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.
More posts in Digital Business 101 series
- July 29, 2019 New features: revenue, sometimes. cost, always