(c) 1993-2003 Pragmatic Marketing, Inc. 1

Product Roadmaps

Presented by Barbara Nelson, Pragmatic MarketingNovember 12, 2003Silicon Valley Product Management Association

PragmaticMarketing®

!hey software inc.@hand corporation01 Communique Laboratory, Inc.12 Entrepreneuring, Inc.2Vox360Commerce, Inc.3Com Corp.3eTI, Inc.3M Health Information Systems724 Solutions Inc.Aatrix Software, Inc.Abbasoft TechnologiesABC TechnologiesABT CorporationAbvent, Inc.Acadio Corp.Accelerated Technology, Inc.Access 360AccountMate Software Corp.ACCPAC International ManagerAccruent, Inc.AccuWeather, Inc.Ace* CommAcer Internet Services, Inc.Achieve Healthcare Info SystemsACIACOM Solutions, Inc.Acres Gaming IncorporatedAcroprint Time Recorder Co.ACS Software, Inc.ActionPoint, Inc.ActionWareActivCard, Inc.Activerse Inc.ActiveState Corp.AcucobolAcuity CorporationAcumation, Inc.Acxiom CorporationAd OPT Technologies, Inc.adam.comAdaptec, Inc.Adaptive MediaAdaptive Micro Systems, Inc.Adaptivity, Inc.Adexa, Inc.Adobe Systems, Inc.ADPADP - CSGADP CanadaADP Claims Solutions GroupADP Dealer ServicesADP Parts ServicesADP Securities Industry SoftwareADP-HollanderADP/StockvalADS Associates, Inc.Advanced Data SystemsAdvanced Solutions Internatl, Inc.Advanced Visual Systems, Inc.AdvanceMedAgile Software CorporationAgilent Technologies

Agilera, Inc.Agilisys, Inc.Agillion Inc.AgilQuestAgilTech, Inc.AGRIS Corp.AIFPAkamai TechnologiesAladdin Systems, Inc.Alamode, Inc.Alcatel Network SystemsAlerts.com, Inc.Alfa Laval Inc.Alias|WavefrontAlis TechnologiesAllaire Corp.ALLDATA LLCAllegis CorporationAllen Systems GroupAllenbrook, Inc.Alliance Data SystemsALLTEL Information Services, Inc.Alogent Corp.Alpha Software CorporationAlphaBlox Corporation, Inc.Alta VistaAltamar NetworksAltaworks CorporationAltris Software, Inc.Alventive, Inc.AMCIAmdahl Corp.Amdocs LimitedAmerican AriumAmerican Fundware, Inc.American Internatl Facsimile Prods.American Internet Corp.American Software, Inc.Ameritech Library ServicesAmeritradeAmicus, Inc.Amplitude Software Corp.AMR ResearchAmtec Engineering, Inc.Amteva TechnologiesAnalytical Graphics, Inc.Ancestry.comAndale, Inc.AndersenAndersen ConsultingAndromedia, Inc.Annuncio SoftwareAnritsu CompanyAnswerSoft, Inc.AOL MobileAPAC Customer Services, Inc.Aperture Technologies, Inc.Apollo Group, Inc.Appfluent TechnologyApple Computer, Inc.Applied Automation Techniques, Inc.Applied BiosystemsApplied Digital Access, Inc.

ARAMARK CorporationArborText, Inc.ARC InternationalArcada Softwarearcplan, Inc.ArcSight, Inc.ARI Network ServicesAriba Technologies, Inc.ARINC, Inc.Aristocrat Technologies, Inc.ARM Ltd.ArmatureArrowsight, Inc.Arsenal Digital SolutionsArtemis Management Systems, Inc.Artesia Technologies, Inc.Arthur AndersenARTISTdirect, Inc.Ascend Communications, Inc.Ascension Technology CorporationAscential SoftwareAsera Inc.ASIAspect Development, Inc.Aspen Technology, Inc.Assentive SolutionsAssessment.comAsset IntertechAstea, Inc.Astrum Software CorporationAtex Media Solutions, Inc.Athene Software, Inc.ATIO Corp.Atlas DMTAtomica CorporationAtraxis North America, Inc.Atreus Systems CorporationAttachmate CorporationAtWork Technologies, Inc.Augeo SoftwareAumtechAurigin Systems, Inc.Aurum Software, Inc.Authentica, Inc.Authoria, Inc.Auto-Soft Corp.Autodesk, Inc.Automation Technology, Inc.AutoSimulationsAutoSiteAutoTester, Inc.AvailantAvantGo, Inc.Avaya, Inc.Aventail CorporationAvenue A, Inc.Aveo, Inc.Avery DennisonAxis CommunicationsAXIS Computer Systems, Inc.Baan CompanyBackWeb Technologies, Inc.Baker Hill Corporation

BancTec, Inc.Banta Integrated MediaBaranof Software, Inc.Barco Medical Imaging SystemsBarco View, Inc.Bard Electrophysiology - C.R. Bard, Inc.Barr Systems, Inc.Barra, Inc.Basis International, Ltd.BatteryPro Systems, Inc.BAV Software, Inc.Bottomline Technologies, Inc.Bowne Internet SolutionsBradmark TechnologiesBrainbench, Inc.Brainium.comBrickstream CorporationBridgePoint Inc.Bridgeway Corp.Bridgeway Software Inc.Brightmail, Inc.Brightspark Ventures, L.P.Brightware, Inc.Brio TechnologyBristol Technology, Inc.Broadband Services, Inc.BroadJump, Inc.Broadway & Seymour, Inc.Brock International, Inc.Brodart AutomationBrooks Automation, Inc.Brooks-PRI AutomationBrooktrout Technology, Inc.BTIBusiness Engine SoftwareBusiness Objects, Inc.Business Resource SoftwareBusiness Software, Inc.Buystream Inc.Buzzeo, Inc.C-MoldCable & WirelessCabletron Systems, Inc.Cadence Design Systems, Inc.CADKEY CorporationCalcompCaldera Systems, Inc.Calico Commerce Inc.CallWare Technologies, Inc.Camelot-IS2CAMM, Inc.Campbell Services, Inc.Campus Management Corp.Canadian Technology NetworkCandle CorporationCanon Computer Systems, Inc.CAPS Logistics, Inc.Capsoft Development Corp.Capstan Systems Inc.Captaris, Inc.Captiva Software CorporationCardiff SoftwareCardinal Health, Inc.

CareTools, Inc.Carlson Wagonlit TravelCartesia SoftwareCasco DevelopmentCASI-RUSCOCass Logistics, Inc.Castek Inc.CastelCatalpa SystemsCatalyst International, Inc.Catalyst USA, Inc.Cayenta Inc.CB Technologies, Inc.CBF Systems, Inc.CBT SystemsCCC Information Services, Inc.CCH IncorporatedCCI/TriadCD Group, Inc.CDA/InvestnetCDC SolutionsCDNOW, INC.Cedara Software Corp.Centerline Software, Inc.Centra Software, Inc.Central Design Systems, Inc.Centrata.comCentraxCentric Software, Inc.Century AssociatesCerent CorporationCeridian CorporationCeridian Performance PartnersCeridian TesserAct HRMS Solutions, Inc.Cerner Corp.Certicom Corp.Cerulean TechnologyCES InternationalCEYONIQ, Inc.CFD Research Corp.CFI ProServices, Inc.CHAMPS Software, Inc.Chancery Software, Ltd.Changepoint Corp.ChannelPoint, Inc.ChannelWaveCheck Point SoftwareCheckFree CorporationCheckpoint SoftwareChela Financial, Inc.Chemical Abstracts ServiceCheyenne SoftwareChilliware, Inc.Chingari, Inc.Chrome SystemsChrystal Software, Inc.CigitalCIMLINC, Inc.Cincinnati Bell Information Systems, Inc.Cisco SystemsCitrix Systems, Inc.Clarify, Inc.Claritas, Inc.

Class Software Solutions, Ltd.Classroom ConnectClear Communications Corp.Clear Technology, Inc.ClearOrbit, Inc.Clearway TechnologiesClientSoft, Inc.Clinical Reference Systems, Ltd.Clustra Systems, Inc.CMI-Competitive Solutions, Inc.CMS Information Services, Inc.CODA, Inc.Cofiniti, Inc.Cogit Corp.Cohera CorporationCoherent Communications Systems.Cole-Somers, Inc.Colorado Memory SystemsCoManage CorporationComdisco Professional ServicesCommerce OneCommerce.TVCommercialWare, Inc.Commerx, Inc.CommVault SystemsCompaq Computer Corp.Competitive Automation, Inc.CompInfo, Inc.Comprehensive Software Systems, ICompucareCompulink Management Center, Inc.Computer AssociatesComputer Dimensions, Inc.Computer I/O Corp.Computer Information ServicesComputer Mail Services, Inc.Computer Network Technology CorpComputer Sciences Corp.Computerm Corp.ComputerprepComputing Information ServicesCompuTrac, Inc.Computron Software, Inc.Compuware CorporationCOMSAT Mobile CommunicationsComsearchComshare, Inc.Comstock Systems CorporationComuniq Inc.Comverse Network SystemsConcentrexConcept Five TechnologiesConceptual SystemsConceptware AGConcerto Software, Inc.Concord CommunicationsConcur Technologies, Inc.ConexantConnect, Inc.Connected CorporationConnectSouth Communications, Inc.ConneXt, Inc.Consilient, Inc.

We are recognized experts in technology product management and product marketingWe specialize in product management trainingSince 1993, we have trained over 22,000 at thousands of companies

About Pragmatic Marketing, Inc.

(c) 1993-2003 Pragmatic Marketing, Inc. 2

What would you do?

It’s the 11th hour of the quarter. A sales guy calls you frantically telling you he has to have a roadmap to close a deal this quarter. The prospect is expecting to see a key feature she wants (not currently on any plans).

Do you:a. Quickly put together a PowerPoint slide of exactly what he asked

for and email it to the sales rep. Wish him good luck because you know the company needs the business.

b. Find out whether the competition in the deal has the feature. If so, see (a). If not, you tell the sales rep politely that you can’t do it.

c. You don’t know enough to react. And you probably don’t have enough time to learn what you need to know in order to address the problem. Don’t cave in to this request, but you have a lot of work to do to avoid it next quarter…

Product roadmaps

Why build a roadmap?Who owns the roadmapCautions about roadmap useBefore you startHow to design a roadmap

(c) 1993-2003 Pragmatic Marketing, Inc. 3

Laurence J. Peter

“If you don’t know where you are going, you will probably end up

someplace else.”

Why build a roadmap?

The process itselfGives internal and external audiences a product vision for the future, a possible destinationReduces short-term mistakes

Don’t paint yourself in a cornerHelps customers integrate product plan into their long-term strategy

(c) 1993-2003 Pragmatic Marketing, Inc. 4

Tom Shields, Woodside Fund

A great roadmap walks the fine line between being too narrow ("a one-trick pony") and too wide ("all over the map"). Investors will want to see that you have a focused idea of where you are going in the short term (and why), and that you have plenty of other market opportunities to explore in the longer term.

Who owns the roadmap?

Product manager (CEO of the product)Responsible for

Market expertiseWorking with cross-functional team to formulate what is on the roadmapDocumenting the roadmapDefining what can be communicated externally

• Partners• Customers• Evaluators• Analysts

Updating the roadmap as market conditions change *

* Not for each sales opportunity!

(c) 1993-2003 Pragmatic Marketing, Inc. 5

Cautions about roadmap use

“Roadmap” covers any future visionMarketing misuses the term constantlyThere aren’t many good examplesThere are very few resources

A roadmap is a plan, not a commitmentReject contracts with roadmaps attached!!Assume the competition will see itLearn to say less

Two problem areas

Sales ChannelSells futures as featuresSells futures to address the wrong market segmentUses roadmap in desperate situationsUses roadmap as a promise, not a plan

Product DevelopmentUnpredictable datesUnpredictable delivery of release contentDriven by technology, not the marketLong development cycles

(c) 1993-2003 Pragmatic Marketing, Inc. 6

Before you start

Know your marketIdentify market segmentsEstablish a competitive strategyKnow the technology landscapeValidate

Know your market

Learn about the market by observationCustomersEvaluatorsPotentials

Quantify market problemsUnderstand total solution

Buy, build, partner to flesh out whole solution

Communicate internally with market factsProduct manager should be the messenger for the market

(c) 1993-2003 Pragmatic Marketing, Inc. 7

Identify market segments

Be deliberate about which market segments you targetRather than a few features each release for each segment, focus a whole release around a segmentYour roadmap can reflect when you will address different segments

Establish a competitive strategy

Avoid competitive checklistsThis is not a competitive strategy

Be where the competition is notLook for market segments where the competition is not

Focus on your distinctive competenceThe roadmap should reflect your company’s unique ability to deliver value in the marketplace

(c) 1993-2003 Pragmatic Marketing, Inc. 8

Know the technology landscape

Research emerging technologiesInterview technical reviewers to understand technical compliance and standards they are adoptingUse technology to solve problems for your market

Validate

Synthesize possibilitiesReview with internal cross-functional teamNDA review with trusted parties

CustomersPotentialsPartners

Avoid oligopsony

(c) 1993-2003 Pragmatic Marketing, Inc. 9

Elements of the roadmap

Business problems

Product requirements

Technology

When - time

Market segments

Why

What

How

Who

How to design a roadmap

Communicate in BROAD STROKES Map chronologically (using conservative dates)

Market segmentsProjectsMajor features (addressing problems)Client or interfacesServer or architecturePlatforms (OS and database support)

Be careful with project names

(c) 1993-2003 Pragmatic Marketing, Inc. 10

Internal versus external

Internal Engineering

External *MarketingSales

* “This document contains forward-looking statements based on current expectations, forecasts and assumptions of the Company that involve risks and uncertainties. Forward looking statements are subject to risks and uncertainties associated with the Company's business that could cause actual results to vary materially from those stated or implied by such forward-looking statements.”

Platform

Archi-tecture

Client

Feature

Market

Project

beyondfy+32h+21h+24q+13q+12q+11q+1

(c) 1993-2003 Pragmatic Marketing, Inc. 11

Platform

Server

Client

Major Feature

Market

Project

Windows“Blackcomb”

Windows “Longhorn”

Windows XP sp4 support

Windows XP sp3 support

DBCSILSShared DB locking

Revised data

structures

Asia mapsEU maps“Thin” Web-only

Display with maps

(US, Canada)

¥€£Updated library

Updated library

Superset Correlation

AsiaJapanEUUKUS, Canada

SushiLasagna BangersSP1BurgerSP3SP2

beyondfy062h051h054q043q042q041q04

Example: Network Management

Platform

Server

Client

Major Feature

Project

End support for

Win2000Pro

End support for WinME

End support for Win98

End support for DOS, Win 3.1, Win 95

XML, IRMSharePointOffice WebWindows terminal server

Add InfoPath

Remove NetFolders

New look, Auto-

recover

Add Outlook

Advanced Spam mgmt

Smart TagsMultiple clipboards

Office templates“Clippy”

Office 12Office 11Office XPIntegrate FrontPage

“Embrace the

internet”

beyond2003200220009897

Example: Microsoft Office

Note: this document is based loosely on published statements by Microsoft and is used only as an example.

(c) 1993-2003 Pragmatic Marketing, Inc. 12

Architecture

1Q03 1Q04

4Q03

FY052H04

1H04

Overall Vision

shipping

alphabeta

functional design

visionfuture requirement

app server, VBA, COM+ objects, XML, SOAP, message platform, internet development tools

self-service hosting

CRM

extranetsupplychain

partner objects

web order

Web Services

shipping

alphabeta

functional design

visionfuture requirement

(c) 1993-2003 Pragmatic Marketing, Inc. 13

(c) 1993-2003 Pragmatic Marketing, Inc. 14

Links to sample roadmaps

SynEcology – complete Microsoft roadmaphttp://www.synecology.com/roadmap.htm

Microsoft Developer Tools Roadmaphttp://msdn.microsoft.com/vstudio/productinfo/roadmap.aspx

OEM Roadmaps (pay service with free samples)www.oemroadmaps.com

(c) 1993-2003 Pragmatic Marketing, Inc. 15

Pragmatic Marketing® Framework

A framework for managing and

marketing technology products

Pricing

Buy, Build or Partner

Operational Metrics

BusinessCase

SalesProcess

Thought Leaders

Market Requirements

MarketSizing

MarketingPlan

Product Roadmap

Awareness Plan

Market Research

Market Problems

Distinctive Competence

Product Performance

Customer Acquisition

Positioning

Customer Retention

LaunchPlan

Product Contract

Innovation

Market Messages

Channel Training

Win/Loss Analysis

Competitive Write-Up

EventSupport

Collateral & Sales Tools

Presentations & Demos

WhitePapers

User Personas

“Special”Calls

Release Milestones

AnswerDesk

Technology Assessment

Competitive Analysis

Lead Generation

Buyer Personas

Market Analysis

Product Strategy

Program Strategy

Product Planning

Quantitative Analysis

Channel Support

SalesReadiness

Stra

tegi

c Tactical

© 1993 2003 Pragmatic Marketing Inc

Resources

Barbara Nelson – bnelson@pragmaticmarketing.com

www.pragmaticmarketing.com - about our courseswww.productmarketing.com - free resource site