Gartner Research

Product/Offer Financial Performance Analysis

Published: 09 November 2005

ID: G00134033

Analyst(s): Tim Smith

Summary

The financial performance criteria used to measure product/offer success are critical to building a capable product management function. Indeed, financial performance is often mismanaged, leading to underutilized product management resources and poor bottom-line performance.

Table Of Contents
  • The Importance and Challenges of Managing Product Profitability and Financial Performance
    • Responsibility and Authority
    • The Danger of Overmeasuring (Overmanaging)
    • Complementary Measurement Schemes
  • The Differences in Managing Products vs. Services vs. Offers
  • Possible Metrics
    • Revenue
    • Margin
    • Profit and Loss
    • Return on Investment
  • Other Measures and Considerations
    • Market Share vs. Profitable Growth
    • New Customers and Markets
    • Unit Volume
    • Bookings vs. Revenue
    • Customer Satisfaction
    • A Word About "Services"
    • A Word About "Offers"
  • Recommendations
    • Senior Management Responsible for POM Functions
    • Individual POMs

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