1. Session 1 1 8/24/98 WELCOME TO PRODUCTMANAGEMENT SESSION 1 1999

2. Session 1 2 8/24/98 COURSE OBJECTIVES n Role, Responsibilities & Complexity of the PM Position n Cover the 3 major Tasks: n MARKET ANALYSIS n DEVELOPING OBJECTIVES & STRATEGIES n MAKING DECISIONS….. n Learn Plan Development Process

3. Session 1 3 8/24/98 COMPANY CONCERNS n EXTERNAL ISSUES n WHAT ARE THE KEY ISSUES FACING MANAGEMENT TODAY ? n WHAT ARE THE KEY TRENDS ?

4. Session 1 4 8/24/98 COMPANY CONCERNS n INTERNAL ISSUES WHAT IS TODAYS ROLE FOR: n STRATEGY n MANAGEMENT OF PRODUCT QUALITY n SERVICE n PERSONAL DEVELOPMENT

5. Session 1 5 8/24/98 THE SYLLABUS n LEARNING OBJECTIVE n SCOPE OF STUDY n PROJECT & DELIVERABLES n WEEKLY AGENDA n THE WEBSITE: http://haas.berkeley.edu/Courses/Spring1999/E262A/

6. Session 1 6 8/24/98 ED JOHNSON 25 YEARS CORPORATE 10 YEARS HIGH TECH 20 YEARS IN CONSUMER PRODUCTS 10 YEARS PROFESSOR MARKETING LATEST MOVIE......

7. Session 1 7 8/24/98 Management Centre Europe SOPHIA ANTIPOLIS TBWA

8. Session 1 8 8/24/98 And Now, Your Turn: n YOUR NAME....... n YOUR COMPANY…… n YOUR PRODUCT & MARKETS n A TOPIC YOU WOULD LIKE COVERED IN THIS CLASS ?

9. Session 1 9 8/24/98 WHAT IS TODAY’S TREND IN STRATEGY ? TO MOVE FROM PRODUCTION DRIVEN TO “CUSTOMER DRIVEN”

10. Session 1 10 8/24/98 COMPAC/digital Todd C. Williams Senior Systems Architect Do you use Product Managers? Yes, definitely. Been there forever. Some old world people who haven't been in the field for awhile. Problem. But need a single point of contact for such large projects..

11. Session 1 11 8/24/98 IBM Stephen A. Murphy Segment Executive, Global Production Solutions 14, 1998 What growth challenges are you facing? We have a little pricing problem - a cash flow problem. But no more than a one year delay for 300 mil. A lot of new competitors are cropping up. “Have to have a small recession to drive them out”

12. Session 1 12 8/24/98 HITACHI Robert J. Gordon Director Do you have a Product Management system in place. Yes. Very important, hand picked. Very special. Some technical. Not enough business Extremely valuable people. But untrained. In place 5 or 6 years. "People are getting away from face to face. Sitting behind the computer rather than getting out on calls. I hear this a lot from customers. I don't see your people. The competitor is here all the time. Let's get back to basics."

13. Session 1 13 8/24/98 Canon Phillip M. Ware Director, Technical Marketing Canon U.S.A. Inc. Irving, Texas 20 Years of Service How would you define the process of developing strategy? Canon corporate has this grandiose style of 50 year plans. We just finish our first 50 years 5 or 6 years ago. "Now we are into our second 50 years and the grandiose goal of the second 50 years is to move the centre of Canon, California.

14. Session 1 14 8/24/98 KEY TRE N DS n CUSTOMER POWER

15. Session 1 15 8/24/98 KEY TRE N DS n STRATEGIC ALLIANCES GLUT ECONOMY SHORT LIFE CYCLES NEED STABILITY

16. Session 1 16 8/24/98 n DEMAND FOR SERVICE KEY TRE N DS

17. Session 1 17 8/24/98 BEYOND TRADITIONAL BOUNDARIES n THE GLOBAL ENVIRONMENT n “A CLIMATE OF CATASTROPHIC CHANGE n CONSTANT MERGERS AND ACQUISITIONS n REDUCING NUMBER OF BUYERS AND SELLERS BUYERS AND SELLERS

18. Session 1 18 8/24/98 TODAY’S REALITIES CROSS FUNCTIONAL MULTI-COMPANY OVERLAYS $

19. Session 1 19 8/24/98 ERNST & YOUNG’S UPSHOT n MANUFACTURING EMPLOYMENT HAS DROPPED FROM 40% TO 15% SINCE 1950 n “BY 2008,’ CONNECTED ASSETS WILL OUTWEIGH “HARD” ASSETS n REAL TIME COLLABORATION IN NETWORKS OF SUPPLIERS TO BEAT THE MAIN COMPETITOR, THE LIFECYCLE n TRUE CONNECTIVITY WILL ONLY BE ACHIEVED WHEN ISSUES OF TRUST, RELIABILITY & LEVERAGE ARE RESOLVED

20. Session 1 20 8/24/98 DESCRIBE YOUR BUSINESS ENVIRONMENT DOING BUSINESS TODAY

21. Session 1 21 8/24/98 ENVIRONMENTAL FORCES n OUT OF YOUR CONTROL n NEED TO IDENTIFY KEY TRENDS

22. Session 1 22 8/24/98 YOUR ENVIRONMENT n Over the past 5 years, what were the three most significant opportunities in the Environment which contributed to the company’s current situation ? n Again, over the past 5 years, what were the three most significant threats which limited success? n Looking ahead 3 years, are these opportunities & threats increasing or decreasing in significance ? n Are new ones appearing ?

23. Session 1 23 8/24/98 MARKETING 2000? DOING BUSINESS TODAY

24. Session 1 24 8/24/98 MARKET ORIENTATION MARKET ORIENTATION “SATISFYING CUSTOMER NEEDS... CONTINUOUSLY.” E. JOHNSON, 1995

25. Session 1 25 8/24/98 MARKETING'S ROLE CORPORATE BUSINESS UNIT PRODUCT/MARKET PRODUCT/MARKETMANAGEMENT FUNCTIONAL PLANS PRODUCTCORE

26. Session 1 26 8/24/98 THE NEW ORGANIZATIO N DOING BUSINESS TODAY

27. Session 1 27 8/24/98 THE ULTIMATE ORGANISTION YOU ARE FINALLY APPOINTED PRESIDENT n YOU CAN CREATE YOUR ORGANISATION TO MAKE MARKETING WORK AND PRODUCT MANAGEMENT INCREDIBLY EFFECTIVE. n DEVELOP THE ULTIMATE ORGANISATIONAL STRUCTURE & TELL US WHY ITS SO GREAT

28. Session 1 28 8/24/98 DEATH OF THE SALESMAN WE HAVE THE LOWEST PRICES!!

29. Session 1 29 8/24/98 INEFFICIENT INEFFICIENTORGANIZATION DIRECT CONTACT INDIRECT CONTACT DECISION MAKING FINANCE PRODUCTION ADMINISTRATION MARKETING PRESIDENT SALES

30. Session 1 30 8/24/98 DIRECT CONTACT INDIRECT CONTACT NO CONTACT CEO PRODUCT MANAGER PRODUCTION ADM SERVICES BUYING GROUP TODAY’S “HOLLYWOOD” OGANIZATION

31. Session 1 31 8/24/98 TODAY’S “HOLLYWOOD” OGANIZATION n DIRECTORS n PRODUCERS n Limited short time to develop product and plan

32. Session 1 32 8/24/98 n Executive Director n Business Strategy n Key Account Sales n Alliance Management TODAY’S “HOLLYWOOD” OGANIZATION

33. Session 1 33 8/24/98 n Product Management n Business Case Development n Opportunity Analysis n Function Plans n Development Management TODAY’S “HOLLYWOOD” OGANIZATION

34. Session 1 34 8/24/98 Selected Marketspace Opportunity A Selected Marketspace Opportunity B Selected Marketspace Opportunity D Selected Marketspace Opportunity C nbv “hp” DEO2 ANO DEO1 ANO DEO3 “hp” DEO4 nbv DEO5 Potential Outcomes Customer Intimacy Business Environment Radar Screen Virtual Value- Driven Business Designs Intellectual Asset Management Value Creating Technology Assessment Relationship Management Marketspace Creation Business (MCB) MCB DEO: Digital Economy Organization MCB Customers HP Business Unit(s) Leading DEO1 Leading DEO2 Leading DEO3 Leading DEO4 Leading DEO5 End Customers