stablished service-centric organizations keen to diversify into product space struggle to put together a product strategy. I am picking here specifically“Established Service Organizations”, the reason being Organizations that genesis as a Product company generally know what they intend to focus on from day one (Typically aligned to founders passion) and align internally (hire talents) and externally in-line to it (focus on suitable markets, domains, verticals etc)….
But service Organizations trying to figure out their space in due course have challenges as they are typically bounded by various constraints. The constraints could be internal in terms of people’s capability / skill-set they accumulated as a service organization or service focus like a domain (CRM, ERP etc) or vertical (Banking, Manufacturing) they specialize in.
I believe the effective options to them are limited
Either leverage their expertise (Domain, Vertical etc) that they have built as a service Organization over a period of time and solve an unaddressed customer issuewith a product (Blue Ocean)
Choose a product space in their area of expertise that is proven to have an established market and build a product that can compete at its own Price / Value position(Red Ocean)
Both of them have their own pros and cons and i don’t think one is superior than the other but the success lies on below critical success factors
- Quickly choose one or other
- Execute it quicker and better
- and Sustain it with incremental releases that push your product up the price / value quadrant
Most of the Organizations typically spend too much time in (1 – Choose one over the other and they are always biased to Blue Ocean) and by that time they decide more “Blue Oceans” get converted to “Red Oceans” or “Red Oceans” gets more and more saturated….
So I believe time & execution are essence here, rest may not really matter ….
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