Value Chain in every SAAS business and other businesses – Managing Value chain is Product Management

SAAS Value Chain

Above is especially true for web companies because of the constantly changing landscape of technology and customer motivations – { the finding value > Creating Value } happens again and again! (also explains my zig zag connections in the first 3 parts of that diagram 🙂

It’s really important that we conceptually, really deeply understand what we are doing, why we are doing and how we are going to do it.

Above is a framework that any company can use to find structure in thinking about customer needs, solutions they should develop, support etc. Even Web development Companies can use this strategy to really segment their target customers and attract the right ones (like we are trying to do right now by trying to communicate with our potential customer).

Sometimes, people ask “What is Product Management?” “What do you really do?”. Most often my response  is “I love product management because it is at the intersection of various company functions”. You get to execute market research, customer development, product development, product launch, prototype, data mine , QA, Roadmap and more! No other job function in the company can say this (unless you are in startups where everyone wears multiple hats!)

I believe product management is making sure the above value chain is properly executed. I would even go on to compare product management with Coaching in sports! You are needed, but the game can go on without you! May be for a while, until they hit a roadmap. Companies that don’t find value in product management are overlooking long term benefits for short term cost cuttings. You would rather hire a project manager who would also do product management and pay that position more, but not having product management at all is an invitation to product problems very early in the startup phases.

What kind of Value chains are popular in business schools? What kind of value chains are depicted in your tech companies? Would love to hear your thoughts!


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