The case for deal-driven development
“We are a product company. We don’t do custom deal-driven development.” This is a common mantra among product-centric organizations staunch in their pursuit to maintain a clear, focused product vision. Yet, the business landscape is dynamic and sometimes unpredictable. The question arises: Is there ever a good time to deviate from this rule? In the complex interplay between maintaining product integrity and achieving business growth, there may be strategic moments when breaking this rule not only makes sense but is necessary.
Deal-driven development (DDD) represents a departure from the norm of strictly adhering to pre-defined product roadmaps. It involves tailoring or extending your product features to secure specific, often high-value deals. This approach is frequently viewed with skepticism because it risks diverting resources and diluting the product’s core value proposition. However, if executed judiciously, DDD can offer substantial benefits, such as penetrating new markets, accelerating growth, and forging strong customer relationships.
The key to effectively implementing deal-driven development lies in discernment and moderation. Not every customer request warrants a shift in development strategy. The decision to engage in DDD should be based on a comprehensive analysis of the deal’s potential return on investment and its alignment with long-term business goals. For instance, if a feature request from a potential big client also resonates with a broader segment of your target market, accommodating such a deal can be advantageous. Conversely, highly customized one-off features that do not scale should be avoided unless they offer significant strategic value.
It’s about common sense and balance. There needs to be strong parameters around deal-driven development and you should adapt your approach depending on where you are in the product and growth lifecycle. Early-stage companies might be more flexible in order to gain traction and expand their customer base. On the other hand, established companies with a stable product might only consider DDD for deals that promise substantial market expansion or entry into new verticals.
Implementing DDD effectively also requires robust internal processes. Clear guidelines on evaluating and approving deviations from the product roadmap are essential. This ensures that every decision is strategic and data-driven, minimizing the risks of resource misallocation. Furthermore, fostering a culture that promotes agile development practices can enhance a company’s ability to adapt quickly and efficiently to customer needs without compromising the product’s core functionality.
The potential pitfalls of deal-driven development include over-customization and straying too far from the original product vision. Companies must ensure that each deal-driven deviation not only contributes to immediate business objectives but also complements the overarching product strategy. This might involve declining deals that require too much customization or that do not fit the strategic product direction.
“By all means, sell the apples off the cart. But recognise that every now and then you might need to sell an apple peeler.”
This metaphor perfectly encapsulates the essence of flexible product strategy. While the core of your business should remain focused on what you do best, being completely rigid can limit potential growth opportunities. Striking the right balance between product consistency and responsiveness to market opportunities can be the key to sustainable business success. By thoughtfully integrating deal-driven development into your strategy, your company can remain competitive and adaptive in a rapidly evolving market.
