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Measuring the business value of a software product involves several steps:
Firstly, you need to define what value means for your business. This could be increased revenue, cost savings, improved customer satisfaction, or other metrics relevant to your business goals.
Next, identify the key performance indicators (KPIs) that align with these values. For a software product, this could include metrics like user engagement, conversion rates, customer retention, and churn rate.
Then, collect and analyze data related to these KPIs. This can be done through various tools and techniques such as data analytics, user surveys, and customer feedback.
Finally, compare the results against your initial goals and expectations. This will help you understand whether the software product is delivering the expected business value.
Remember, the business value of a software product is not a one-time measurement. It should be continuously monitored and evaluated to ensure it aligns with your business goals.
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Data analysis is important, but it doesn't tell the whole story. To really understand your customer's problems, you have to talk to them. This means user research, observations, surveys, and customer feedback. This is not the same as usability testing; rather, it is generative research—going to the source of the customer's problem and understanding the context around it. Until you understand that context and the root causes of the problem, any solution you come up with is just a guess.
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How do you get ahead of your competitors and deliver actual value for your customers? It takes more than just launching one new feature after another....
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How do you stay innovative and provide the right values for customers? Effective product development allows companies to sustain, grow, and thrive in both old and new markets. Our Product Development framework is useful for aspirational product developers who want to learn the product development process and for seasoned product managers who want to improve workflows with additional tools.
Does your product management process feel like it's lagging behind with the wrong tools? Our Product Management Toolkit collection includes some of the top tools that major companies like Apple, Amazon, Spotify and TikTok use to manage their products. See how these companies target customers, position their product’s value, determine when a product is ready to launch, and use strategic viral loops.
How do you take your product management to the next level? Due to popular demand, we've expanded our Product Development Toolkit to include more tools and frameworks from how to create a price sensitivity matrix, define your total addressable market, conduct a cost benefit analysis, prioritize your ideas with MoSCoW, and make use of a Kano diagram to launch successful products.
How can you tell if a product idea will work out? This Minimum Viable Product presentation guides the initial triage of tasks to the development and execution of the MVP. More importantly, it includes North Star metrics that would ultimately determine if the MVP is successful. Use these slides to align stakeholders and communicate product vision.