Mastering Core Elements of Product Management: Understanding the Business
Navigating the Business Landscape
This is the third edition of Mastering the Core Elements of Product Management. Check out the other posts on this link.
The primary job of a Product Manager (PM) is to build a product that solves customer problems while impacting the business.
To generate business value, a PM must understand:
Strategic direction of the company
Business/revenue model of the product/company
Domain in which you’re building the product.
Strategic Direction
A PM needs to understand the following about the company’s strategic direction:
Company Mission/Vision: Align your product with the company's mission and vision for lasting impact.
Long-term and Short-term Goals: Ensure your product aligns with both short-term milestones and long-term objectives.
Business/Revenue Model
As a PM you must understand different revenue model types ( like subscription, fees, or freemium).
This will help you tailor your product strategy to align with the revenue needs of your organization
Domain
As the PM you need to be fully aware of the industry/sector in which you’re working. You must understand:
1. Sector of Your Product: Understand the nuances of your product's sector, whether AI, fintech, or hardware.
2. Your competition: Analyze competitors to refine your strategy and stand out in the market.
Conclusion:
For a PM to successfully generate business value for your organization, you must understand the strategic direction of the company, revenue/business models of the product, and domain in which you’re building your product