Launch a company

Startups usually face several challenges while moving along the path from conception of an idea to launching a company, from getting initial funding to building the right team with budget constraints.

In this process the already daunting task of building a product management function gets lost or becomes all the more difficult.

Understanding what exactly product management function is and incorporating a defined process early on can help save lot of time and money on false starts.

The following article talks about pitfalls involved in creating a Product Management function at a company

Creating Product Management at a Startup

The following article talks about how a prototype based – product experimentation model normally used in the manufacturing industry can tremendously help in launch of new Software Products .

Startup Product Management

Contactless payment systems are credit cards, key fobs, smartcards or other devices which use RFID for making secure payments. The embedded chip and antenna enable consumers to wave their card or fob over a reader at the point of sale. Some suppliers claim that transactions can be almost twice as fast as a conventional cash, credit, or debit card purchase. Because no signature is typically required for purchases under US$25, some research indicates that consumers are likely to spend more money due to the ease of small transactions.

With a potential global market value of nearly $1 trillion in payments, this is not an area that cards issuers, acquirers or schemes can afford to ignore. The US has the greatest potential in terms of contactless payments, with low value cash transactions of $297 billion per year at present. The global contactless opportunity is $963 billion per year.
(Source

Contactless payment phones or Near Field Communications (NFC) enabled phones will become increasingly common, and a recent report highlights the following:

• Global mobile subscribers with NFC phones will reach 700m by 2013
• The market is currently dominated by FeliCa-enabled phones on the networks of NTT DoCoMo, KDDI and SoftBank in Japan, where we estimate about 50m FeliCa-enabled phones have been shipped to date.
• North America, Western Europe and Far East & China will be the leading regions by 2013, with each region having annual shipments in excess of 25% of total NFC phone shipments.
Source

Opportunities lie in mobile software for contactless payment and contactless point of sale readers

I have the privilege of working for a high tech software as a services company that has grown from a start up to a world class brand in 10 years and is continuing to perform exceptionally well.

We have reached the billion dollar annual revenues mark, have competitors who don’t really provide any competition, several thousand customers worldwide and are still growing in todays economy.

What helped our company reach its current level of success?

Heres my analysis on what it takes to build such a highly successful software company:

Top 10 traits of a successful software company :

1) Have a recurring revenue model:

The benefits of a recurring revenue model are phenomenal. In this model, you bill your customers
monthly and get paid monthly. Your customers typically sign a contract for a finite period of time :
for e.g 1-2 years, and they are LOCKED IN during this time, facing heavy penalty or legal action for
early termination. Very similar to a cell phone plan ..Whats great about this model, is that its a great way
for companies to avoid capital expenditures upfront, so its an easier sell.

2) Build a solution that has the ability to cut costs and potentially increase revenue for your customers

Most CIOs are tasked with not just cutting costs but identifying strategic technologies that can help
increase revenues as well. More so in todays economy, where most IT budgets are shrinking by the day.
If you have a solution that can be pitched as both cost savings as well as a revenue driver, its a sure win.
Help IT cut costs in areas such as Infrastructure(servers etc) or man power. Build a solution that will either
provide a new channel for sales or give a huge boost to an existing channel . The ROI model that you can build around this is very very compelling.

3) Have a deep moat: Strong competitive advantage in terms of non-reproduceability of solution.

You may have heard this term ‘ build a moat’ in various contexts. For e.g. thats Rule #1 when picking a good stock. What does this mean and how is it relevant for software companies? Our company built a solution that has a WIDE and DEEP MOAT. A moat was traditionally used to protect a Castle/Fort from enemy intrusion. the Wider and Deeper your moat, the more difficult is it for any one to attack you. How do you build such a moat in the software world? Well, for one , honestly , this is easier said than done. When building a solution, identify how hard it may be for someone else to replicate your idea. Do you have proprietary algorithms that power your solution? Or is your solution a simple web application that can be put together by a handful of web developers in a few weeks? If you are relying solely on your marketing/sales expertise, or your networks as a key competitive differentiator, you are in for trouble. The solution you build should be unique, powered by highly proprietary technology associated with appropriate patents that can take years for your competition to build out and figure out. That makes your moat WIDE.

4) How do you make your moat DEEP?By building an exception sales force, technical team and a support organization.

Invest in great/smart talent, hire the best of the best. Top Talent pays off like nothing else.

5) Customer is King: Listen to your customers and constantly evolve,Provide A + Support, training

Companies that are constantly seeking their customers feedback and incorporating it into the
products and services will emerge as a clear winner. Keeping the customer in mind when developing
your organizational model and go to market strategy. Ensure that not just pre-sales, but post sales as well the customer is well taken care of. Make them feel important, provide as much training as possible so they are comfortable with using your solution. Provide 24 X 7 support if required.

6) Multiple streams of income: Diversified product portfolio

Similar concept to the world of personal finance and investing.. Diversification is the golden word.
Ensure that your company does not depend on just 1 single product to bring in the money.. There is inherent risk in this approach. It may take a while to evolve into a multiple product line company, but getting there is essential. Develop solutions that solve different customer pains, and are not just a rebundled marketing message.

7) Flexible and Agile: Make quick decisions and take calculated risk

The beauty of a start up often is that they are not bound by rigid processes and procedures. Over
time companies can get pretty large and lose this golden nugget .. Its important to strike a balance.
Know when to stick with processes and when to jump on a customer thats ready to sign on the dotted line
and be up and running on your solution.

Ease of implementation

Theres nothing more annoying to a CIO who listens to a sales pitch and loves the technology, but realizes it could take months if not years to implement. Some solutions such as Large SAP implementations are that way and its inevitable.
But everyone loves quick wins and low hanging fruit. Identify an implementation strategy that can provide such quick wins and demonstrate ROI fairly quickly. Nothing like walking into a CIO’s room and telling them you can see visible ROI by end of the quarter.

9) Make strategic acquisitions:

When you have made it to a point where its time to look for further growth, making strategic acquisitions is a great way to grow your company. Make sure the rationale for acquisition is sound: Is this going to reduce competition? Does this bring a new product line to your company? Can you boost your existing product offering with this acquisition? Is it the right time to acquire?

10) Build an international customer base: Lastly but not the least, if you can build a solution that has international appeal, the growth prospects for your company will be tremendous. While US markets continue to be the early adopters, other regions are catching on and provide a great expansion point once you have captured the US markets. Revenues from international growth can be substantial 20-40% in some companies.

Great resources on what it takes to be a good product manager

Good product manager Bad Product Manager

Role of the product manager

Top 12 product management mistakes