May, 2012

All the posts published.

Problem . What is a product life cycle curve & its stages ? . Action . As consumers, we buy millions of products every year. And just like us, these products have a life cycle. Older, long-established products eventually become less popular, while in contrast, the demand for new, more modern goods usually increases quite rapidly after they are launched. Because most companies understand the different product life cycle stages, …

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Problem . How to make sure the product is achieving its financial goals ? . Action . Build up a basic understanding of balance sheets, income statement and cash flow statements. Once you understand the above, use Variance Analysis technique to evaluate if product is achieving its goals Variance analysis looks at a financial plan or budget and compares that plan to the actual results as shown on the product’s …

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Problem . What are core financial planning areas for product managers ? . Action . Product Managers at some point in their career, have to carry out the following Create Business Cases for product investments Assemble forecasts Test planning assumptions (sensitivity analysis) Derive product cost models Establish pricing models Prepare product budgets Each of the above activities is critical to setting up the business of the product so that its …

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Problem   What is the core language of any business that every product leader must know ?   . Action   Finance is the common language of business in a product management environment A good foundation in basic finance is necessary for managing and leading successful products Professionals must be able to understand and assess how a product’s financial returns affect the business and the product portfolio. Financial acumen is …

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| 2012 May
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