The malleability of digital products

Last post was about the first of the two fundamental properties of digital products that I believe necessitates us to think about them differently, their zero marginal cost. This post is about the second property: their malleability, that is how easy they are to change.  Software wasn’t always easy to change. Once it was launched, …

The zero marginal cost of digital products

My tenth post, halfway to 20! This was the hardest topic yet to write about and I will likely update my views and formulations of the points below in the future. One of the two fundamental properties of digital products, that I believe make them different, is the zero (or near zero) marginal cost of …

The uncertainty of digital products

During the last posts I have written of the importance of process in high uncertainty situations and the idea of strategy as a framework. In this and the following posts we will explore why I believe this uncertainty is higher in digital product companies than most other companies. First consider the integrated steel companies in …

Tying it together – the full process

Last post we continued our example and discussed Bet creation and how it differs from Belief creation. In this post we’ll tie it together and discuss what the different processes look and feel like in real life. I have attempted to summarize the last two posts in the simple chart below.  The White and blue …

Belief formation process – Example

Beliefs are what we believe we can do to move closer to the Strategic intent. As we discussed in the last post, left to our own devices, humans are very prone to create false beliefs. Therefore a data driven process for creating Beliefs is needed. In this post we will go thought an example case …

Strategic intents, Beliefs and Bets

Last post was about the importance of managing by outcomes instead of outputs. In that context I used the more general terms: business outcomes, product outcomes and user needs to describe what each level in the organization should focus on. I believe those terms give a good theoretical distinction for the three types of responsibilities …

Managing outcomes over outputs

Last post was about the perils of good ideas and the danger of managers steering teams with features and solutions. How then should a manager steer her teams? Answer: by managing outcomes instead of outputs. Managing by outcomes means managers let teams do the work of figuring out what user problems to solve in order …

The perils of good ideas and a trick PMs can use

It’s human nature to want to come up with solutions to problems we face. This is true in everyday life as well as in business. A parent of a child struggling in school might want a change in the way a subject is taught and a manager that is falling behind on revenues will want …