Product
What is a Product?
A product is an item or a device that fulfills a desire or solves a problem.
A product must always serve a purpose, without a purpose it is useless and without use it is worthless.
The intensity of the desire or the severity of the problem that the product addresses directly influences the customer’s valuation of the product.
Or, as Martin Daum used to say:
A great product is characterized by the fact that the customer happily separates himself from his money.
Martin Daum, former CEO of Daimler Truck AG
Thus, the product serves as the foundation for any company’s financial success and therefore needs to be in focus during every transformation.
Product or Service?
One can distinguish between products and services, suggesting an inherent difference between tangible hardware products and intangible services.
The reason for this is that products are often referred to as the result of production.
A service, by contrast, is performed rather than produced and therefore does not undergo a traditional production process.
This distinction, however, is problematic.
A product should be understood as a holistic solution — a complete package that delivers value and customer satisfaction, regardless of whether it is produced, performed, or a combination of both.
Evaluate your product!
Deliver Real Customer Value
Does the product solve a genuine problem or fulfills an authentic need – not just a “nice to have”, but a “need to have”?
Superior Value for Money
The perceived value must justify the price. This doesn’t mean “being cheap” or “being expensive” but rather “being worth the price”.
Ease of Use (Usability)
Intuitive operation, low learning curve, seamless user experience. Complexity is the enemy of success.
Reliability and Quality
The product must function consistently. Failures and quality issues destroy trust faster than marketing can build it.
Differentiation from Competition
A clear unique selling proposition – whether through features, design, service, or positioning. Simply “being there too” isn’t enough.
Scalability
The business model must be able to grow without costs increasing proportionally.
Profitable Unit Economics
Each unit sold must generate profit in the medium term. Customer lifetime value must significantly exceed acquisition costs.
Adaptability
The product must be able to evolve – based on customer feedback, market changes, and technological progress.
Sustainability
Does the product meet circular economy principles by being: durable and long-lasting, made from renewable or recycled materials, designed for easy disassembly and repair, minimally impactful during production and use, and fully recyclable or compostable at end-of-life?
Interested in discussing your evaluation results?
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