Is there a best practice in product strategy?

     

Is creating Product Strategy a Break-down or Work-up activity?

Since Chandler introduced the concept of product strategies back in the 60-ties numerous ways of creating them has emerged. In this blog I’ll briefly discuss some considerations.product strategy_lamp-366428-edited.jpg

Some management consultants would argue that creating a successful product strategy tools would require a top-down approach. Would there be any other way to ensure full compliance to corporate visions and directions as outlined in the overall corporate strategy?

Others, more agile entrepreneurs, would argue the other way around. You have to start with a customer problem – a pain or gain in the value proposition design process. We talk about product discovery. Later, there would be a good idea to align the results with overall policies to make sure there would be no severe complications – but you should be all means not start up in the corporate clouds.

I’d say both ways are possible – just find the fastest route to the final destination. (As we all know this is not always the shortest one ..)

Still, there are many other alignments to consider:

Market segmentation

  • Typically we have a matrix situation. The company wants to address certain segments. One product can fit many applications – but one segment might also require additional products or services to create a meaningful offering

Portfolio management

  • On a corporate or business unit level there would be a complete set of products to consider. What is the position of OUR product in the series of offerings?  Read more in this post about 5 Steps For Successful Portfolio Management

Business model innovation

  • Service companies often want to productify their services. Product companies on the other hand want to add services to their HW and SW products. Will there be any disruptive digital innovations in my market?

Product Architecture

  • Modularization, defining boundaries between product parts. Selecting and investing in a defining technology platform to achieve sustainable competitiveness and profitability. Download this eBook on Product Platform Strategies by Michael E. Mc.Grath to read more. 
    Download eBook

Ecosystem management

  • Can I find partners to scale my business by creating whole solutions?

The product strategy is not a stand-alone document. It has many neighbors in the product management library – including portfolio management, segmentation, business model innovation, product architecture and Ecosystem management.

There are many aspects of creating (and using) product strategies. What initially might appear as a simple approach will soon lead to considerable complications!

If you want to start creating product strategies that are being used, Tolpagorni runs  ISPMA Excellence Level Certificate training in Product Strategy, feel free to read  the syllabus belowRead Syllabus Here

 

About The Author

Erik has extensive experience in product management, business management and development. Within the software, electronics and hardware, Erik has pursued commercial success.