Digital Business 101

New features: revenue, sometimes. cost, always

We often see companies adding features to products or services that are already meeting customer expectations. These features do not always add value, although they always add cost.

The key question to answer before adding any functionality to a product or service is whether there will be satisfactory compensation on the market. The customer “liking” a feature does not imply that he will be willing to pay for it. In any case, even when there is a buyer’s market, it does not mean that this will be sufficient to justify the effort.

Developing a feature for the sake of opportunity (we do it because we can) often ignores that there will always be a cost to maintenance.

It is crucial always to remember that competition ever happens for profit. Therefore, having “the complete solution,” while not making an offer more attractive, tends to make organizations less competitive.

Innovation is not associated with a company’s ability to deliver more products or features. Innovating means delivering the right products and features.

If the customer is unwilling to pay for a feature, it is not a source of revenue for sure. Therefore, we must not forget that it will undoubtedly be a source of cost.

Elemar Júnior

Microsoft Regional Director and Microsoft MVP. I have been working for more than two decades developing world-class business software. I had the privilege to help to change the way Brazil sells, designs and produces furniture. Today, my technical interests are scalable architectures, database engines, and integration tools. Also, I am crazy about exponential organizations and business strategy.

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