By Lisa Hamaker
May 19, 2011
Delayed new product launch dates significantly impact the long-term profitability of a product or service. So why do so many companies elect to delay their new product releases? In our experience, much of the responsibility for missing key target dates can be attributed to a condition we refer to as the kitchen sink syndrome.
The kitchen sink syndrome usually occurs when the product development team has more influence over the release process than the marketing and sales teams. With their technical focus and goal of perfection, new product developers can overlook their vested interest in revenue and strive to perfect every last feature and detail. They will continue to tweak the product or service product as long as they can. It doesn’t matter whether the product is a sophisticated computer system or frozen peas – the product development team will focus on perfection rather than revenue unless they are motivated differently.
Fortunately, the antidote to this syndrome is simple and straightforward:
Minimize your product offering to increase revenues and profit.
We refer to this solution as minimum useful product.
Using this principle, the product development process will benefit in three ways:
- Faster track to revenue
- Better fit for the market
- Lower cost of development, marketing and sales
When products are released to the market more quickly they bring in revenue and profits sooner. They also cost less to develop because the development process is more focused and targeted to specific, shorter-term goals. The product is more aligned with customer’s wants and needs because early feedback is based on actual product usage, not prototypes and ideas. Google and Microsoft’s large Beta test programs are powerful examples.