The *business* of software
Product Managers and the Business Development Role
Hi everyone,
I am the Product Manager for a larger enterprise product. We sell to large insurance companies and generally customize the product for each carrier along with a 6-12 month implementation cycle. Consequently, our sales cycle tends to be about 9-12 months on the average.
So, part of my role to have a general overview of what clients are bringing into the system, what should be put into the Base product and represent that in the sales cycle. I am very active in the sales cycle from doing high level product demos all the way to performing multiple week engagements with potential clients to determine product fit. Work to define implementation frameworks for each client, etc.
My question to everyone is, do you have a similar line item in your role as a PM? Are you as a PM responsible for sales or a stakeholder (we are responsible in the fact that we need to create products that meet a market need but I am talking about directly responsible for opening and closing sales)?
Also, if you define the term "Business Development" more as someone that helps to define new markets (I know there is a debate whether this is a sales thing versus BD. Our sales guys are called "Business Development Executives" but for sake of argument of this post, just go with my definition) not responsible for opening or closing sales (but obviously is a stakeholder). Maybe mold the product to reach a new market, niche or segment. Are any PMs responsible for defining different sales channels like affinity type marketing?
I am the Product Manager for a larger enterprise product. We sell to large insurance companies and generally customize the product for each carrier along with a 6-12 month implementation cycle. Consequently, our sales cycle tends to be about 9-12 months on the average.
So, part of my role to have a general overview of what clients are bringing into the system, what should be put into the Base product and represent that in the sales cycle. I am very active in the sales cycle from doing high level product demos all the way to performing multiple week engagements with potential clients to determine product fit. Work to define implementation frameworks for each client, etc.
My question to everyone is, do you have a similar line item in your role as a PM? Are you as a PM responsible for sales or a stakeholder (we are responsible in the fact that we need to create products that meet a market need but I am talking about directly responsible for opening and closing sales)?
Also, if you define the term "Business Development" more as someone that helps to define new markets (I know there is a debate whether this is a sales thing versus BD. Our sales guys are called "Business Development Executives" but for sake of argument of this post, just go with my definition) not responsible for opening or closing sales (but obviously is a stakeholder). Maybe mold the product to reach a new market, niche or segment. Are any PMs responsible for defining different sales channels like affinity type marketing?
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Replies to This Discussion
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Permalink Reply by yadu tekale on -
Scott,
i believe the business development role you define for a PM is not uncommon in ISVs. for example SAP has vertical products and defining such products for a new market is part of the PM's role. Ofcourse the PM does not work in isolation and it is a collaborative effort between marketing, PM, sales etc.
PMs do also play a role in the sales cycle however I have not come across a PM who was targetted on sales closures if thats what your third para refers to.
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Permalink Reply by Steve VanTassel on -
Scott,
In my experience, PMs routinely get involved in providing sales support for large opportunities or when the prospect requires information on product plans and future releases. This benefits the PM by providing direct contact with prospects (which are usually up to speed on competitive offerings as well as their own requirements), benefits sales from having the product expert directly involved in the opportunity, and benefits the company by having the PM as the control point for how information about product futures is related to prospects.
Because product management is engaged in sales support and has as its main mission the requirement to define products the market will value, it's appropriate to have some sort of revenue target as a primary goal. Your distribution strategy (direct vs indirect by region / market, channel partner criteria, pricing across channels, etc.) would typically be part of the product plan owned by PM.
In larger orgs, several roles can come into play: product manager (defines new products / market focused), program manager (ensures product in development is built correctly / internally focused) and product marketing (drives sales of current products / externally focused) - although these job definitions seem to vary considerably by company. With this mix of roles, product marketing typically takes on some of the sales support mission.
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