Phase 3 of product management
Some may argue that this is really not an independent phase but more a part of the idea and business case. But the contrary view is that can we move something to mainline development without validating the idea or can we create a prototype without having funds to do so. In some organisational internal projects, there may be a possibility of leveraging some spare capacity and resources to come up with a basic and elementary model of the product. And so it may be the case with when entrepreneur would pool in their own money to get a basic version ready. In both the cases this phase can be clubbed with the idea and business case. Either way, the importance of having a prototype is not lost.
We are considering the phase separately given the importance it can play in make or break of the future funding. With the first cheque from the investors or sponsors, the team sets out to put together a working model. Here the roles of people involved gets diluted as the team is very small and one person may wear multiple hats. So the same person can draft requirements , provide a design and may test as well. Essentially the focus is to turn around a working model with limited budget and resource to prove that the idea works.
Once the prototype is ready, a demonstration session with all key stakeholders is held to show the idea in action. To be clear, what is built and what is demoed may not even be 5% of what is proposed but it proves the point that it works! This common conviction of both the owner and the investor is critical as it pretty much seals the next phase of the product management.
Now that the investors are convinced – they feel confident to write the next cheque. But bear in mind it is not a ‘blank check’ but milestone based one. The next milestone is agreed with the owner and this time a more generous check is offered as now the product work will go mainstream. Which essentially means a more structured approach to product development. This is covered in detail in the next postt.
ProductSME 