Tuesday, May 7, 2013

How to measure the product success?

You may have multiple product lines.How you measure their success?
You can have a simple metrics to measure how much revenue they are bringing into the company.

The way how we measure and evaluate the performance can change the behaviors.

By treating them as individually units, you are encouraging them to complete.

Don't get me wrong. The resource is limited. Comparing them so you can properly allocating resources to them.  They do compete against each others on resources.

Competition is not necessary a bad thing.  However, it may not be always a good thing, either.

One way we can do is to measure how much it can bring the revenues to other products.

In a big company, there may be a mix of product lines or product units.  For those established products with an established installed base, their revenue should not be measured alone.  They should be measured by how much revenue that can bring by upselling the other products.  Only with this measurement, we can guarantee that there will be enough incentive for building an integrated solution.

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