How do we make product success more predictable? Few things are more critical to the success of a company than its new product launches. For example, an Aberdeen Group report indicates that the majority of companies command at least 11 percent higher margins on products that have been on the market for less than two years, with almost a quarter realizing margin advantages of 50 percent or higher for new products. Yet product success is difficult to achieve. Several analyst surveys have determined that between 50 and 70 percent of new product launches fail.
A successful product delivers value to its customers and revenue to the business that creates it. But to ensure value and revenue, product managers must define their target customer segment and understand its needs. To develop a product that delivers value in relation to the cost of development, product managers must also understand the value of different product features to different customers. By providing the right features to the right group of customers at the right time, a product can create value and revenue.
Value-driven product management is a repeatable process based on industry best practices that uses subjective and objective criteria to deliver successful products.
- Vendor:
- IBM
- Posted:
- Feb 8, 2021
- Published:
- Jan 1, 2009
- Format:
- PDF
- Type:
- White Paper
