What Is A Product?

Por Martin Alaimo

I started my career in technology back in 1997. I was an architecture student, the kind of architecture you use to build buildings ;-), and used to have a computer running programs like AutoCAD and 3D Studio for designing houses and rendering 3D representations. By the end of 1996, I experienced one of the most significant and pivotal moments in my career: I connected my computer for the first time to the internet. Wow… that was mind-blowing. I still remember the sound of that 28k dial-up modem.

It didn't take long before I was utterly captivated by it. I immediately learned how to program mSL, HTML, and Pearl. A few months later, I deployed my first website in Geocities for people to download my first digital product: WhisperFlow, a heavily customized version of mIRC (an IRC client for Windows 95). It was a blast.

From that moment on, I got in love with programming and switched my career from architecture to computer science and systems analysis. I was starting a long journey into digital product development without knowing it.

But let's get back to the basis… before talking about digital products, let's agree on what "product" means. There are many different definitions of "product" (as expected), and I'm not pretending to define or redefine it, but at least have a common understanding with you about what I'm talking about when I refer to "products".

For our upcoming conversations, let's understand "product" as an item or service created or delivered to meet a specific need or demand. It might be something physical like a microphone, a notepad, a radio, or an intangible such as a professional consultation, software, or a subscription.

Products are often created to fulfill customers' needs and sold in the marketplace to consumers (B2C business model) or other businesses (B2B business model).

A product's ultimate purpose is to

deliver value and satisfaction to the end users while
generating income for the company or individual developing and selling it.

The attribute "digital" in digital products indicates that they are based on technology. There are different categories of digital products, like web apps, SaaS, mobile apps, software products, embedded products, etc.

My very first digital product was WhisperFlow; the idea behind it was to streamline the work of the operators and sys operators of the Latintop IRC servers. It was born as a B2C product with a well-defined target audience and soon became a B2B business model once IRC-Hispano acquired it. I worked for IRC-Hispano for several months making WhisperFlow stronger, and by mid-1997, I funded my first company, BA-Online, one of the very first website agencies in my home country.

The 25 years that followed helped me build my understanding of product management and agility, much of which will be shared in this series of articles. but before wrapping-up I'd still like to address a common failure you might encounter in product development companies: the misunderstanding between what a product is an what a project is.

How different is a product from a project?

Many companies confuse products with projects. But there are fundamental differences between them. Let’s review a few:

Duration

A product exists as long as it continues to deliver value and is economically viable. This can range from months to several decades.

A project has a specific duration, with a defined start and end date. Once the project objectives are achieved, the project ends.

Success

The success of a product is tied to satisfying customer needs, delivering value, and generating income for the company.

The success of a project is measured in achieving the delivery of the defined scope within specific time and cost constraints.

Changes

Based on market feedback and trends, a product can evolve and change throughout its life cycle.

Changes in a project are usually controlled and managed because they can impact the project's scope, cost, and schedule.

Management

Product management involves decisions about product features, pricing, positioning, and improvements based on customer feedback and market dynamics.

Project management involves planning, executing, controlling, and closing the work of a team to achieve specific delivery goals and meet specific success criteria.

The consequences

The right mindset is more than just a valuable asset in the world of digital product development; it's a critical determinant of success. Developing with a product perspective, rather than a project mindset, ensures a long-term emphasis on consumer needs, market evolution, and continuous enhancement.

Unlike projects, which are more ephemeral and task-oriented, digital products require ongoing care, adaptation, and refinement to stay relevant, competitive, and beneficial to consumers. As a result, adopting a product mentality allows for a more holistic, user-focused, and future-oriented approach to digital product creation, laying the groundwork for long-term success.

The following are the risks of managing a product with a project mindset:

Short-Term Focus: Project mindsets frequently focus on producing a specified result within a specific schedule and budget. This may result in short-term decisions that are incompatible with the product's long-term aims and sustainability.
Ignoring User Needs: A project-based plan may neglect continuing user feedback and dynamic market demands, both of which are essential to a product mindset. This might result in a product that fails to resonate with the market or becomes rapidly obsolete.
Inadequate Evolution: Projects normally have a completion date, but products require ongoing maintenance and enhancements. A project mentality may fail to effectively plan for the strategy and activities required beyond the product launch.
Limited Product Flexibility: A project mentality is frequently less adaptable to changes and iterations than a product mindset. As a result, the product may fail to change in response to customer input and changing market trends, jeopardizing its relevance and competitiveness.
Inadequate Product Ownership: In a project mindset, accountability is frequently centralized in a project manager, or divided between members of an agile team until the project is done. On the other hand, a product mentality stresses the role of the product manager, who manages the product throughout its lifespan, guaranteeing consistency and a constant emphasis on user demands and business objectives.
Missed Growth Potential: A project-focused strategy may overlook potential for product growth or spin-offs since it does not look beyond the project's established scope.
Inconsistent User Experience: Because of the project mindset, multiple projects connected to the product may not provide a consistent user experience. This might be prevented if the product mentality emphasized a comprehensive user journey picture.

In conclusion, while a project mentality might be useful in some situations, product development benefits from a product mindset owing to its long-term, user-focused, and iterative character.

Now, it's time to wrap up. Again, welcome to this journey, and thanks for your company :)

Martin Alaimo