Market-driven Product Management in Technology Companies
Question: "Why is it critical to introduce market-driven product management practices into technology companies?"
It is critical to introduce market-driven product management practices into technology companies because technology companies ultimately must follow market-led principles in order to financially succeed in the long term. The only corporate function and methodology that can implement market-led principles to help a technology company cross the revenue chasm is market-driven product management.
Technology companies are founded with relatively good understanding of the market need but they do not maintain the market sensing process via instituting and reinforcing product management practices. The culture of the technology-driven organization is intrinsically concentrated on technology and consequently decisions are perpetually made from a technical, production, or sales perspective.
After two to three years of engaging in technology-driven and sale-driven product delivery strategies, the company's sales will usually either stabilize or slowly stagnate, unless it adopts and confidently applies a market-driven product delivery strategy. Reversal of fortunes is always feasible by embracing a heightened receptivity to market needs that is combined with efficient product planning and product marketing processes.
For more information, please see "Who's Driving Your Company?" chapter in the Product Manager's Toolkit® book.