Product value formation
Dinner chose to shake the sound of the purchase of coupons on the cattle big bone, but due to the encounter of the same coupon users to redeem more, inconspicuous tavern, waiting for a seat half an hour to eat the meal.
From the perspective of the businessman, distinguishing between weekdays and weekends, combined with recent weekend sales with marketing, should be able to have a rough prediction of tonight's sales. And based on this prediction to prepare for the purchase of raw materials and the production of semi-finished products. However, it is clear that we cannot rely entirely on the sales forecast, but also consider some special circumstances, so in addition to the sales forecast of the ingredients, you also need to prepare some additional inventory for emergencies, in the field of supply chain is called safety stock. This ensures the smooth delivery of the final catering package.
In the process of building a product, the same as in the restaurant supply chain, there is also a need to land the demand into a product and deliver it through implementation. The difference is that the jump from requirements to product is not as strong as catering certainty, but requires the product manager to do the control, i.e., to transform the requirements into the target value, followed by R&D and delivery.
Demand prioritization
The supply chain evaluates the priority of the call, often depending on the degree of urgency and the volume of customer demand. If the customer demand volume is large, belonging to the company or business KA customers, then it will certainly prioritize production and supply; if the goods can not be supplied will be down to wait for the material, the priority will certainly be higher than the order can not be met, the same order can not be met, but also higher than the plan can not be met.
Product managers assess demand prioritization, similar to supply chain supply prioritization, from the perspective of customer coverage and demand urgency. Large customers or large customer base demand will be ranked higher priority; rigid demand, that is, do not do will die priority is obviously higher than the important and not urgent demand, the same important and not urgent demand priority is higher than the demand can be done without doing. From the perspective of the demand side, both to strive to make themselves big customers, but also to highlight the degree of urgency for the needs of many needs to fall into the product.
Product delivery
As mentioned earlier, product delivery includes R&D and implementation, which is viewed as the process of creating value from the customer's request to the end.
From a supply chain perspective, product delivery is a fundamental requirement for business to function properly. Customers put forward the needs of the company to organize production, to the final delivery to the customer. Then another round of demand forecasting, inventory planning and supply chain execution. Inventory, capital, and operations in order to function properly.
From a product delivery perspective, delivery people are naturally inclined to "maintain the status quo" due to their position, rather than delivering the latest products and features to customers. Product managers are far away from customers and lack the authority to drive delivery, which often leads to a gap between product development and delivery, resulting in a failure to deliver value.
In the former company in order to improve the whole system operation, in the R & D side to engage in the "bi-weekly iteration" action, to accelerate the demand to program to develop the rhythm of the product. On the delivery side, it is to force the delivery side to deliver the latest products and features to the customers through "mandatory upgrade". This reduces the backlog of demand and the problem of poor return on investment. From a supply chain perspective, it is easy to see that the underlying logic is to bridge the gap between demand and delivery, and to de-demand the inventory process.
Product Iteration
The point at which a product differs from a project is that it is not a one-time delivery. It is expected to be delivered in batches and reused for multiple customers. Requirements iteration requires the realization of requirements - program - product - delivery - requirements ..., for the closed loop of continuous iteration. Good product iteration must be demand, program, product, delivery source, rather than stuck in a link leading to iteration is not good.
From the supply chain perspective, demand forecasting + safety stock + supply chain execution as the core of the three lines of defense to ensure the normal operation of the supply chain. The re-order point, in particular, requires finding the right time to replenish and recirculate the process between the highest and lowest point of safety stock. The re-order point replenishment quantity is required to meet the average demand forecast * replenishment cycle.
Product iteration also requires that, in addition to walking through the entire product iteration cycle, the product manager needs to have an accurate grasp of the iteration's "re-replenishment point" in order to more smoothly realize product iteration without the problem of certain functions idling.
The specificity of the power industry requires a real-time balance between the production of power and the consumption of power, i.e., the perfect supply chain is a perfect balance between supply and demand. Ideal product iteration is the premise that the product matches the market, the product in the fastest way to achieve iteration. Multiple teams for a product such as bytes take turns sending out weekly releases to add features, which is several times more efficient than the typical single-team waterfall flow.
Xiao Le Di, a first-tier AI product manager, excellent author in technology, and founder of the Product Manager Book Club.
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