5 Key Challenges in building Enterprise Products in Services Organization
Here are five key challenges that service organizations trying to build products will face:
𝟭. 𝗕𝗮𝗹𝗮𝗻𝗰𝗶𝗻𝗴 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗮𝗻𝗱 𝗦𝗲𝗿𝘃𝗶𝗰𝗲 𝗠𝗶𝗻𝗱𝘀𝗲𝘁:
Services organizations are typically accustomed to delivering customized solutions and catering to individual client needs. Building enterprise products requires a shift in mindset towards product development, which involves standardization, scalability, and addressing broader market requirements. Balancing the product and service mindset can be a challenge, as organizations need to align their capabilities, processes, and resources to effectively build and support a product while maintaining their service-oriented approach.
𝟮. 𝗠𝗮𝗿𝗸𝗲𝘁 𝗨𝗻𝗱𝗲𝗿𝘀𝘁𝗮𝗻𝗱𝗶𝗻𝗴 𝗮𝗻𝗱 𝗩𝗮𝗹𝗶𝗱𝗮𝘁𝗶𝗼𝗻:
Services organizations may have a deep understanding of their individual clients' needs, but building an enterprise product requires a broader market perspective. It is crucial to conduct market research, validate product-market fit, and ensure that the product meets the needs of a wider customer base. Identifying target market segments, understanding market dynamics, and validating the demand for the product can be challenging, especially when transitioning from a primarily service-focused approach.
𝟯. 𝗧𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻𝗶𝗻𝗴 𝗳𝗿𝗼𝗺 𝗖𝘂𝘀𝘁𝗼𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝘁𝗼 𝗖𝗼𝗻𝗳𝗶𝗴𝘂𝗿𝗮𝘁𝗶𝗼𝗻:
Services organizations are often accustomed to customizing solutions to fit individual client requirements. In product development, the focus shifts towards configurability rather than extensive customization. Balancing the need for flexibility and adaptability with the need for standardized product features and configurations can be a challenge.
𝟰. 𝗘𝘃𝗼𝗹𝘃𝗶𝗻𝗴 𝗗𝗲𝘃𝗲𝗹𝗼𝗽𝗺𝗲𝗻𝘁 𝗣𝗿𝗼𝗰𝗲𝘀𝘀𝗲𝘀:
Services organizations may have established development processes and methodologies tailored to delivering custom solutions. Building enterprise products requires adapting or evolving these processes to accommodate product development practices such as product roadmaps, iterative releases, and managing product backlogs. Incorporating product management principles, defining product roadmaps, and implementing agile development methodologies can pose challenges during the transition.
𝟱. 𝗦𝗮𝗹𝗲𝘀 𝗮𝗻𝗱 𝗠𝗮𝗿𝗸𝗲𝘁𝗶𝗻𝗴 𝗔𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁
Services organizations often have established sales and marketing strategies focused on selling custom solutions and services. Introducing an enterprise product requires aligning the sales and marketing efforts toward promoting and selling a standardized product. Educating sales teams on the product's value proposition, developing marketing collateral, and building a product-focused sales pipeline can be a significant challenge.