Digital Product

Management
From product vision to defining your business value

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 Rules:
1. Add your number before nickname (eg:
15212345 - NICKNAME)
2. Use the same name every Kahoot stage
3. Use the app, better experience
4. Time counts to the score, not only getting
it right

Andre Albuquerque - Digital Product Management

 Previously on Digital Product Management...
1. An MVP, more than a barrier to product scope, is a learning process
2. Lack of prototyping and testing is the major cause of product failures (and
consequently company failures)
3. Prototypes are the best tool to accurately assess risk, and its fidelity needs
to be adjusted at how deep this assessment needs to be
4. Prioritization is the hardest but most necessary step in the product
process, and ultimately is about balancing impact and effort.
5. You solution and experiment process leads to the right MVP
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Andre Albuquerque - Digital Product Management
 So what are we covering today?

1. Designing a product vision

2. Creating a product strategy
3. Making product decisions
4. Building a product roadmap

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 Getting to the right product

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 So how do we get to the right product
across the organization?
A product vision

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 Principles to build a Product Vision

1 Start from your why, centered on customers

2 Think big, based on your north star

3 Flexible strategy adapted to timeframes

4 Be informed by industry trends

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 Distill from the company’s vision to bridge
against the product strategy
To bring inspiration & innovation
to every athlete in the world.
To be the world’s most loved,
flowing and profitable airline
To create the most compelling
electric car company of the 21st
century
Andre Albuquerque - Digital Product Management
Be the destination for customers
to save money, no matter how
they shop.
To provide access to the world’s
information in one click.
To be the world’s best quick
service restaurant experience
To be the best way to pay and
be paid, for everyone,
everywhere
To be the world’s leading
producer and provider of
entertainment
To be the premier purveyor of
the finest coffee in the world
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 Use the vision to show the future, and make
it happen

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 How Elon Musk applies Product Vision
principles

Start with why A big future Flexible strategy Trend-informed

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 1. Start with why

Make the human race prosper

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 2. Don’t be afraid to think big

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 3. Flexible on the details

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 Use your vision to rally your customers
around your “enemies”

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 Not sure how to “think about the future”?

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 Working Backwards with Amazon Reverse
PR
● The product’s name
● The intended customer
● The problem the product solves
● The benefits to the customer
● A quote from someone at the company explaining in an
inspirational way why you developed the product and what
you hope it will do for your customer
● A call to action telling the customer how to advantage of the
product right away
● Optional addendum: FAQ answering the business or tactical
questions about building the product

TEMPLATE HERE

Andre Albuquerque - Digital Product Management

 Let’s play a game
A) You are the product team of a new banking mobile app.
B) You have 100 “coins” to buy some of the features
C) WHAT do you buy and HOW do you tell the story?

1- Categorize automatically expenses - 🏦 35 coins 💰NPS + 10pts

2- Auto roundup to save - 🏦 45 coins 💰 AUM + €10M/year
3- Commission free stock market investing - 🏦 50 coins 💰Revenue +50%/year
4- Instant online payment - 🏦 25 coins 💰NPS + 20pts
5- Unlock with Face ID - 🏦 25 coins 💰Unclear gain but people are so used to this...
6- App in my own language - 🏦 25 coins 💰+20% more users
7- Buy cryptos - 🏦 50 coins 💰Volatile, legal doubts, 100% more profit if works
8- Split bills with friends - 🏦 35 coins 💰30% referral

Andre Albuquerque - Digital Product Management

 But a strong product vision requires a
strong product strategy

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 How to have a solid product strategy:

1. Focus on outcomes, not outputs. Optimise for product outcomes

2. Don’t build fixed roadmaps, leave space for uncertainty
3. Product strategy happens in the opportunity space, not solution space
4. Focus on one target market/persona/outcome
5. Optimise for alignment with business strategy, go-to-market, stakeholders
6. Obsess over customers, not competitors. What is happiness for them?

Andre Albuquerque - Digital Product Management

 Focus on outcomes, not outputs

Andre Albuquerque - Digital Product Management

 Leave space for uncertainty

Andre Albuquerque - Digital Product Management

 Strategy happens in the opportunity space

Andre Albuquerque - Digital Product Management

 Focus on one target market / persona

Andre Albuquerque - Digital Product Management

 Optimise for alignment with business
strategy, go-to-market, stakeholders

Andre Albuquerque - Digital Product Management

 Obsess over customers, not competitors

Andre Albuquerque - Digital Product Management

 Measuring how effective is your product
strategy

💫
North Star metric is the one measurement that’s
most predictive of a company’s long-term success,
and helps rally everyone around a single objective.

Andre Albuquerque - Digital Product Management

 Examples of North Stars

Rides Nights Subscribers Daily active users

Documents Transactions Seats GMV

Andre Albuquerque - Digital Product Management

 Tesla’s Master Plan
High
Price

Step 1: Create a low

volume car, which would
necessarily be expensive

High Volume
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 Tesla’s Master Plan
High
Price

Step 1: Create a low

volume car, which would
necessarily be expensive

Step 2: Use that money to

develop a medium volume car
at a lower price

High Volume
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 Tesla’s Master Plan
High
Price

Step 1: Create a low

volume car, which would
necessarily be expensive

Step 2: Use that money to

develop a medium volume car
at a lower price
Step 3: Use that money to
create an affordable, high
volume car

High Volume
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 Getting to Product Strategy

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 Your north star helps guiding through
uncharted waters

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 A significant part of your product
strategy is connected to your business

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 Define your business approach based on your
operating model
1. Ad-Based Revenue Model (large scale usage, specific targets). Eg: Facebook
2. Affiliate Revenue Model (content based, niche audience, transaction enabler) Eg: GoDaddy
3. Transactional Revenue Model (direct sales of products). Eg: Amazon
4. Subscription Revenue Model (recurring value, pay for access). Eg: Netflix
5. Channel Sales (clear retail partner, agent with a mass audience). Eg: Warby Parker
6. Freemium Model - (In app purchases, trial and premium, paid tiers). Eg: Medium

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 Bottom part of the BMC

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 But every decision in your strategy impacts
this bottom part

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 Customer segment & customer relationship

1. Which customer segment delivers more revenue? And margin?

2. Which customer segment costs more to acquire?
3. Which segment sees more value in my product?
4. Which segment requires more relationship cost?
5. How much revenue can I extract from investing in the relationship?

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 Channels

1. What is the cost of acquiring a customer on each channel?

2. What is the average revenue brought by customers of that channel?
3. What is the LTV (lifetime value) generated by customers from that
channel?
4. How much it costs me (fixed and variable) to use a specific channel?

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 Value Proposition, Key Activities and
resources
1. How much value does each revenue stream each proposition generate? How much
margin?
2. What is the cost of executing the key activities to deliver the value proposition?
3. What is the value attributed to each activity in terms of revenue?
4. How much it costs to acquire and maintain the resources to deliver value?
5. What is attributed in value to each resource?

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 Key Partners

1. How much it costs to maintain partners?

2. What is the cost to acquire new partners?
3. How much margin are each partners extracting from my revenue?
4. How much is each partner attributed to a revenue stream? What is the ROI?

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 You have vision👀, strategy📈.
How to make product decisions?

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 Bezos Type Decisions

Type 1 decisions are not reversible, and you have to

be very careful making them.

Type 2 decisions are like walking through a door — if

you don’t like the decision, you can always go back.

nb
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 Bezos Type Decisions

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 Putting the Bezos framework to the test

����
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 Didn’t see this one coming right?

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 Just look at the news

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 Product decision stories:
Snap v Instagram

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 Product decision stories:
Uber v Lyft - Domestic v International

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 Product decision stories:
Uber vs Lyft - Food v Rides

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 Product decision stories:
Google v Amazon

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 How to test your vision, strategy & decisions?
A good way is through landing pages

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 Learning using landing pages

Business landing page Testimonial landing page Aspirational landing page

Professional, other businesses Interactive, product usage, Storytelling, strong message,

for proof, contact sales, tutorial or product tours, aspirational, inspiring, branding
technical “others like you use us” position
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7 Steps to perfect landing pages

1. Plan how the user’s eye will travel

2. Refine the copy
3. Use bullet points/numbered lists and structure the information you present
4. Remove your usual navigation and exit points
5. Include a beautiful product shot
6. Establish your brand’s credibility
7. Reinforce the value proposition by repeating key words
8. Make the “submit” action crystal clear
Read all https://blog.prototypr.io/11-tips-for-designing-high-converting-landing-pages-bd9ae8354e3e

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 Get leads and future customers

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 Standing out vs competitors

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 Now it’s time to roadmap

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 What is the roadmap?

Based on Marty Cagan:

“A prioritised list of features and projects of the product team for a specific timeframe”

For me:
“A communication tool that aligns everyone’s expectation on what will be built within a
specific timeframe and what won’t. Especially what won’t.”

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 Keep it light: Now, Next, Later

✅ ⌛ 🧊
The next 4 weeks*. Fits 4 to 12 weeks* out. This 12+ weeks* out. It’s a
with scrum sprints. bucket has the most debate as useful place to park
Highest priority issues most of the team has visibility ideas the team is
based on signal. and argues impact vs effort passionate about.

Closed scope Gather requirements Run research

Designs specs Test prototypes Ideate possibilities

User stories Think on architecture Innovate

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 Your approach to roadmapping

Founders Feedback
C-level Tests
Marketing
Marketing KPI
Ops
Ops KPI
Sales Product Sales Product
VC’s KPI Team Data
Team

Board Goals Support Finance

Support Finance KPI
KPI

Advisors Hypothesis

How roadmaps (generally) are How roadmaps should be

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 For next class
Product delivery #4

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 Laying the foundations for your story

1. Define your product vision and build your landing page using unicorn platform
(or any other tool of your choice)
2. Write your Backwards PR

Bonus tip: start building your high(er) fidelity prototype for the final
presentation using your earlier test learnings and changes.

Submit landing page link and PR on Moodle (can be 2 slides with links)

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