Don’t Forget: Product Is How Your Company Makes Money

Jorg Malang recently posted Five good reasons for enabling Product Managers on strategic level. I particularly identify with his point #4.

Product management is the leading function. Why? Because it ensures that your company is building products “customers love” – enabled by IT and by business. It is the function that helps to pave the way into uncertainty and how to deal with it.

For a product company, “product” isn’t just a function, it’s everything – it’s how all the money comes into the company – via people buying the product. So if you can improve your products – meaning, make them more popular, successful, effective – or make better products, then your company will grow. If you cannot, then your company will shrink or disappear. Product has by far the biggest leverage on both the bottom and top lines. Better sales techniques can increase sales by a few percent, while better back office operations can improve profits by a few percent. But only a great product can double revenues, or increase revenues by a factor of 10x.

This is why it’s surprising that the product function has been so poorly automated so far (the subject of many of my recent posts).

Link: Five good reasons for enabling Product Managers on strategic level | MBA and Product Management

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