Product development organizations face a new problem: Globalization and the Internet have changed the conditions. Our customers now have real choices, and people's ability to communicate and organize has risen dramatically. Power in the marketplace has shifted from seller to buyer. Product managers around the world notice this change, and their question is: * How do we still make money in this complex world? In this tutorial, Matthias will take you on a one-day tour into the economics of product development: You will learn how to co-create value with your customers, increase revenue, save costs, and make wise investments. You will see innovative business models and will learn the steps you need to take to transform your organization into a humming network that successfully creates value – the value that your customers will really like to spend money on.
Target Audience: product managers/owners, persons who are financially responsible for a development organization
Prerequisites: passion for money and for products, determination to understand today's complexity, open mind
You will learn:
You will understand what value really is and how to create much more valuable technology. You will know how to increase your return on investment in product development. You will learn how to create additonal revenue streams by innovating your existing business model. You will know how to sequence your work to maximize the revenue.
Together, we will interactively explore the following topics:
* Customers: How they behave and what makes them buy today
* Value: How this word has dramatically changed its meaning in today's digitized world
* Sales: Why you can't simply "sell" any more but instead co-create value with your customer
* Cost: Why a focus on visible costs will raise them and what you should do instead
* Investment: How you can make small, controlled investments every day and make sure that you get a huge return on them
* Business models: How many more ways to make money there are in the digital age and why it is time to innovate your business model
* Economic parameters: Which business variables you need to include in your mental model to successfully understand the economics of product development and knowledge work in general
* Revenue maximization: How to choose the work that creates the most revenue for your company, repeatedly, every day
The tutorial will be a mixture of content, experiments and practical exercises for you. You will learn about each concept and then try it together with your peers in the class. We will use a mixture of common sense, lean thinking, financial knowledge and some hard mathematics to find out what makes money and what doesn't.
Be prepared to use your intuition, too, but also watch intuition fail under certain conditions.