Steps to Build a New Digital Product, Part 2
The previous article discussed the importance of researching the current audience and having a user-centric approach to developing a digital product. It also highlights researching competition and understanding where the opportunities lie for a product/service.
This article discusses the value of innovating by adding value to existing products/services. Digital products that make a real impact are those for which its creators manage to forecast market trends and lead the innovation process. Many companies such as Zynga evolved a concept that existed for four years prior to them entering the market.
Size of Opportunity
To develop a useful digital offering, it is essential that companies estimate the size of the opportunityi.e., what is the commercial value of the product and potentially how many users will use it. It is very likely that the audience might take the product in a different direction, although having an initial roadmap helps prepare resources. Stakeholders should also produce a short- and long-term financial forecast for the product. A good template of a financial forecast is available on the envestors website.