This excerpt from “The Product Mindset: Succeed in the Digital Economy by Changing the Way Your Organization Thinks” has been edited for length and clarity.

The way companies approached product development ten years ago will not work today, but many of them feel paralyzed, unsure of how to change. 

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Even software companies need to think about product development differently. As tech companies, they can easily assume they already have the right mindset, but often that’s not true. Many software companies make the mistake of developing technology for its own sake, without truly understanding the product’s purpose or value.

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So what are the keys to success when building a digital product? What are the fundamental differences between software built in the old IT world and products that are driving growth in the digital economy?

We have found that there are three key characteristics common to successful digital products: They are self-funding. They are chosen. And they are never done. And the successful companies that own these digital products know how to do three things: Minimize time to value. Solve for need. And excel at change. 

This is what we call the Product Mindset. So what does this mean, exactly? 

• First, for a product to be self-funding, a company must minimize time to value. Remember, the product is responsible for creating dollars, not saving pennies. A product must create revenue in and of itself, not just support an existing value proposition.
• Second, if consumers are going to choose your product above all others, your company must solve for need. You must deliver real value to customers so that they continually choose to pay for what you’re building.
• Finally, once a company recognizes that a product is never done, they will realize they must excel at change in order to leverage this reality of the digital economy.

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By adopting these principles of the Product Mindset, leaders can equip their businesses to repeatedly deliver digital products that are relevant to their customers and stay competitive in the digital marketplace.

About the Authors

David DeWolf is CEO of 3Pillar Global and co-author of “The Product Mindset: Succeed in the Digital Economy by Changing the Way Your Organization Thinks.”

Jessica Hall is Vice President of Product Strategy and Design at 3Pillar Global and co-author of “The Product Mindset: Succeed in the Digital Economy by Changing the Way Your Organization Thinks.”