#7: Constructing a Strong Business Case for Product Management
In the dynamic and competitive landscape of today’s business world, effective product management can be the difference between success and failure for companies across industries.
Product managers are expected to have a range of business skills, technical knowledge, and user experience design expertise. While it is unlikely that one person will excel in all three areas, there are certain business skills that are essential for product managers to possess. These skills include the ability to identify and prioritize opportunities, communicate and present effectively, analyze data make informed decisions, and manage budgets and resources. By cultivating these skills, product managers can effectively drive the development and success of their products. There are five critical skills that a product manager should develop:
Market evaluation skills
Market Size
Competition
Other considerations for market evaluation
2. Monetization/ commercial skill
3. Value creation skill
4. Marketing skill
5. Strategy skill
Product Managers who understand the business side of things are valuable because they can ensure that all aspects of a product are accounted for to ensure a successful launch. This includes technical, user, and marketing perspectives, as well as a comprehensive understanding of the business. Furthermore, business skills will be useful in creating a business case to launch a new product in the market.
A business case is a document that provides a comprehensive overview of the proposed product, project, program, or portfolio, including evaluating benefits, costs, risks, and alternative solutions. In other words is designed to offer a high-level, “helicopter view” of the project, providing the necessary information to make informed decisions about its feasibility and potential impact on the organization. It presents a persuasive argument for why the project is a worthwhile investment for the company and is used to secure buy-in and funding from decision-makers.
To create a successful business case, it is important to present the information in a clear and concise manner, including the problem or opportunity being addressed, the proposed solution, and the expected benefits and costs of the project. By presenting a compelling and well-organized business case, you can increase the chances of securing the support and resources needed to bring your idea to fruition.
Typically, a business case consists of some aspects such as
Executive Summary — The executive summary is the first section of the business case and the last written. It is a short summary of the entire business case
Problem and opportunity — Identify the problem and find the opportunity how the product can solve the problem
Market & Competitive landscape — The current market trends and competitive landscape indicate that solving the existing problem is the most valuable use of our company’s time and resources, enabling us to effectively compete and succeed in our chosen market
Impact & Financial analysis — Evaluating resources (such as money, time, labor, materials, etc.) are needed to complete the project. It is a way to assess the cost and resources required to successfully complete the project.
Risk analysis — Identifying and mapping the possible risk that affects the company as well as the level of risk to mitigate during the product development and bringing a product to the market
Additional Resources — The conclusion and recommendations section of a business case presents the final summary of the key points made in the case and offers a clear recommendation on whether or not to proceed with the proposed product. The bottom line in this context refers to the overall conclusion reached based on the analysis and information presented in the case. This section should clearly explain the rationale behind the recommendation, highlighting the potential benefits and risks involved in the proposed product. The purpose of this section is to provide a clear and concise summary of the key points made in the case and to present a recommendation that is supported by the evidence presented. The recommendation should be based on a thorough analysis of the market, the target audience, and the product’s potential to meet the needs of the users and achieve the desired business outcomes. The conclusion and recommendations section should be presented in a way that is easy to understand and that clearly communicates the key points to the reader.
All those elements help decision-makers evaluate the feasibility and potential impact of a proposed product. This is the example of a business case I’ve made for the product management case study in my post on Linkedin.
Wrap up the business case with a compelling conclusion that reiterates the value, benefits, and alignment of your product management initiative with the company’s strategic goals. Leave your audience with a strong impression of the potential impact and importance of your proposal.
In today’s competitive business environment, a robust business case is crucial for securing buy-in and resources for your product management initiatives. By following these key components and effectively communicating the value and potential of your proposal, you’ll increase your chances of gaining support and driving successful product outcomes.
The article has been published on my Medium account before