Demystifying Digital Product Strategy
A great digital product strategy is a high-level plan that defines what your product goals are and how it will support your organization’s goals. Defining a strategy aligns team members and other key stakeholders around your desired goal. It will answer who will be the end-users of the product and how it will help them. It will empower your team to focus on what is important and communicate the value of the product amongst cross-functional teams namely sales, marketing, and customer support.
So, what are the Challenges with Digital Product Strategy?
In a report published by CB Insights on ‘The top 20 reasons startups fail', the prime reason given by CEOs was that there was no market need analyzed for the product under development stage. Other reasons include poor product, disharmony among the team members, breakneck competition due to digitization.
Product development and engineering team face following challenges while they are on the mission of creating a strategy for digital products:
Developing innovative, customer-centric product where customer needs keep evolving
Getting efficient results from digitization of core product (legacy systems)
Plugging-in agile methodologies into integrated partner ecosystem
Envisioning your Product’s Future in the Digital World
In the digital environment where technology is changing at a cracking pace, it is very hard to keep the balance between efficiency and the output of the product development while keeping the budget in mind. With right set of digital tools, new agile development techniques, and automated processes, all such problems can be solved.
David Zwirner, for example, one of the world’s largest art galleries, sets the benchmark for other competitors who look forward to transforming their business at scale. The brand which was once crippled by outdated technology has now uplifted its sales automation and personalization process through the right cultivation of technology and digital roadmap.
Therefore, it is important to have a process to evaluate the right initiatives to build in the first place. A strategy that works best for uncertainty and take your product to the right direction where you can meet your product as well as organizational goals.
Creating a Digital Product Strategy in 7 Steps
So, if you’re responsible for a digital product development, you’ should begin with an effective strategy. This strategy for a new product will help you launch the product with minimal risks, achieve product
-market-fit balance, and lastly sustain the growth with distinction attribute.
Here’s what you need to know about creating a digital product strategy.
A Detailed Research
To kickstart the journey of your digital product, it is important to define the vision and goals. It should include what your organization is aiming to achieve and most importantly the purpose of creating the product. Figure out customer roadblocks and validate viable solutions.
Perform a qualitative research to know how many people are facing those challenges and how your end-product is going to help and bring a positive impact in their lives. These findings will help design and development team to take further decisions.
Product Value Proposition
Your product cannot be everything to every business problem. The unique value proposition for your product should not be confined to what problem you are solving. Instead, it should be about how you’re looking at the problem and how your product is solving them. This unique value proposition idea will make you stand out from your competition.
The next big step is to evaluate similar kind of products available in the market. Benchmark those products and look at the strategies – how your competitors are achieving their objectives with their digital products. It is crucial to assess the weaknesses and strengths of your competitors, which in turn, will help you to position your product in the competitive market landscape.
Focus on Users - Create User Persona
Once you’ve found the problem and the needs end-users want to be fulfilled, learn who the target users are. Creating a user persona will help you in getting the useful insights about the product’s users – what drives them, and what they look for in your product. User personas are sharable documents that have users’ common needs, lifestyles, and behaviors into a set of imagery, vignette, archetypal models. This model structure will help communicate the needs of your users to stakeholders and others on the product team.
Define your Product’s Goals
You’ve provided your people a big picture vision for your product, now what?
Use the vision to define a series of goals or high-level objectives that you want your product should achieve. It could be defining a new type of user persona, increasing customer lifetime expectancy, or increasing the brand equity. Once you’re able to have these goals in place, you’ll align your team on the specific plans for features and other aspects of the product that you’re going to build. Also, you’ll be able to choose the right key performance indicators (KPIs) to assess the performance.
At this stage of your digital product strategy process, you’ve got a great vision and goals for your product. Now, this is the time for product conceptualization to lead your product development in the right direction. The planning involves creation of user journeys, user stories, user scenarios and use cases. Having this, you can ensure that you’re on the right track of connecting with right end-users and navigating them to the right path.
The final step of the strategy process should include the product pricing. It should describe how you will compute the price of the product based on its perceived value. The team should follow a pricing model to get the best pricing for the product.
Time to Build your Digital Product Strategy
Digital product development is expected to increase efficiency by 19%, reduce time to market by 17%, and cut down production costs by 13% over the course of next 5 years. - PwC
And this is happening because digital champions are experimenting with latest technologies. They are employing next-gen product development techniques (agile for example), Big Data Analytics, AI based solutions, and well-integrated product lifecycle management systems in their product strategies.
Identifying the right opportunity, figuring out where to compete, and solving a problem for end-users in a feasible, unique, and economical way are the building blocks of a product strategy. Keeping all these things in mind, you can roll out a digital product strategy that make sense to your product teams and overall business goals.
If you are on a digital transformation excursion and finding a technology partner to create a digital product strategy roadmap for you, then the team at Icreon can help. We conduct digital maturity assessment using our digital assessment tool to uncover valuable insights for what’s next. Our team work on advanced agile methodologies and digital tools to make sure that all the priorities still align with the strategy you’re working on.
Send us a line today to unleash your digital potential.