Having the right product strategy and developing a successful product is a complex task. Most new products and the new companies that offer them struggle to survive.
Some of the challenges that hinder effective product management include:
- Customer orientation
- The technology landscape is changing rapidly
- Global competition
- Industry boundaries are changing
- The price of the products are extremely competitive
- Becoming the market leader is more difficult than ever before
Within these and more variables, product management tries to make sense of the development, strategy and launch of a new product to the market.
The importance of product management
Compared to others, product management is one of the newest professions within a company. In smaller organizations, such as startups, it is a function that is sometimes not considered a priority and is performed by other professionals.
But product management is vital. It’s important because it helps the rest of the company understand the value of a product. It’s essentially about knowing what will sell and how to turn a developed product into revenue. And it does this by understanding the customer. As a customer-centric field, it pinpoints customer challenges and manifests solutions in the product. Product management not only finds out what customers like and dislike, but also why.
Without product management, it would be much more complex to synchronize the different departments to create a successful product. This is why the role of a product manager is indispensable.
What is a Product Manager?
A product manager manages the product process and leads the product team, which is composed of people from various departments, such as engineering, business development, analysis and design.
They are interdisciplinary and must have the necessary product knowledge to make the best strategic decisions. Product managers define the customer’s problem space and their main responsibilities are as follows
- Develop a product strategy including scope, roadmap and KPIs.
- Have a deep understanding of the customer base, competitors and market trends
- Communicate and launch feature requirements
- Manage and work with cross-functional teams.
Product managers connect all aspects of a company so that a successful product can be created. Although technical skills are often favored, it is not necessary to possess them to a high degree to be a good product manager. However, some of the skills and knowledge needed are:
- Product knowledge
- Knowledge of the sector
- Planning capacity
- Strategic thinking
- Decision making
- Attention to detail
- Great communication
The role of Product manager can come from different backgrounds, from engineers, consultants, analysts or Project managers.
Is Product Management effective?
Successful product management practices can determine the success or failure of a company. Some of the factors that influence a company from a culture or product management perspective are:
Investment optimization
Most companies have limited resources and an unlimited set of opportunities to deploy those resources. Product management can determine the optimal resource allocation strategy, helping the company get the most out of its investment.
Alignment with the real and current needs of the market.
It is easy for successful companies to continue down that same path. Past successes can be your own undoing. A high-quality product management team will help ensure that an organization’s strategy is guided by market realities, not past results.
Product excellence
Good product management practices help a company that has the right resource allocation strategy and market strategy to develop incredible products.
Delivery may involve creating product specifications, guiding engineering and marketing teams and coordinating with distribution channels.
Sales strategy
Helping the sales team generate as many sales as possible is an important aspect of the product strategy. Ensuring that the sales team has the product knowledge, tools and content to succeed is the foundation of the sales enablement strategy.
Conclusions
Product management oversees a product’s lifecycle from start to finish. It focuses on the customer experience, finds solutions to customer challenges and keeps abreast of market trends so that the company does not fall behind.
The success or failure of your product may depend on the level of product management you invest in. Having a quality product manager, both internal and external, on your team will ensure the success of your project.
In Inprofit we are a Marketing Agency specialized in offering 360 solutions for product. If you have any doubts or questions, contact us now.
