In the previous chapter, we defined our business model and identified Key Business Outcomes. However, this cannot be a one-time activity. We need to continually evaluate and invest in the outcomes that matter. Responding to change is not the onus of just product development. Agility in business decisions is equally importantgility in business decisions is important. Product development must work in conjunction with these business decisions and every business function must be aligned to the changes that the business is responding to.
Accordingly, this chapter will address the following queries:
- How can product development include business agility as part of the development cycle?
- How to play the Investment Game and capture the value for each Key Business Outcome?
The best time to plant a tree was 20 years ago. The second best time is now. – Chinese proverb
Planning for success in life generally involves making investment decisions. We must decide how to invest our time, which people to invest in, where to invest our money, and so on. We need to start some investments today to reap the benefits a year, or even 20 years, from now. Some investments return immediate benefits, such as winning a game or preparing for an interview to get into a job. Some investments need much longer time, but spreading out an investment could make it last a lifetime.
Trudging through school, for instance, will eventually pay off. Some investments burn your money, and create no monetary value, but they bring a lot of joy. These could be a nice vacation, buying a car, or throwing a party. When we don't understand what benefits we should be reaping from an investment, we tend to have unrealistic expectations. We also need to be realistic about how long it will take for an investment to return benefits. Needless to say, everything comes with its own risks.
Building products is no different. Some features take a long time to build and will return investment in the long term. Some features give immediate benefits. Building products without understanding business benefits is wasteful and expensive?. This is why we start with identifying the Key Business Outcomes for our product. Product building depends on available talent, capital, and other operating constraints. So, if we have unlimited time, money, and favorable conditions, then yes, we can build anything, but that never happens. Product building, like everything else in life, operates under constraints.
We need to identify, as a business, where to focus our efforts and capital. We also need to set realistic expectations about benefits and timelines. We must know how our past investments have performed. This information will help us plan our product funnel.