By Marty Cagan · svpg.com · LinkedIn
Cagan argues that the next big product is usually not a wholly new market but a new version of something existing that does the job far better, faster, or cheaper, thereby redefining its category. He illustrates this with Apple's iPod entering a crowded MP3 player market, Google outperforming dozens of search engines, and Keen reinventing sport sandals against Teva. Successful companies find where competing products fall short, often by usability testing rivals' products as well as their own, and keep track of new technologies that make better solutions possible. The core idea is to pair what customers desire with what is newly possible. For product managers, this reframes innovation as disciplined improvement of familiar categories rather than a search for novelty.
01Key takeaways
- Look for the next big product as an improved version of an existing category, not only as a brand-new market.
- Usability test competitor products alongside your own to reveal exactly where the category falls short.
- Judge a market 'mature' only after confirming that incumbents still leave real customer needs unmet.
- Stay current on technologies, since they can unlock solutions that were infeasible before.
- Good opportunities combine a clearly identified customer need with a new way of applying technology.
02Key sections
- Myth of the entirely new market
- Companies often assume big wins require inventing a new category, and the media reinforces the hunt for the 'next new thing.' Cagan contends the real breakthroughs are usually reinventions of existing offerings.
- Better, faster, cheaper redefines categories
- Examples from consumer tech show that a product delivering noticeably superior results can quickly become the defining standard, even in markets that seemed mature and saturated.
- Non-tech example from footwear
- Cagan describes switching from Teva to Keen, noting how Keen spotted an unmet need in footwear and quickly established itself in a hard-to-enter market.
- Finding gaps in mature markets
- Strong teams study their target customers and identify where current products fall short, using usability testing on competitors' products as well as their own.
- Applying new technology to old problems
- Product managers must keep up with emerging technologies, since new capabilities can make previously infeasible solutions possible and create differentiation.
03From the post
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Summary and takeaways written by PM Atlas; quotes are short excerpts. © the original author.