Product Journey: Product Life Cycle Explained
- product management
- 5 min read
By Gomati Garware – Director Product Management, Simplify Healthcare
The journey from idea to successful market launch hinges on a well-defined and compelling product vision. A good product vision serves as a guide, aligning teams, attracting stakeholders, and ensuring the creation of a valuable solution that resonates with users. Let’s delve into the key elements that constitute a strong product vision, essential for navigating the complexities of product development and achieving sustained market success.
Key Takeaways:
- A product represents an agreement between someone buying and someone selling.
- A successful product strategy depends on a well-defined framework that guides decision-making and execution throughout the lifecycle of a product.
- Aligning product opportunities with company strategy is critical for securing support and funding.
- While focusing on continuous improvement is vital, be vigilant towards emerging market shifts and disruptive technologies.
- Prioritize product features based on customer impact, strategic alignment, technical feasibility, and risk considerations.
What is a Product Vision?
In simple terms, a product represents an agreement between someone buying and someone selling. This agreement goes beyond traditional categories like goods, services, or technology. It includes things like software, goods, technologies, platforms, and services, blurring the lines between what we consider a service or a product.
What are the Elements of a Good Product Vision?
Building a compelling product vision relies on mastering fundamental elements that ensure practicality, longevity, and market appeal. Let’s explore the key aspects that define a robust product vision in simpler terms.
1. Identifying a Valuable Problem
A solid product vision starts with recognizing a problem that is worth solving. Is this problem significant and affecting many people? Is there a real demand for a solution? Answering these questions ensures that the product idea aligns with market needs and is worth investing time and resources into.
2. Using Technology for Solutions
An important part of a good product vision is using technology effectively to create solutions. Can we realistically build the solution using available technology and expertise? Considering this helps in planning a feasible product and within the capabilities of the development team.
3. Ensuring Long-Term Sustainability
A successful product vision goes beyond immediate results—it aims to be sustainable and adaptable. Will the product remain relevant as the market changes? Is there a plan for continuous improvement and updates? Thinking about sustainability ensures that the product stays valuable over time.
4. Targeting the Right Audience
A strong product vision is tailored to meet the needs of specific customer groups. Understanding who the product is for—their demographics, behaviors, and challenges—helps in creating a focused and effective vision. Targeting the right audience increases the chances of success and adoption.
5. Assessing Business Viability
A practical product vision should also make business sense. Can the product support a viable business model? Does it align with revenue goals and cost considerations? Evaluating business viability ensures that the vision supports long-term growth and profitability.
Product Strategy Framework
A successful product strategy depends on a well-defined framework that guides decision-making and execution throughout the lifecycle of a product. Let’s delve into key elements of a strategic framework tailored to drive product success.
1. Market Analysis
Market analysis forms the bedrock of informed decision-making. Utilize surveys, data insights, and customer feedback to identify needs, assess market viability, and validate product concepts.
2. Business Planning
Translate insights from market analysis into robust business plans. Define a roadmap that outlines feature development, timelines, and strategic goals aligned with market demands.
3. Focus on Your Roadmap
Craft a detailed roadmap that serves as a blueprint for product development. Outline milestones, feature releases, and iterations to guide the product through its lifecycle.
4. Deep Analysis of Personas, Scenarios, and Product Experience
Invest time in understanding user personas, scenarios, and desired product experiences. Tailor product development to meet specific user needs and enhance the overall product experience.
5. Product Development and QA
Execute product development with a focus on quality assurance (QA). Rigorous testing ensures the product meets industry standards and user expectations.
6. Marketing Programs
Develop comprehensive marketing strategies to create awareness and drive adoption. Leverage targeted campaigns, messaging, and promotional activities aligned with market insights.
7. Sales Enablement
Empower sales teams with the knowledge and tools they need to effectively promote and sell the product. Provide training, resources, and sales collateral aligned with product features and benefits.
8. Product Operations and Support
Plan for ongoing product operations and support post-launch. Establish strategies for customer support, maintenance, and updates to ensure continued satisfaction and product longevity.
Studying Your Market
When embarking on a product journey, conducting a thorough market study is vital to pave the path towards success. Let’s break down the essential steps in this process and relate them to your envisioned product.
1. Identify Product Category
Consider whether your product falls under a new category, an existing product with updates, or a complete relaunch like transitioning from on-premises to cloud-based. Defining this category shapes your approach to market entry and customer engagement.
2. Define Target Audience (B2B or B2C)
Think about who will use your product—businesses (B2B) or individual consumers (B2C). Understanding your target audience influences product features, marketing strategies, and sales approaches tailored to specific customer needs.
3. Consider Geographical Relevance
Geography plays a crucial role in product demand and manufacturing. Pandemic experiences highlighted varying demands across regions. Analyze where your product is needed most and tailor your launch and distribution strategies accordingly.
4. Segment Your Market
Just as Honda offers luxury sedans and compact cars targeting different segments, define which market segment your product aims to serve. This clarity informs product design, pricing, and positioning strategies.
5. Conduct Competitive Analysis
Evaluate competitor strengths and weaknesses but avoid getting into a feature war. Market leaders focus on brand retention, while challengers capitalize on competitor weaknesses to differentiate effectively. Build features that address market gaps strategically.
6. Ensure Technological Feasibility
Confirm if the required technology supports your product vision. Avoid pitfalls by ensuring compatibility and availability of necessary technological capabilities. Leverage technology to enhance product performance and user experience.
Exploring the Dynamics of Opportunity and Strategy in Product Development
As we transition to the next topic, let’s delve into the critical interplay between opportunity and strategy when crafting a product. Often, product managers and leaders are inundated with ideas and demands, whether from customers, partners, or stakeholders. However, not every opportunity should translate into action—here’s why.
1. Aligning with Company Strategy
The foremost consideration in seizing opportunities is aligning them with your company’s overarching strategy. Your product strategy must harmonize with broader organizational goals to secure support and funding.
2. Balancing Continuous Improvement with Innovation
While capitalizing on existing opportunities for product enhancement is crucial, solely focusing on incremental improvements risks overlooking disruptive market shifts. Continuous iteration is vital, but vigilance towards emerging trends and technologies is equally important to avoid being blindsided by competitors.
3. Safer Strategies: Leveraging Existing Customers
A safe strategy often involves introducing new products or features to existing customers or migrating competitors’ customers. This approach, exemplified by IBM’s “wallet-sharing” strategy, aims to deepen relationships with current customers, leveraging familiarity and trust to drive additional revenue.
4. Embracing High-Risk, High-Reward Innovation
Contrastingly, some leaders—like Elon Musk with Tesla—embrace high-risk, high-reward strategies by venturing into uncharted territories and targeting new customer segments. This path requires bold vision and tolerance for uncertainty, offering the potential for transformative impact and substantial returns.
5. Wallet-Sharing vs. Niche Segment Targeting
Consider the difference between strategies employed by tech giants. IBM’s wallet-sharing strategy focuses on expanding revenue from existing customers, while Google Maps initially targeted a niche segment—ride-hailing drivers—before scaling to broader consumer markets. Both strategies exemplify tailored approaches based on specific market dynamics.
6. Adapting Strategy to Industry and Context
The optimal strategy varies based on industry context and business objectives. Assessing opportunities against strategic parameters is essential to discern the most viable path forward. Not all opportunities are created equal; thoughtful evaluation ensures alignment with overarching goals.
7. Thoughtful Decision-Making in Product Planning
In product planning, resist the urge to pursue every requested feature indiscriminately. Instead, strategically evaluate each opportunity against defined parameters and market realities. Thoughtful decision-making yields focused, impactful product strategies aligned with long-term success.
Mastering Prioritization: A Practical Guide for Product Managers
Effective prioritization is a cornerstone of success. Balancing multiple priorities while aligning with your company’s overarching goals requires a strategic approach. Let’s delve into actionable strategies on how to prioritize effectively.
1. Aligning to Company’s Goals
Start by understanding your company’s strategic objectives. As a product manager, your decisions should always align with these goals. Identify your organization’s core priorities— revenue growth, customer acquisition, or regulatory compliance. When evaluating features or requirements, ask yourself: How does this contribute to achieving our company’s objectives? Aligning your product roadmap with company goals ensures that your efforts are impactful and aligned with broader organizational strategies.
2. Methodologies for Prioritization
Adopting robust methodologies enhances your ability to prioritize with clarity. Consider implementing the following frameworks:
- Impact vs. Effort Matrix: Evaluate features based on their potential impact on customers versus the effort required for implementation.
- Customer Feedback Analysis: Prioritize features based on customer demand and feedback. Conduct surveys, gather insights, and quantify customer requests to inform your prioritization strategy.
- Value vs. Complexity Analysis: Assess features based on the value they deliver to stakeholders versus the technical complexity of implementation. These methodologies provide structured approaches to prioritize features objectively, taking into account various dimensions such as impact, customer value, and technical feasibility.
3. Key Parameters for Prioritization
Certain parameters should guide your prioritization decisions:
- Customer Impact: Consider the magnitude of impact a feature will have on customer experience or satisfaction.
- Strategic Alignment: Prioritize features that align closely with your company’s strategic goals and market positioning.
- Technical Feasibility: Evaluate the feasibility and complexity of implementing each feature from a technical standpoint.
- Compliance and Risk: Address features that mitigate compliance risks or enhance product security and integrity.
4. Fact-Based Decision-Making
Embrace data-driven decision-making to prioritize features objectively. Gather relevant data, including customer feedback, usage analytics, and market trends. Leverage quantitative insights to inform your prioritization decisions, minimizing subjective biases. Engage stakeholders with factual evidence and metrics that support your prioritization strategy.
Jeff Bezos’ principle of “disagree and commit” underscores the importance of basing decisions on verifiable data rather than personal opinions or assumptions. Prioritize features based on factual evidence, ensuring alignment with company goals and maximizing impact.
How to Optimize Developmental Strategies
As a product leader, you face critical choices regarding development strategies that can impact the trajectory of your project. Let’s delve into key strategies for efficient development:
1. Building Within the Organization
When contemplating whether to build components internally, consider the following:
- Resource Readiness: Assess the availability of skilled personnel and technological resources within your organization.
- Control and Customization: Building in-house offers greater control over the development process and allows for customization to meet specific project requirements.
- Long-term Sustainability: Investing in internal capabilities can enhance long-term sustainability and reduce dependency on external factors.
2. Buying Components
Procuring ready-made components or APIs presents distinct advantages:
- Time-to-Market: Buying components can expedite the development process, reducing time-to-market and enabling quicker product iterations.
- Expertise Access: Leveraging third-party solutions grants access to specialized expertise and pre-built functionalities.
- Cost Optimization: Buying components can be cost-effective compared to in-house development, especially for non-core functionalities.
3. Partnering for Development
Engaging external partners for development entails strategic considerations:
- Expert Collaboration: Partnering with external firms brings specialized skills and domain expertise to the project.
- Resource Augmentation: External partnerships can supplement internal resources, accelerating development without overburdening the organization.
- Risk Sharing: Sharing development responsibilities with partners mitigates risks and enhances agility.
4. Avoiding Poor Resource Allocation
To prevent poor allocation of resources, adopt a prudent approach:
- Balanced Investment: Avoid concentrating all resources on new product development, which may compromise existing projects.
- Prioritization Framework: Implement a prioritization framework to allocate resources based on project importance and strategic alignment.
- Continuous Evaluation: Regularly assess resource utilization to reallocate resources based on evolving project needs and organizational priorities.
5. Implementing Wise Allocation
Deploying resources judiciously is key to success:
- Strategic Planning: Develop a comprehensive resource allocation plan aligned with project objectives and organizational goals.
- Flexibility and Adaptability: Maintain flexibility to reallocate resources dynamically based on project milestones and market feedback.
- Risk Management: Allocate resources wisely to mitigate risks associated with resource constraints and uncertainties.
Roadmap Vs Release Plan
As a product manager or product owner, navigating the intricacies of product development involves juggling multiple facets, including roadmap planning and release strategies. Let’s delve into the distinctions between roadmap and release plans and how they shape the trajectory of product management.
Aspect | Roadmap | Release Plan |
Nature | Forward-looking prediction of product evolution and milestones | Definitive plan with specific timeline and scope |
Purpose | Outlines future product developments and strategic goals | Details of current release deliverables and commitments |
Flexibility | Subject to frequent changes based on evolving business needs | Locked and adhered to with minimal changes once finalized |
Business Alignment | Reflects the company’s strategic vision and long-term goals | Supports current business objectives and market demands |
Stakeholder Communication | Shared regularly with stakeholders to demonstrate product vision | Communicates specific deliverables and timelines to customers and stakeholders |
Decision Making | Guides future product direction and feature prioritization | Directly impacts customer expectations and market positioning |
Adaptability | Allows for agile adjustments based on market feedback and opportunities | Requires adherence to timelines and scope commitments |
Management Approach | Evolves alongside business strategies and market dynamics | Treated as a distinct project with clear milestones and approvals |
Funding & Resource Allocation | Influences resource allocation and investment decisions | Determines resource needs for current product iteration |
Pricing and Packaging
pricing and packaging play pivotal roles in shaping consumer perceptions and business outcomes. Here’s a closer look at key pricing approaches that businesses can leverage to optimize their offerings:
1. Subscription and Services-Based Models
Subscription-based pricing models, epitomized by platforms like Netflix, offer customers continuous access for a recurring fee. This approach fosters customer loyalty and provides predictable revenue streams, aligning well with digital services and content platforms.
2. Usage-Based Pricing
Usage-based models charge customers based on their actual usage of a product or service. Cloud computing providers like AWS exemplify this approach, where organizations pay according to their utilization of computing resources. This model is highly scalable and cost-effective for businesses with fluctuating demands.
3. Licensing and Enterprise-Based Pricing
Enterprise-based pricing structures cater to business needs by bundling comprehensive solutions. Microsoft’s licensing approach, bundling Windows with Office applications, is a prime example. Such packages streamline procurement and deployment for enterprises, offering value through integrated functionalities.
4. Per Module or Feature Pricing
For feature-rich products, pricing can be modular, allowing customers to pay for specific functionalities they require. This approach grants flexibility and cost-effectiveness, aligning pricing with the value derived from each feature.
5. Pricing Based on Impact
Some pricing strategies are contingent upon the impact or value delivered to customers. AI-enabled solutions, for instance, may adjust pricing based on the inclusion of advanced features like chatbots, reflecting the increased utility and market demand for such functionalities.
6. Estimation of Profit
Profit estimation is a critical aspect of pricing strategies, ensuring sustainable business growth. Effective pricing considers not only revenue generation but also operational costs and resource investments, aiming to maximize profitability while maintaining competitive pricing.
7. Non-IT Estimation Tools
In non-IT domains, specialized estimation tools like Eagle View facilitate accurate cost assessments for complex projects, such as solar panel installations. These tools empower businesses to make informed pricing decisions and optimize resource allocation, transcending traditional IT applications.
How to Enable Sales Success
Product managers play a crucial role in ensuring that sales teams are equipped with the tools, knowledge, and strategies to excel in their roles.
1. Readying Sales Tools for Product Promotions
A core responsibility of product managers is to ensure that sales teams have the necessary tools and materials to effectively promote products. This includes providing detailed product information, engaging presentations, and impactful demos that resonate with potential customers.
2. Strategic Focus on Pricing and Target Customers
When launching new products or exploring new markets, product managers collaborate closely with sales teams to define optimal pricing strategies and identify target customer segments. This strategic alignment ensures that sales efforts are directed toward maximizing profitability and customer acquisition.
3. Training to Understand Buying Behavior
Product managers conduct tailored training sessions to educate sales teams on customer buying behavior. By understanding the motivations and preferences of potential customers, sales teams can tailor their pitches and solutions to resonate with specific needs.
4. Customized RFPs, Presentations, and Demos
To enhance sales effectiveness, product managers collaborate with sales teams to customize Request for Proposals (RFPs), presentations, and demos. This personalized approach allows sales teams to address specific customer requirements and showcase product value effectively.
5. Generating Market Awareness
Product managers play a pivotal role in creating market awareness through targeted campaigns and initiatives. By leveraging market insights and competitive analysis, product managers equip sales teams with the knowledge needed to position products effectively in the market.
6. Focused Market Segmentation
Segmentation is key to successful sales enablement. Product managers guide sales teams in identifying and targeting specific segments of the market based on product features and customer preferences. This focused approach maximizes sales impact and customer engagement.
7. Avoiding Roadmap Discussions in Sales Channels
A critical guideline emphasized by product managers is the avoidance of roadmap discussions during sales interactions. Sales teams are encouraged to focus on current product releases and established features to align customer expectations with tangible deliverables.
Go-to-Market Strategies: Collaborating with Marketing for Product Success
The journey from development to market success depends greatly on effective collaboration with the marketing team. Product managers are not just owners of products; they are orchestrators of comprehensive go-to-market plans that ensure products reach their intended audience with maximum impact. Let us look at the key strategies for effective go-to-market planning:
1. Enabling Channel Partner Engagement
When formulating go-to-market strategies, product managers engage closely with marketing teams to leverage channel partners effectively. Whether targeting manufacturers or specific customer segments, it’s essential to ensure that marketing efforts are channeled through strategic partnerships for broader reach and impact.
2. Leveraging Strategic Events
Events are pivotal opportunities for product promotion. By aligning closely with organizational leadership, product managers can advocate for their products during significant launches and industry gatherings. These events serve as platforms to showcase new products and generate buzz within key markets.
3. Strategic Telemarketing
Strategic telemarketing, when executed ethically and with consent, can be a potent tool for reaching potential customers. Leveraging customer consent data, marketing teams can engage with interested parties directly, fostering meaningful conversations about new products and services.
4. Email Communication with Customer Consent
Email remains a cornerstone of modern marketing strategies. By leveraging customer consent data, marketing teams can communicate directly with interested individuals, sharing updates, promotions, and information about new products.
5. Over-communicating for Market Awareness
Over-communication is a deliberate strategy used to enhance market awareness. By strategically deploying advertisements and collaterals across various channels, organizations ensure that their products remain top-of-mind for potential customers.
6. Customized Marketing for Specific Customers
Tailoring marketing efforts to specific customer needs is essential for driving engagement and conversions. Product managers play a pivotal role in educating marketing teams about unique product features sought by specific customer segments, enabling more effective positioning and messaging.
Stages of a Successful Product Launch
The journey toward a successful product launch is a meticulously orchestrated process that encompasses strategic decisions, meticulous preparation, and effective execution. Transitioning from development readiness to market launch involves a comprehensive approach that leverages various tools and strategies to ensure maximum impact and success. Let’s understand the main stages of a successful product launch.
1. Business Decision/Development Decision
The inception of a product launch begins with a critical business decision. It involves evaluating market conditions, aligning with strategic objectives, and assessing readiness for development. This stage sets the foundation for the subsequent steps in the launch process.
2. Release/Campaigning
Once the product is developed and tested, the focus shifts to the release phase. This stage involves not only making the product available but also implementing a comprehensive campaign strategy. From sales enablement to go-to-market plans, this phase ensures that the product gains maximum visibility and traction.
3. Customer Zero
Implementing the “Customer Zero” concept involves internal deployment and testing of the product within the organization. This step validates product functionality and usability, providing valuable insights before external release.
4. Messaging to Targeted Personas
Crafting targeted messages tailored to specific customer personas is crucial for a successful launch. By addressing the unique needs and pain points of each persona, product managers can effectively communicate the value proposition of the product.
5. Training Materials
Preparing comprehensive training materials and documentation is essential to facilitate the smooth adoption of the product. Training materials should be meticulously crafted and verified to ensure accuracy and clarity.
6. Product Briefing
Engaging in product briefings, both internally and externally, is instrumental in building anticipation and generating interest. Product managers play a pivotal role in conveying the product’s value proposition and unique features during these briefings.
7. Social Media, Blogs, and Videos
Leveraging social media platforms, writing blogs, and creating engaging videos are effective ways to amplify the product’s reach. These channels enable product managers to showcase the product’s benefits and connect with potential customers.
8. Internal and External Events
Participating in internal and external events provides valuable opportunities to engage with stakeholders and demonstrate the product’s capabilities. Whether it’s hosting webinars or attending industry conferences, events play a crucial role in driving product awareness.
9. Actual Product Release
The culmination of the launch process is the actual product release. This milestone marks the transition from preparation to execution, backed by thorough planning and engagement across various stages.
Evaluating Product Launch Success with KPIs
Determining the success of a product launch goes beyond the event itself—it requires ongoing assessment using specific Key Performance Indicators (KPIs) that gauge various aspects of performance and impact. Let’s explore the essential KPIs that can effectively measure the success of a product launch:
Internal KPIs
- Defect Rate: This metric reflects the quality of the product release by measuring the number of defects per feature or sprint. Monitoring this rate helps ensure a high-quality product experience for users.
- Customer Support Preparedness: Assessing the readiness of customer support teams post-launch is crucial. Monitoring support call volumes and response times provides insights into product usability and customer satisfaction.
- Development Velocity: This KPI measures the efficiency of development and testing processes by comparing planned story points with actual achievements. It reflects the team’s productivity and adherence to sprint goals.
- Marketing Program Milestones: Tracking the completion of marketing initiatives ensures that sales and promotional efforts align with the product launch timeline.
- Sales Productivity: Evaluating sales metrics post-launch, such as lead generation and conversion rates, helps gauge the effectiveness of sales enablement strategies.
External KPIs
- Revenue Retention: Assessing the retention of existing revenue post-launch indicates customer satisfaction and product value.
- User Engagement: Monitoring user behavior metrics like sessions per user and new user registrations provides insights into product adoption and engagement.
- Profitability: Measuring post-launch profitability (revenue minus expenses) indicates the financial success of the product launch.
- Market Share: Tracking market share within a specific product category reveals the product’s competitive positioning and market acceptance.
- Customer Acquisition Cost (CAC): Analyzing the cost-effectiveness of acquiring new customers post-launch helps optimize marketing and sales strategies.
Analyzing Product Post-Launch
Launching a product is just the beginning. The success of a product launch depends on various factors, including market visibility, launch timing, outcomes, momentum gained, revenue generated, and metrics used to achieve goals. Let’s delve into these key aspects of post-launch analysis:
1. Increasing Market Visibility
Post-launch, evaluate whether the new product has enhanced market visibility. Measure the increase in customer base within existing markets. Assess entry into new markets or segments due to the product launch.
2. Evaluating Launch Time
Examine the efficiency and timeliness of the product launch. Assess whether the launch occurred as planned or encountered delays.
3. Analyzing Outcomes and Momentum
Understand the impact and momentum gained post-launch. Determine the level of acceptance and adoption of the product in the market.
4. Revenue Generation
Quantify the financial impact of the product launch. Track the increase in revenue attributed to the new product.
5. Utilizing Metrics for Goal Achievement
Identify key metrics used to measure success and achievement of goals. Define and monitor strategic metrics aligned with business objectives.
6. Assessing Goal Achievement
Analyze whether the defined metrics have successfully achieved the intended goals. Evaluate how well the selected metrics align with and contribute to overall business objectives.
Maturity Stage
When your product reaches the maturity stage of its life cycle, it signifies a culmination of growth efforts and market acceptance. This phase is characterized by stability and consolidation, offering opportunities to solidify market leadership and enhance customer relationships.
- Recognizing Maturity
The maturity stage is attained when your product has achieved its intended market share and revenue targets. It’s a moment of transition where the focus shifts from expansion to preservation and enhancement of market presence.
- Setting Maturity Goals
At this stage, your primary goal is to sustain and strengthen your market position by focusing on customer retention and engagement. The objective is to maximize profitability from existing customer bases while maintaining brand relevance and credibility.
- Indicators of Maturity
Key indicators of maturity include consistent revenue generation, stable market share, and high levels of customer retention. The product’s growth rate stabilizes, and competition intensifies, necessitating a strategic focus on service differentiation and customer satisfaction.
- Customer Retention Strategies
Customer retention becomes paramount in the maturity stage. Implementing personalized customer engagement programs, loyalty initiatives, and proactive customer service efforts are crucial to retaining existing customers and fostering long-term relationships.
- Customer Engagement Programs
Engaging customers through targeted programs, such as exclusive offers, events, and personalized interactions, strengthens brand affinity and encourages repeat business. Building emotional connections with customers is essential for sustaining loyalty.
- Emphasizing Unique Service Propositions
In the maturity stage, differentiation shifts from product innovation to service excellence. Offering unique service propositions, such as exceptional after-sales support, tailored solutions, and value-added services, enhances customer satisfaction and loyalty.
- Building Market Confidence and Credibility
Ultimately, maturity is about building market confidence and credibility. By consistently delivering value and exceptional service, you cultivate trust and loyalty among customers. Higher customer retention rates reflect the confidence you’ve earned in the market.
Embracing Continuous Innovation: Avoiding Product Sunset
In the product lifecycle, reaching maturity is not the endpoint but an opportunity for sustained innovation and market relevance. As a product leader, the goal is to avoid product retirement by leveraging the innovation window within the maturity stage.
Leveraging Innovation for Growth
- Self-Killing Products
Companies like Microsoft phase out older products to introduce new versions, but the focus should be on continuous evolution rather than retirement.
- Harnessing the Innovation Window
When a product matures, it enters a critical phase for innovation. Google’s integration of Google Chat into Gmail demonstrates leveraging this window to enhance user experience.
Examples of Successful Evolution
- Facebook and Amazon
These companies have introduced innovations within existing products, such as Facebook’s integration of emojis into video calls and Amazon’s launch of Amazon Prime beyond e-commerce.
- Strategic Resource Allocation
Companies allocate around 20% of their resources to explore new ideas and features, ensuring products remain relevant and adaptable.
Avoiding Product Sunset
Solely clearing backlog items without investing in innovation can lead to product sunset. Market research and competitor analysis are crucial to avoid being disrupted.
Embracing Continuous Evolution
Product leaders should focus on continuous evolution and disruption within existing products to sustain market leadership and relevance.
Crafting a compelling product vision requires a blend of creativity, market insight, technological feasibility, and business acumen. By focusing on these core elements, you can shape a vision that not only guides product development but also sets the stage for achieving meaningful impact and success.
About the Author:
Gomati Garware – Director Product Management, Simplify Healthcare
Frequently Asked Questions
A product journey refers to the lifecycle of a product from its conceptualization and development through to its launch, growth, maturity, and eventual decline or evolution. It encompasses the various stages and experiences that a product undergoes as it enters the market, interacts with customers, adapts to market feedback, and evolves.
The product life cycle (PLC) refers to the stages that a product goes through from its introduction to the market until its eventual decline and removal from the market.
The product life cycle is important for guiding strategic decision-making, optimizing resource allocation, managing profitability, evolving products to meet changing market needs, and staying competitive in dynamic markets.
The growth stage is characterized by significant sales expansion, heightened competition, increased profitability, and strategic investments to capitalize on market opportunities. The goal is to establish a strong market presence and position the product for sustained success as it progresses through the product life cycle.
The maturity stage in the product life cycle is the phase where a product experiences stabilized sales growth, reaches market saturation, and competition intensifies. This stage typically follows the growth stage and is characterized by slower but steady sales growth and a focus on maximizing profitability.
The decline stage in the product life cycle is the phase where a product experiences decreasing sales and declining market demand. This stage follows the maturity stage and signifies the end of the product’s life cycle as it becomes less profitable and loses market relevance.
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