The development of a modern and excellent product begins with a simple idea. Coming up with an innovative idea and thinking through all the details is not an easy task. It may be more difficult to implement the idea of a new product. But, careful thinking, planning, and analysis predict the initial success of the product. Product discovery is one of the most important stages in the path of IT product development. PNN Soft is a company with many years of experience. We provide a full stack of software development services. It includes the service of studying the product to improve its effectiveness as a result of development. We will tell you in detail what is included in the stages of this process and why they should not be neglected.
What is Product Discovery?
Product Discovery – is a business process that is applicable in the development of new products in companies around the world. Also, it means the methods of the right product get built for the right audience. This is an significant stage in the product development process, which is responsible for the needs of customers. Product analysis software is the key to product discovery.
If you are not confident that the product meets a certain user need, Product Discovery will help you design it correctly before you start creating an MVP. The research helps to make the most informed decisions for the company. For example, if a product turns out to be a great idea, then it is necessary to improve it, find user problems, and then satisfy them by using the product’s means.
The principle of operation of Product Discovery
- Target audience. The overall process of Product Discovery begins with an idea. Ideas are formed through a thorough analysis of the needs of modern consumers. At this stage, the task is to identify people’s issues that can be solved by a company or a private developer. As a rule, current trends are considered. Based on the analysed idea, hypotheses of the behaviour of representatives of the target audience are formed. The goal of the audience is to find an effective method and a product that will help consumers solve problems. It is necessary to rank the audience behaviour patterns encountered by frequency, excluding unsuccessful ones. At this stage, initial decisions are formed, which can create the basis for the development of new hypotheses.
- Research of the modern market. Today there is active research on the modern market. It allows you to analyse the product hypothesis on a global scale. There is active work of developers in reducing the entry threshold and detailing the target audience and the market sector. The market analysis allows you to decide whether it is worth creating a product with the presented properties that solve certain tasks. Therefore, at the first stage of market research, it is necessary to determine and adjust the tasks.
- Checking the value of the product. Evaluating the value of a future product is an important stage of Product Discovery. The main value for the user is not so much the possession of it to get rid of the problem as the absence of this problem in principle. The development of value occurs similarly to the schedule of hypotheses. All potential values of the product are signed to cut them off according to the principle of low probability of occurrence until the main one is found.
- Verification and registration of the business model. As a rule, potential ideas should be framed in the form of a high-quality, effective and reliable business model. The business model includes a monetization system, an analysis of production costs, and the cost of the product. As a result of the check, information about break-even points, payback periods for the final product, and profit forecasts are generated.
Why is Product Discovery important?
Many practices of modern product development and most of the product search processes are important tasks. But, the benefits of investing in product development are still relevant actions for most companies that want to create a great product.
Product detection gives an idea of whether a new product or its function will be used. For product designers and developers, seeing how their product contributes to many people is one of the best parts of the job. Developing a profound understanding of customers helps product teams create products that customers need. This process allows teams to move from lightweight features to creating products that solve the problem and become a real necessity for customers. The product discovery process ensures that product managers and teams are on the right track in prioritizing and creating a product that will be successful.
Product Discovery’s entry into the modern market
Product Discovery’s market entry strategy includes:
- forming a proposal based on the value and importance of the product;
- providing information at the stage of building a business model;
- formation of an understanding for the sale of the final product.
Having a strategy allows you to reduce the risks of an unsuccessful product launch. The market entry strategy consists of three large blocks: Promotion Definition, Acquisition Strategy Definition, and Sales Strategy Definition.
- Promotion Definition. This strategy begins with the formulation of a unique value proposition, that is, the verbal embodiment of a verified value proposition. The unique value proposition is not always enough to encourage customers to use the product – they may have objections. Thus, the arguments should be thought out immediately to face a potential client and voice their opinion. The acquired knowledge about competitors and their positioning can help with this. The results of this stage are formed as a sales script.
- Acquisition Strategy Definition is associated with the Business Model Validation stage. It provides him with information about the cost of attracting and expenses that were recorded at the stage of market analysis. The size of the market and the profile of a potential client provide information about which segments can be formed for advertising targeting. As a rule, the results of the Acquisition Strategy Definition stage are drawn up in the form of a marketing plan.
- The Sales Strategy Definition strategy is necessary to understand the importance of how the sales business processes will occur. First of all, this is the definition of the process of interaction with customers, as well as automated maintenance and solving issues through the site.
The Main tools for Product Discovery in Creating a Great Product
Today, many tools are provided for the development of products with an individual approach:
- Productboard. It is a customer-oriented product management system. It allows teams to bring the necessary products to the market faster. The tool provides a complete solution for product teams and allows you to understand the needs of users, determine priorities for creating the next one, as well as interact with your customers.
- ProductPlan. ProductPlan is also known as a product roadmap. It presents a broad overview of the product, its deadline, budget, resources, tasks, and much more. The product plan describes what the development team should create. If the product is already launched, roadmaps are used as a way to list features and updates.
- UserTesting. It is a process in which the interface and functions of a website, application, or product are tested by real users. As a rule, they perform specific tasks in the conditions set for them. The purpose of this tool is to evaluate the usability of the website or application, as well as to understand whether the product is ready to launch for real users.
PNN Soft conducts Product Discovery on the market and aims to provide high-quality service to its customers. With twenty years of experience, we provide services for a number of industries and business areas. Also, we constantly monitor the current market changes, trends in the visual design of software products and guarantee the quality of development. We offer the services of our marketing department, focusing on customer orientation. Our qualified developers will provide an individual approach and help solve problems for your business.