Utility (value)-based vs Feature-based Product Development
In this post I would like to point out the differences between two practices in (new) products development.
Most companies focuses on features. This simply means that they maximize the number of features they can stick into a single product. They presume that the more the features, the higher the number of customer will be attracted. This might be a reasonable assumption because if one product is capable to satisfy more needs and desires, it will be purchased by more people. This is mainly the logic behind this type of approach.
Unfortunately, adding more features increases development and maintenance costs (induced by accrued complexity) and does not guarantee itself a return on investment. The issue lies on the fact that not all features have the same impact on customer's adoption and therefore a prioritization is needed.
Only a few companies focus on overall delivered value from their products, regardless if they have all (or most) features implemented. They follow the ubiquitous Pareto 20-80 law where 20% of possible features will produce the 80% of satisfied customers. Moreover, it provides two additional advantages:
It leaves the product open for future improvements.
It reduces the product's complexity to its minimum.
Lean Startup advocates for value-based product development and it provides tools to measure (quantify) the value delivered to customers (and precisely to whom) with the product.
