How to Outsource Product Management to Customers

For any Enterprise Software Company, Productprocess and start the actual implementation. When
Management is one of the most critical functions. Ifsome features appear to be very specific to the
products are utilized by more and more customers,needs of a particular customer, we ask for at least
than requests for new features will start to pile up,two customers to bid for it before we commit to its
which is but obvious. In order to implement thedevelopment. This measure helps us in ensuring that
needs of the customers, the job of product managerwe reduce the risk of feature creep.
should be to prioritize the products in order, so as toOnce the feature is implemented, three options are
keep, feature creep away from it.available to us:
Ismael Ghalimi put up his statement that the way we
managed to outsource our product management1. We can give it to the customers who paid for it
function was through a process called Demand Driventhree to six months before anybody else gets it,
Development (a.k.a. D3). D3 is based on a two-phasethereby creating an incentive for customers to
process that empowers our customers to tell uscontribute to its funding.
what they desire, and then they pay for it.2. We can incorporate it into the Enterprise Edition of
We can take Identification Phase as Digg for theour product, thereby increasing the value of a
management of products. We issue the candidate listsubscription.
of features on the community website, and we let3. We can donate it back to our open-source
the customers and partners advise additional ones.community, thereby getting help from the community
We then let the community to discuss and rate thefor its downstream maintenance.
features they like the most. We facilitate thisIn order to make the participation of customers
process by providing additional input that wemore in the funding, we give the customer credits
gathered from the field, and then promote the mosttowards future subscriptions to our Enterprise Edition,
popular candidate's features.equivalent to 50 percent of the amount of funding
Once the feature has reached the Estimating status,they contributed.
we make a move in the Implementation Phase andSuch process gives you a very effective way to deal
begin with the including of engineering team towith what we call "checkbox" features. Whenever,
develop the elementary set of specifications for it.we are asked for such feature, we point our
We then multiply the number of requiredcustomers to our D3 website, and without any lapse
person-months by an average monthly cost, to whichof time, we get rid of nine out of 10 checkbox
we add a 50 percent overhead, aimed at coveringfeatures.
the maintenance of the feature for at least threeBy opening our Product Management process in such
years.a way to our customers, we really mould them into
Armed with these numbers, we return to ourdevelopment partners, and share with them, the
community, and ask customers to bid for theresponsibility of developing the product they need
development of the feature. As soon as we getand asking them to vote with their checkbooks.
enough customers to pay for it, we close the bidding