How can you manage risk when introducing new products?

Market research Prototype Testing & Validation Risk Analysis Financial Planning CFT collaboration By using several methods of launches Long-term vision w.r.t SCM Contingency planning USP Creation

3 Step Process: 1. Market Research Conduct thorough market research to understand the demand for your product and the competition. The goal is to validate the need for your product and identify any potential barriers to success. 2. Customer Feedback and Validation Gather feedback from potential customers through surveys and interviews. This feedback can help validate your product concept, identify features that matter most to your customers, and refine your product before a full-scale launch. 3. Pilot Programs Conduct a pilot program or soft launch in a controlled environment or select market. This approach allows you to gather real-world data on product performance and customer acceptance without the risks of a full-scale launch.

As a product manager, one of the things one needs to learn from the onset is proritization and prioritisation should be done based on feedback and proper understanding of your users. Doing this will go a long way in reducing the risk of failure of a product after release.

Prepare 5P Analysis 1. Product - USPs 2. Place - define market segment where to sell 3. Price - define price wrt to competitors (price skimming) 4. ProMotion - define promotional plans (Digital, launch event etc) 5. People - define what people have to talk to customers

First, proper management should be implemented, the first step in risk management is identifying and prioritizing possible sources of risk that can affect the product development process and your results.

For new product development, plan and implement risk responses by identifying potential challenges like market demand and technical feasibility, analyzing their impact and likelihood, planning strategies such as design modifications or timeline adjustments, and monitoring risks continuously. This proactive approach ensures successful product development and launch.

Planning and implementing risk responses involves categorizing risks into avoid, transfer, reduce, or accept strategies. Avoidance may require adjusting product strategy or scope. Transference involves shifting responsibility to third parties. Risk reduction entails actions like testing or validation. Acceptance involves acknowledging and preparing for consequences. Tailoring responses to each risk ensures a comprehensive risk management approach.

Monitor and control risks by regularly tracking identified challenges, utilizing key metrics to gauge impact and progress, conducting frequent risk reviews, maintaining open communication with stakeholders, preparing contingency plans for unforeseen risks, and establishing a feedback loop to learn and improve future risk management processes.

Continuous monitoring and control of risks are essential for effective risk management. Utilize tools like dashboards, reports, and feedback loops to track the performance of risk responses and identify new risks. Conduct regular audits and reviews to assess the effectiveness of risk mitigation strategies. Remain agile in adjusting plans and actions to address emerging risks promptly, ensuring proactive risk management throughout the product development lifecycle.

In addition to the risk management frameworks (such as ISO 31000, PMBOK etc), some other useful frameworks are Failure Mode & Effects Analysis (used commonly for physical products), Risk Matrix (used for prioritizing risks based on their likelihood and impact), and building minimum viable products (MVPs) to test assumptions and gather feedback from customers early in the product development process, thus minimizing the overall risk associated with product launches.

A Good risk management framework for product development includes: identifying risks across market, technology, and resources; analyzing their likelihood and impact; planning responses like mitigation or transfer; monitoring risks throughout the lifecycle; transparent communication with stakeholders; and thorough documentation for learning and improvement.

Implementing a risk management framework offers structure and consistency to your risk management process. Frameworks like PMBOK, ISO 31000, or PRINCE2 provide principles, processes, and tools tailored to different contexts and goals. Choose or customize a framework that aligns with your product's needs and organizational culture, ensuring a systematic approach to identifying, assessing, and mitigating risks throughout the project lifecycle.

El contacto directo con los interesados proporciona una perspectiva integral sobre los riesgos potenciales, ofreciendo valiosa información sobre su naturaleza, impacto, estrategias de gestión y planes de acción/contingencia. Esta interacción enriquece el análisis, contrastando con el enfoque aislado basado exclusivamente en tu experiencia personal, la cual puede estar limitada por sesgos y la falta de contexto necesario para considerar diversas perspectivas.

Involve various departments and mitigate risks from diverse perspectives. Cross-functional collaboration fosters a holistic approach to product development, where each department provides its expertise and insights. Marketing teams can provide valuable market research and consumer behaviour analysis, and guiding product positioning. Sales teams offer insights into customer needs and preferences, helping tailor the product to market demands. Operations teams ensure the feasibility of production and distribution processes, identifying potential bottlenecks or supply chain risks. Finance teams provide financial analysis and risk assessment, ensuring that the new product aligns with budgetary constraints and profitability targets.

Involve stakeholders in risk identification by organizing workshops, conducting surveys/interviews, maintaining a centralized risk register, facilitating assessment sessions, scenario planning, and encouraging ongoing feedback.

Involving stakeholders enriches the risk management process by leveraging diverse perspectives and insights. Engage stakeholders such as customers, employees, investors, and regulators to identify and assess risks comprehensively. Collaboration fosters alignment of expectations, shared responsibilities, and trust, enabling proactive risk mitigation and enhancing project outcomes. Effective communication ensures stakeholders remain informed and engaged throughout the risk management journey.

Every failure in product development is an opportunity to learn and inform your processes further. It gives you the opportunity to learn from iterations, explore more ways of creating value and get closer to understanding user needs. It is also important to not just keep planning ahead while you build a product. You should be able to look back at your past decisions, have their outcomes documented and learn from them.

Embracing failure as a learning opportunity strengthens the risk management process. Analyze failures to pinpoint root causes and identify gaps in risk management. Use these insights to refine strategies and improve the product development process. Experimentation and iteration based on failure analysis drive innovation and foster resilience. By leveraging failures as valuable learning experiences, you fortify your risk management approach and enhance project outcomes.

In my experience, analyzing the track record of mistakes in previous processes is the most crucial step in achieving success. By examining past projects, we can learn from their shortcomings and identify areas for improvement. This knowledge serves as a compass, guiding us towards a more successful future. Open and honest communication with individuals who have undertaken similar endeavors is of paramount importance. Their insights and risk assessments provide invaluable information that can be applied to our own project. Drawing upon the experiences of others allows us to craft a well-informed plan that minimizes potential risks and maximizes the chances of success.

1. Testing, Testing, and More Testing Testing is the cornerstone of product development. It’s not just about ensuring that the product works as intended, but also about uncovering potential issues and refining the user experience. From functionality to usability, every aspect needs to undergo rigorous testing. Whether it’s alpha testing with an internal team or beta testing with real users, the goal remains the same: to identify areas for improvement before the product reaches the market.

Invest in building prototypes or minimum viable products (MVPs) and test them with a sample audience. This allows you to gather feedback early in the development process, identify potential issues, and make necessary adjustments before a full-scale launch.

I have a failure and success to report though the product is not new however with a revival of good to haves First failure : it was over designed to address easy of operation as a result financially it was not attractive. It did not go any further and turned back to old school Success : explained right from the beginning the challenges and took the client to jointing testing developed enough confidence and mitigated every technical & commercial risk. That was a success however no new opportunities emerged with it. End of the day everything is need fulfillment and commercial viability, sustainability