Blog 99: Product failures - key takeaways
- Idea2Product2Business Team
- Sep 4, 2024
- 3 min read
Successful products generally follow these common themes – they solve real problems for real people, they possess a profitable business model, they launch at the right time, they don’t follow a fad and they are able to stand the test of time. Our prior blogs from 1 to 98 cover various topics within these themes. In addition, to connecting dots across this vast field of product management.
We all want our products to succeed and flourish. However, even with our best idea, intentions, team, tech, financial resources etc. products do fail. It’s a reality. Despite having access to resources, several products at Google have failed and have been killed. Check out the complete list (https://killedbygoogle.com).
We need to be aware of 4 types of risks – problem risk, solution risk, execution risk, and timing risk. A failure to manage these risks invariably lead to product failures. There are 2 types of product failures, instant and delayed. Some products do not solve a real problem and hence are an instant failure (problem risk). While some struggle with execution hence experiences a delayed failure (execution risk).
Let us look at some examples (key takeaways),
1. Blockbuster
Reason of failure: Solution risk (failure to keep up with the competition).
Type of product failure: This was a delayed product failure. The market was changing quite fast with the emergence of new players (Netflix) that were nimble. Blockbuster could not innovate fast enough.
2. Google Glass
Reason of failure: Problem and Timing risk (a product looking for a problem).
Type of product failure: This was an instant product failure. The market was simply not ready for smart glasses. Apart from few enthusiasts, majority of the market was not willing to spend money on Google Glass.
3. Microsoft Zune
Reason of failure: Solution and Timing risk (launched five years late).
Type of product failure: This was a delayed product failure. Zune launched five years late when Apple iPod had already captured the market. In addition, the product did not have any unique selling propositions.
What should we do after our product fails?
1. Analyse the reasons: Was it a marketing issue, product quality, timing, competition, or a combination of factors?
2. Collect feedback: Gather feedback from customers, stakeholders, and team members and get their views on what went wrong.
3. Acknowledge mistakes: Take responsibility and work towards addressing the issues.
4. Iterate and adjust strategy: Whether it’s marketing, product development, pricing, audience, and so on, adjust the strategy accordingly.
How can we reduce the probability of product failures?
Firstly, keep iterating on getting things right with the common themes (refer to the first paragraph). I.e., is the product solving a real problem for real people, have we found a profitable business model, did we launch at the right time (do we have several takers for our product), and will we be able to stand the test of time. Secondly, we must keep asking ourselves, are we talking to the right audience? Thirdly, do we have an advantage or is it a me-too product?
Developing, launching, and managing a product is hard. According to the book, The Innovator’s Solution – the author highlights the complexity of product development with some facts.
- 60% of products fail before they even reach the market.
- 50% of the products that do reach the market fail to stay in business.
- 75% of the money spent on product development delivers failed products.
To conclude, always pay attention to the market forces. They constantly send us signals on how we are doing. We need to be proactive to acknowledge challenges, act and move forward.
Jump to blog 100 to refer to the overall product management mind map.
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I wish you the best for your journey. 😊