Transformed

CHAPTER 2What Is a Product Operating Model?

Unfortunately, the tech industry is not great when it comes to standardization of terms. We often have different terms for the same concept and, in some cases, different definitions of the same term.

We don't like introducing new nomenclature, but we do need to be clear on what we mean when we talk about important concepts in this book.

The most fundamental concept we use and need to be clear on is the general product operating model.

We did not invent the term—we've found it in use in several strong product companies, and several more use the shortened form product model.

The product operating model is not a process, or even a single way of working. It is a conceptual model based on a set of first principles that strong product companies believe to be true. Principles such as the necessary role of experimentation, or prioritizing innovation over predictability.

We're using the term in this book to refer to the way of operating that we find the best product companies consistently use.

Essentially, the product operating model is about consistently creating technology-powered solutions that your customers love, yet work for your business.

From the financial perspective, it's about getting the most out of your technology investment.

It's important to emphasize that there is no single right way to build products. There will be more on this critical point later. But for now, know that there are many good ways, much as there are an even ...