Webinar: How to Build & Manage a System Product by Amazon Sr PM

Summary

In this webinar, Senior Product Manager at AWS, Nit Ja Nen, shares his journey from an engineer to a product manager and delves into the intricacies of building and managing system products. He discusses the complexities of system products, emphasizing the importance of early and accurate planning, multi-disciplinary team coordination, and the challenges of hardware and software integration. Ja Nen also highlights the significance of compliance, packaging, and the balance between meeting customer demand and managing inventory. He concludes with key learnings, stressing the need for upfront planning, critical thinking, and focusing on controllable aspects to enhance customer experience.

Takeaways

• 😀 Nit Ja Nen, a Senior Product Manager at AWS, shared his career transition from an engineer to a product manager, emphasizing the importance of gaining diverse experience.
• 🛠️ The webinar focused on system products, defined as anything with an electronic component, and the complexities involved in managing them, including coordination between hardware, software, firmware, and applications.
• 🚀 Nit highlighted the unique challenges of system products, such as the difficulty in pivoting from their original design, long development cycles, and the need for clear communication with management and teams.
• 💡 The importance of understanding the customer's needs and ensuring the product meets those needs was stressed, as system products cannot easily change their primary function post-launch.
• 📈 System product development requires significant upfront capital and a clear value proposition to justify the investment, often making them a core competency for a company.
• 🔄 The webinar discussed the iterative nature of system product development, with different layers (services, system software, hardware) having varying degrees of flexibility and the need for careful planning at each stage.
• 🔍 Nit emphasized the role of user testing and feedback in shaping the product, especially given the limited number of iterations possible with hardware products, and the use of 3D printing to facilitate this process.
• 🌐 The need for compliance with various standards (FCC, UL, RoHS) was highlighted, as non-compliance can delay product launches and incur additional costs.
• 🛑 The script touched on the importance of considering packaging from an ecological standpoint, noting the environmental impact of single-use plastics and the need for more sustainable options.
• 📦 Logistics, both forward and reverse, were identified as critical components of product planning, with the need to manage inventory, shipping, and returns carefully.
• 🔗 Finally, Nit concluded with key learnings, including the necessity for upfront planning, the importance of user testing, the high cost of deviation from the plan in system products, and the focus on controllable aspects to improve customer experience.

Q & A

What is the career progression of the speaker from engineering to product management?

The speaker started as a software engineer in 2004, focusing on C/C++ code for network systems. They pursued a master's degree in electrical engineering and joined Intel as a systems researcher. After realizing the long R&D cycle, they transitioned to a product architect role for laptop and desktop teams. Eventually, they became aware of the product manager role and transitioned to it, becoming a lead product manager for the smart home team at Intel before joining AWS as a product manager.

What is the speaker's current role at AWS?

The speaker is currently a senior product manager at AWS, working with the Snow Services team on Snow Service products, which are edge computing boxes designed to run cloud workloads in disconnected environments.

Why did the speaker feel that product management was the right fit for them?

The speaker felt that product management was the right fit because they wanted to be closer to the product and have a more immediate impact. They realized this after spending over five years in research and development at Intel, where they saw the long cycle from invention to product realization.

What are the unique challenges of managing system products compared to software products?

System products have unique challenges such as longer development cycles due to hardware involvement, the need for coordination between hardware, software, firmware, and applications, and the difficulty of pivoting the product from its original design. Unlike software, system products cannot easily change their core function once released.

How does the speaker define a system product in the context of this webinar?

In the context of this webinar, a system product is defined as anything that has an electronic component in it, such as smart locks, smart coffee makers, or smart cars. These products require coordination between embedded systems, Bluetooth, security mechanisms, and applications.

What are some key considerations when planning for a system product?

Key considerations include understanding the long development cycle of hardware, the need for clear communication with management and teams, managing multiple stakeholders and work streams, and the significant upfront capital expense required for development and manufacturing.

Why is it important for product managers to focus on value-added services for system products?

Focusing on value-added services is important because it can increase the overall net margin for the product, help subsidize hardware development costs, and build lasting brand loyalty by keeping customers engaged for a longer period. It also allows for the extraction of more mileage from customers.

How does the speaker suggest product managers approach the planning of system products?

The speaker suggests that product managers should approach planning by considering the different layers of a system product, such as services, system software, and hardware. They should focus on where they can iterate more and where they cannot, and plan accordingly.

What role does compliance play in the development and launch of system products?

Compliance plays a crucial role as system products must meet various safety and electromagnetic interference standards to be shipped into different countries. Non-compliance can lead to delays and additional costs, making it an essential consideration from the early stages of product development.

How does the speaker address the importance of packaging in the context of system products?

The speaker highlights the importance of packaging as it impacts customer experience and ecological responsibility. They encourage product managers to raise the bar on ecologically sound packaging and consider the environmental impact of single-use plastics.

What are some key learnings from the webinar regarding the management of system products?

Key learnings include the need for months of upfront planning and alignment, the importance of user testing and understanding the target customers, the critical nature of compliance in product development, the necessity of managing the entire supply chain including forward and reverse logistics, and the continuous iteration and improvement of the product based on customer feedback.

Outlines

00:00

👋 Introduction to System Product Management

The speaker, Nit Ja, introduces himself as a Senior Product Manager at AWS and shares his career transition from an engineer to a product manager. He emphasizes the importance of gaining experience and finding the right fit, as he did with product management. The session aims to discuss system products, their planning, approval processes, development phases, and key learnings. Nit Ja also mentions his current work with AWS Snow Services and encourages interested individuals to connect with him on LinkedIn.

05:02

🤖 Understanding System Products and Their Complexity

This paragraph delves into what constitutes a system product, highlighting that it involves anything with an electronic component, such as smart locks or coffee makers. The uniqueness of system products is discussed, including the difficulty of pivoting from their original design, unlike software products. The paragraph also touches on the long development cycles and the iterative nature of hardware versus software, emphasizing the importance of clear communication and multi-disciplinary teamwork in managing system products.

10:02

💡 The Value of System Products and Customer Experience

Nit Ja explains the rationale behind building system products, focusing on the evolution of physical devices into smarter, networked devices that simplify customer experiences and foster brand loyalty. He discusses the importance of adding value and services to products to maintain customer engagement and extract maximum mileage from them, using Apple's ecosystem as an example of how services can subsidize hardware manufacturing.

15:04

🛠️ Planning and Metrics for System Product Development

The speaker outlines the planning process for system products, emphasizing the need for clear metrics to convince leadership of the investment's value. He discusses the three layers of system products: services, system software, and hardware, and the different levels of iteration possible at each layer. The importance of early planning, competitive analysis, and understanding customer commitment is highlighted, along with the strategic elements involved in product planning.

20:06

🔍 User Testing and Competitive Analysis in System Product Development

Nit Ja discusses the importance of user testing in the development of system products, especially with advancements in 3D printing that allow for more accurate feedback. He also talks about leveraging competitive analysis to set baseline specifications and focus on differentiating features. The paragraph underscores the need to manage time effectively and concentrate on value-added services to increase net margins.

25:06

🔧 Navigating Compliance and Packaging in System Product Launch

Compliance and packaging are crucial aspects of system product development that can impact schedules and planning. The speaker explains the need for compliance with electromagnetic interference and safety standards across different regions. He also addresses the ecological impact of packaging, advocating for reduced single-use plastic and more sustainable packaging options.

30:08

🚀 Managing Product Launch and Post-Launch Activities

The paragraph covers the complexities of managing a system product launch, including coordinating with various teams, ensuring device availability, and planning for customer demand. It also discusses the challenges of sustaining and scaling products post-launch, highlighting the importance of accurate demand forecasting and the implications of over- or underestimating market demand.

35:10

🔄 Continuous Improvement and Customer Feedback Post-Launch

After a product launch, product managers must continuously collect and curate customer feedback, addressing issues that are blockers and planning for future iterations. The speaker uses the example of Apple's antenna design changes to illustrate how customer feedback can lead to product improvements. The focus is on maintaining and enhancing the customer experience through ongoing product management.

📚 Key Learnings from System Product Management

The final paragraph summarizes key learnings from the webinar, emphasizing the importance of upfront planning, user testing, critical thinking about the product's forward and reverse logistics, and the high cost of deviating from specifications in system product management. The speaker advises product managers to focus on controllable aspects such as usability and packaging to improve customer experience.

Keywords

💡System Product

A system product, as discussed in the video, refers to a complex product that incorporates electronic components, such as smart locks or smart coffee makers. These products require coordination between hardware, software, firmware, and applications. The concept is central to the video's theme as it sets the stage for the discussion on planning, development, and management of such products. An example from the script mentions smart devices with 'smart' in their names, indicating the integration of electronic components.

💡Product Manager (PM)

A Product Manager, or PM, is a professional responsible for guiding the development of a product from conception to market launch. In the context of the video, the speaker shares their career transition from an engineer to a product manager, highlighting the role's importance in overseeing system products. The PM's responsibilities include understanding customer needs, coordinating with various teams, and ensuring the product meets its intended goals.

💡Hardware

Hardware refers to the physical components of a system product, such as the mechanical and electronic parts. The script emphasizes the significance of hardware in system products, noting that changes to hardware specifications are difficult and expensive once finalized. Hardware development cycles are also highlighted as being lengthy, which is a key consideration in the planning and development phases.

💡Software

Software encompasses the non-physical components of a system product, including the operating system, drivers, and applications. The video discusses the iterative nature of software development, allowing for more flexibility and updates over time. An example from the script is the potential to update the OS from Ubuntu 18 to 20 to incorporate the latest security features and support for Python 3.

💡Firmware

Firmware is a specific type of software that provides low-level control for a device's hardware. In the video, firmware is mentioned as a component that works in conjunction with hardware and software to create a cohesive system product. It is one of the elements that need to be managed and iterated upon during the development process.

💡Iterative Development

Iterative development is a process in which product development is broken down into smaller cycles, allowing for continuous improvement and feedback incorporation. The script contrasts iterative development in software with the more rigid hardware development process, noting that software can be updated frequently through alpha, beta releases, and MVP testing, whereas hardware changes are more challenging and costly.

💡Compliance

Compliance in the context of system products refers to meeting the regulatory and safety standards required for a product to be sold in a particular market. The video script mentions various compliance standards such as FCC in the USA, and safety standards like UL and RoHS. Compliance is crucial as it impacts the product's ability to be shipped and sold legally, and non-compliance can lead to costly delays or recalls.

💡Ecological Packaging

Ecological packaging pertains to environmentally friendly packaging materials and practices. The video discusses the importance of reducing single-use plastics in packaging to minimize environmental impact. Examples provided include the contrast between the excessive plastic in Lego packaging and the minimal, recyclable packaging used by Apple for the iPad.

💡Value-Added Services

Value-added services are additional features or services that enhance the core product offering and provide more value to the customer. In the video, the concept is used to illustrate how system products can evolve into platforms that offer extended services, increasing customer engagement and improving the company's net margin. An example given is the smart coffee maker that could offer an auto-delivery service for different flavored coffee cups.

💡Logistics

Logistics involves the management of the flow of goods from the point of origin to the point of consumption. The video emphasizes the importance of forward and reverse logistics planning for system products, including warehousing, shipping, and handling returns or repairs. Logistics planning is crucial for ensuring a smooth customer experience and managing inventory effectively.

💡Product Launch

A product launch is the process of introducing a new product to the market, often with a coordinated marketing campaign. The video script discusses the extensive planning required for a successful product launch, including coordinating with manufacturers, marketing teams, and ensuring sufficient inventory. It also touches on the challenges of estimating demand and the potential consequences of over- or under-estimating customer interest.

Highlights

Introduction by Nit Janen, Senior Product Manager at AWS, outlining his career transition from engineering to product management.

Explanation of the lengthy R&D cycle at Intel and the desire to be closer to product development.

Discussion of the complexities involved in managing system products, including hardware, software, firmware, and applications.

Importance of clear initial product design to avoid costly deviations later in the development cycle.

Comparison of system products with software products, emphasizing the longer development cycles and the need for upfront capital.

Role of multi-disciplinary teams in system product development, involving hardware, software, mechanical, industrial design, packaging, legal, and accounting teams.

The necessity of compliance with regulations and standards, such as FCC in the USA and C from for European Union.

Challenges of iterative development in system products versus software products, and the importance of delivering a complete product to customers.

The strategic value of system products in building brand loyalty and ecosystem lock-in for customers.

Explanation of different layers in system products: services, system software, and hardware, and the varying levels of iteration possible in each layer.

Importance of early user testing and feedback, especially with advancements like 3D printing for accurate product prototypes.

Discussion on value-added services and how they enhance customer experience and increase net margins.

Critical phase of product launch planning, including coordination with manufacturers, event coordinators, and sales teams.

Sustaining and scaling a product post-launch, including managing inventory, customer feedback, and continuous improvement.

Final key learnings: the necessity of upfront planning, considering forward and reverse logistics, the high cost of deviations in system specifications, and focusing on controllable aspects like product usability and packaging.

Transcripts

hello and welcome to today's webinar on

building and managing system products my

name is nit ja nen and I'm a senior

product manager at

AWS before we dive into today's topic on

system product and what it is I wanted

to kind of give a background about my

experience as a product manager and how

my career transition happened as from an

engineer to a product

manager so my uh progression has been uh

pretty straightforward from engineering

to a PM but um it has been a slow one

and mainly because I was not clear

exactly what I wanted to be doing uh

early on in my career and I said gain

more experience it was um you know it

became apparent that product manager is

the right fit for me so I started out as

a software engineer uh in vro in 2004

and um you know I SP I was usually

writing cc++ code as for drivers on the

network systems uh for Telco companies

and then I felt that like you know I

needed to gain more expertise in the

side of systems engineering ing so I

came for my masters in electrical

engineering from University of Kentucky

and right out of college I joined Intel

uh in Labs as a systems researcher

focusing on Next Generation platforms

and um you know like mostly research on

power management architecture and

systems

design one of the things I realized I

spent over five years in inter laabs and

um the thing I realized during that time

is that the R&D cycle it's pretty long

like one of the invention from um you

know early on in my career to 9 uh made

it into laptops in 2013 and I felt that

that was a too long of a time uh to make

an impact and I so I wanted to be closer

to the product so I moved I became a

product architect in for laptop and the

desktop team for a while and I kind of

gained different uh perspectives on like

all the other elements that go along uh

with being building a product and I felt

that like U you know only at that time I

became aware of uh product manager as a

role and I started transitioning towards

a product manager like about five years

um you know after I became a product

architect and um when I left in when I

left Intel I was a um lead product

manager for the smart home team a couple

of products that we see below the inter

speech kit and the D plans was part of

that effort and I joined AWS in 2019 as

a product manager and uh I'm currently

with the snow Services team and the snow

service product as you see down

are rized Edge Computing boxes where you

can run Cloud workloads at the

disconnected and the raged Ed so um our

team is always hiring and looking for

talent if this is a domain that you are

interested in you know always feel free

to reach out to me on LinkedIn and would

love we talk with you now one of the

things I wanted to point it out is that

like when I started we didn't have um

you know the same amount of resources

and what is product management and what

you need to be doing and skills that you

need to acquire but now with facilities

such as product school you have lot more

uh you know information at your disposal

and like make use of that you know like

that's of an interest to

you all right today we're going to be

talking about system products what they

are how do you plan for it and you know

how do you get approval and things that

you need to focus on during the

development phase uh sustaining and like

um you know after you launch the product

what are the steps that you need to do

to sustain it and finally we'll bring it

all together with some key

learnings okay let's start with the

primer right what's the system product

for the sake of this particular

conversation and then let's take it

through

that for sake of this particular webinar

a system product is anything that has an

electronic component in it for instance

a smartlock uh smart coffee maker smart

car right anything that has a word smart

in it has an electronic comp of some

some sort so it is an assistant product

um so for instance like if you take a

smart lot it's got like you know embeded

systems in it it has to have Bluetooth

and like a security mechanism to ensure

your application communicates to it

securely and you can unlock it right so

all of that requires coordination

between Hardware software firmware and

an application and so that that makes it

a complex system prodct to

manage so what unique about a system

product right I don't always agree with

Dwight but in this case he's right with

respect to a system product because

privating to something else from its

original design is very hard you have to

be successful at the first account right

um so for instance like slack started

out as a me as a gaming platform and it

became an Enterprise messaging platform

you cannot do that with a system prodct

more often than not right uh a coffee

maker will always stay a coffee maker

and you no matter what smartness you add

to it you know um you cannot change it

to something else so you have to be very

clear as a PM that like the product that

you're building is meeting the

customer's needs and it is and it is

being operated in its primary form of

use all right other things to consider

usually anything that has Hardware in it

you know it's a long development cycle

we are talking like you know one year is

an aggressive timeline usually takes

longer than one year because you have

you know the hardware team has to go

scope out uh what the architecture is go

through multiple iterations and things

like that so there is another key

difference when it compared to a

software product is that like you know

software product is built in an

iterative Manner and you have mechanisms

to like you know release it periodically

Alpha Beta And you can test out with MVP

with the customers and it trade so you

are showing progress along the way uh

that you are continuous continually you

know heading towards the goal with

respect to Hardware product right or a

system product in this case you don't

actually deliver anything to the

customer till it is finally ready so it

might mean up to a year or a year and a

half of no deliverables to the customer

and so that makes it a little harder

from a PM point of view that you have to

keep communicating with both the

management level as well as with the

rest of the teams on where you are

progressing what the blockers are what

your current goal post is so the

communication is key uh from a PM point

of view and another thing uh is that

like you know system teams are usually

multi-disciplinary it and it is by

nature you know usually a larger team

because you have to consider multiple

software hardware and firmware teams and

then you have to consider mechanical

industrial design uh packaging legal

accounting and then like you know

thermal teams are to be involved and

finally like user experience which ties

in a lot of those things together uh so

from a management point of view because

you have multiple stakeholders all all

of the streams needs to be managed and

any blockers needs to be

mitigated this brings to the point to

the left that we are any system product

development is going to require a large

uppr uh Capital expense you have to put

in millions of dollars to your odm first

of all the odms have to agree to build

it and and they have to have the

timeline that matches with their plans

and then you also have to pay money to

make sure that they have the assembly

line free and you have to pay for the

labor and packaging testing compliance

all of that requires money right so you

have to have show the value proposition

that like building this product is going

to you know provide much larger uh you

know monitor gain to the organization

than otherwise which is why like system

products are almost always a core

competency for a for a particular

company if a company is not used to

building system products uh you know

like uh getting and venturing into a

system product where you know area is

always

challenging as you may have surmised

right um I trative development on the

system level is going to be hot for for

instance let's take a car right like so

when a when a car you know goes out of

the parking lot it needs to have the

minimum set of capabilities uh from a

system point of view there are value

added services like you know are you can

change the audio firmware like you know

uh for instance the camera firmware and

stuff like that but the core

foundational uh specifications of the

car needs to be there the first time it

rolls out but you do have the uh you

know ability to itrade over generations

for instance like consider the first

iPod it had those you know like wheel

that you had it had no display and it

was you know quite bulky and over a

period of years you know they you add

they you know Apple added an

an LCD screen a touch screen it had the

ability to zoom in they added Bluetooth

and finally when it ended up in iPod

touch it was almost similar to a you

know like a smartphone in capability so

you can always iterate and improve your

product over like many generations but

each one of those Generations like you

know you have uh certain constraints

that you have to adad

to all right so finally right so we all

those constraint

cons you know considering all of those

constraints that I mentioned why are we

building the system products then right

uh it's because um if you look at the

physical manifestation of all the you

know products that are around us almost

all of them are evolving into some kind

of a smarter device your refrigerators

are becoming smarter your microwave OV

is smarter now like you know so are like

washing machines and all the ones which

are physic just physical mechanical

things are now becoming electronic comp

components the reason for doing that is

that you know you're you're bringing in

more value and you're all networked and

it it it simplifies customers experience

of managing them and uh you know

building you know building those brand

loyalty for instance if you're building

um you know like a computer platform

customers keep that for like about four

to five years and it's starting to push

towards six years during those six years

you have the customers mindset you can

sell additional services on top and they

have more familiar with your ecosystem

and as you start adding more services

you know your W your your solution

becomes a wall garden and customer

continues to look for the same kind of

um you know platform again and again

like for instance between the windows

ecosystem the Apple ecosystem and the

Android ecosystem you can see that

people who are more familiar with a

certain ecosystem continue to look out

for the same uh kind of products right

so that builds a lasting brand loyalty

and also it builds a mode customers data

once it is in a specific uh you know

like a wall card and they don't want to

move around right so I think having that

um platform keeps the customer engaged

for a long period of time so then now

you can start focusing on how do I bring

in more value uh so that like customers

stay in that and you can extract most

mileage out of the customers um you know

like M

share

all right so we have we have talked

about some of the uniqueness of uh the

system product side now we are going to

be talking about like how how do you

plan for these products what are so that

like you know you can have the right set

of metrics that you can convince the

leadership that uh investing on it is

the right

idea a system product at high level has

like you know three layers right you

have the services and you have the

system software which includes the OS

kernels dri drivers the firmware the

bias uh the EC that's on the platform

and then the hardware itself right so

each of them have different levels of

iterations possible like Hardware has

the lowest level of iteration and it

starts very early so you have to uh you

know set the specifications to maybe you

start with a very high level

specifications and then you quickly

narrow down to the key elements that you

need for instance whether you need Wi-Fi

Bluetooth other radios and uh you know

like things like that needs to be

settled so early on so that you can set

the appropriate system software right

and system software you do have the

ability to iterate a little bit more you

for instance you might have started out

with ubun to 18 as your uh you know

initial launching OS but by the time it

gets towards the launch you can

potentially say like I'm going to move

to 20 because it's got the latest

security features it supports Python 3

for instance and stuff like that on the

services layer you have a lot more uh

degrees of freedom you can itate a lot

more uh you know you can launch the

product and as long as there is a

mechanism to update your firmware and

system software and services you can

always push over the air updates so

thinking about this in different uh you

know different layers and where you can

iterate more and where you cannot helps

you plan for it depending on which

planning cycle you are early on I focus

more on hardware and setting the right

specs and then system software next and

then the services the last

all right the product planning for a

system product is very similar to that

of a software system as well I think

there are just few things to take into

account is that because it's a you know

a physical product you will have to put

something in front of the customer that

that is representative of your final

product and then get feedback from there

right and you have very um smaller

number of iterations here because your

Hardware team needs to finalize all the

mechanical and Industrial and thermal

needs so you don't have the luxury of

continuously Gathering feedback like for

instance like you know continuous

discovery which teres or Tes is talking

about you don't have that capability uh

with respect to system

product for competitive lens here it's

more a strategic element right you're

always almost always customer Centric

but you also keep an eye on the

competitive lens and help s you know set

some of the baselines uh easily for

instance if you have a product and there

is a you know like a comparative product

in the market you don't need to validate

every single element you can kind of

like know what customers are familiar

with and set those Baseline

specifications which might include the

CPU the memory uh you know like the form

factor size and things like that and

then you can focus on the core um you

know like areas that are important to

you and that that differentiates your

product as well so you know spending

more time on things that are that are

differentiating to your product is more

valuable to you than trying to focus on

things that are not

differentiated and the one other piece

which is very critical to a uh system

product compared to a software one is

the customer commitment right because

you are asking for upfront Capital your

leadership needs to see that where does

this product run in the market so you

have to go talk to your customers

identify your segments where who are

your key customers personas and see

whether you can actually like get uh

customers to pay for them essentially

with the m us or whether it's purchase

orders from large retail places like

Costco or Target so having those kind of

uh you know like uh purchase orders

agreements of some kind almost always

justifies the need to uh invest money up

front

right all right I touched upon the user

testing a little uh in the previous

slide so essentially our life has gotten

much easier with the 3D printing

capability so in the past you almost

always had a foam or a cardboard markup

of your particular product and the

interaction with it was not exactly like

you know matching and so what you can do

now is you can print out uh 3D print

your form factor in multiple different

shapes uh different screen sizes for

instance and get an accurate feedback

from customers look and feel the weight

doesn't match with the customer's

estimation and you can you know you can

estimate that into your final

specification I think the key Point as I

mentioned before is that you do not have

too many iterations of this so you can

do potentially like one or two or three

Cycles maybe right but you don't you

cannot do this throughout the life of

your product you have to do this early

on in the planning phase so that like

you know your specifications are set

your dimensions are set so that the

mechanical team the industrial design

team and the user experience Team all of

them know what they are expecting and

start working on the actual

implementation of

it and the competitive lens is also

another thing we talked about like for

instance if you are a PM uh for the

first generation iPhone you don't

actually go and like validate all the

all the basic uh requirements right you

can look at your comparative product in

this case an n95 series they have a

color display they have a facing camera

and then they had led for like brighter

uh pictures and a central button to

manage the calls they potentially had

touch touch but it was more resistive

touch than capacitive touch

but I think that is the key point is

that you can you know uh the basic call

Quality requirements that was expected

the battery life the you know the

durability of the product so you can try

to uh you know like collect all of those

metrics and add your system spec very

easily and and that frees up the time

for you to go focus on the value added

piece in this case for an iPhone

essentially the app ecosystem and the

usability of the product right so once

you have uh you know time is a precious

resource for PMS as for everybody else

so focusing on the right elements with

respect to your system product is going

to be the key don't waste time uh you

know trying to reinvent the wheel on

things that you can easily collect from

uh the marketplace focus on the things

where the marketplace is not giving you

that

feedback so this is a very critical

piece for um system product and it's

becoming more and more apparent uh to me

when looking at uh you know our current

list of offerings everywhere is that you

need to add value added Services onto

your product like think of your product

as a platform and which stays with the

customer for a long period of time and

like if you can add value added services

on top of your product you have the

ability to increase your overall net

margin for your product as a whole and

it also helps drisk your Hardware

development cost for instance like

consider this coffee maker right a cury

coffee maker usually sits on your

kitchen it does its job of like you know

brewing coffee for you every day but on

the uh now if you add a service of a

smart auto delivery of like you know

different flavored coffee cups to you uh

you're first you're adding more value to

the customer now customer is like you

know has a better experience using your

product but and on from your point of

view you are actually bringing in more

Revenue to your overall business line

and because your service service product

always has you know better margins than

a system product your overall net margin

improves another Case Case point is that

um you know Apple for instance they have

like multiple ecosystem or physical

products Mac uh you know the Mac for

iPhones and the SmartWatches and their

services line which includes the iTunes

and like you know the app ecosystem

brings in about 20% of the revenue that

20% with high margins actually helps

them subsidize their um you know

Hardware manufacturing and helps them

maintain the high bar with respect to

the uh you know physical device

manufacturing so almost always think

about uh any value added services that

you can bring to the customer onto your

platform

so now you have completed the product

planning and you have got an approval

from your leadership and you know from a

PM point of view this is a critical

phase where you have to actually put

them all together and make sure that it

works as per your

plan from a product development point of

view uh you have to manage multiple

streams because system products as I

mentioned is a multi-disciplinary effort

right and it's a long period of time uh

to manage that and so from um I remember

at one point when I was managing a

system product there were like 20

different work streams like imagine in a

software side you have the OS you have

the K you have the uh driver team and

then you have the SDK and you have the

applications layer and services teams

that you have to interact with and you

have the hardware team the firmware uh

buyers EC so you you can imagine like 20

25 uh streams that you have to uh you

know continuously keep track the the key

elements that you have to uh focus on is

that like you know you start with

a developer platform Dev Board of some

kind and then you use the EVT which is

the eval kit where all the hardware

software and firmware comes together do

some initial testing and then the DVT

comes in which is a developer platform

which is all the developer extensions to

it and then finally the pvt is a

representation of your final product and

this is where you integrate all your

base software hardware and firmware are

making uh working together and you know

if any issues are uncovered at this

stage you have to go back and go fix

them and because after this point any

change to your Hardware or your system

is actually going to be very expensive

right so pvt exit is going to be a key

milestone for you to track and you will

have uh you know other stuff like

mechanical thermals uh compliance

packaging so there is uh you can imagine

like 15 20 streams easily and from when

I was managing a you know like products

like this usually run like a weekly or a

bi-weekly Cadence meeting with different

stakeholders and identify potential

blockers and me you know you know

identify different mitigation steps and

you also need to communicate to

leadership where you are progressing

along your path right and that's going

to be the key because your team needs

that visibility on where you're going

and how you are doing and so does your

leadership and because you don't have

any you know like customer facing

deliverable for a at least a year you

have to do this uh

proactively all right so I wanted to

touch upon compliance because it's

little bit you know it goes under the

radar uh but it it has an impact on your

schedule and your planning right you

cannot ship a device into a country

without getting uh compliant

certificates from that if it's a system

product all electronic components needs

to be fully tested and the reason for

doing that is that like you know our

devices are fundamentally noisy with

respect to electromagnetic radiation and

we are R you know all the devices are

radiating energy and they have to be

within a specification so that like you

don't cause physical harm to somebody

who's has let's say for instance a heart

maker and like too much interference you

know interferes with that device uh

sorry pacemaker I mean um so essentially

like you know you USA has the FCC

without getting fcc's compliance you

will not be able to ship a product to

USA a production prodct same thing for

Canada C from for European union and

that's a different ball game altogether

Japan requires that like you have to do

the testing in their country using their

lab right and those are just the

compliant for electromagnetic

interference but then there is the

safety standards which is the UL to make

sure that you're not using unsafe

chemicals on your product and Ro has to

ensure that you're are not using

products that are F foundationally

damaging to the environment um so almost

always you will be using a third party

for this third party who specializes in

compliance and they take your product

run through compliance and the the big

issue is that if they do identify a

potential issue you have to go back and

like uh you know come back with steps to

mitigate it like in case like uh if you

ever wondered what this big cylindrical

blob that is attached to your wire those

are called ferite chokes and their

primary purpose is to reduce high

frequency noise on the cables so think

of your cables as giant antennas that's

radiating all electromagnetic signals so

you add these fite chokes to attenuate

those signals so that like your system

is compant any system that you are

sending a you know a system that has a

charger a battery your compliance

complications have increased

significantly so you need to plan for it

from the beginning this is not something

that you can uh add on to your product

later on compliance needs to be foremost

if you're are actually like launching a

product

anywhere another element is the

packaging side you know usually we don't

talk about it but all of us experience

this on a you know like a regular basis

and this has an impact on customers

experience because this is the first

thing they get to encounter and it also

is a passionate uh effort of M is like

you know to we need to reduce uh

single-use plastic in our packaging

because it grinds my gears for instance

on the right hand side like the Lego

pieces there are like a zillion

single-use plastic bags where you put

like another small plastic parts in

there and and immediately after you open

the packaging you discard all of those

plastic and they end up in a landfill on

the other hand like you know look at

like iPad um the seventh generation iPad

which I recently bought they had I

counted like one single use plastic that

was around the charger everything else

was cardboard or recyclable parts and no

matter how nice of a finish it is you

still going throw away the packaging uh

so I would say like as PMS we have to

raise the bar on ecologically sound and

sensitive uh you know like product

packaging for us of course anytime you

go into like you know non-plastic

related packaging mechanisms it almost

always adds cost right but then um you

know you there are there are other

avenues for recuperating that than uh

you know using single use Plastics that

are potentially damaging into the

environment okay so finally you know you

have done with the development it's been

a year and a half since you started it

you got the approval you provided all

the updates to the leadership your

product is ready to go to the market

right so what we think what everyone

thinks we do versus what we really do

will be totally different because at the

time of launch you know you have to make

sure that like the customers are able to

order the devices uh on the of the

launch and your key customers have prior

access with respect to private previews

or betas so that you get you know early

feedback on how your product is doing

and anything things that you can fix you

can focus on fixing them so not just

with on the day of the launch you will

have to coordinate with the event

coordinators the product marketing the

sales team so that like all your funnel

is primed so it's a lot of activity from

a PM point of view the main one is that

like you have to tell your manufacturers

how many devices that you need at the

day of the launch and where they are

going to be stored so that like if

anybody is ordering you know on the day

of the launch they look at your

announcement you have you make sure that

they can get a device because you want

to you want to get early adopters

devices and then they can use that to

spread word of the mouth good media

coverage and all of that and you have to

plan this months in advance you start

with the launch dat work backwards and

say identify how much lead time it is to

man manufactur part and then like you

know work with the odms give them the

appropriate amount of manufacturing

guidance and you know like essentially

making sure that the entire process is

tracked as you can imagine you have to

do all of this while you are planning a

product development May with multiple uh

things that you're tracking things can

fall through the crack uh so almost

always uh you know planning for product

launch ahead of time is going to make

sure that you have a successful launch

while the product launch and development

phase is almost you know it feels

rewarding on the day of the launch it

almost feels like you have you had a big

accomplishment from your point of view

as well as the team's point of view the

sustaining of a product and scaling it

with customers is a lot harder and it is

also like you know it goes on for years

right um as a PM our job is to kind of

look into our crystal ball and estimate

where how much how the product is going

to be doing in the market

you have a certain estimates on how many

customers are going to be buying at the

day of the launch one month in three

months in you know like 12 months in and

you have to give those numbers to your

manufacturing partners and also to your

Logistics team because they have to

store these devices and they have to

ship them to the customer and

so if you are wrong in either direction

there is implications like for instance

like let's say you project like 50,000

units on the day of the launch and all

of a sudden there is a 100,000 customers

who want to buy it you can only fill

50,000 orders and then the remaining

50,000 customers where they will have to

wait till newe Parts can be manufactured

which is a good problem to have but

except for the current circumstances

where like the lead time to procure uh

silicon components is like up to two

years these days like there are entire

automobile factories who are not uh

running because there are no silicon

pots right so meaning your 50,000

customers who are who placed on the

launch day they might actually have to

wait up to a year right depending on

which product that you are building so

they this has made uh you know life as a

product manager very hard so if you are

wrong in one side uh you will completely

lose customer uh you know like mind

share because they will they will not

wait for a year or maybe even two years

for that this the flip side to that is

that if you are overly optimistic and

customer demand is not there you have

this volume of inventory that is sitting

in your warehouse and depreciating on a

daily basis and that hits your bottom

line so we as a PM we have to walk this

narrow line and we also almost always

has this 20 to 30% scope of going up or

down uh so that like you know if it goes

above that window or below that window

you are can you can adjust the materials

right so for instance like I think the

perfect example would be like Amazon

launched Kindle in 2007 and the original

Kindle sold off in I think it's 2004 I

believe uh the original Kindle sold off

in 5 hours right and then the customer

had to wait for like at least like you

know six weeks before they can get the

other one on the other hand when Amazon

launched the firep phone in

2014 they had like projected like you

know thousands hundreds of thousands of

devices and like customers were not

coming in and they you know the

optimistic look was sorry the

pessimistic look was even uh you know

much lower more than that they had to

write up1 140 million $170 million of

inventory in six months after launch so

you have to be walking the tight rope of

between like being uh you know adjusting

between like optimistic and pessimistic

and continuously adjusting your signals

and and there is another thing is that

like after let's say like after the year

of your product launch your adoption

will hit a steady state and like after a

while like it starts

dropping so you have to keep giving

signals

to your odm so that like your device

volumes are

appropriate okay so um this is another

piece where like anytime you are

planning for uh devices they need to be

stored somewhere and they need to be uh

you know shipped to the customer that's

one side that's a forward side you have

to look at the end to end what happens

from the time the customer places the

order to the time when the customer

receives the uh you know product and

vice versa also like what happens if the

customer is not happy for whatever

reason the system is broken they ship it

back to you you have to store it and you

have to either repair it or restock it

recycle it so there is you know the

forward and the reverse Logistics is

something that you have to plan uh ahead

of time this is not something you uh you

know you you can jump up it after you

launch a product this has to be planned

from uh you know the first early uh

definitions of your system architecture

you will know how much what will be the

you know like space that your product

will be taking so you will know how much

warehouse space you will need for the

time of launch and your Peak and you

know potentially like look for labor

cost and account for all of this in your

pricing model so this is going to you

know essentially like it depends on

industry on the on the computer industry

you usually take 20% of your inventory

it's pretty I mean it's it's still very

high you can assume like up to 20% of

your inventory can be returned from the

customers or repaired or recycled or

broken for that matter right and you

have to assume if it's cars are like you

know industries that is well established

it's less than 2% or some you know it

depends on which industry it is but

almost always accounting for forward and

reverse Logistics into your uh you know

pricing model and your p&l is going to

be the

key so this is um the last file that I

have is that like you know as your

product is in the hands of the customers

they are going to be keep uh they're

going to be like you know interacting

with it you are going to be getting

feedback both positive and negative and

as a PM our job is to continuously Cate

them right you can imagine where H you

know Steve is coming from here because

like they spend millions of I mean

billions of dollars almost with

thousands of people working on this

product and customers are holding this

device in a very specific way and the

call at inovation I mean the antenna at

inovation increases and the call drops

and it's you know it is a very specific

problem only if you hold it in one

particular way so now what do you do to

tell your customers is like just don't

hold it like that right like because is

it a blocker for the customer or is it a

nice to have but I mean to Apple's

credit they have taken that feedback and

they continuously fixed it so but iPhone

5 didn't have the same problem they made

different antenna choices um so I think

that's the you know like an evolving job

from a you know product manager point of

view for managing your product collect

feedback curate them continuously

identify which are blockers which are

not blockers things there are there may

be things that you may be able to fix in

software there are things you may not be

able to fix in software those are system

dependent you focus on iterating on Next

Generation but overall like maintaining

and curating this list is a foundational

job for a

p all right so finally let's just bring

it all together with some key learnings

that we have learned during this

particular

webinar system products require months

of upfront planning and Alignment from

leadership right you need to make sure

your leadership is fully aware of why

you are building it and what's your

potential benefit and like how many

services that you're going to be adding

to your platform and things like that

and what's your PO you know net margin

profit opportunity everything and you

also have to spend months ahead of time

with respect to user testing you know

like who your key Target customers are

competitive environment all of

that and PMs have to think critically

forward and backwards about your product

meaning what happens from the time when

the customer places the order to the uh

time when it is received by the customer

and what happens if they are not happy

they're returning it back you have to

have Logistics manage

everything so the number three I think

we it's very clear um is that like you

you are once the specs are finalized any

deviation in plan is expensive mainly on

the system side right anything that

involves the hardware OS form whereare

changing them is much harder as you and

the services side you know you have a

lot more freedom uh to kind of adjust

them around so making sure that you are

building the right thing and setting the

specifications early on is going to be

the key and finally uh we didn't have a

chance to discuss a lot uh but focus on

the things that you control typ

uh you know and you're you're keeping

the eye on it for for example as PMS we

manage the product usability you can

absolutely almost always control that to

a tighter extent than to a system

specifications for that matter like

product packaging is another one right

there are things that we have more

control and focus on that and focus on

how you can use that to improve the

customers experience on your product

with that I conclude today's webinar it

was always great talking to you and if

you have any questions almost you know

feel free to reach out on LinkedIn thank

you