Please yell at me for doing my job badly

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Tom Grant

Last Saturday, at the Silicon Valley Product Camp, I was part of a panel on PM metrics. Any topic that's at the same time important and unsettled keeps you thinking long after the panel, so not surprisingly, almost a week later, I'm still chewing on it. Here's an observation I'll make today, after further pondering:

You know when you're doing well as a PM when someone yells at you for getting a persona, user story, use case, or task analysis wrong.

Understanding the world from the standpoint of the individual buyer or user is one of the primary responsibility of PM. According to some schools of thought, it's the core responsibility, especially since no one else in a technology company is responsible for collecting, analyzing, and distributing these deep customer insights. (There are other core responsibilities, too, related to the company's business and the technology itself.)

That information may look academic, but it should be immediately pertinent in very important ways. Understanding the way in which people in a variety of roles assess, purchase, and adopt technology is critical for making smart decisions about everything from product design to the product roadmap, from crafting messaging to choosing marketing channels. Unless you live in a Soviet-style command economy, in which manufacturing 3,000 left shoes is a problem for the consumer, not the producer, customer insights need to inform both strategic and tactical decisions.

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Don't outsmart yourself

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Tom Grant

In product marketing, you always want to sound like the smartest person in the room. However, you shouldn't prove it with marketing messages that only you fully understand.

At last, someone who can understand my brilliance
Colleague Mary Gerush and I are working on a market segmentation for requirements tools. It's a great excuse to get into a lot of very interesting conversations about some very deep topics. The requirements market is in transition, from an era of heavy-weight tools designed to address information management challenges, to something very different. (You'll have to stay tuned to find out what the new market looks like.) We're starting from scratch, with no particular attachment to the traditional terms and concepts for describing what these tools are supposed to do.

That's the entree into the very interesting conversations. Vendors in this space, whatever it is, are very smart people who think about the shape of the requirements market all day long. Not surprisingly, their opinions about the market, which are reflected in their marketing messages, are very smart, too. In fact, in a couple of occasions, I wonder if they were being a little too smart.

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You do not understand collaboration

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Tom Grant

I swore that I was not going to say anything further. I really, really tried, but I'm going to have to throw away the little plastic medal that says, "Two Weeks And No Buzz." Here's a must-read quote that a colleague forwarded to me:

So why exactly did Google Buzz launch with some key social features missing? Jackson said that while Google employees were testing out the product internally, they never had much desire to mute any of their coworkers, and that their email contact list closely matched the people they wanted to follow on Buzz. Obviously, that wasn’t true for most people once the product was released outside of the Googleplex. Which is why Google is considering pre-releasing new Buzz features to a few thousand opt-in users long before they’re rolled out to the public.

The short version: "It worked for us inside the firewall, so we never thought it'd have a problem outside the firewall." Of course, an enterprise collaboration tool is a wholly different kind of solution than a social networking tool, so the requirements for the former do not completely cover the latter.

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Adapting to Cloud: The Channel Models They Are a-Changin’

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Tim Harmon

NetSuite, a leading SaaS ERP/CRM provider, recently announced that it is revamping its channel partner comp model: 100% on Y1 subscription revenue, and 10% thereafter. VARs have been remiss in taking up the SaaS torch, largely because most SaaS vendors haven’t provided a financial model conducive to VARs’ cash flow requirements. Per the on-premise license model, channel partners make a big portion of their nut on initial product margin, i.e., up front. But vendor SaaS economics minimize up-front remuneration and spread revenue out over a long period of time. Though it sacrifices year-one revenue, NetSuite’s 100/10 model more closely mirrors VARs’ accounting practices. 

NetSuite’s model will be the first of many SaaS channel model “experiments” that will ultimately be a shot in the arm for the SMB market in particular. Contrary to popular belief, SMBs have been slow on the uptake of SaaS (application hosting outpaces SaaS adoption by SMBs by a factor of 3-4x) ... Business applications; deployed via on-premise, SaaS, or application hosting

 ... due to the fact that VARs, in ownership of the customer trust asset, haven’t been pushing SaaS. But the financial barriers to channel partners’ SaaS advocacy are being broken down. 

Now that the path for VARs to play in the cloud is being forged, and their play along with software vendors, aggregators, and ISPs being validated, distributors and DMRs, long wedded to on-premise license models, are going to have to figure out their place in the new cloud channel order. 

What do you think? Is this one of many experiments? What is the role for distributors and DMRs in cloud computing?

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My Next Chapter In B2B Marketing

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Laura Ramos

Almost four years ago, I began a new journey at Forrester Research when I agreed to take on the B2B marketing research coverage and practice. The first significant research that I conducted and wrote, “B2B Marketing Needs A Makeover – Now,” looked at the challenges B2B marketers face and how they address these issues through marketing programs and technology investment.  Little did I know that “Makeover” would become the seminal piece of research in a series that extends across those four years and culminates in an upcoming report next week.

Today, it is with a mix of pride, nostalgia, excitement, and deep appreciation that I announce the next step in that B2B marketing journey, which started in 2006 here at Forrester, but extends back more than a decade earlier through various high-technology marketing positions I held prior to becoming an analyst.

At the end of March, I will leave Forrester to become the Vice President of Industry Marketing for Xerox Global Services, North America.

Very simply, I have been helping many clients face down their marketing challenges, adopt new approaches, and improve the reputation and standing of marketing at their firms for some time.  While personally rewarding in so many ways, I longed to return to my roots where I could do more practicing and less preaching. Xerox offers me this opportunity.

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Forrester's New Blog Network is LIVE

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Peter Burris

Cliff Condon, the Forrester VP in charge of research processes, just pulled the trigger on Forrester's new blogging network. I'm very excited about the new platform, for it provides a rock solid foundation for enhancing Forrester's research and service engagement. Let us know what you think!

And while you're thinking, here's what Cliff has to say. 

Forrester's Cliff CondonHey everyone.  Here it is – Forrester’s new blog network. We made some changes to improve the experience for readers and to encourage more analysts to blog. Feel free to poke around and let me know what you think.

There are a few things I’d like to point out to you:
 

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If you don't go to P-Camp Silicon Valley 2010, slap yourself

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Tom Grant

Rich Mironov, organizer for the Silicon Valley Product Camp 2010, says that the pre-registration is closed at 960 people. Zounds!

The event is still open for any and all product managers and product marketers to attend. In fact, because 960 people have already registered, you definitely should attend. Last year's P-Camp was jam-packed with useful information, and it provided an unparalleled opportunity for PMs to compare notes. Attendance last year was a fraction of this year's pre-registration number, and the value of the P-Camp only increases with numbers.

Look forward to seeing you there. (And you'll have my gratitude if you vote for my afternoon presentation on the strategic role of PM.)

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How demographics matter in B2B tech adoption

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Tom Grant

In case you wanted to attend tonight's open house on the demographics of B2B technology adoption, here's a pertinent diagram from a recent publication on the subject. As you can see, when they look for information, two people in the same department—an application developer and an enterprise architect—go to very different sources.

  • Conclusion 1: Demographics matter. A lot.
  • Conclusion 2: If you say that your target customer is developers, you need to take a big product marketing time-out. Not all development professionals are the same. Now march up to your room and think about that.

As important as conclusion 1 may be, it's not exactly profound. Sure, we all know that people are different, but what are the significant differences? And how should these variations affect the way we market our technology to rank-and-file developers versus the fancy-pants enterprise architects?

Many efforts at persona development break down at the very beginning, with the question, How many different personas do I need? There's no obviously correct answer to that question, especially when you haven't seen the data that indicates which demographic differences are significant, and which aren't. (Leaving aside the practical question of how many personas you can actually produce.)

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Five Highlights From HP’s Analyst Briefing This Week

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Peter O'Neill

By Peter O'Neill

I spent a couple of days with HP executives this week here in Boston. As I worked there myself for 20 years (up to 2001, so I have distance as well), I’d like to comment about how their enterprise business strategy now looks. Of course, I wasn’t alone there; there were 250 of us. Those who follow my peers in Twitter may already be overloaded with multiple 140-character cuts: my impression is that the tool tends to makes them behave more like adolescent journalists than analysts. Often, they were broadcasting tweets before even noticing that a particular statement was “under NDA”. Vendors will learn to be more cautious in the future; which is not good for us analysts. Anyway, here are my highlights of the HP briefings.

HP’s Converged Infrastructure story includes the pending acquisition of 3COM

Nice to see that HP now has (servers + storage + networking) PLUS power & cooling! Now, HP has Cisco squarely within their sights with this one, dropping statements like “they’re just a $30B vendor while we spend over $50B in our supply chain”; “as soon as we can, we will replace ALL our Cisco gear with 3COM and realize 45% savings”; and “of course, all 3COM products use the same operating environment, unlike them”. 

My Take: Well, Cisco started this. They are, indeed, seriously threatened. If HP apply their financial muscle and play the pricing game, Cisco’s business and margins may well suffer. Remember, networking is the highest margin area in IT infrastructure: HP is adding it, Cisco is diluting it. But, I also think that Cisco will make other game changing moves in the next months. HP strategists should not be resting on their laurels, they should be doing scenario planning - and thinking way outside the IT infrastructure box.

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I see you, you see me...

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Tom Grant

In an earlier post, I argued that product managers in social media companies need to start sharpening their understanding of privacy and security issues. Here's another reason why:

Until now, geolocation has been one of those quaint, semi-useful buzzwords: '... now with geolocation!!!' Twitter, Buzz and Foursquare -- the main exponents of exposing your location -- might not be small, but they pale in comparison to Facebook. With the announcement that Facebook will be enabling geolocation next month, Pandora's Box has been torn open; whether you like it or not, geolocation is about to become a huge part of your life.

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