Last updated on June 11th, 2022 at 10:18 am
Turning out a good product is difficult. These are the challenges in product development that your company needs to focus on.
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Whether you’re a product manager or a business owner, creating a new offering from scratch can be a convoluted and challenging affair. The process requires you to develop a viable product while working on a strict timeline and within budgetary constraints. However, this is just the beginning, as you will also need to react and adapt to a fast-paced marketplace to ensure the success of your product. Read on for an overview of some of the biggest hurdles facing product developers in 2021.
Constraints on Resources
If you work in the tech industry and your products rely on microchips, you will undoubtedly be aware of the ongoing semiconductor shortage. Electronic component shortages are a good example of how a lack of available resources could impact a business’ product development schedule.
With demand exceeding the supply of semiconductors and computer chips, costs have skyrocketed, and in some cases, they are unavailable altogether. Fortunately, you can design your circuits using a software tool like Altium so that all of your designs are ready when the shortage abates.
Chip shortages could impact those relying on electronics design. Other unavailable resources could have similar effects on product development in the latter part of 2021. Therefore, understanding the supply of materials in your product development pipeline is essential for successful launches.
Poor Workflow Management
Without proper synergy and harmony between collaborating teams during the product development process, you risk slower and lower-quality final results. As the individual managing the creation of new products, you must ensure that everyone involved is on the same page.
Successful product development relies on seamless communication between every member involved in the process. Additionally, as a product manager, you will need to be on hand to resolve any conflicts as and when they occur.
Thankfully, many tools exist to facilitate efficient workflow management. Tools like Jira or Trello can help product managers organize and optimize the operations required to create new products. These help individuals working on the process collaborate and communicate via a centralized dashboard, allowing you to monitor progression more effectively.
Ineffective Pricing Strategies
Creating a viable product within budget and on time is just part of the struggle involved in product development. Once you are ready to launch, you will need to consider your pricing strategy. If you price it too high, you risk fewer sales. Set the bar too low, however, and you could incur significant losses. As a result, you should find a balance between the two, but this is often easier said than done.
As a product manager, researching the target audience is your responsibility. You should find out the maximum amount consumers would pay for your product. You should then factor in other considerations to your pricing strategy. Consider your expenses during development and factor these into your asking price to achieve a favorable profit margin on any units sold.
More information about defining and researching target audiences can be found in this article.
On the whole, many barriers will likely present themselves during product development. Some of these, like the availability of resources, might be outside your control. Others, like workflow and pricing, fall under your remit.
Regardless of whether the problems are external or internal, it is your responsibility to manage these issues and minimize their impacts on your development strategy as a product manager.