Software Product Management and Pricing

Hans-Bernd Kittlaus: Graduate of University of Dortmund (Diplom-Informatiker). Spent 12 years with IBM, first in the Boeblingen Development Lab in technical and management positions, then as the head of EMEA (Europe, Middle East, Africa) Software Product Management for IBM's database and application development products in Stuttgart (Germany), San Jose (California, USA) and Toronto (Canada). Spent 6 years as Director with SIZ (Informatics Center of the German Savings Banks Organization). Started his own consulting company InnoTivum, Rheinbreitbach, Germany, in 2001 focussing on all strategy and management topics in relation to software, in particular the alignment of business and IT. Mr. Kittlaus has published numerous articles and the books a'Data Mining' (Addison Wesley, 1998), 'Business Process Reengineering und Produktivitatssteigerungsprogramm' (Deutscher Sparkassen Verlag, 1999) und 'Database Marketing' (Deutscher Sparkassen Verlag, 2001). He was co-author of the book 'Software-Produkt-Management' (Kittlaus/Rau/Schulz, Springer, 2004). Since 2005 he is member of the board of the German software company Sander & Doll. Peter N. Clough: Graduate of Trinity School (NYC) and Columbia University (BA in French Literature). Prior to joining IBM, two years spent on Wall Street as programmer and systems analyst. Employee of IBM since 1970, with experience in marketing and sales, finance, and business terms. Experienced in several industry sectors, especially Finance. Responsibilities have included both hardware and software marketing and sales as well as developing terms and conditions and pricing for all types of software within IBM. Influenced, participated in or managed every major IBM software terms development since 1983. Fourteen years in Europe Middle East Africa Division of IBM, split between working in US and in Paris. More recently, developed the offerings and price models for enterprise software sales in IBM's Software Group, and led or structured sales, and provided deal negotiation assistance worldwide. Currently Enterprise Software Sales Executive and Manager of SW Offerings in IBM's Software Group. In this role led, structured, or assisted in WW software sales to large customers, generally in the 50 to 500M category. Oversight of IBM software offerings worldwide and architect and author of the pricing structure for IBM's major software relationship offering, the Enterprise Software and Services Offering. Winner of multiple IBM awards including the IBM Chairman's Award in May 2000 for work done on software enterprise offerings and the Golden Circle in 2006 for sales contributions.

From the reviews: "These two seasoned practitioners have masterfully distilled the essence of the software business and the art and craft of the increasingly important and challenging field of software product management. Worthwhile to any who want an appreciation of the evolving world of product management, seasoned veteran and new entrant alike." Richard Campione, Senior Vice President, Business Suite Solution Management & CRM On Demand, SAP, Germany/USA "Mr. Kittlaus and Mr. Clough have used their considerable knowledge and experience to succinctly lay out the value chain that is essential to the development of a financially healthy software company. If you want to understand how to turn software technology into a long-term profitable company this is the book to read." Paul Kaplan, Vice President, Worldwide Enterprise Software Sales, Software Group, IBM, USA "This book on Software Product Management and Pricing is the first book that treats the business of software in a systematical way. Although software products were already shipped in the seventies of the last century, there are hardly any books providing an overview of all issues a company faces when playing a role in this industry. Product management and pricing are key processes, and this book informs the reader of the essentials. It is a must-read for anyone involved in software products, be it in business or in research." Prof. Dr. Sjaak Brinkkemper, Information and Computing Sciences, Utrecht University, Netherlands "This compendium covers all facets of the software business using the advanced professionalism of the industry's global players as its standard. The authors have managed to combine professional accuracy with helpful practical examples and valuable references for further reading. Highly recommended, in particular for managers in corporate IT and software vendor organizations!" Wilhelm Gans, CTO, DSV Group (German Savings Banks Organization), Germany "A comprehensive book on best practices for software product management and pricing. It provides a deep insight into strategy and tactics of software organizations in a time of growing complexity and new challenges like Software as a Service." Udo Hertz, Director of Information Management Development, IBM Germany Research & Development, Germany "Software is big business to the largest of the information technology companies. ... Kittlaus and Clough frame their topics with considerable insight. ... written for practitioners that work with or are responsible for software product management and pricing. Kittlaus and Clough have shared their points of view in a well-structured, easy-to-read format. ... The authors added job descriptions for the software product management role and software pricing manager, which are very helpful in distinguishing these roles from others that may be or sound related." (Brian D. Goodman, ACM Computing Reviews, May, 2009)

• Responsibility for economic success (profitability across the life cycle).- Definition of the total market and the target market (e.g. national vs. international).- Scope and Positioning.- Definition of the packaging (product family vs. single product, name etc.).- Controlling of Marketing.- Definition and Controlling of the sales channels.- License models.- Value vs. Cost Pricing, Strategic vs. tactical pricing.- Client for Development.- Requirements Management.- Definition and coordination of the support structure.- Competitive advantages and how to defend them.