The Root Causes of Product Failures

In this article, we will analyze the root causes of product failures, especially in the sphere of technology products.

A product generally comes from the following flow of ideas:

Business case — Roadmap — Requirements — Design — Development — Testing — Deployment

This flow of ideas is fundamental to any tech product development funnel. If any step in this process is not clearly defined, then the final output will be vague. To give you an idea of how important each stage is, keep this in mind: the failure to focus on every step will cause the failure of the whole product.

Before designing any product, keep two things in mind:

• How much money/value will this product make?
• How much money/time will this product cost?

The answer to these two questions will help you define the probability of the failure and success of your product. If you are not sure about the answers, then your product is already a failure. You need to assess the cost and time related to the product. This needs to be part of your pre-product design plan.

There are many causes of product failures:

Product Ideas

This is one of the biggest causes of failures of a product. A product idea is a source and the base for the design. If the idea is not clear or practical, then all the further stages will only result in a waste of time and money. Therefore, your basis for the product idea needs to be strong, clear and practical.

Investment

Cost is something that everyone should have on their minds. As already mentioned, you first need to assess the cost of making the product as well as the ROI. And you need to be clear about it. If you have a vague number or range in mind, then you are about to take a huge risk. Understandably, you cannot get an exact figure before beginning a design. You may feel that you can get the product cost only after getting into the design stage. As true as that is, trial and error will give you a better understanding of your investment cost.

Therefore, you need to run A/B testing of the product. You also need to hire an engineering team and a cost and management team. They will estimate the costs and budgets for you to proceed. Based on this cost, you can take further actions like a compromise in ideas. If the investment amount is lower than your budget, then you are safe to go ahead with the project.

Product roadmap

Once you are clear about the product ideas and the investment amount, you need to plan the roadmap. As discussed, if your stages of action are not planned correctly, then the entire process is bound to fail.

There are going to be a few ideas that may now work in reality for various reasons. But you should not let that throw you off. You need to be strong with your roadmap irrespectively. Make sure there is room for alterations when needed. Always have a plan B. Having multiple alternatives for risky steps does not hurt anyone. Another important thing is that the product is being designed for the users and not you. As interesting as the product might seem to you, it should appeal to the customers. Be open to negative feedback as it will help you improve your product for the end-users. Your product needs to be friendly and easy to use for your target users.

Product Manager

The key person to any product is the product manager or project manager. They are very important to the success of the product and are also responsible for the failure of the product. The primary duty of these managers is to prepare the project requirements and roadmap. Everything needs to be fully documented and copied for reference. Each party related to the project needs to get a copy of their duties along with relevant documents. In case of any mishap, the project manager must be quick to take action and be responsible for it. The manager also needs to understand the design of the product.

Timelines

Timelines play an important role in product development. Each stage must have specific timelines. You need to make sure the stage is completed within the required timeframe. Some stages might require longer than estimated. In such cases, you need to be careful of how you progress You do not want to meddle with the other stages as it will result in risking the reliability of your products. It can also lead to increased costs for your product. Once you initiate a process, each day you are shelling out time and money. Every extra day will cost you. Therefore, you need to be efficient.

Remember, everything you do is about the outcome. Even after your product is launched, it does not mean it is a success. It barely means that it has passed the development stage. If the product does not meet its objective, then it is a failure. You cannot close the development unit at this stage. You will have to rework a few aspects, if possible, to better the product before launching it again.

Final Words

It’s no secret that companies are spending a lot of time and money to get almost nothing in return. But they do not stop. They come back again with better research, more capital, and a better team. They come back with better strategies and rectify their previous mistakes.

I hope I have succeeded in explaining some of the factors that lead to product failures. This might change your outlook on how to move ahead with product design and development. Please feel free to share anything that I have missed. “I would love to learn more.” Also, if there are points that you would like to discuss, I am open to them. Drop a comment below.

As Marva Collins once said, “If you can’t make mistakes, you can’t make anything“.

Wishing you the best for your business and projects!