Filetype Excel XLSX | Posted on 05 Jul 2022 | 3 years ago
Authentication
digital resources
171x Filetype XLSX File size 0.12 MB Source: tanzu.vmware.com
Sheet 1: READ ME
| What this document is about |
| This is a companion document to the PM-onomics workshop - full content at the Miro link below. It was created by the VMware Tanzu Labs Product Managers in Boston, MA. This is a light-weight problem set designed to help you figure out how to go about estimating the value your product. |
| See all assumptions and example explanation here: https://miro.com/app/board/o9J_lNuKt0U=/ |
| © 2021 VMware, Inc |
| Example calculations for an API | ||||||||
| grey boxes are the input numbers, gathered from research, that you can adjust to see changed impact on the bottom line | ||||||||
| note: "point estimate" means "best guess" | ||||||||
| How much revenue are we creating from the increase in sales? | ||||||||
| conservative | point estimate | optimistic | what is the +/- assumption? | |||||
| what is the expected annual revenue from sales this year? | $45,000,000 | $50,000,000 | $55,000,000 | $5,000,000 | ||||
| what is the % impact we expect user team 1's app to have on increasing annual revenue? | 2% | 3% | 4% | 1% | ||||
| what is the $ impact we expect user team 1's app to have on increasing annual revenue? | $900,000 | $1,500,000 | $2,200,000 | |||||
| what is the $ impact OUR TEAM has, given the amount of time we are saving this user team ? | $276,923 | $649,038 | $1,269,231 | |||||
| How much time are we saving a single user team? | ||||||||
| conservative | point estimate | optimistic | what is the +/- assumption? | |||||
| # epics | 8 | 10 | 12 | 2 | ||||
| average # points per epic | 16 | 18 | 20 | 2 | ||||
| average velocity (points per week) | 6 | 8 | 10 | 2 | ||||
| total weeks | 16 | 22.5 | 30 | |||||
| How many user teams will we support? | ||||||||
| conservative | point estimate | optimistic | what is the +/- assumption? | |||||
| how many months will it take to get a new user on average? | 4 | 3 | 2 | 1 | ||||
| How many months will our API be useful before it needs a major overhaul / a ton of maintenance / be deprecated? | 21 | 24 | 27 | 3 | ||||
| total user teams onboarded | 5.25 | 8 | 13.5 | |||||
| How much money is this API making + saving the customer? | ||||||||
| conservative | point estimate | optimistic | ||||||
| revenue from increased sales | $276,923 | $649,038 | $1,269,231 | |||||
| saved time for user teams | $2,035,385 | $4,361,538 | $9,813,462 | |||||
| total | $2,312,308 | $5,010,577 | $11,082,692 | |||||
| ROI for this team | ||||||||
| conservative | point estimate | optimistic | ||||||
| ROI | 6 | 9 | 15 | |||||
| Example calculations for hypothetical "To-Do List Manager" Application | |||||
| grey boxes are the input numbers, gathered from research, that you can adjust to see changed impact on the bottom line | |||||
| note: "point estimate" means "best guess" | |||||
| How many hours are we saving each user with the new app, per month? | |||||
| conservative | point estimate | optimistic | what is the +/- assumption? | ||
| time spent on the task before the new app | 1.50 | 2.00 | 2.50 | 0.50 | |
| decrease in time spent on the task with the new app | 25.00% | 35.00% | 45.00% | 10.00% | |
| number of tasks per month | 30.00 | 40.00 | 50.00 | 10.00 | |
| how many hours are we saving each user, per month | 11.25 | 28.00 | 56.25 | ||
| How many hours will we save the company before the Minimum Valuable Product period expires? | |||||
| conservative | point estimate | optimistic | what is the +/- assumption? | ||
| users per team | 8 | 10 | 12 | 2 | |
| months it will take to fully on board all teams? | 30 | 24 | 18 | 6 | |
| new user teams per month, on average | 1.67 | 2.08 | 2.78 | ||
| number of months the MVP is useful before it needs revamping | 18 | 24 | 30 | 6 | |
| total number of **user teams** onboarded before MVP expires | 30 | 50 | 50 | ||
| total number of *users* onboarded before MVP expires | 240 | 500 | 600 | ||
| total number of user-months before MVP expires* | 2160 | 6000 | 9000 | ||
| total number of hours this app saves the company before the MVP expires | 24300 | 168000 | 506250 | ||
| How many hours are we effectively 'adding' from increased happiness? | |||||
| conservative | point estimate | optimistic | what is the +/- assumption? | ||
| percentage increase in productivity | 3% | 5% | 7% | 2% | |
| total number of hours that our users spend working overall, weekly* | 4800 | 10000 | 12000 | ||
| effective increase in hours worked, weekly | 144 | 500 | 840 | ||
| effective increase in hours worked before the MVP expires | 10368 | 48000 | 100800 | ||
| How many total hours are we creating for the company? | |||||
| conservative | point estimate | optimistic | what is the +/- assumption? | ||
| total hours created by this MVP | 34668 | 216000 | 607050 | ||
| What is the ROI of this team? | |||||
| conservative | point estimate | optimistic | what is the +/- assumption? | ||
| how many weeks it takes to generate the MVP | 16 | 12 | 8 | 4 | |
| collective hours spent on the MVP | 6400 | 4800 | 3200 | ||
| ROI of the investment in this team to build the MVP | 5 | 45 | 190 | ||
| maintenance hours needed per week once the MVP is done | 40 | 40 | 40 | ||
| total hours of maintenance needed before the MVP expires | 2880 | 3840 | 4800 | ||
| ROI of the investment in this team to build the MVP inclusive of ongoing maintenance | 4 | 25 | 76 | ||
| * dividing by 2 here to roughly account for iterative user onboarding | |||||
