plm summit meeting february 28 – march 1, 2005
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PLM Summit Meeting February 28 – March 1, 2005. Introductions Agenda Review. Bob Grossman. President, R. Grossman and Associates An independent consulting firm specializing in electronic security products and projects. Bob Grossman. President, R. Grossman and Associates - PowerPoint PPT PresentationTRANSCRIPT
PLM Summit MeetingPLM Summit MeetingFebruary 28 – March 1, 2005February 28 – March 1, 2005
IntroductionsIntroductionsAgenda ReviewAgenda Review
Bob GrossmanBob GrossmanPresident, R. Grossman and AssociatesPresident, R. Grossman and Associates
An independent consulting firm specializing in An independent consulting firm specializing in electronic security products and projectselectronic security products and projects
Bob GrossmanPresident, R. Grossman and Associates
An independent consulting firm specializing in electronic security products and projects
R. Grossman and AssociatesR. Grossman and Associates
ProjectsProjectsBristol-Myers SquibbBristol-Myers Squibb
Foxwoods Casino Foxwoods Casino ResortResort
Mystic Lake CasinoMystic Lake Casino
U.S. Postal ServiceU.S. Postal Service
U.S. Forest ServiceU.S. Forest Service
ProductsProductsAmerican FibertekAmerican Fibertek
BuyerZone.comBuyerZone.com
CerniumCernium
SyPixx NetworksSyPixx Networks
Visionary SolutionsVisionary Solutions
WinstedWinsted
Bob GrossmanBob Grossman
Tyco/SensormaticTyco/Sensormatic– Director, Product Line ManagementDirector, Product Line Management– Senior Manager, Technical Services (Tech Support, Applications)Senior Manager, Technical Services (Tech Support, Applications)– Senior Project Manager, Advanced Systems DesignSenior Project Manager, Advanced Systems Design
ViconVicon–Vice President, Technical Services, Inside Sales, Customer Vice President, Technical Services, Inside Sales, Customer Services, Product Line ManagementServices, Product Line Management
Bally’sBally’s–Communications and Electronics ManagerCommunications and Electronics Manager–Entertainment Technical DirectorEntertainment Technical Director
HousekeepingHousekeeping
Start on timeParticipation from allLaptops OK if you can pay attentionPhones and pagers offScribe documents action itemsTimekeeper keeps us on scheduleCollector keeps track of follow up material Group dinner tonight, time permitting
Monday, February 28, 2005Monday, February 28, 2005
8:00A – 8:30A8:00A – 8:30A Agenda Review Agenda Review GrossmanGrossman
8:30A – 9:00A8:30A – 9:00A Overview of Richardson and our Overview of Richardson and our GroupGroup DiddellDiddell
9:00A – 10:00A9:00A – 10:00A Defining PLM, Industry TrendsDefining PLM, Industry Trends GrossmanGrossman
10:00A – 11:00A10:00A – 11:00A Defining our Product CategoriesDefining our Product Categories HoughtonHoughton
11:00A – 12:00P11:00A – 12:00P Categorical SuccessCategorical Success StolthStolth
12:00P – 1:00P12:00P – 1:00P Lunch/FirefightingLunch/Firefighting
1:00P – 2:00P1:00P – 2:00P Understanding our CustomersUnderstanding our Customers WalstonWalston
2:00P – 3:00P2:00P – 3:00P BrandingBranding BakerBaker
Monday, February 28, 2005Monday, February 28, 2005
3:00P – 6:00P3:00P – 6:00P Product Plan (Part 1)Product Plan (Part 1) GrossmanGrossman
6:00P6:00P Dinner Break (if work is done)Dinner Break (if work is done)
Tuesday, March 1, 2005Tuesday, March 1, 2005
8:00A – 9:00A8:00A – 9:00A Product SourcingProduct Sourcing LassandroLassandro
9:00A – 10:00A9:00A – 10:00A Distribution VendorsDistribution Vendors DardengoDardengo
10:00A – 11:00A10:00A – 11:00A ForecastingForecasting TomilsonTomilson
11:00A – 3:00P11:00A – 3:00P Product Plan (Part 2)Product Plan (Part 2)
Diddell/Diddell/
GrossmanGrossmanStrategyStrategy
ExecutionExecution
3:00P – 5:00P3:00P – 5:00P Looking Forward (ABO’s)Looking Forward (ABO’s) GroupGroup
5:00P – 6:00P5:00P – 6:00P Next Steps/Wrap UpNext Steps/Wrap Up DiddellDiddell
(Wendy, it’s your turn…)(Wendy, it’s your turn…)
What is Product Line What is Product Line Management?Management?
PLM GroupPLM Group
A focused team of professionals, working A focused team of professionals, working together to specify a portfolio of products. together to specify a portfolio of products.
Each product does exactly what the Each product does exactly what the customer needs, and the collection is customer needs, and the collection is
greater than the sum of it’s parts.greater than the sum of it’s parts.
Product Line ManagementProduct Line Management
PLM responsibilitiesPLM responsibilities
Evaluating available technologiesEvaluating available technologiesDefining market needsDefining market needsDetermining likelihood of successDetermining likelihood of successDefining product specificationsDefining product specificationsCommunicating product statusCommunicating product statusManaging deadlinesManaging deadlinesProduct launch responsibilitiesProduct launch responsibilitiesSustaining and eliminating products (refreshing Sustaining and eliminating products (refreshing product line)product line)
Evaluating Available Evaluating Available TechnologiesTechnologies
Outside our own industryOutside our own industry
Products ahead of the “commodity” curveProducts ahead of the “commodity” curve– Consumer DVR’sConsumer DVR’s– Digital photographyDigital photography– Personal computersPersonal computers– Broadcast televisionBroadcast television– Voice recognitionVoice recognition– TelecommunicationsTelecommunications
Evaluating Available Evaluating Available TechnologiesTechnologies
Report Card?Report Card?
We focus on our own industryWe focus on our own industry– Trade Shows Trade Shows
CES, NAB, InfoComm, PC Expo, AES, Comdex)CES, NAB, InfoComm, PC Expo, AES, Comdex)
– Trade Publications for other industriesTrade Publications for other industries– Specialized Consumer PublicationsSpecialized Consumer Publications– General Interest PublicationsGeneral Interest Publications
Defining Market NeedsDefining Market Needs
Not “What the customer wants.” Not “What the customer wants.”
What the customer will buy.What the customer will buy.
Familiarity and Innovation togetherFamiliarity and Innovation together– Avoiding “me too” productsAvoiding “me too” products
Technology products are generally “top Technology products are generally “top down”down”
Defining Market NeedsDefining Market Needs
Report Card?Report Card?
Few internal resourcesFew internal resources
External Resources have strong bias External Resources have strong bias – For and AgainstFor and Against
Personal ResourcesPersonal Resources– Dealers and end usersDealers and end users– Friends and associatesFriends and associates– Fellow PLM Team MembersFellow PLM Team Members
Determine Likelihood of SuccessDetermine Likelihood of Success
Can we reach the target customer?Can we reach the target customer?– Do we have the appropriate sales channel?Do we have the appropriate sales channel?– Is the sales channel interested?Is the sales channel interested?– Is the market already well served?Is the market already well served?
Why will they choose us?Why will they choose us?
Determine Likelihood of SuccessDetermine Likelihood of Success
Report Card?Report Card?
Good idea versus practical ideaGood idea versus practical idea
““BS Filter”BS Filter”
Define Product SpecificationsDefine Product Specifications
Features, Form Factor, FunctionalityFeatures, Form Factor, Functionality– Driven by previously mentioned factorsDriven by previously mentioned factors– Clearly definedClearly defined– Cost/Benefit AnalysisCost/Benefit Analysis– You can’t please everybody, but you can You can’t please everybody, but you can
please nobody.please nobody.
Define Product SpecificationsDefine Product Specifications
Report Card?Report Card?
More focus on installability and usabilityMore focus on installability and usability– Radio Shack testRadio Shack test– InterconnectivityInterconnectivity
Define Product SpecificationsDefine Product Specifications
Report Card?Report Card?
More focus on installability and usabilityMore focus on installability and usability– Radio Shack testRadio Shack test– InterconnectivityInterconnectivity
Products must be smarter than our Products must be smarter than our customers.customers.
Know your target marketKnow your target market
Communicate Status Communicate Status and manage deadlinesand manage deadlines
Clear map of progressClear map of progress
Buy in from constituents and customersBuy in from constituents and customers
Adherence to a Strategic PlanAdherence to a Strategic Plan
Consistent MessageConsistent Message
Communicate Status Communicate Status and manage deadlinesand manage deadlines
Report Card?Report Card?Departmental DocumentationDepartmental Documentation– Short Term – Release planShort Term – Release plan– Long Term – Product StrategyLong Term – Product Strategy
Streamline PaperworkStreamline Paperwork– Documents people want to readDocuments people want to read– Predict essential information to avoid last minute Predict essential information to avoid last minute
scramblesscrambles
Change emphasis Change emphasis – From “CYA” to “inform and build consensus”.From “CYA” to “inform and build consensus”.
Product LaunchProduct Launch
Assist groups in launch of productAssist groups in launch of product
Ensure the product is availableEnsure the product is available
Ensure that others follow through as Ensure that others follow through as requiredrequired– Training, support, applications, marketing Training, support, applications, marketing
Trade Show ParticipationTrade Show Participation
Product LaunchProduct Launch
Report Card?Report Card?
Personal stress levelPersonal stress level– There’s got to be a better wayThere’s got to be a better way
Tighter links to other groups.Tighter links to other groups.
Sustaining and EOLSustaining and EOL
Ensure longest possible salability of Ensure longest possible salability of productproduct– Drive feature enhancements, cost reductionsDrive feature enhancements, cost reductions– Continually evaluate vendorsContinually evaluate vendors
Eliminate Products that no longer make Eliminate Products that no longer make sensesense
Report Card?Report Card?
Formalize ProcessFormalize Process
Mixed Product LinesMixed Product Lines (OEM and Internal Development)(OEM and Internal Development)
How do we reconcile a mixed product How do we reconcile a mixed product line?line?
Horizontal (product based) and Vertical Horizontal (product based) and Vertical (specialty based) tasking(specialty based) tasking– Vendor relationshipsVendor relationships– GluewareGlueware
Redistributing Product Lines Redistributing Product Lines
Are we all handling the product lines we Are we all handling the product lines we want to handle?want to handle?
Do we all have the right amount of work?Do we all have the right amount of work?
Should we periodically switch off product Should we periodically switch off product lines to cross-train and bring experience lines to cross-train and bring experience gained in one product line to another?gained in one product line to another?
Identifying Needed ResourcesIdentifying Needed Resources
Do we have the right people in the right Do we have the right people in the right places?places?
Where do we need to add people to Where do we need to add people to ensure success?ensure success?
Communications IssuesCommunications Issues
How can we work effectively as a group How can we work effectively as a group while spread out across geographies? while spread out across geographies?
How much communication is needed?How much communication is needed?
Are we wasting time overcommunicating?Are we wasting time overcommunicating?
QuestionsQuestions
Industry TrendsIndustry Trends
Market OverviewMarket Overview
Demand/Sales ($US Billion)Demand/Sales ($US Billion)
05
101520253035404550
Security Sales
FredoniaGroup
Electronic Security Market
Market OverviewMarket Overview
Access ControlAccess Control
CCTVCCTV
Systems IntegrationSystems Integration
EASEAS
Fire AlarmFire Alarm
Burglar AlarmsBurglar Alarms
Home Automation Home Automation BiometricsBiometrics
Central Station Central Station MonitoringMonitoring
Electronic Security Market
Market OverviewMarket OverviewElectronic Security MarketElectronic Security Market
Revenue by Type of BusinessRevenue by Type of Business
7
8
14
27
34
42
0 5 10 15 20 25 30 35 40 45
Wireless Video
Fiber Optics
IP AddressableCameras
Integration
Networked Video
Remote Video
Source: Security Sales & Integration, January 2005
Market OverviewMarket OverviewAverage number of annual installations Average number of annual installations (per dealer)(per dealer)
45%
20%
13%
9%
9%
4%
Greater Loyalty to Dealer Base(Not Selling Direct)
Better Technical Support
Better Quality Control
Faster Delivery
Better Warranty
Exclusivity
Source: Security Sales & Integration, 2004 Annual Business Report
* Commercial
Market OverviewMarket Overview
Decision MakersDecision Makers
Source: Access Control & Security Systems Integration Magazine, December 2000
0 10 20 30 40 50 60 70
Facilities
Security
CEO
IT
HR
Integrator
Designer
Consultant
Other Security
Dealer
Fortune 1000
Other
Market OverviewMarket OverviewTop End-User Security Issues for 2005Top End-User Security Issues for 2005
Source: J.P. Freeman, 2005
0 1 2 3 4 5
Need for information
Budgets are tight
Need pricing information
Security Upgrades
Alarm Monitoring
Open Architecture
Terrorism Threat
More benchmarking
School violence
Guard replacement
Median
Market SurveyMarket Survey
When choosing a new product to install, what When choosing a new product to install, what factors are most important to you? factors are most important to you?
27%
24%20%
16%
13%
Perceived Quality and Warranty
Latest Technology
System Compatability
Well-known Brand Name
Lowest Price
Source: Security Sales & Integration, June 2002
Market OverviewMarket Overview
Actual and Projected IP Camera Adoption by Actual and Projected IP Camera Adoption by Manufacturer and End UserManufacturer and End User
Manufacturer (2004)
28%
50%
22%
No Plans toOffer/BuyNow Offers/Buys
Plans toOffer/Buy
Source: J.P. Freeman Co. 2004
Security Professional (2005 Proj.)
25%
30%
45%
Market SurveyMarket SurveyWhat features do your customers demand the What features do your customers demand the most? most?
7
8
14
27
34
42
0 5 10 15 20 25 30 35 40 45
Wireless Video
Fiber Optics
IP AddressableCameras
Integration
Networked Video
Remote Video
Source: Security Sales & Integration, February 2005
Market SurveyMarket Survey
If you could improve one thing about your If you could improve one thing about your primary security equipment vendor, what would primary security equipment vendor, what would it be? it be?
45%
20%
13%
9%
9%
4%
Greater Loyalty to Dealer Base(Not Selling Direct)
Better Technical Support
Better Quality Control
Faster Delivery
Better Warranty
Exclusivity
Source: Security Sales & Integration, February 2005
Market SurveyMarket Survey
How neutral do you believe your distributor is in How neutral do you believe your distributor is in recommending products? recommending products?
31%
29%
23%
13%
4%
Pushes Personal Favorites
Pushes House Brands
Incentives Fuel Recommendations
Completely Unbiased
Pushes More Expensive Items
Source: Security Sales & Integration, February 2005
IP FunctionalityIP Functionality
IntegrationIntegration
InfrastructureInfrastructure
InexpensiveInexpensive
Market OpportunityMarket Opportunity
IP FunctionalityIP FunctionalityHybrid SystemsHybrid Systems
Clustered ArchitectureClustered Architecture
Performance moving up Performance moving up the user pyramidthe user pyramid
Integration is an issue for Integration is an issue for customerscustomers
Market OpportunityMarket Opportunity
IntegrationIntegrationMany use lowest common Many use lowest common denominator (“it works”)denominator (“it works”)
Sell related systemsSell related systems
Bundling works!Bundling works!
Applications supportApplications support
Market OpportunityMarket Opportunity
InfrastructureInfrastructureIP or UTP?IP or UTP?
Is coax fading?Is coax fading?
Fiber Optic back to a Fiber Optic back to a specialty.specialty.
WirelessWireless
Market OpportunityMarket Opportunity
InexpensiveInexpensiveTremendous market at low Tremendous market at low endend
““Good Enough”Good Enough”
Applications assistanceApplications assistance
Confidence in productConfidence in product
Market OpportunityMarket Opportunity
QuestionsQuestions
Break?Break?