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- Now let's cover some fundamental

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product management concepts.

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To develop a product,

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you need to have a product vision

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that describes the overarching,

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long-term mission of your product.

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So how do you define long-term?

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Probably one or two years
is too focused on legacy,

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and over six years, it's too far away.

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So usually the product
vision that is realistic

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and ambitious,

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covers three to five years.

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Product vision statements are aspirational

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and communicate concisely
where the product hopes to go

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and what it hopes to
achieve in the long-term.

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Product vision is derived from
the organizational mission

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and vision.

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Most companies have multiple products

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and each comes with its own vision.

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For example,

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Australian company Atlassian
includes Jira software,

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Jira service desk, Jira
Core, Confluence, Bitbucket,

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Trello,

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that I have shown you with my
personal goals and Jira line.

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Each of the product has its own
vision that drives delivery.

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Bitbucket is for continuous integration,

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Jira is for company
level product management

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and agile delivery management,

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and Trello is for
individual use primarily.

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So how do you formulate
your product statement?

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For that, use the following
elevator pitch template,

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that was introduced by Geoffrey Moore

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in his book "Crossing the Chasm,"

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An elevator pitch,

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as you may have guessed already,

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is a short description of a product

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that explains the concept

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so that any listener can understand it

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in a short period of time.

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So the goal is to convey
the overall product concept

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in an exciting, clear, and concise way.

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The name elevator pitch reflects the idea

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that it should be possible
to deliver the summary

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of the time span in an elevator, right?

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So for example,

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if you are in an elevator
with the CEO of your company,

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you can use this time to tell
this person about your product

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and what you expect it to do.

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So here is the template.

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It was suggested by Geoffrey Moore,

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and it's the following:

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for (target customer)

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who (then you provide statement
of need or opportunity)

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the product name is (then you
provide the product category)

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that (and then you provide the why)

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it's key benefit (reason to
buy and use your product)

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and then another sentence,

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unlike (and then you put
primary competitive alternative)

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our product,

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and then you put the statement
of primary differentiation,

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the value.

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So it is important that the
elevator pitch is compelling.

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It reflects customer value

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rather than technical implementation.

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So for example, for tax software TurboTax,

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the product statement would emphasize

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the value of saving time and money,

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for individuals to
dedicate to their families,

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rather than providing spreadsheets

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and calculating annual taxes on their own.

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So the compelling product vision
would sound something like

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"For the family member responsible
for the annual tax return

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who spends a lot of time and
effort to prepare their taxes

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and frequently make mistakes

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that need to be corrected afterward,

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TurboTax provides a
fast and worry-free way

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of preparing their annual tax return.

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Unlike other tax preparation software,

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TurboTax is inexpensive,
intuitive, and easy to use."

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So as you can see,

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the product vision needs
to inspire your customers,

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and also your employees.

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Silicon Valley product
management guru, Marty Cagan,

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explained the difference
between the missionaries

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and mercenaries

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from a product perspective
in his famous book "Inspire,"

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that was mentioned in lesson one.

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According to Marty Cagan,

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teams of missionaries
are engaged, motivated;

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they have a deep understanding
of the business context

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and tangible empathy for the customer.

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On the opposite,

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teams of mercenaries feel
no real sense of empowerment

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or accountability,

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no passion for the problem
that they're trying to solve,

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and little connection with
their actual users or customers.

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So in a product team, we
want teams of missionaries,

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not mercenaries.

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More than anything else,

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it is the product vision that inspires

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missionary-like passion
in the organization.

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As Marty Cagan said,

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you can make any product
vision meaningful,

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if you focus on how you
genuinely help your users

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and customers.

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So the product needs
to be customer-focused.

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That gives customers a compelling reason

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for using the product.

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It has to be inspirational and realistic,

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informative, and still
leave room for creativity.

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Now let's play a matching game.

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Let's review some of the
product vision statements

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and guess which product it is.

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And I will make a pause to give
you time to think about it.

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So here is the first one.

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For the business user,

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who needs to be productive
in the office and on the go,

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this product is a convertible
tablet that is easy to carry

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and gives you total
computing productivity,

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no matter where you are.

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Unlike laptops, this product
serves your on-the-go needs

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without having to carry an extra device.

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Did you guess?

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If you haven't yet,

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this is a Microsoft Surface tablet.

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Let's try another one.

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This product is the collaboration hub

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that brings the right people,

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information and tools,

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together,

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to get the work done.

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From Fortune 100 companies
to corner markets,

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millions of people
worldwide use this product

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to connect their teams,
unify their systems,

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and drive their business forward.

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Did you guess this one?

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I hope you did.

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This is Slack.

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Here is another one.

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This product's vision is to improve lives

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by improving communication,

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and the core to this vision

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is meeting the communication
needs of people worldwide.

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Think what it could be.

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It is not Zoom.

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And this one is not as straightforward,

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though you may use it
every day, just like I do.

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This is Grammarly, the spell checker.

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So now you can see

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how important it is
for your product vision

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to be very specific,

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and to resonate with your customers.

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So here is an exercise for
you to do after this lesson:

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create a product statement
for one of the products

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that you use every day,

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and you will see that it is not easy,

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but once you do,

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it helps you understand and
define the product really well.

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So how do you combine it all together?

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From company mission and vision,

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to the product vision and the
objectives and key results

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that you use to measure the
progress towards this vision?

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There are several approaches
to creating a holistic vision

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for your product.

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A well-known framework is called OGSM,

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which stands for objectives, goals,

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strategies, and measures.

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This framework defines both
what you want to achieve

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and how you want to achieve there.

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It divides your product
vision into measurable goals,

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defines strategies,

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and uses key result measures

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to establish an ongoing
way to monitor progress.

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This approach is used
in product management,

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and in marketing.

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Actually, marketing is
one of the key areas

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of product management.

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It's not sufficient just
to build the product,

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there are 4 Ps of marketing:

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the product,

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which is the good or service,

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the price,

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what the customer is willing to pay,

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the place,

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how you market your
location for the product,

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and promotion,

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the advertising.

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The concept of 4 Ps is not new,

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it has been around since the 1950s,

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and companies still use
it to identify key factors

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for their businesses,

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including what consumers want from them,

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how their products or
services meet their needs,

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and how they're perceived by their users.

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They use it to see how
the products stand out

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from their competitors

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and how they interact with the customers.

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So now when we're equipped
with all the knowledge

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about the product vision
and the product goals,

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we can talk about design thinking.