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Execution-MiH ENCYCLOPEDIA →
Execution Making-it-Happen →
SECTION - 'Value' management →
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CHAPTER -
| Product Value-Maximization |
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This chapter talks about how to get the maximum value mainly out of existing products or existing processes linked to product management. The product value-maximization includes extending product-life and tenure, product adaptability, flexibility and extendibility.
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Topics
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Extending product life and Tenure
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Any organization invests a significant energy and effort in developing and introducing a product. Just like an organism, a product has its own life-cycle. The difference is that unlike an organism, there is much more alertness and speed required to ensure that a product stays healthy, changes fast with time whiles maintaining its core personality and is giving the adequate profitability. Many a times an organization does not put enough improvement & maintenance focus, which leads in product becoming obsolete or unprofitable, leading to it being mercilessly killed. Every time a product is phased out, an organization may lose a significant amount of money as the associated manufacturing, distribution and sales infrastructure is also phased out. Apart from ongoing investment in maximizing product life and tenure, there is a need to build an inherently product design.
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Product extendibility and adaptability quotient
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A product needs to be extensible and adaptable. A banking account should have add-on features a customer can choose, there can be flexibility in tenure of a feature, an insurance policy should have the option of multiple riders, a car should be designed for an easy up gradation for higher powered engine, etc....Apart from this extensibility, a product should be made adaptable, so that its features can be changed without much change in the underlying manufacturing and processing infrastructure.
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Product generation through building-blocks
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A good amount of value can be extracted out of a product, if you can create a building block-method by which common building blocks are used across multiple products. You may use same car-handle across multiple car models, you may use the same set of processing chip across different analyzer equipments and you may use same set of insurance riders across multiple insurance products.
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Product re-positioning management
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Ability to re-position a product can keep on extracting more & more juice out of it. Apart from some legendry products, most other products need to be repositioned for a different segment or for a different customer requirement. This churn will ensure that a product will stay alive. The products which may be obsolete for metros, may be repositioned with small cities as the leading-edge. The products which are positioned as high-utility may be re-positioned with premium-editions. Products which are considered to be costly & up-market can be re-positioned with utility-editions.
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Product revenue and profitability management
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An organization has to have a profit-and-loss account for each product and if possible for each sub-product. This should be further split across different channels and locations. This helps in keep a tight control and track on how a product is performing.
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All Chapters in "'Value' management ." Section
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