The Power of Product Assumptions: A Key to Successful Product Development
Product development is built on a foundation of assumptions – preconceived beliefs that guide decision-making and shape the product’s trajectory. As a product manager, it’s crucial to understand the importance of assumptions, identify the different types, and learn how to test them effectively.
Why Assumptions Matter
Assumptions are the building blocks of product management. They influence every initiative, and their validity can make or break a product’s success. When assumptions are correct, the initiative flourishes, and the desired outcome is achieved. However, if they’re incorrect, the initiative may fail, wasting resources and time.
The Four Types of Product Assumptions
There are four primary types of product assumptions: desirability, viability, feasibility, and usability.
- Desirability Assumptions: These assumptions focus on whether users want the solution. Questions to consider include: Does the solution solve a painful problem? Is the problem relevant to enough users? Will users understand the value they can get from this solution?
- Viability Assumptions: These assumptions determine whether the initiative makes sense from a business perspective. Questions to consider include: Will we see a positive impact on business metrics? Does the solution align with our long-term product strategy? Can we expect a satisfactory return on investment?
- Feasibility Assumptions: These assumptions assess whether the solution is possible to build, implement, and maintain. Questions to consider include: Does our current technology stack allow for implementation? Do we have the necessary resources and skillset? Can we handle the technical complexity of this solution?
- Usability Assumptions: These assumptions evaluate whether users can understand and use the solution effectively. Questions to consider include: Are users aware of the new solution? Do they understand how to use it? Is there friction or unnecessary complexity that might prevent users from adopting the solution?
Testing Product Assumptions
Testing assumptions is crucial to validate their accuracy. The approach depends on the type of assumption being tested.
Desirability Testing: Techniques include interviews, landing pages, presales, crowdfunding, and alpha and beta testing. These methods help gauge user interest and validate whether the solution solves a real problem.
Viability Testing: Techniques include business model review, strategy canvas, and business case development. These methods assess the initiative’s fit within the current business model and evaluate its potential impact on business metrics.
Feasibility Testing: Techniques include technical research and proof of concept (PoC) development. These methods evaluate the solution’s technical feasibility and identify potential implementation challenges.
Usability Testing: Techniques include prototypes and analytics review. These methods assess the solution’s usability and identify areas for improvement.
Conclusion
Product assumptions are the foundation of successful product development. By understanding the different types of assumptions and learning how to test them effectively, product managers can make informed decisions, reduce uncertainty, and drive product outcomes. Remember to store insights from assumption tests for future reference, as they can help speed up the validation process for similar solutions.