product managers and/or their own anthropologists to people's kitchens?

A parting thought: PC is not for the kitchen... It has to be something else... I'll share more in my next blog.... Stay tune!

Wisdom of the Crowd

Lately I have been thinking about the wisdom of the crowd. With the recession is all around us, social networking websites such as LinkedIn, Facebook, and Twitter are becoming more active. Since I am a very regular LinkedIn users vs. Facebook or Twitter, I want to share my observations on LinkedIn. With all the groups that I belonged to in LinkedIn, it gets very depressing when I see so many brain powers looking for new opportunities. It would be interesting for LinkedIn to run a little survey to see collectively how many years of professional experiences are now on the street.

That leads to my next thought. Would it be great if somehow one could harness this unprecedented level of expertise for the next wave of innovation? Social networking was born during the dot bomb which eventually led to Web 2.0. And that's because we wanted to leverage the Internet to create a highly linked community. So how can we do the same thing this time around?

We have seen that Linux and open source software benefits from the wisdom of the crowd. Social networking sites have great number of users but have companies taken advantages of this crowd yet? There are now books written about how to use LinkedIn or Twitter to your business benefits. That remains to be seen if and how successful that would be.

For now, I continue to ponder about the wisdom of the crowd. Care to join me?

Optimism - A Poem by Jane Hirshfield

Our friend forwarded this poem to us as we are tested by this tough economy. I'd like to share it with others facing uncertainties and hard times. Hang in there... This is the tough time but we will get through.

Optimism

More and more I have come to admire resilience.

Not the simple resistance of a pillow, whose foam returns over and

over to the same shape, but the sinuous tenacity of a tree: finding the

light newly blocked on one side,

it turns in another,

A blind intelligence, true.

But out of such persistence arose turtles, rivers, mitochondria, figs -

all this resinous, unretractable earth

"Optimism" by Jane Hirshfield, from Given Sugar, Given Salt. © Harper Collins, 2002.

My Approach of Reducing Monthly Expenses with Technology

Let's start with the land line. As much as I would love to get rid of my land line altogether, we are in a dead zone. Our office is in our basement so that is a double whammy for us. VoIP (Voice over IP) is the next best thing. After looking around, I ended up with the veteran, Vonage, for a $24.99/month with unlimiated local and long distance. There are other plans out there (Packet8 for instance) but at least Vonage has been around for awhile so most of the kinks are already worked out. With any VoIP service out there, you should be able to get your voicemail delivered to your Inbox if you are using smart phones - a bonus that you don't get with your lovely local phone company... $24.99 in comparison with $50'sh or more for land line service plus voicemail, caller ID, and other fun stuff: 50% saving.

Satellite radio: DEAD... Long live: Streaming radio. Sirius plan: $12.95/month. Pandora: free. So I have to get broadband access but I need it for VoIP and our works anyway so the broadband access cost is amortized over these services.

My wife loves DVR since she can watch her shows whenever she wants. Now with Hulu plus major networks putting their shows online, we have unlimited DVR capability. We love Psych on USA Network and now we can watch these episodes whenever we like. Equip an HDTV with Dell's Studio Hybrid, you can have a nice little set up and yes, you can get a remote control for it. The Studio Hybrid runs about $500'sh but you save money on cable or dish bill, which is about $50/month or more. You should get your money back in about 10 months or so.

With the PC, I can access my Netflix for movie on demand. For $8.99/month, you have access to all movie on demand. Dish is charging anywhere from $3.99 - $5.99 per movie. That means you get your money back after two movies (plus a DVD in the mail). I know that NetFlix does not have a lot of movies right now but they continue to add more titles as we speak.

On the napkin calculation, traditional approach to phone, Internet, and home entertainment for 12 months is about $1980. Leveraging the technologies (plus the PC) for 12 months is about $1390. That's $590 in saving per year. I am sure we can use $590 in elsewhere, especially in the current economic environment. If you can use your old PC for streaming, you save yourself an additional $500. That's over $1000 in saving. Not bad!

I am sure that some of you might not agree to my approach but at least, I am getting you to read the post... The fun part for me writing this post is to figure out how to bring all cool technologies together, don't you think!

Why Should I Continue to Pay for Cable/Dish and Sirius?

I have just started to use Pandora with my iPhone 3G and I am becoming a big fan. It's commercial-free and customized to my likings. Unlike Sirius, it doesn't cost me a monthly fee and I can take this "radio" anywhere I wanted (at least in US anyway).

Along with the recent article on PC Mag, How I Slash My Bill with Tech, I can now have a quality TV and radio streaming with the high speed Internet, NetFlix, cellular/3G - all the things that I already subscribed to. The only missing puzzle for a sports nut like me is ESPN or other sports programming on cable/dish.

The one thing that I also need to figure out is how to make it easy to use - laying on the couch and flipping channels - for me as well as the rest of my family. May be a remote control that acts like a mouse as well??? Is there such thing???

In addition, would it be something that one could create a little consulting company on the side??? Thoughts?

DVD Menu Design - The worst yet?

I can't remember when was the last time that I played the DVD without fumbling through the menu to find the "Play Movie" link or to select a chapter and not sure where the chapters list is going to be or should I hover over or select the chapter list? Recently I was trying to play Monsters Inc. for my children (age 4 and 2 respectively) and I had to hit enter three times before I got to play the movie. I can't just put a movie in and think that it will just play by itself. This article has a lot of valid points about how painful the DVD menu design getting to be.

DVD menu is an example of complex design of something that would otherwise be so simple? Why can't I just pop in a DVD and it'd just play a movie for me? If I want all the extra stuff or the previews, I'd do it myself. I notice more and more newer movies will not allow me to get to the menu selection after the previews so I have to fast forward through the previews. Can someone say VHS?

It's amazing to see that with a lousy front end, DVD is still the defacto in movie home viewing. We are willing to overlook the inconveniences to watch a DVD. Imagine if I'd do that to one of my products, customers would have my head. That goes to say that Hollywood has a very strong influence on us. I don't know if there is any other industries that can do what they please and people still buy their products.

Imagine that someone go out and buy a car with a steering wheel may be in the left, or in the right, or in the middle, or whatever the car design decide to put the steering wheel (the ever-changing main menu selection). Oh yeah, the car doesn't go very fast (Star Wars Episode I chapter selection takes several minutes to get to the right chapter since I had to put up with the entire pod racing scene to go from one group of chapters to the next group). By the way, the car may start but you have to turn the ignition on may be one time, may be two times, or several times (I can't just start watching the movie right away anymore. Gotta push that "enter" button several times)? Do you think you would buy that car? And yes, we put up with the horrible of DVD watching. Now try to watch a movie with young children and you soon realize that you don't have the precious time to waste.

DVD could be so elegant since it's software controlled. It could be designed to automatically detect the signal from the TV and play movie with appropriate ratio aspect without users' intervention. A little usability testing and standardization could help eliminating end users' confusion. Furthermore, if someone from the movie industries cares to listen to users (as with any product managers would have to do), may be it could help improve the watching experience. Then again, I am just wishing...

Positioning Statements

I ran across these tips by Zigzag Marketing: Using Buzz Words: You really shouldn't that made me say "Amen". I am never a big fan of buzz words, especially when my prospects and customers are mostly engineers. Yet, I always ran across product positioning statements that full of buzz words - highest performance, optimized to maximize, etc. You got the point. The last thing that these engineers need is for some marketing and sales guys come in and use "big" words that mean nothing.

In several occasions, I have sat through product presentations and after their opening positioning statements, I didn't know what they were talking about. I lost my interest after that. Other times, I would try to understand product offerings through company's website and after reading the home page, I still didn't know what they are trying to sell.

I believe in "just say what I mean" yet I encountered numerous people that love using buzz words because that makes them important. One of my old colleagues had a bad habit of using buzz words when talking with his clients. In more than one occasions, he'd give me a positioning statement that he was planning on presenting and I didn't know what he was saying after he was done. All I remember that every other words were buzz words - optimize, highest efficiency, productivity, blah, blah. I couldn't tell what his message was.

The article gave a classic statement: "Our tool set offers the most flexible and efficient way to optimize resources to maximize profits and minimize costs". What does that mean? It went on and gave an equivalent statement: "Our solution will increase your profitability by processing more transactions at the lowest possible cost."

My rule of thumb: can I back of what I say? In other words, can I back my positioning statement? By forcing myself to do that, I have found that my positioning statement becomes simpler and most often in plain English (being not a non-native English speaker does help). I am able to tell customers what my product is and how it helps my customers to solve their problems. I have a little process that I work through to create my product positioning statement:

• Identify the situation
• What are the target markets/applications?
• What are the benefits and associated features
• Who are my competitors and what are the products that I am competing against?
• What are my product differentiators?

After complete those steps, product positioning can be as simple as putting all bullets together and massage into a sentence. That's all.

Until next time, I wish you "to maximize your productivity to minimize your company's inefficiency and optimize the return-on-investment for your stockholders"... Just kidding!!!

Discipline of Market Leaders

I just got done reading "The Discipline of Market Leaders" by Michael Treacy and Fred Wiersema. The book came out in 1995 but a lot of thoughts and theories outlying in the book still hold true. I highly recommended this book if you care about the success of your company. Here is an example of a review of the book from Bizsum site.

The book focuses on 3 type of organizations:

• Operational Excellence: lowest price with hassle free service. Wal-Mart is an example of this type of organization
• Product Leadership: pushing the limit of product boundaries. Intel, Sony, and Nike are these kind of companies
• Customer Intimacy: delivering exactly what customers want and more. Interestingly enough the book uses the old IBM of the 70s as one of the examples

My current company follows the Customer Intimacy model. With this model, we chose to have a smaller set of customers but we become an extension of those companies. Our account managers are treated as part of our customers' teams. Because we are a technology company, we often have to mix in Product Leadership to keep our customers ahead of their competition. Our product prices are a little bit higher than others but our customers prefer to work with us since at the end, the total cost of ownership (product pricing, services, support, leadtime, flexibility, etc.) come out to be the lowest. I have worked in other organizations where Product Leadership is the focus and I think the Customer Intimacy is the trickest, especially in the high tech industry, where ones tend to fall for the most tricked out, uber-tech products.

It helps for the organizations to recognize where they want to be and model their businesses after it. I consulted with a company in the past where they wanted to be the Customer Intimacy but they structure their business model after Operational Excellence, the low cost leader in their industry. They ended up with negative gross margin and unhappy customers. The company is still struggling the last time I checked.

In conclusion, the book is a must read. Besides it is a very easy read and most case studies in the book associated with well known companies. Go out and get one!!!

Treo 650

I have just switched from a Samsung i330 to a Treo 650. What a difference...

Samsung i330 was a good phone but there were too many design flaws. The first and foremost - syncing. The USB driver came with the phone never worked well for me. I had to tweak several settings on my computer to make it work and at the end, I gave up. Luckily my work place went with a remote syncing software to work with MS Exchange server. That posed a problem when I left the company. I don't have a good way to sync anymore. The antenna never really worked well. I had problems connecting inside a building while my wife's cell phone (one of the freebies comes with a service plan) was happy chugging along. I don't like the touch screen for dialing. I missed the tachtical feel of a key pad. The dialing was designed for one-hand dialing but the rest of the phone was not.

Luckily, at my new work place, we have decided to upgrade the marketing dept with the latest Treo 650 so that we can use overseas (my VP marketing has taken his Treo650 to Europe and loved it). So far, it has been a pleasure to use. The device is designed for one-hand use w/ minimal effort. I barely use the stylus anymore. I am going to forget how to use the Palm's grafiti with the built-in keyboard. If you can't part with the grafiti, this phone is not for you since there is no place to write. Though typing out a SMS is a lot faster than grafiti. Also creating a meeting while sitting at a stop light is a breeeze. I was able to setup and synch w/ the supplied USB cable w/in minutes. The antena works better than the i330. Incoming calls can have associated images. Thanks to the built-in camera.

The phone has a MP3 player and a slot for an SD card. I have not tried it out yet. I also have not tried to sync my Outlook yet. My colleagues had the built-in mail applications crashing the Treo. The Treo is shipped with DataViz Document to go but I have not had a chance to try it out yet. There are loads of other features that I have not tried them out yet.

One small gripe, Treo uses a goofy connection at the bottom of the phone for power supply. Why can't they have a simple jack like all other phones on the market? I still don't believe the reliability of this goofy connector in the long run. I have seen these types of connectors wearing out in a very short amount of time. Also they can break very easily.

Other than that, I like my Treo 650 so far.

Living History

I have finished a very good book recently: Living History by Hillary Rodham Clinton. And yes, I am a democrat... Putting that aside, the book is very well written with a sense of humor. I think Hillary is an amazing woman. She has accomplished so many things that I wonder if she actually sleeps at all. Highly recommended for all book lovers out there. Check out a few reviews: Ruthless Reviews, Blog Critics.

There are lots of things in the book that I found fascinating but one thing that stood out when I read the book. When talking about foreign policies, she mentioned that several members of the Houses bragged that they never stepped outside of United States. How could they make informed decisions if they are ignorant about other countries? It's almost like a product manager making important product decisions that could impact the company's health in a vacumm!

It will be very interesting to see how far Hillary could ascend the politics ladder.

Online Photos and Local Camera Shop

Continuing from the last post... I went to the local camera store to develop my "film" from my new Canon Digital Rebel . I had 2 choices:

• Using the kiosk - $0.29/print
• Having the store develop with the "big machine" - $0.39/print

I asked the owner which one is better and he told me the latter because he can control the process better. I went w/ his recommendation and I was glad that I did. The pictures turned out to be outstanding.

Now I am thinking: in the days of Target, Walmart, and online photo (Shutterfly, Ofoto, Snapfish, and the likes), how can these local camera stores compete? They do have a loyal customer base but it's going to be hard for them to grow their revenue and customer base. I guess the more important question: do they really want to grow?

Assuming the local camera stores want to grow, they should differentiate themselves from the big box retailers and educate the masses. I tried to use Target several times to develop my prints from my old film-based camera and the pictures never turned out right. I have heard the same thing from Walmart. The local camera stores now have a chance to position themselves with high quality printing. May be a tag line like this: We care about your precious memories.

Another crazy idea: how about the local camera stores partner with online photo sites? Would it consider selling out? May be... But think about it, these stores already have kiosks so that they could be price-competitive to attract new customers. What if they offer an online photo sharing service managed by say Shutterfly but with their own store brands? For every digital film developed, these stores offer to upload on their "websites" for free. Customers can either choose to print online and deliver to their house or place an order and pick up at the stores. The online photo site gets the cut when printing online and the camera stores get the cut when picking up an order. Either way, both are gaining new customers. For the online photo site, they get additional revenue when customers decide to share their pictures w/ other family members and friends. The camera stores now have the service that discount retailers don't have (yet). A happy harmony of "Click and Mortar" (or "Click and Brick")...

Comments???

I did it... Digital Camera

I have been holding out with the digital camera craze for awhile now, which is not consistent to my profile as an early adopter according to my friends. The reason for it is that I don't really like the all-in-one digital camera. I didn't care for the 2M or 3M pixels image quality but w/ 4M and 5M pixels camera coming down in price, I am waiting for the right moment.

Well my 10-yr old Cannon EOS Rebel finally bellied up while we were on vacation. We were not very happy with its untimely death. I took it a local shop and it would cost me about the same amount of money to buy a new analog body. So either sticking with analog or go w/ digital, this the time to do it.

After testing all-in-one digital cameras, I still didn't like them. All of them have a lag when capturing images. The lag makes it hard to take pictures of my 3-yr old and 1-yr old. We decided that a dSLR (digital SLR) may be the way to go and the only one that is affordable in the market is the Cannon EOS Digital rebel (300D). CNET did a review and gave it a 7.5 out of 10. That's plenty good for me!!!

The next choice is to buy online or local. Google search came back with several sites and a few sponsor sites. Warning: I went on Better Business Bureau to check on these sponsor sites and half of them were not recommended by BBB. The ratings on CNET and Yahoo are very consistent with BBB. After looking over several sites and checking out their prices, I went a local store and played with the camera. I talked to the owner at length about the camera and he was very knowledgeable about the product. He showed several prints out of difference sizes produced by the camera.

The price difference was about $100 between buydig and the local store. After thinking through, I decided to pay more for the local store. The owner threw in a 128M CF card and a card reader to sweeten the deal. When I left the store, I asked myself: how could small stores compete with online and the Walmarts? The owner showed me his cost for the camera and no way that he could be price-competitive.

What are your thoughts?

Accounting & Product Manager

Recently, I ran across a question from a Product Manager: how should I develop a COGS model for software products? That question makes me ponder - how much of accounting that a Product Manager should know and if having accounting knowledge is an advantage or disadvantage?

Back to the COGS example, one of the answers was "taking the developers' time and allocating back to the products". That's a rather dangerous approach. Accounting dept. would be all over that answer since most of the time the salary of the developers (i.e. time) would fall under Payroll Liabilities account. COGS in definition is the direct fixed cost making that product.

May be the question above was to figure out the gross margin of the products with various pricing scenarios. If this is case, PM should be able to figure out using a rough COGS and Expense model from their cost and/or accounting dept's. That brings back to my thinking earlier - should PM understand accounting?

My bias is YES. PM should have some level of "managerial accounting". Just enough to be dangerous... Accounting is not that hard but it is tricky, especially when dealing with cost accounting. Coming from an engineering (hardware and software) background and having working with several consultants with formal accounting training, accounting is a lot less complicated than writing code or designing a board but it can get confusing quickly. Though knowing some accounting principals, I was able to create several business plans and launched a division in a process.

Slick Screen Capture - SnagIt

(Disclaimer: I have no business-relation with TechSmith. Just a pleasantly surprised user)

I just purchased a really slick screen capture utility, SnagIt, from TechSmith. This utility got several Editor's Choice from PC Magazine and Best of Year 2003 award. You can read more about the indepth review from the magazine.

My first impression is that SnagIt integrates with MS Office so that w/in PowerPoint, I can quickly capture a screen with a consistent size. Of course, I can do this with Ctrl-Print Screen or Alt-Print Screen and resize when I paste into PowerPoint. It can become a very tedious work for a large document.

Furthermore, SnagIt has a very powerful touch up tool for a captured screen with drop-shadow, jagged edge, etc.  Things that I have to open a photo-editing software program to do it.

The price is right - $40 for a single user and I bought 10-user pack for $200. Try it out!!!

Btw, if you don't want to shell out 40 bucks, Gadwin has a very nice screen capture that used to be free. Not sure if they charge for it now.

Product Management Gone Wary

This is a great article to illustrate how product management has gone wary. If companies focus too much about beating competitors, they lose sight of what and how their products should serve customers. Check it out: Show Me The Money.

I got into product management awhile back because I wanted to create products that people want but I found myself getting caught up in beating competitors instead of defining customer-driven products. This article reminded all of us that companies should think more about their products and customers.

Highly recommended...

To Integrate or Not To Integrate

I had a lively discussion w/ one of my colleagues today about business system integrations. This is an age-old thorny issue that organizations of any size will have to deal with sooner or later because it could work out beatifully or it could be a disaster that send people out on the streets looking for jobs.

I believe the integration comes down to three issues:

1. Best-of-breed approach
2. Integration-capability among systems
3. One integrated system

In an ideal world, I would pick number 3. Matter of fact, we are a solution provider for a hosted front- and back-office system, NetSuite. This is a very good system for majority of small- to mid-size businesses out there. We use it ourselves here for our business operation. Where else can one find an integrated full-featured CRM/ERP/E-Commerce package for under $10K a year for five users and not have to worry about upgrading hardware infrastructure? Other huge benefits: hosted applications minimze the need for IT staff and downtime for upgrades. Though there are areas that NetSuite can't or won't touch. MRP (Manufacture Resource Planning) is one example.

On the other hand, I have been in an organization where number 1 is a preferred approach. Let's get the best of breed and worry about the integration later. My last company couldn't get SAP to talk to Dominos database and try to force-feed Dominos/Notes into an SFA (Sales Force Automation) application. The integration was a nightmare and I, the product manager, sufferred since I had no visibility into my pipeline. The comapany (a public company) ended up doing a lot of forecasting in Excel using piece-meal information from various groups. I didn't think it was very efficient.

I think the best approach should involve a well-thoughout requirement stage where:

• Use multiple systems if absolutely have to. For instance, using NetSuite for CRM/ERP and an appropriate MRP system.
• Best-of-breed is not needed if the best software does not allow easy integration. Most companies out there rarely use all functionality of the system anyway.
• Define modules clearly and spell out the touch points (integration) between systems. The less touch points, the better integration will be. Thankfully web services are coming. They will simplify the integration task quite a bit.

Most the points above are nothing new. It's all common sense yet most people tend to get emotionally involved and forget to look at things more subjectively. Maybe integration project should include a warning: Subjects appeared to be emotional...

Thoughts and comments?