The role of business strategy is to drive the highest economic value out of your company’s resources. From your product strategy to the outbound marketing plan, economics should drive your strategic decisions. This presentation explains how simple economics models can help rationalize your complex product management decisions.

1. Economics for Product Managers: It’s Not Just for Professors and Bankers Mike Boudreaux Product Manager Emerson Process Management

2. “The question isn't what are we going to do. The question is what aren't we going to do." – Ferris Bueller

3. 3 http://www.flickr.com/photos/livenature/4034863015/

4. 4 http://en.wikipedia.org/wiki/Microeconomics

5. 5 http://en.wikipedia.org/wiki/Home_economics

6. http://www.flickr.com/photos/trackrecord/54515014

7. 7 http://www.flickr.com/photos/francesco_veronesi/3566479837

8. 8 “A strategy is a plan of action designed to achieve a particular goal.” – Wikipedia http://www.flickr.com/photos/ollesvensson/4252196844

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10. 10 “Strategy is making trade-offs in competing. The essence of strategy is choosing what not to do." – Michael Porter http://en.wikipedia.org/wiki/File:Southwest_Airlines_Cabin.jpg

11. 11 http://www.flickr.com/photos/robie06/4394748067

12. 12 http://www.flickr.com/photos/fotoosvanrobin/2545857883

13. 13 Quality Size Time Cost

14. 14 Secure Usable Cheap

15. 15 Flexibility User Experience Ease of Use Number of Features

16. http://www.flickr.com/photos/pauldcocker/3003668632

17. 17 http://www.flickr.com/photos/ableman/534155207

18. “It would appear, Hopkins, that your gut feel was only indigestion.” Source: Product Manager’s Desk Reference, Artist Timo Elliot

19. 19 http://www.flickr.com/photos/acaben/541334636/

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23. 23 http://www.flickr.com/photos/adstream/1495683304

24. 24 High value enhancement Breakthrough product Keep the lights on Waste of effort

25. 25 Benefit (B) Value (B – C) Price (P) Cost(C)

26. 26 Benefit (B) Price (P) Cost(C)

27. 27 60% 20% 0% 20%

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39. Buyer Type Application Industry 39

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44. http://www.npd-solutions.com/serverppm.html

45. 45 Used with permission from http://www.pragmaticmarketing.com/

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47. 47 http://www.flickr.com/photos/uggboy/4593866108

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49. 49 http://en.wikipedia.org/wiki/Ideal_firm_size

50. 50 Used with permission from http://www.pragmaticmarketing.com/