Principles of Product Dr. Robert T.

Monroe
Tepper School of Business
Management Carnegie Mellon University
Image courtesy https://www.productplan.com
Goals for today:
Develop a shared understanding of what a
product manager does and the types of
decisions they need to make

Explain the structure and goals of the upcoming

course, the key topics to be covered, and the
context in which those topics will be explored

Introduce the Business Model Canvas as an

organizing framework for the course and for
Product Management work
What does
“Typeaa product manager
quote here.”
do?
–Johnny Appleseed
What decisions does a product
manager need to make?
“Type a quote here.”
Categorize them: strategic,
tactical, other
–Johnny Appleseed

How frequently:hourly, daily,

weekly, monthly, annually?
 “Fundamentally, a Product
Manager“Type
is responsible
a quote here.”for value
and viability.”
— Marty Cagan, Silicon Valley Product Group
–Johnny Appleseed
What You Will Learn In This Program

Feasible Desirab
le
Aim
Here!

Viable
Topic: Deliver
Value
Identify target customers

Deeply understand their

needs, wants, desires,
frustrations, fears, hopes,
etc.

Figure out how to provide

a product or service to
meet the identified
product opportunity

Key skills: learn to talk to

people, learn to observe,
learn to understand and
empathize
Topic: Build a
Viable Business
Understand your cost
and revenue drivers

Understand the levers

you have available to
improve profitability

Know when to grow,

when to take profits

Price your offering

correctly

Position your offerings

and business
strategically
Topic: Manage
Release Version 7.3

Manage a product
roadmap

Make good trade-offs

and choices

Acquire and renew

customers

Ensure customer
success

Manage a product
portfolio
Course Logistics and Administrivia
First step - read the syllabus!

Your course grade will be calculated as follows:

Three assignments: 75%
Final exam: 25%
Class participation / subjective assessment: +/- final
grade

Course materials

Expectations
Learning Objectives For The Course
By the end of this course, you should be able to:
Articulate the key responsibilities and tasks of a
product manager for software-intensive products

Identify and prioritize customer needs, wants,

and desires
Identify which of these your offering will
address, for whom it will address them, and
how it will address them
Prioritize and select which of these needs,
wants, and desires your offering will address
Learning Objectives For The Course
By the end of this course, you should be able to:
Model the financial implications of product
alternatives
Make effective product trade-off decisions
Make good pricing and packaging decisions
Develop and manage a product roadmap
Structure and manage a product portfolio
Learning Objectives For The Course
By the end of this course, you should be able to:
Communicate persuasively and effectively with
internal and external stakeholders
Present your ideas in a concise, clear, and
compelling way to a wide range of audiences
Provide constructive feedback to others in a way
that it will be well received
Receive constructive feedback graciously, even
when it is negative
 Designed for: Designed by: Date: Version:
The Business Model Canvas
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

Key Resources Channels

Dr. Robert T. Monroe

Tepper School of Business

Cost Structure Revenue Streams

Carnegie Mellon University

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

Designed by: Strategyzer AG

The makers of Business Model Generation and Strategyzer strategyzer.com

Business Model Canvas

Image courtesy strategyzer.com
 A business model describes the
rationale for how an organization
creates, delivers, and captures
value. [OP10]
“Type a quote here.”

–Johnny Appleseed
 A business model describes the
rationale for how an organization
creates, delivers, and captures
value. [OP10]
The “Type a quote here.”
Business Model Canvas (BMC)
provides a concise way to identify
and understand the key
–Johnny Appleseed
choices a
business needs to make when
setting up its business model
 Q
What You Will Learn In This Program
ui
c
Feasible Desirab
k le
Aim
R
Here!
e
vi
e
Viable
w
:
 Designed for: Designed by: Date: Version:
The Business Model Canvas

|——Feasible——|
Key Partners Key Activities
|——Desirable——|
Value Propositions Customer Relationships Customer Segments

Key Resources Channels

Cost Structure
|——Viable——| Revenue Streams

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

Designed by: Strategyzer AG

The makers of Business Model Generation and Strategyzer strategyzer.com
BMC Example #1 - Hipstervibe™ Coffee
Shop
Offering Something Desirable
… The Business Model Canvas
Designed for: Designed by: Date: Version:

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

Designed by: Strategyzer AG

The makers of Business Model Generation and Strategyzer strategyzer.com
Offering Something Feasible
…
The Business Model Canvas
Designed for: Designed by: Date: Version:

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

Designed by: Strategyzer AG

The makers of Business Model Generation and Strategyzer strategyzer.com
Capturing Value - Is The Business Model
Viable?
…

D esigned for: D esigned by: Date: Ver sion:

The Business Model Canvas
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

De signe d by: S tr ate g y zer

 AG
The m a ke r s of B usine s s Model G e n e r at i o n a nd S t r ate g y ze r strategyzer.com
BMC Example #2 - Zoom
Designed for: Designed by: Date: Version:
The Business Model Canvas
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

Designed by: Strategyzer AG

The makers of Business Model Generation and Strategyzer strategyzer.com
Offering Something Desirable
… The Business Model Canvas
Designed for: Designed by: Date: Version:

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

Designed by: Strategyzer AG

The makers of Business Model Generation and Strategyzer strategyzer.com
Offering Something Feasible
…
The Business Model Canvas
Designed for: Designed by: Date: Version:

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

Designed by: Strategyzer AG

The makers of Business Model Generation and Strategyzer strategyzer.com
Capturing Value - Is The Business Model
Viable?
…

D esigned for: D esigned by: Date: Ver sion:

The Business Model Canvas
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:
http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

De signe d by: S tr ate g y zer

 AG
The m a ke r s of B usine s s Model G e n e r at i o n a nd S t r ate g y ze r strategyzer.com
For Next Class

Next time we will look at Value Propositions

Review the class preparation steps on Canvas -

be sure to complete the required readings and
activity before class