Mudassir Iqbal

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Value-driven Product development

Mudassir IqbalAgile & ScrumNo comments

In Agile product development, product value is related to a product’s usefulness. A product is considered valuable if it is usable, fit for use, or useful. Product value is the core concept behind value-driven product development. It’s all about focusing on features and functionalities that deliver the most benefit to both the customer and the business

Product value measures how well what you build serves the business
goals and delivers what customers need.

Product Value:

  • The “What” and “Why” of Your Product: It encompasses the overall benefit your product provides to users, solving their problems and addressing their needs. This value can be tangible (e.g., increased efficiency) or intangible (e.g., improved user experience).
  • Customer-Centric: Understanding customer needs and pain points is crucial in determining what constitutes value for them.
  • Multifaceted: Product value considers not just user satisfaction but also business goals like revenue generation or market share increase.

Value-Driven Product Development:

  • Prioritization Framework: This is a systematic approach to product development that prioritizes features and functionalities based on the value they deliver.
  • Focus on Outcomes, Not Outputs: It emphasizes the results and impact of features, rather than simply building functionalities.
  • Continuous Measurement: Value-driven development involves constantly measuring and evaluating the delivered value to ensure it aligns with goals

How to Calculate Product Value

There is no universal formula for determining the exact value of a product. This is why most product teams spend time evaluating all factors that impact how a customer perceives the worth of a product — from initial concept to well after launch.

https://www.scrum.org/resources/what-product-value

Product Value is related to the usefulness of the Product for the Customer/User to solve a Problem. Value is related to Outcomes not to Output (Ageling 2020, Apr. 18).
A Product must be Fit for Purpose (Anderson, Zheglov 2017) and
must be able To Do a Job (Christensen 2016, Ulwick 1999).

Five key types of value in Agile according to the Scrum framework

Thinking about these different values helps Agile teams build products that people not only need but also want and enjoy using.

Further Readings

https://www.aha.io/roadmapping/guide/product-strategy/what-is-product-value

https://www.scrum.org/resources/blog/five-types-value

Mudassir Iqbal

I am the founder of Know Your Project (KYP) IT Consulting and Training Company. We are based in Pakistan but work extensively with middle-market businesses directly in the European, Middle East and South Asia Regions, as well as through partnerships with multinational companies like yours. I have personally delivered several digital change projects across many sectors globally - including construction, technology, finance, manufacturing, warehousing, logistics, telecommunication. My areas of expertise are concerned with Business Process Re-engineering (BPR), IT Governance and Assurance, PMO Setup, and Business and IT Agility. I also have substantial experience strategizing ERP implementations and have been working with Oracle, SAP, Microsoft Dynamics and Odoo for the best part of my professional life. Both nationally and internationally, I’m also providing in-depth, high-caliber executive development and training in various fields, covering topics such as project planning, project management, leading teams, cultural change. I’m a passionate writer and speaker on the topics of Digital Transformation, CIO, ERP and Project Management.

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