1. Target Group & Market

Choosing the right market precedes choosing the right customer. A product strategy defines and nails the target market, customer and the outcomes they are looking to achieve. 

One of the golden rules of product strategy is to never work on features that no one is willing to pay for. A good product strategy aligns the team with the vision and helps them develop the best solution for the customers. Targeting the right group of customers requires measuring and defining metrics for the product. Some important questions that are addressed by the product strategy:

Who is our customer?
What is the problem we are solving for our customer?
Who is not our customer?
How do we measure success of our product with well-defined metrics? 

Many product teams are focused on adding features without understanding the key requirements of the product. The product development shouldn’t be driven by the product managers or the development team, but by the customer and the market.

The software developers and engineering teams accomplish the best solutions when they are well versed with the customer problem they need to solve. A good product strategy articulates the need with clarity and gets everyone on the same page. It helps the team deliver the key outcomes customers value & are willing to pay for.

The founders of Airbnb posted a few photos of their apartment on a simple webpage to test the proof of concept. A simple way to test your target customer market and how you can address them goes a long way in articulating the defining your product strategy.

2. New Business Model
An innovative business model can go a long way in creating a differentiated product that customers would notice. When Netflix was a DVD rental company, they operated from a store and rented out DVDs to their customers. It faced a lot of competition from existing players in the industry, they soon started DVD rental over the web. The DVDs were delivered through mail. Yes, this was back in the days when bandwidth didn’t allow video streaming like today.

The company again reinvented itself with a new streaming-based platform for reaching customers around the globe. Uber disrupted the taxi industry by offering a cheaper, faster and more convenient online service.

A strong product strategy looks for ways to disrupt an industry. It asks questions like, how we can revolutionize an industry? What are the ways we can monetize our product without charging more from customers?

An innovative business model analyses the target customer segment and its impact on the business. For e.g. can we eliminate the least profitable segment of our customers? Do we need to serve smaller markets or focus on bigger markets with quality customers? How we can reach a bigger scale for the product without affecting the quality of service to customers?

3. Distribution & Sales

Businesses that scale-up develop innovative distribution strategies to find customers. These could include SaaS product platforms, freemium users, enterprise or government customers etc.

A good product strategy helps teams reach more customers by making the product distribution easier and seamless. For e.g. 90% of Skype customers don’t pay, it means only 10% of customers pay for Skype subscription. But by introducing the product for free, Skype generates its revenue. The company also doesnt incur any infrastructure cost like telecommunication companies. The Skype customer service and support is done in a highly automated way reducing costs.

Technology changes things, it makes a revolutionary impact and reaches scale quicker. For e.g. Chrome launched by Google targeted faster-browsing speeds. It aimed at 10X improvement over existing browsers, similarly when Gmail was launched, it offered an unprecedented improvement over the competition to reach more customers at a bigger scale. 

4. Key Partners


Gone are the days of building things in a silo, today even companies like Apple & Microsoft are opening up their ecosystem to collaborate with others. The key partners for a product can help its visibility, distribution and even offer complimentary value. For e.g. many accounting software needs to be interoperable with tax-filing utilities to provide the last mile service for their customers. 

Salesforce provides a development platform for third party developers and apps. These apps can be hosted on the Salesforce platform and availed by the Salesforce customers. It offers a valuable addition to the Salesforce customers as well as third-party developers to reach more customers.

The platform companies like Youtube, Medium, and Netflix are also incentivizing content creators. The key partners for a product strategy explore the possibilities of maximizing the network effects of a given platform. The product strategy involves ways in which key partners can be integrated into the ecosystem. The development, marketing and outreach efforts are the key partners are vital components of a good product strategy.

5. Technology Capabilities

The technology capabilities and competency of a team go a long way in building the right products. There are many examples of products that scaled prematurely like Pandora and could sustain themselves when facing the heat.

The product strategy outlines the core competencies of the team. It evaluates questions like:

What are the core technology strengths of our team?
How can we build market-leading products?
How well do we receive market feedback to adapt?
What are the innovations that can give us the edge over others?
What are the product technology risks for us and how we can avoid them?
Is our team reskilling itself for the future?
How quickly do we adapt to the market & technology changes?
How do we manage the talent pool of workers and attrition?
What is the basis for our product innovation efforts and how it is measured?
Is our product offering meeting the unmet needs of the customers?

The technology capabilities help teams crack the unaddressed customer problems or provide a better solution than an existing one. The speed of execution, focus & ability to think ahead provides an edge to product teams.

6. Orchestrating Business Functions


Most product teams that fail build things in a silo. They don’t understand the overall picture and how they need to address the customer problems. The marketing, development, sales, distribution, customer service, support, and new opportunity management etc. has to be in synch for building the right product. A good product strategy has a unifying impact, it rallies everyone together and enforces a shared vision for the team.

A good product strategy brings product thinking into the team. Many development teams simply want to add features, fix bugs and do mundane work without deep involvement. But the product strategy is driven at the core by engineering a better product for the customers. It is understanding the overall picture that the product serves and contributing to it. Successful product teams operate with a holistic view of what they are building, but ordinary teams only focus on what they are trying to build now to fill their days.

7. Value Innovation 

Good product teams are focused on their customers, not the competition. While it is easy to copy other products and play the catch-up game, it rarely works. Value innovation identifies what customers value the most and the underserved opportunities for which they are willing to pay.

The term innovation can be vague and may mean different things to different people. However, when the context is clear and the value metrics are defined, innovation takes a different meaning. For e.g. Cisco created routers & network devices with a 60% margin, they uncovered the value innovation with superior products. Value innovation can have a decisive impact on the product & create demand for it. 

HP’s mantra epitomizes value innovation succinctly, “When performance is measured by results.” It simply states that it doesn’t matter what you have done and all the features you’ve added unless it solves a problem for the customer.

Kreyon Systems is a SaaS product company. If you have any queries for us or need help in building SaaS products, please reach out to us.

The post SaaS Product Strategy: Principles and Basics of SaaS Product Strategy  appeared first on Kreyon Systems | Blog | Software Company | Software Development | Software Design.

The product management fundamentals are the foundational blocks for a SaaS product. Companies that develop products with clarity of their customer’s needs, desired outcomes, and right market opportunities, are poised for success.

Companies that scale and grow their SaaS products never work hard on things their customers don’t want. This distinction is critical in shaping the products that succeed versus others that don’t. Here’s a look at the product management fundamentals and lessons from SaaS unicorns:

1. Underserved Outcomes

Have you established the outcomes your customers are looking for? Are these outcomes served by other products? SaaS companies zone into the right opportunities by uncovering the underserved needs of their customers. They evaluate their development roadmap by aligning it with the priorities of the underserved outcomes that their customers are looking for. 

The underserved outcomes solve customer problems that are not addressed by others. They simplify things for their customers. For e.g. Canva designed and built a simple SaaS product that helped their customers create stunning designs without learning Photoshop or other complicated tools. It is a stripped down version of Adobe Photoshop that anyone can use with ease.

SaaS unicorns focus their efforts on building features that customers use. They eliminate wastage of development time, efforts and resources. The product is built to accomplish its desired outcomes for the customers.

2. AARRR Metrics

Product management fundamentals require a deep understanding of the metrics that need to be measured. For SaaS products, companies need in-depth understanding of AARRR metrics and its underlying drivers:   

Acquisition: How does the user come to your product? 

Activation: The user’s first interaction with your product and his first experience.

Retention: The user onboarding experience that brings him back to the product to use it again & again (over a period of time).

Referral: Does the user like it enough to tell someone about it?

Revenue: The user finds your product valuable enough to pay for using it.

The AARRR metrics drive the SaaS product adoption and growth. Companies that measure these metrics leverage insights from customer behaviours to fine tune their products to meet their needs. Unicorns adapt their products for specific groups of customers and iterate their products to meet their needs.

3. Risk Analysis

Studies have shown that the majority of SaaS products fail to impress their customers. The successful products are built by understanding and eliminating the risks involved in the process. Technology products have a shorter life cycle compared to products in the other industries like manufacturing, energy, automobiles etc. 

The risk analysis helps companies do their due diligence to mitigate unwanted outcomes. Some of the involved risks include:

Right Product: SaaS companies should guard against building products without validating them with their potential customers. The right product is the one for which the customer is willing to pay or the users spend enough time on the product for it to be monetised.

Technology: Technology changes quickly. You need to constantly look at the industry trends and other technologies which can be used to solve the problems you’re looking to solve. Are you working with the right technologies?

Team: Is your team competent enough to build the right product? Do you have a good mix of talent needed to scale and meet the demands of the future? The right team is important for building the right product. 

Competition: How is your product placed with respect to the competition? Is your product serving features and outcomes that are not covered by competitors? How is your product priced? Even with established competitors, you can still grab the market with a superior product. Slack is an e.g. of a product that made its mark despite incumbents. 

Growth: Many products are not architected to be scalable. SaaS unicorns typically charge little from their customers, so they rely on large no. of users for achieving sustainability. So, a product has to ensure good architecture and best practices for it to grow.

Legal & Compliance: Product management fundamentals require understanding of the legal ramifications of the product. It needs handling users data with care as per the applicable laws and adopting the technologies to safeguard privacy. The legal and compliance aspects are crucial for scale of a company.

4. Feature Adoption

The complexity of a product can cause its downfall. When products are stacked with too many features, it runs the risk of chasing users away. The users today want products that serve their needs end to end with a simplistic workflow. A lot of SaaS companies make the mistake of adding features that no one uses.

Companies need to build in analytics tools for understanding the user interactions and behaviours. Features that are rarely used by customers should be removed from the products. It makes developers and teams focus their efforts on things that really matter.

The SaaS unicorns build checkpoints into the product development process to meet the initial criteria and not add features for the sake of it. The product concept is strictly adopted after vetting the outcomes it intends to serve. 

5. Technology Strategy

SaaS unicorns are built on products architected to scale, securely and functionally to address customer problems. These products are developed to address customer pain points and issues with technology enabled solutions at scale. However, technology evolves fast and needs constant realignment.

Product management fundamentals deal with the changing technology trends and plan development in advance. When new technologies are adopted, it can lead to better solutions for the customers. It is the prerogative of the SaaS companies to keep experimenting with new technologies to serve their customer needs.

A technology strategy provides direction and roadmap for a company to innovate. It helps product managers to try new things and keep looking out for ways to improve the product. 

An innovative mindset requires experimentation and working on new ideas to improve their product. 

6. Qualitative Data & Feedback

Successful products employ deep and methodical analysis to solve problems for their customers. They use the customer data to understand how they judge a product’s value, what tasks they are trying to do, their desired outcomes, constraints and new opportunities.

The customer data provides the best way for companies to uncover new opportunities. They use this data for qualitative analysis, which leads to growth and innovation opportunities. Companies can focus on their priorities and understand what customers really want.

This data helps companies analyse the usage patterns, churn and adoption curve of their products. The usage data helps product teams to find the gaps in existing solutions and provide better solutions to wow the users by testing it continually and improving it.

The customer data is used as a feedback loop for engineering better product design. The product could also enrich the user experience with explicit feedback and surveys. The inputs received from customers could be used for prioritising product developments. Feedback surveys could be built into the product for higher response rates and interactivity.

Kreyon Systems is a SaaS development company. If you have any queries for us or need help in building software products, please reach out to us.

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The SaaS product companies are tapping into new avenues for product development & business. Here we look at some of the recent trends for SaaS product development.

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SaaS product management can be the difference between its success & failure. As technologies and business needs change, how a product evolves to meet its user needs depends on how it is managed. Good product management is proactive, forward looking and has deep connection with its customers. It creates a roadmap that translates customer needs into features, solves their most hard pressing problems and provides them a tool to get things done.

SaaS product management is the art of dealing with complexity, chaos and constant changes, but keeping things streamlined. It works with an influx of innovations, ideas and problems to deliver compelling solutions that make SaaS products indispensable. Here’s a guide to SaaS product management from the experts:

1. Understanding Customer Needs

The most important element of building a good SaaS product is a deep understanding of what the customer needs. You cannot guess and anticipate the needs of the customers. Figure out a way to connect with your customers to learn more about their needs, their environment and reasons why they use your SaaS product.

Customer needs can be understood using some of the following:

i) Usage Analytics
Track the features used by customers and study the patterns of what they are trying to accomplish.

ii) Time Spent
How much time is spent by the users on your product?
What is the frequency of their usage?

iii) Alternatives
What are the alternatives for customers to get things done, if they were not using your product?

iv) Interactive Support
Is your product interactive enough for customers to articulate what they need. Do you have means to collect surveys and opinions of the product users? How often do you have customer calls & review meetings?

2. High Impact Work

Time and resources are limited. It is better to develop things that create the highest impact for the customers than trying to do everything & being average with things. SaaS product management requires careful analysis to zone into the highest priorities of the customers.

Customers prefer SaaS products that are the best of the breed. In a way, if your product is an email campaign tool, it should help customers run campaigns better than any other product. Customers love products that help them do things better. It doesn’t matter, if you have fewer features than other products, as long as your features are better.  There is a book on product management, Essentialism: The Disciplined Pursuit of Less. The core philosophy of the book can be summarized as-Less but better.

Know the problem you’re solving for the customer, how you are solving it better than your competitors & the desired outcomes for the users.

3. Feedback Loop

SaaS Product management evolves based on the leanings and iterations overtime. Companies that build successful SaaS products understand the importance of prioritizing feedback from customers, sales & marketing teams, help desk support, users & product usage data.

SaaS product managers use prioritization frameworks like Rice, MoSCoW, Kano etc. to plan product developments. The schedules for deliverables are created according to the priorities and expectations of the customers. Every member of the team knows their role in contributing to products overall success.

4. Striking the Balance

SaaS product management is striking the right balance between all the stakeholders. The stakeholders for your products could be:

i) Customers: People who will pay for your product and determine whether it is successful or not. You’re building the product for them and meeting their goals.

ii) Management Team: Your management team is responsible for orchestrating the product teams and providing the resources for building the product.

iii) Users: These are the people who interact with your product. For e.g. accounting professionals in an organisation will be responsible for using your product to create their management reporting etc. Your understanding of the users, their behavior and environment will go a long way in building the right product.

iv) Product Team: Your team will be responsible for building the product; adapting it and making it work in the long run. Building a culture of transparency, trust and open communication can help you steer your product in the right direction.

v) Marketing & Sales: The marketing teams will be able to convey what your product does, for whom the product is built and the expected results from your product. The marketing teams can spread the awareness about the value your product offers. Your sales teams will be able to bring in the revenue from the customers by educating and exciting the customers about it.

vi) Support & Operations: Your support and operations team will work with your customers to provide them the help they need to run your product. Proactive customer support can save a lot of team’s research and development expenses.

vii) Others:  If you are building a product that needs accreditations for security, compliance etc. you will need to go through governments/regulatory authorities to get things approved. There could be legal agreements, supplier contracts, usage agreements, data and security policies etc. that need to be addressed.

SaaS product management coordinates between all the stakeholders, aligns their expectations and engages everyone to contribute to the project success.

5. Measure Customer Value

To build a sustainable SaaS product, a business needs to provide continuous value to its customers. The value creation process needs to be understood and articulated for both product teams & customers. Some of the questions that help product management teams measure customer value:

How are customers deriving value from your SaaS Product?
Why do customers use your product and not alternative options?
What are the switching costs for customers?
How do you measure customer value from your product?
How do you measure customer satisfaction for your product?
What is your product replacing for your customer?

6. Sales & Revenue

Sales and revenue analysis is very much part of SaaS product management today. A key understanding of the conversion rates, the cost to bring in a trial prospect and converting them into a paying customer is integral to developing a better product. Product managers have to keep a pulse of the customers and make the product interactive enough to initiate a sales closure.

Many companies are now depending on the product-led growth. SaaS companies can build products to maximize conversions by carefully instrumented workflows. When product managers understand the resources it takes to get customers onboard, they develop features to retain customers and provide them great value.

Product managers need to be able to assess:
Cost of customer acquisition
Cost of losing a trial customer
Customer Lifetime value
Retention rate of their product
Monthly recurring revenue and expenses

7. Big Picture

While building products, it is necessary not to add features that don’t meet the cut, but there is an increasing need for integrated solutions. Customers prefer vendors and SaaS companies that can offer them end to end experiences for performing their business functions.

Customers are looking at SaaS product offerings that can offer them a complete solution for their needs. For e.g. in business management software, they need the software to do their accounting and provide them with everything they need to run their company. Customers don’t want to end up with too many vendors for different solutions and end up with difficulty to integrate or manage licensing.

Product teams that understand the holistic picture of client needs and business use cases can deliver better SaaS products for them. The big picture involves fitting the pieces of the puzzles together for the customers and helping them become more successful in what they do.

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HRMS & payroll software are required for managing human resources, their data and day to operations. It includes payroll, taxes, time and attendance, employee expenses, benefits, leave management, etc.

Using the right HRMS software tailored to your business needs can reduce hours spent doing manual tasks, automate HR functions, and improve key aspects of your organisation.

The right human resource management software will make your business agile, data more accessible, and will help you define priorities for your staff and personnel.

However, it is necessary to align your HR & Payroll software solution with your organisational needs. Here we evaluate some of the business functions and features that can help you choose the right software: 

1. Evaluate Needs & Features

Choosing a human resource management system for your business needs careful assessment of the functionality. You need to look at the processes that need to be mapped with the HRMS software. For e.g. employee attendance, salary, taxes, compliance, leaves management, calendar etc.

Think about which functions are tedious and take away your & employees time. These can be automated for efficiency and productivity. A good HRMS software saves the employees & management time, which can be spent in valuable work.

2. Consider Your Employees

When choosing an HRMS, you need to evaluate your employees needs and requirements. Your employees will be empowered with an easy to use HRMS system where they can see everything related to their needs. For e.g. their trainings, appraisal information, salary slips, skills, goals and feedback etc. 

The employees and their managers can use HRMS as a self service tool for setting the goals, reviews, feedback and day to day activities. The tax returns, benefits, key policies, time off, leaves etc can be organised through this HRMS portal. 

All employee documents and information can be centralised using HRMS software. The data can be accessed by employees, their managers and other authorised representatives.

3. Compliance & Taxes

When selecting the right HRMS and payroll solution, compliance is a foremost requirement. The payroll software must be able to take care of employee salary, taxation and evaluate the compliance as per local norms. For e.g. California payroll taxes and regulations may be different from Texas.

HRMS and Payroll software must be able to compute the taxes and take care of regulations to save money and time. Compliance and regulatory errors can cost huge money in penalties. Companies need to invest in the right software to take care of these errors.

An integrated HRMS and payroll software can provide companies with valuable inputs for structuring things better. These tools can also provide automated checklists for completion of various regulatory reports and work involved.

4. HR tools & Work Management

The core processes for HR include applicant tracking and hiring for vacant positions across job portals. The HR software should be able to track all applicants, shortlist them and map the hiring stages across the company.

The hiring process is followed by employee onboarding and training management. The HR software can make employee onboarding and induction seamless.

The company can also use the HRMS solution for defining the performance management criterion, review scores of candidates, trainings undertaken by employees, and help candidates in their career development plans.

The HRMS software can be used for measuring the efficiency, teamwork and performance of employees with 36o degree view. It can track the most important metrics for employee performance, productivity and progress.

5. Projects & Timesheets for Mobile Workforce 

The workforce has become virtual with digital systems and technologies. The teams may not be geographically in the same areas, but they can still collaborate, engage with each other and stay connected. 

The HRMS softwares provide options for creating virtual teams across locations, provide self service options for employees to access their benefits, set goals, and track their work progress. The project timesheets help employees to log their billable time for various assignments and tasks.

The HR software can also be used by employees and staff members on the field. Whether it is accessing documents, checking their immigration status or any important file, HRMS software makes everything accessible on the go.

The best HR softwares support mobile accessibility, provide key information and notices etc on the go to all the employees. 

6. Security

HRMS and Payroll data is very sensitive. It carries employee compensation data, bank account numbers, tax returns, social security numbers, benefits etc. Organisations need to be quite circumspect in the way they handle this data.

HRMS software needs to be well equipped with security measures to take care of the payroll data. While it is desirable to have a cloud based and mobile accessible software, the security aspects need to be fully vetted. 

The data security measures should have authorisations, role based access, and audit log for all transactions in the system.

7. Workflow Management & Self Service

The HR software can help you automate day to day HR processes and customise workflows as per your organisational needs. 

Whether you want to send company notices, alerts, assign tasks, approve documents, salary processing your HR system handle it for you. The managers can also set and notify teams about their goals. These goals are reviewed periodically for appraisals and employee ratings.

The payroll compliance notifications and alerts for management, new joinees induction programs and welcome email template etc. can be set up using the HR software. 

These automated workflows can be configured and triggered as per your needs making your teams more productive. The management can be notified about key activities and events by using automated scheduled reports from the HR system about employee performance, engagement, hiring and day to day operations.

Conclusion: 

HRMS and payroll software is not only meant for organising your needs, but also to build the right culture and bringing your teams closer. Kreyon Systems offers great SaaS based HRMS and payroll software solutions for organisations. If you have any questions, please get in touch with us.

The post How to choose the right Human Resource Management System & Payroll Software for your Organization appeared first on Kreyon Systems | Blog | Software Company | Software Development | Software Design.

Finding the right software company for building SaaS based B2B products is hard. Building enterprise software products is easy, but building good enterprise software products is quite hard. Hence all the more reason that due diligence is done before you can zone in on the right vendor.

Building enterprise software products or B2B products requires good planning and execution. There are several things that need to be kept in mind for creating a high quality software product. Here we look at some tips for you to choose the right software company for building your SaaS products.

1. Define the Problem Clearly :

Before you approach the company, define the problem you want to solve with clarity and precision. When you know what you want to achieve, it will be easier for you to engage with the right company and build the right product with them.

While the scope of work and what needs to be implemented often changes after the product is launched. Too many unstructured changes and unreasonable changes can be dicey. Stick to the core of the product, conceptualize it well and work with the company that understands your needs.

2. Create Structured Checklists :

A checklist can be very effective to help you achieve the end goals. When you are trying to implement the software solution, you can create simple checklists. These checklists can have the most important key performance metrics that you are trying to achieve.

Here are some checklist questions for marketing & sales business process automation:

Are your marketing persons able to log information with ease?

Is your invoicing simplified using the software?

Is the information organized with simplicity for management?

Are you able to compare data for last 3 years for sales and marketing activities?

Is the information accessible to the right members?

Is your day to day business process workflow captured in the software?

You can share the important and critical elements with the software implementation company. They will be able to conceive the product and its requirements better.

3. Domain Expertise and Learning :

A software company that has relevant industry or domain expertise is always well equipped to execute better. You may check the level of expertise, domain knowledge and quality of execution before trusting your project with the company.

Companies with good exposure of various industries and domain expertise will be able to provide you the right solutions. Infact, they can also help you with their expertise and execution skills in delivering a product, much better than your expectations.

4. End to End Expertise :

Enterprise software is critical, because you’re typically dealing with employee time. It is the most valued asset in most companies. Using a SaaS based product should help your teams to maximize their productivity and creativity.

A company that typically has end to end expertise in building SaaS based solutions is always preferred. These companies typically provide end to end solutions and take complete ownership of deliverables from concept to deployment.

5. Scalable Solutions :

It is easier to build proof of concepts and basic version of software products. However, building scalable software products demands niche skills and high competency. SaaS products are used by multiple companies and scalability is one of the prime criteria for building such products.

Work with company that has a proven track record of long running B2B products and scalable user base. A good software product is increases efficiency, reduces turnaround time and makes tasks easier for the end users.

6. Your Requirements :

Analyze all your needs and requirements for the SaaS based products. To build the right software product, you need to consider some of the following aspects:

Designs and User Interface

Data storage on Cloud

Data Migration support

End users feedback and on boarding

Customer service options

Integrations and compatibility with existing software
Mobile Apps or Responsive web application

Ongoing developments, maintenance and support
Other requirements as per your needs

It is always good to have clear expectations and structured plan on building your SaaS based product.

7. Constantly Innovate and Keep Adding Value :

Most people think building their first version of the SaaS based product is the end of development. Infact, it is the beginning of the process. When your first version of the SaaS product is launched, it is the time for real users to interact with the product.

Many times a lot of assumptions during the implementation phase are challenged. The product team constantly needs to add value, update the product in line with the changing technology and consumer needs. A SaaS based products needs a vision and long-term roadmap. The customers are part of this journey.

Constantly Innovate and Keep Adding Value

Kreyon Systems is helping companies around the world to build great SaaS based products. If you are thinking about launching your SaaS product, you may get in touch with us for expert guidance and opinion.

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