Product vs Project: Clearing up the confusion
In the business world, it's common to hear the terms "product" and "project" thrown around interchangeably. However, it's important to understand that these two concepts are actually quite different from one another.
Understanding their key characteristics and differences can help clarify the activities and expectation between the two. In turn, this can increase your chance of success with each one of them.
First, what’s a product?
A product is a finished good or service that is produced and sold to customers. This could be something tangible, such as the phone you’re looking at, or the coffee cup you’re holding. It can also be something intangible, like the apps on your phone, or your Netflix subscription. Products are usually developed with a specific features and benefits in mind, designed to meet the needs of a particular market or user segment. Products can be single items or they can be part of a larger product line.
Product development typically involves a number of steps in order to ensure that the needs and demand of the target users are met. These steps include market and competitive analysis, defining target users, and validating the product idea. By going through these steps, companies can ensure that their products meet the needs of their intended market and have a higher likelihood of success.
Once the product has been developed, it is typically marketed and sold to customers through a variety of channels, such as resellers, online platforms, or direct sales. Products are typically developed with the intention of being sold and used over an extended period of time.
Now, what about a project?
A project is a temporary effort that is done to create a certain product, service, or result. Projects are typically done to meet a specific business need or to solve a particular problem. Projects have a well-defined start and end date, and they involve a set of activities to complete, so a specific goal is met.
A project’s output is often the result of collective and coordinated efforts of multiple people or teams who work to produce a set of deliverables within the project’s timeframe. Similar to a product, the deliverables of a project can be tangible items such as building renovation, or intangible such as implementing new onboarding process in a company.
Projects may also be one-off efforts, or they may be rolled-out as part of a larger program.
Key differences
The first key difference is purpose. A product exists as a way of fulfilling specific user needs, while a project is done as a way of executing a plan. In other words, a product is designed to provide a specific benefit or solution to the user, while a project is focused on completing a set of tasks in order to achieve a specific goal.
The next difference is focus. A product is focused on creating a certain outcome for the users, while a project is focused on delivering a set of activities within an agreed scope, budget, and time. This difference can have significant impact for the way that these two types of work are managed and executed. For example, a product manager may be more concerned with ensuring that the product’s features meet the needs of the users and have a long-term impact, while a project manager may be more focused on completing a specific set of tasks within a defined timeframe and budget.
Another difference is duration. Products are typically developed with the intention of continually being sold and improved over an extended period of time to meet users’ needs. On the other hand, projects typically have a temporary duration, with a well-defined start and end date and a set of deliverables scheduled to be met within those dates.
How they work together
In reality, you’ll find that product and project management is not always mutually exclusive, and they often go hand in hand. A company may develop a new product as part of a project, or a project may involve updating or improving an existing product. Understanding the key characteristics and differences between these two concepts can help you define and manage your work better.
Need help with developing your product?
Schedule a call today to discuss how our coaches can help you build successful products.
