Introduction To DPM

Andre Albuquerque - Digital Product Management

“There are decades nothing happens, and
there are weeks where decades happen.”
― Lenin

8 weeks from 18% to 32% (+14pp)
13 years from 4% to 18% (+14pp)

?
?
“The future is already here – it's just
not evenly distributed.”
― William Gibson, The Economist, December 4, 2003

Welcome to
Digital Product Management

Who am I?

What are we going to cover in this course?
Class 1: Understanding product, evaluating opportunities and assessing risk
Class 2: Discovering your customer through profiling and jobs
Class 3: From prototyping to prioritizing your choices
Class 4: From product vision to defining the business value behind the product
Class 5: From measuring success to launching your product
Class 6: Pitching your products

What do I have to read to understand this?
Link to buy the book on Amazon (of course there’s no link, you’re not going to buy)
Are we going to have guests?
Class 4
TBD
TBD
TBD

How am I graded?
Exam Group Assignment
● Final exam counts 35% of the final ● Group assignment counts 65% of
evaluation the final grade, split:
● Minimum score to pass is 9.5 out of

○ 20% product review #1, #3, #4
20. Roundup on second decimal (eg:
○ 15% product review #2 (class 4)
15.45 is 16)
○ 30% last presentation (class 6)
● Exam serves as an individual

● Each member of the group will
evaluation tool
receive the same grade

Who knows what this is?

Introducing the Manekineko

Class quizzes (not graded)
● Class #2, #3, #4 and #5 will host quizzes

about the previous class
● Quizzes are not graded and optional to
play
Top scoreboard player will win a 1-year

premium Medium subscription *
Download the Android or iOS App
before next class
Andre Albuquerque - Digital Product Management * If there is more than one winner, the highest exam grade will break the tie
Join whatsapp group
Whatsapp will/should be used to:
Get updates and changes to classes

Ask questions, this way everyone gets to see them
Link for class NPS
Share interesting content, random gifs, relevant memes

What can you expect from this course
1. Not an “entrepreneurship” class: this is about making decisions, not creating companies.
2. A principle-based approach at product. There is no playbook, but there is a way to play.
3. Learnings that get you ready to have thoughtful product discussions with real PMs.
3. A healthy dose of memes, gifs and emojis on class slides.
4. A “Why?” mindset
5. A material need of personal resourcefulness and out-of-the-box thinking, because that is
the only way products win in the world.

Questions?

Defining a digital product
“Products powered by technology”
- Marty Cagan

A digital product vs a non-digital product
Product not powered by technology Product powered by technology

A digital product augments amount of
functionalities through technology

A digital product boosts each individual
functionality through technology
Technology emboldens what you can now do versus what you

could do, considering the same use case
The compound effect of product
functionality

But not all products are created equal.
Think on what you use on a daily
basis.
The operational and business model

of each product is the largest
influencer of its characteristics.

It can be an ecommerce product
“The activity of buying or selling of products 20%-50% Margins

on online services or over the Internet…”. Transactional business
The digitalisation of your “shopping mall” GMV main metric

It can be a marketplace product
“type of e-commerce where product or service

3%-15% Take rate
information is provided by multiple third parties,
Commission business
processed by the marketplace operator”
Transactions main metric
The digitalisation of connected supply and demand
It can be a social product
“online platform which people use to build social

50-90% Margins
networks or social relations with other people who
Advertising business
share similar traits and interesses”
ARPU/Utilization main metric
The digitalisation of communication
It can be a SaaS product
“software licensing and delivery model in which 80%+ Margins
software is licensed on a subscription” Recurring revenue business
The digitalisation of services MRR/ARR main metric

It can be a hardware product
When hardware is the core manifestation of your 10%-30% Margins

product and experience High value transaction
The commercialisation of physical technology Sales main metric

And it rarely is only one thing
Hardware + Software Service + SaaS Marketplace

Single price sale Subscription sale % commission on sales
Hardware technology Distributed software Centralised operator
Powered by software Cloud-based product Third-party partners

Often value comes from the ecosystem

And other times it’s through the value chain

Do you know what is the most
valuable real-estate in the world?

Google $1T
Apple $2T
Facebook $800B
Linkedin $26B
Zomato $2.5B
Trello $500M
Medium $600M
Spotify $50B
Bird $2B
Uber $70B Wunderlist $200M
Invision $1.1B
Revolut $5.5B
Blinkist $200M Soundcloud $300M Glovo $1B

Andre Albuquerque - Digital Product Management Slack $20B
+$4 Trillion in value
In August 2020
Each company is valued on average at $235 Billion with

an average $142 Billion market cap per spot in homescreen.
On an iphone XS, at 81cm2, that is $50 MILLION per cm2.

A cm2 in Mónaco costs $660… cheap.

But the product isn’t just what it is or
what you see

“People don't buy what you do; they buy why you do
it. And what you do simply proves what you believe”
― Simon Sinek

Which companies do these missions belong
to?
Facebook
___________ “To give people the power to share and make the world more open and connected.”
Twitter
_________ “To give everyone the power to create and share ideas and information instantly,
without barriers.”
Uber
______ “Seamlessly connecting riders to drivers through our apps, we make cities more
accessible, opening up more possibilities for riders and more business for drivers.
Google
________ “To organize the world’s information and make it universally accessible and useful.”

The product manager turns
these missions into products
“The honest truth is that the product manager needs to be amongst the
strongest talent in the company.”
- Marty Cagan

If there is one thing you
need to remember is that
Product Managers need
to be in love with the
problems, not the
solutions.

The dance of the Venn Diagrams

Connecting the right process with the right
product

Someone who wears many hats in an org

Someone focused in bringing everything to
Quadrant 1

Living within the opportunity space and the
solution space
Opportunity space
Solution space

The product team
“Every product begins with the people on the cross-functional product team. How
you define the roles, and the people you select to staff the team will very likely
prove to be a determining factor in its success or failure.”
- Marty Cagan

What is the scope of a product team?
Feature ownership - Product team is responsible for a particular feature or set of
features that make a specific experience within the product.
Facebook “On This Day” Feature Spotify “Discover Weekly” Instagram Stories
Vertical ownership - Product team is responsible for developing all products and
feature for a specific vertical.
Amazon “Voice” products Airbnb “Experiences” Product OLX Real Estate

Customer ownership - Product team is responsible for building the products and
features for a specific customer.
Uber “Driver” Product Airbnb “Renters” Product

Coordination (planning, making Understand the tricky balance between
decisions), communication (what getting it right & getting it out the door. Have
is happening, when, and why) a good feel for what seems right or wrong
“Help your team (and company) ship the right product to your users”
Articulate how beating the goals Advocates for your users and
& metrics of their product will represent users in nearly every
bolster company’s overall strategy conversation

What PMs need to know to be successful:
⭐ 🔮 ⚒
Mission Vision Strategy
Why What How
󰰁 📍 🗺
Segmentation Positioning Roadmap
Who Where When

So how do you decide
what to build?
“First, discovering in detail what the customer solution needs to be.
Second, ensure we deliver a robust and scalable implementation that our
customers can depend on for consistently reliable value”
- Marty Cagan

1. Understand value
“...the regard that something is held to deserve; the
importance, worth, or usefulness of something.”

Successful products create new value curves
by changing standards
Raise
Which factors should be
raised well above the
industry’s standard?
Eliminate Create
Which factors that the Which factors should be
New Value Curve
industry has long competed created that the industry
on should be eliminated? has never offered??
Reduce
Which factors should be
reduced well below the
industry’s standard?

Ryanair carved a new value curve with a
wide gap

The wider the gap, the better your product
competes
Costs
Eliminate
The PMs job is to create the
Reduce strategy and execution that
increases this value gap
🤩
Value
Gap
Raise
Create
Value

How is Uber changing the standards of the
transportation industry?
How is Uber How is Uber How is Uber How is Uber
reducing “costs”? creating “value”? raising “value”? eliminating “costs”?
- Cheaper rides due to - A “wealthy person” - Security and comfort - Scams by taxi drivers.
optimised supply feeling riding a car
- No money exchange
- Lower waiting time - Online, mobile - Number of high
- Searching for a car
for a ride booking platform quality cars
across town
- Unpredictable taxi - Forecasting wait and - Standard of taxi
experiences arrival times drivers

How is Airbnb changing the standards of the
hospitality industry?
How is Airbnb How is Airbnb How is Airbnb How is Airbnb
reducing “costs”? creating “value”? raising “value”? eliminating “costs”?
Price of each night A “local native” feeling Safe, trustworthy Impersonal

platform connecting experiences
The barriers to make A way to monetize
strangers.
an extra cash your home Scammy booking
The amount of experiences
available supply of
“hotels

A great way to assess market size:
Petal Diagram Intersecting
Market 2
Intersecting Intersecting
Market 1 Market 3
Intersecting Intersecting
Market 5 Market 4
Looking at Slacks’ Petal Diagram
Business
Communication
Task Manager Real-time

communication
Productivity File sharing

Suite and storage
Lean Product Opportunity Assessment
1 2 3 4
Value Proposition Target Market Size Alternatives
Exactly what For whom do we

How big is the What alternatives
problem will this solve that problem?
opportunity? are out there?
solve and what
success looks like?

2. Understand risks
“Risk involves uncertainty about the effects/implications of an
activity with respect to something that humans value.”

The four risks you need to assume
Desirability risks Usability risks Feasibility risks Viability risks Ethical risks
What does the How is the user What is possible How much can I How can my
customer value? used to using the to be built? What charge? How solution harm the
What can’t she product? What’s will be too much much are users customer? Could it
lose in alternative too much of a that will make me used to pay? What be exclusive? Can
solutions? learning curve? lose the timing? is ROI positive? it be abused?

Brainstorm your risk assumptions
Desirability risks Usability risks Feasibility risks Viability risks Ethical risks
- How do customers - What are particular - What seem technically - How are users used to - Does products in this
measure success? functionalities they use? challenging? paying for the area become addictive?
- What is valuable in their - How are they used to - What is proprietary in competitive solutions? - Are people being left
eyes? solving the problem? the competitive solutions? - What seems difficult to out of using these
- What makes a product - What products do they - What requires an achieve in the business products?
much better to solve the use to solve the problem? investment that is model? - Does it contribute to
problem? - Are there specific expensive or hard to - What looks like a large more inequality?
- Why are people choosing interactions in the achieve? investment? - Can this be abused by
the most obvious products? - What does the top - What differentiates the online trolls?
solution? - What do every solution have that seems best competing product - Will I need data that
- What is the key value competitor have in no one has? in the business side? could jeopardize a user’s
proposition possible common in the identity?
competitors use center experience?
and forward?

Why does this matter? The relationship
between product areas is to de-risk.

Discussion Time
You’re in charge of building

Instagram for Kids. Risk assumption.
Next class...
3. Understand users
“A user is someone who interacts with products in order to reach a
goal.”

Building the right product is a process

And you must be laser focused on discovering
who is your early market

It’s about getting to phase 2 and being able to
market something people actually want

Questions?

Group Assignment

Not what we’re looking for
What will groups have to do?
1. Form groups > your product team
2. Select a tech company (list will be next)
3. Find a customer problem this company is not tackling but makes sense
considering it’s strategy and vision.
4. Use everything you learn throughout each class to build a prototype, landing
page and model of what you believe could be a product for this company.
5. The product needs to be mobile and an experience that users interact with to
solve the problem
6. Pitch to the company board (everyone else)

Choose one of these. First to pick each wins.

Using Miro to help
I’ve built a framework to assist on your
process to build an amazing product. This
framwork will be available for teams on MIRO.
So go to https://miro.com/, start a free

account, and invite your group to a shared
account. After that invite my email
(andre@albuquerque.io) to your shared
account, so I can add the Template.

First deliverable for class #2
Scope:
1. Choose a new problem that aligns with the company’s ecosystem and mission based on one of the
following (or both):
○ Speak with current users of products from your company and identify problems they see as
worth solving
○ Identify a new opportunity to create value to the selected company by building a new product or
extending the current product.
2. Assess the opportunity of your choice by:
○ Running a value innovation exercise
○ Design your PETAL
○ Answering the first 4 questions of the PAO
○ Running the risk assessment
Requirements: Max 10 slide presentation

First class done. Being a PM is simple right?

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Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

13 years from 4% to 18% (+14pp)

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Class 1: Understanding product, evaluating opportunities and assessing risk

Class 2: Discovering your customer through proﬁling and jobs

Class 3: From prototyping to prioritizing your choices

Class 5: From measuring success to launching your product

Class 6: Pitching your products

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Exam Group Assignment

● Minimum score to pass is 9.5 out of

● Exam serves as an individual

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

● Class #2, #3, #4 and #5 will host quizzes

Top scoreboard player will win a 1-year

Whatsapp will/should be used to:

Get updates and changes to classes

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Product not powered by technology Product powered by technology

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Technology emboldens what you can now do versus what you

Andre Albuquerque - Digital Product Management

The operational and business model

Andre Albuquerque - Digital Product Management

“The activity of buying or selling of products 20%-50% Margins

Andre Albuquerque - Digital Product Management

“type of e-commerce where product or service

“online platform which people use to build social

“software licensing and delivery model in which 80%+ Margins

software is licensed on a subscription” Recurring revenue business

The digitalisation of services MRR/ARR main metric

Andre Albuquerque - Digital Product Management

When hardware is the core manifestation of your 10%-30% Margins

Andre Albuquerque - Digital Product Management

Hardware + Software Service + SaaS Marketplace

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Uber $70B Wunderlist $200M

Blinkist $200M Soundcloud $300M Glovo $1B

Each company is valued on average at $235 Billion with

On an iphone XS, at 81cm2, that is $50 MILLION per cm2.

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management

Andre Albuquerque - Digital Product Management