Welcome to a brief overview of product concept document
and product vision. After watching this video, you will be able to describe
the overall purpose of the product concept
document and identify what information to include in the product concept document. Let's begin with the
product concept document. This document is created
during the conceive phase. It identifies a specific market and a conceptual
solution to solve it. Let's walk through an example. In this example,
we will use a 3D, or three-dimensional
printer scenario to share the product
concept document. A firm is proposing
the development of an advanced 3D printer model they believe has the
potential to be successful. The product concept document has a number of recommended entries. Let's go ahead and
walk through each one. The first entry discusses the market problem
or opportunity. Define the market
problem to be solved. In this particular example, the 3D market
continues to expand. The market is estimated to
grow from $23 billion in 2023 to
$94 billion in 2030. That is some very
impressive growth. The next area discusses
market segments. Define which market
segment has the problem. Well, in this
particular scenario, 3D printers are required
in the automotive, aerospace, defense, and a number of
additional industries. The primary focus of our
product is commercial users. Key financials are always included in the product
concept document. We tried to define
the opportunity from a financial standpoint. This particular firm conducted a cost-benefit analysis
and they believe that there is potential for 25% return on investment
in year number 1, that is a healthy return. The next entry is discussing
the market window. Identify the market window. This firm believes that the time to enter the market is now. Why? More and more industries
are looking for reliable and
cost-effective 3D printers to serve their needs. The next entry discusses the competitive landscape and
lists your key competitors. In this scenario,
there are a number of varieties of 3D printers on the market that
are comparable to what this firm is proposing, the competition is growing, and the primary
competitors include a variety of different
printer types and companies that produce them. The main features and
functionality need to be listed in the product
concept document as well. In this example, the 3D
printer that is being proposed will have six
different features and functionality that the firm
believes will allow them to differentiate from
the competition and with that the
key differentiators, how will you differentiate
your product? This company believes that they can achieve cost leadership by selling their printer at 5-8% less than comparable
competitor models. In addition, they believe that they will have
better print volume. They will feature a
larger print volume than all known
competitor models. The next area is go
to market logistics. Identify how the market or
the product will be marketed. In this particular case, this firm will market their printer through
direct sales and they will also leverage existing
distribution partnerships with companies such as Amazon, Walmart, Costco,
and Office Depot. Finally, business success
measurements define how success will be measured if we choose to
launch this product. This particular
firm will measure success by sales, revenue, market share, and the number of corporate partnerships
and accounts. A product concept document normally drives a
product vision. Let's take a look at
the product vision. The product vision
is developed using information in the
product concept document. The product vision is defined as an aspiration future state, that a product manager
wants the product to achieve to support the overarching
goals of the business. This is important. The
product vision is not, repeat, not a list of features
or capabilities. The intent is to describe
what the product will do to support a defined market
segment in terms of benefits. The product vision is often
developed in the form of what we refer to as
an elevator speech. This best practice
is widely used and developed to tell
the product story in a manner that provides
all the information a potential stakeholder
needs to know, and compels them to support or potentially
procure the product. This format is
prescriptive and meant to be written and read as shown. First of all, let's take a look at the product vision format. It is a six-step approach and it discusses six
key elements for who our product that unlike and it finishes with an overview
of the product itself. An example is worth 1,000 words. Let's take a look at
the example on how our 3D printer product
vision might be written. For all organizations
that require a high quality 3D
printing capability. Who want to reduce printing
time costs and weights? Our product, the always ready
3D printer that features the highest print volume
and lowest cost of all comparable models
on the market today. Unlike 3D printers that provide poor-quality printing
at a high cost and erode your
competitive advantage, our product, the
always-ready 3D printer can be shipped and installed at your site in
less than one week and be ready to use on day 1. You will now have an
opportunity to develop a product concept document and product vision to support the solar water heater scenario. In this video, you learned that the product concept
document describes how the product will fulfill the business's
overarching goals. A product concept
document identifies the specific market problem or opportunity that your
product aims to address. The product concept
document defines the pain points and the
product's primary target market. The product concept document includes a
cost-benefit analysis, information about the
potential return on investment, key competitors, a competitive analysis and
the product concept document includes a comprehensive
market analysis including the optimal
time to enter the market, market demand, competitors, their offerings, and the
product's differentiators.