Product Management - Value of Data Visualization

Recently I was asked to talk about product visualization, and this blog is a summary of that.

Human brains are designed to think graphically - i.e, we see  things in pictures and try to understand the various relationships between them. Once the images are understood, human mind is capable to taking swift action. But if the brain fails to understand the image then there will no action. To illustrate this consider the game of Cricket (for those who don't know about cricket - think baseball)

In the game, the batsman has to see the ball, judge the speed, the angle, the height, the turn/swing and then makes a decision on how to play the ball. If he gets it correctly - batsman can score runs else if he get it wrong he is out.

Now imagine that you could document all that visual information into text and present it to the batsman and ask him to make a decision in a fraction of a second! I bet there is no human who can process that quantity of text and play the shot in time.

While the idea of presenting all the bowling data in text sounds ridiculous, but we tend to do that every day. Computer systems today are capturing so much data - often in text or in binary (which is non-readable by humans) and then asking people to make decisions on that!

Today, we are dealing with the challengs of big data. One of the main challenge with big data is visualization and product managers have to deal with it. Data visualization is not an exact science, meeting this challenge is called as the art of product management.

As a product manager of software, Service Assurance Suite - populalrly known as Smarts that analyzes big data - millions of events coming from thousands of devices. The data is collected continiously in real time - so that it can do an effective data-driven analysis. The software provides up-to-the second updates, so that operations team can immedieatly access the imact of any application or infrastructure changes - even before the end users can notice the effects.

The software will have to process this information in real time and present it to users in meaningful ways.

Let me explain this with an example.

In Infrastructure management, Smarts product identifies a physical server has failed. A statement "Server A1234 is down" is useful - but it does not help the data center operator in terms of solving the problem. So to make his job easier, we added a geographic map and location map information to the server, which tells where exactly the server is located, in which rack, in which data center etc. Now the data center operator knows where the device is located and can quickly remedy the problem. Similarly, proving a heat map of the data center along with high temperature alerts is more useful.

While it may not be obvious to non-users abour the importance of the above example because Smarts as a product is something you may not use, but think about it in your life example: Your friend/spouse says he/she has a car broken down on the road - and is trying to tell you the location, and compare it with getting the same information - with a map and photos of the car. Now its is easy for to understand and decide on the action you need to take.

This is the key to the value proposition of data visualization!

You can convey a whole lot of information with visualization. But then there is a challenge for product management - in terms of covering all possible use cases,  which is almost unviable. Instead we need to open up the data visualization aspects & allow customers to create their own visualization.

Often, customers have multiple data streams which relate to the same event. So having an ability to mashup multiple data steams and create highly valuable interactivity with the underlying data. In other words the visuals are not static - customer can add or delete different data sources, understand relationships, patterns within the complex data set. Customers now have the ability to click on various parts of a visual to drill into different views of the same data on the fly. Customer can intergrate other Business intelligence tools to create drill down performance reports, compliance reports etc. Such a visual mashup will be very powerful and useful for customers.

As part of complete makeover of the software, we added a mashup capability in the latest release and one of the best features of this modern visualization tool is that they permit interactivity with a wide range of data streams. Customers now have the ability to click on various parts of a visual to drill into different views of the same data on the fly. Customer can intergrate other Business intelligence tools to create drill down performance reports, compliance reports etc. Customers should no longer be constrained by a limited data visualization options. Data visualization tools of today must not apply limits on what users can do, instead visualization tools must open up a lot more options for analyzing data.

Never underestimate the values of an appropriate visual when it comes to helping customers understand the situation and help get your point across. Having a high-impact visualization is a must in order to fully grasp the huge volumes of data.

The good news is that modern visualization tools can really help users at any skill level do a better job of analyzing, comprehending, and presenting information. There is a reason for the saying "A picture is worth a thousand words."

Lowering the Cost of Software Ownership

Enterprise Software such as Oracle, Exchange, SAP etc., have a long life cycle spanning decades and during that period, companies spend more money to maintain the software than what they have paid to buy the product.

Software maintenance costs include: Annual Support Fees, Periodic upgrades, personnel costs, and operational costs that includes servers, data storage, network bandwidth and power etc.

During good times, when the business is growing, companies are on an expansion spree and don't mind spending money on software. But during tough economic times, companies start questioning the maintenance costs and look to minimize those costs. Some customers refuse to upgrade or suspend annual maintenance contracts or look for a lower cost alternatives.

Today, 80% of the IT budget is being used to keep the current operations going on - i.e., "Keeping the lights ON" and since everyone is looking to lower the cost of operations, Many companies try to negotiate a lower annual maintenance fees and bargain for free upgrades.

In order to counter such customer backlash, Product Managers have to constantly innovate and develop the product to lower the cost of ownership to customers. In order to entice customers to upgrade to newer version, new upgrades of the product must lower the cost of ownership.

As a Product manager, there are several software innovations that can lower the cost of ownership:

1. Simplifying & Automate the installation of patches, upgrades and new installs.
2. Automating software support issues.
3. Improving product quality & stability & security.
4. Simplifying the product administration process
5. Offer the product as a SaaS model.
6. Simplify product licensing.
7. Simplify product trouble shooting.
8. Simplify product integration with other software.
9. Simplify product usage, so as to lower or eliminate the cost of employee training costs.

These enhancements must be built into newer versions of the product - so that customers have financial incentive to buy new versions and save money on operational costs.

Cloud technologies: SaaS, PaaS, IaaS etc can be leveraged to lower costs of ownership - by blending the core on-site product offering with a cloud offering, such that customers can use the cloud to meet their peak demand workloads, while use the on-site deployments for base work loads.

Many of these costs can be reduced by enhancing the software and then build/modify business models that lowers the costs. For example, support costs can be lowered by off shoring product support, and the savings can be passed on to customers. Another way to lower cost to customers will be to offer "On-Demand" support services instead of a flat annual fees.

Closing Thoughts 

Product managers must constantly understand the costs involved in using the software and constantly review software product enhancements to lower costs to customers. Companies should develop new business models to help customers during tough economic times.

Lowering cost of ownership will increase customer loyalty and increase profitability for software vendors.

What's with the Juggler?

Recently, my daughter enjoying Tom & Jerry cartoon - in which Tom plans an incredibly complex scheme to trap Jerry - a Robe Goldberg Machine.

Years ago, I had taken my daughter to a circus - where there was juggler juggling 12-15 balls, clubs, knifes etc..,  He went on to do the same juggling while riding a unicycle. For me, doing any of those individual acts: Juggling or riding unicycle itself is an impossible challenge.

It was no surprise that the juggler was able to capture audience's undivided attention and admiration and he makes a living with his unique skills.

The two incidents - a Robe Goldberg Machine  and the Juggler acts had me thinking. Why do we humans admire them. Why do we watch in awe when people do something so complex?

This behavior to admire such complex acts which has no inherent benefit is unique to humans. While animals don't seem to admire such things, but then I have seen my dog watch hunting scenes on National Geographic channel with full concentration. Monkeys watch other monkey jump or climb and grab food. Young monkeys watch older monkey and learns from that - so there are benefits. But humans have an inbuilt, genetically hard-coded nature to admire complexity.

Why we admire complexity?

Yes, we humans are genetically built to admire complexity - buy why?

I think, its due to the nature and the survival of the species was in great part due to our ability to conquer complexity. Starting from coordinating as a group for a hunt, to creation of tools, agriculture and Cooking - to the modern world of Industrialization, Aviation, Space travel to Internet.

Economic Value of Complexity

Human civilization has always been measured by its ability to conquer complexity. Countries that have conquered very high levels of  complexity are considered more developed. Conquering complexity has its financial rewards - Developed countries are richer than developing countries.

In business, companies are able to charge very high premiums for products that solve very complex problems. Products such as SAP, or Jet Engines etc. command a hefty premium - resulting in healthy profits for manufacturers

What's my learning?

There are two main learning for me from this. One as a father and one for Product Management and Business.

As a product manager, the next generation products that I build must solve more complex problems than the previous version and increase the value of the product for the customers If the product does not solve a complex problem, then the value of the product goes down.

As a product manager for a IT Cloud infrastructure management solution, the next generation of software products must solve & conquer some of the most challenging and complex problems: Such as Software Defined Data Center, Big Data Analytics, Virtulization and Security. The solutions must be comprehensive and complete. Never go to market with an incomplete solution.

After all - nobody likes to see an error prone juggler who keeps dropping the balls!

Second learning as a father is to give a sense of curiosity to my daughter, to evoke her curiosity and make her admire at complex things in life - such as classical music, painting, classical dance, chess, etc., and then eventually go on to train her to solve extremely complex problems.

First step is to expose kids to complex arts and make them curious and then appreciate complexity, later on they can learn the necessary skills to solve complex problems and that will make her succeed in life.

Victory for Innovation - Novatris loses it's patent case in India

This week, Supreme court of India struck down an appeal to extend the patent protection for its cancer drug Glivec.

Supreme Court of India has refused protection for Glivec on the grounds that it is not a new medicine, but an amended version of a known compound. Indian Supreme court rightly dismissed the appeal - as Novartis failed to show that it had done any new innovation - on its existing drug, and minor modification of the drug was just a trick used to extend the patent and market monopoly over the drugs.

The cost of Glivec is $70,000 per year, while the generic version costs about $2500! There is this huge premium being charged by patent holders over the patented drugs - that has made such drugs unaffordable to 99% of the world population - so extending the patent for 20 more years will mean a death sentence to millions around the world. No wonder doctors all over the world welcomed this ruling.

Even, Dr. Brian Druker, inventor of Glivec welcomed this judgment.

On a separate and unrelated event, Daniel Vasella, the outgoing CEO of Novatris just had to turn down a $78-million severance package – reacting to public outrage in Switzerland. After all, a company that can afford such golden handshakes for their CEO in the first place can't be suffering too much loss from this court ruling.

Patents and Innovation

Patents & patent protections are awarded to inventors as a financial incentive for their hard work. In case of pharmaceuticals, this patent protection regime has been converted into a profit machine by charging enormous price for patented drugs.

Today, Drug companies are not really inventing new medicines, instead they are using their R&D capability to tweak currently patented & protected products and extend the patent for 20 more years. This kind of perpetual patent protection results in higher profitability for the company - but stifles innovation.

Drug companies are Companies are using host of defensive patenting strategies - such as patenting second generation products - which is an insignificant tweak over the original drug and then filing of numerous patent applications for the same medicine. This prevents other companies from developing potential new drugs that was based on an existing drug. Such predatory practices has led to steep increase in drug prices all over the world and has blocked the development of new drugs to treat more common diseases.

Global Impact

In the United States, companies can get a new patent for a drug by altering its formula or changing its dosage. The companies contend that even minor improvements in medicines — changing a pill dosage to once a day instead of twice a day — can have a significant impact on patient wellness. But critics say a majority of drug patents given in the United States are for tiny changes that often provide patients few meaningful benefits but allow drug companies to continue charging high prices for years beyond the original patent life.

Such practices has led to run away drug prices in the USA, which makes such life saving drugs unaffordable to billions of people around the world. It is in this context, the supreme court ruling has global impact. Companies can now make generic versions of drugs for which the original patent has expired. This low cost generic medicines will be affordable to more than 80% of world population. Now that India has taken a strong stand on drug patents, other countries such as South Africa, Brazil, Philippines, etc., will be encouraged to make similar rules - which will lead to more affordable health care.

Closing Thoughts

Supreme court ruling is a landmark ruling in global Patent protection regime. Drug companies can no longer play around the original drug, and maintain a perpetual patent for the drug. Companies are encouraged to develop new drugs that address hitherto unaddressed and untreatable diseases.

One of the reasons the Bill and Melinda Gates foundation is so active in developing new drugs for the diseases of the poor (such as malaria) has to do with the fact that pharmaceutical innovation is too much driven by potential economic benefits of future drugs.

Drug companies will now have to embrace the bottom of the pyramid markets for growth and profitability.

Leader's role in Fostering innovation.

In my previous article "Leadership for Innovation", I had written about the importance of leadership in creating innovative culture in an organization. Continuing on the same thought, this article is about the roles a leader should play to foster innovation in an organization.

Essentially, the success of the organization is determined by the leaders ability to attract, retain, and develop people with right knowledge and skills and build a work environment in which employees can innovate and thrive, thus making the organization more competitive.

Leader's role in innovation is more about people management and providing strategic inputs. This typically breaks down into the role of:

1. Visionary
2. Facilitator
3. Assessor 
4. Advisor
5. Provider

Visionary

The most important role of a leader is to be a visionary.  A leader should be able to see ahead and tell his organization of what he expects to happen in future - which is of importance to his organization. This could be market conditions, market needs, competition, etc. Leaders should blend this forecast with their vision for future and direct their team to prepare for that future.

Successful leaders are experts in seeing what lies ahead and communicating this on continuously to their organization while constantly accessing their strategy and monitoring their tactics.

Leaders must see beyond their operational level to access the business environment and provide information and resources needed for innovation. This requires a deep understanding of the business environment and organization's internal capabilities.

In short, Visionary leaders:

1. Provide continuous information on the organization and marketplace to subordinates
2. Constantly access organizational capabilities
3. Continuously communicate their grand vision of the future.
4. Ensure that the organization understands the vision.
5. Never underestimate the impact of constant change.

Facilitator 

The second most important role of a leader is to play a facilitator. Having a vision, hiring creative & innovative people is not enough, Leaders must facilitate an active discussions around how innovations can help the organization, what those innovative ideas need to become a reality etc., Leaders must initiate & practice open communication with active listening, and provide ongoing encouragement as needed. By drawing out information from people, leaders may uncover a new set of capabilities and strengths that was not previously recognized.

Leaders play a very important role here by initiating an active discussion centered around innovation - particularly on what new things (products/services) the organization should do to capitalize on the future opportunities. Care must be taken to keep the discussions away from debating on the leader's vision for the future and all discussions must be centered on innovation and developing new capabilities to enable the organization capitalize on future opportunities.

In short, a facilitator must:

1. Get everyone involved. 
2. Encourage and support active discussions
3. Ask open-ended, probing questions, using words like "Why", "What," "where," and "when." 
4. Avoid debates and discussion on the vision.
5. Avoid telling people what to do.  

Assessor 

During the process of facilitation, leaders will get a whole lot of suggestions and ideas. The role of leader in such situation is to provide candid, constructive feedback to keep the innovation on track.

Leaders must have the skills to access the idea and give a developmental feedback - which helps take the idea forward.  However, there will be ideas and suggestions that must be rejected. But even when rejecting an idea, the feedback must aid towards further development of options and ideas.

The assessment process must be quick and decisive, good leaders do not dither around making a judgment. A long drawn out assessment will kill enthusiasm in the organization, so leaders will have to move quickly and positively.

This is a "reality check" process enables leaders and employees to see all opportunities for developing and advancing the organization. A positive developmental feedback is so crucial in the innovation process.

In short, a Assessor must:

1. Assess ideas or suggestions quickly.
2. Provide specific, concrete, constructive feedback with examples. 
3. Keep the ideas/suggestions around the organization's strengths and developmental areas. 
4. Constantly act as a reality check within the organization - to prevent fanciful, futuristic ideas.
5. Must not provide wrong feedback just to avoid confrontation. 

Advisor 

Leaders need not be innovators themselves - but they must guide the innovation. As an advisor, leaders help organization to capitalize on opportunities that lies ahead with innovation. This involves goal setting - asking the organization to develop an innovative product/service within certain constrains: Time, Money and resources.

Leaders set multiple goals considering the dynamic nature of business today. The job of the leader is to set these goals and let the employees comment on the feasibility, blockers and limitations, and then facilitate the team to achieve the goal - by becoming a provider.

Once the goal is set, leaders must provide advice: direction and clarity when needed.

As an advisor, leaders should:

1. Guide the innovation process
2. Set hard but achievable goals
3. Make sure everyone understands the goals and the constrains.
4. Set multiple goals to meet the demands of market conditions
5. Provide direction and clarity when needed.

Provider

As the innovation idea gains ground, there will gaps identified in the organizational capabilities to meet the goals. As a provider, leaders must pitch in with useful resources, contacts, and connections as needed to help the organization achieve the goals set by the leader.

Leaders get the bigger picture and have a better tab on the available resources within the organization and even outside. So when the need arises, leaders will have to step up and provide the resources needed for innovation.

Leaders have connections outside their organization, so when needed they can open up collaboration with external partners and provide vital connections. At times, leaders may not have access to the needed resources - then it is the leaders job to step up and reach out to stake holders to help out. For example, a CEO may approach investors for additional capital.

As a provider, leaders should

1. Identify the need for resources for innovation activities
2. Identify internal and external resources
3. Provide links and connections needed
4. Step up and ask for external help when needed.

Closing Thoughts   

Successful Innovation needs a strong leadership. Leaders need to play multiple roles to enable innovation. The road for innovation starts with a vision for the future, identifying the right opportunities, building the right skills and capabilities  to providing the required resources.

Leaders role in innovation is neither simple or easy. It is tough and demanding one - which must be executed flawlessly to create a innovative organization to remain competitive and win.