The pillars of a good digital product
By Rafael Thomazelli - Software Architect and Head of Engineering at Verzel
With the advancement of technology, the market has been able to begin the process of digitizing its products, or at the very least, digitizing its sales channels. However, even today, many IT professionals or project team members still struggle to understand the basic definitions of what digital products are, which products fall into this category, what software is, what a system is, among other common questions.
So let’s get started on this journey!
Product: A product is something tangible (physical) or intangible that can be produced and distributed. However, this is still a very broad definition. To narrow it down, I like to say that a product is any solution made available to the market in order to meet a need or pain point of a specific group of consumers.
Digital product: This is a subset of products designed for digital delivery. Here are a few examples: software, apps, training programs, recorded content, online sales channels (e-commerce), among others.
Software: Software is one type of digital product, designed to solve consumer problems in a practical way (like digitizing documents or spreadsheets). In the community, even though everything is technically software, we typically refer to software as the programs installed on our devices (browsers, productivity tools, etc.).
System: While also considered software, a system involves a series of programs and channels working together to solve a common issue. These are usually accessed via a browser and can manage complex operations, such as controlling all the options in a bank account (online banking) or tracking the entire lifecycle of a customer (CRM).
Now that we’ve established the basics and aligned our understanding, let’s dive into the importance of digital products like software and systems (though other digital products also follow the same logic). All of them are born from the need to solve a problem, whatever that may be. Let’s look at two examples of digital products to better illustrate this concept.
Spotify
Familiar to our ears, Spotify emerged in response to a major pain point in the early 2000s: buying music CDs was becoming increasingly expensive, and audio solutions at the time required users to download music (which could take at least 30 seconds) before playing it. Spotify’s proposal was to offer a software platform that housed all the music in the world and, instead of downloading a full file, would deliver segments of songs while downloading others in the background (streaming). In this way, the platform met the needs of consumers, no more waiting, and record labels, which could still retain rights and control over their content.
Uber
Uber, on the other hand, set out to solve the problem of having to physically go to a taxi stand to get private transportation. It connected passengers and drivers directly, eliminating the need for a fixed point of contact. This democratized access for drivers, who previously had to be certified or affiliated with companies, and dramatically improved the availability of transportation for end customers.
It seems simple, but it’s not!
So, is it enough to solve a clear pain point using a good programming language, or by purchasing a solid market platform or white-label solution (generic platforms that provide a specific service to multiple clients, usually allowing customization to reflect a bit of the customer’s brand, like Wix, Shopify, VTEX, among others) in order to meet my needs, distribute it to customers, and have an excellent digital product? No!
That’s the starting point, but if we don’t prioritize the foundational pillars and structure our solution around them, our digital product will likely be short-lived and fail to engage our customer base. The effort to keep the product running might become so exhausting that our resilience to maintain it runs out, and that’s when many companies and entrepreneurs end up abandoning their products.
That’s why, based on my perspective and our experience at Verzel and Devaria, I’d like to share the three key pillars that are essential to keep any digital product from dying on the shore:
1. Clear Objective
The main common trait of any successful digital product is having a clear and well-defined objective. When that happens, the product team, the sales team, the client, and even the general audience all understand what the product is about, making it far more effective for those who truly need it.
2. Operational Cost
This is where companies and teams most often fail: operational cost. It’s no good having a product that generates 100 million reais in revenue if it costs 102 million to maintain. That means a loss. It’s better to have a product that brings in 1 million and costs only 100 thousand.
3. Maintainability
The market evolves, and so should products. Having a product that cannot evolve along with the market means giving it a very short lifespan.
To sum up: everything depends on properly structuring the product from the very beginning so that future growth is built on solid ground. If we start with a clear objective, keep operational costs in mind, and ensure maintainability, there’s no reason the product can’t enjoy a healthy, and even profitable, lifecycle, as long as it genuinely solves a common problem.
Keep this in mind: a product must serve in order to be profitable. An excellent product that serves only a few people is far less powerful than an average product that’s built on these three pillars and meets the needs of many.
An excellent product that serves only a few people is far less powerful than an average product that’s built on these three pillars and meets the needs of many.
Focus on the pillars and on the concept of delivering value, and you will never be disappointed with your products. I sincerely hope that I’ve helped, even if just a little, to clarify some doubts and provide direction for those who are thinking about launching digital products.
I’m available to answer any questions, and I truly appreciate you taking the time to read this far.