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Product Commercial Decision

Does offering more choice always create more value?
Product commercial decisions determine which products and configurations customers can buy in each market, balancing demand, margin and complexity.

Which products and configurations should we offer, in which markets and on what terms?

  • Prepare

    • Understand customer needs and demand in each market

    • Assess which products and configurations can be offered

    • Compare expected sales, pricing, cost and margin

    • Assess market requirements and readiness to sell and deliver

    • Understand the commercial impact of offering more or fewer options

  • Make

    • In which markets should we launch?

    • When should each market launch take place?

    • Which products, variants and options should we offer?

    • Which configurations should be commercially available?

    • At what price and under which commercial conditions?

    • Is the offering ready for commercial launch?

  • Execute

    • Release the approved offering to sales channels

    • Implement configuration and pricing rules

    • Enable ordering and delivery in selected markets

    • Communicate the offering to sales teams and customers

    • Launch according to the approved market plan

  • Measure

    • Are revenue and gross margin meeting the approved business case?

    • Are pricing decisions delivering the expected profitability?

    • Which markets and configurations generate the most value?

    • Which options create complexity without sufficient revenue or margin?

    • Is the commercial launch generating the expected return?

    • Is the mix of products and configurations improving profitability?

  • Related standard and lifecycle processes

    • ISO/IEC/IEEE 15288: Business or Mission Analysis; Stakeholder Needs and Requirements Definition; Decision Management; Transition; Measurement

    • ISO 9001: Requirements for Products and Services; Customer Communication; Review of Requirements; Release of Products and Services

    • ISO 10007: Configuration Identification; Change Control; Configuration Status Accounting

Example

Market-specific Product Offering

Prepare: How do demand, expected margin, configuration complexity and the ability to deliver compare across the available options?
Make: Which configurations should we offer in each market, and at what price?
Execute: Make the approved configurations selectable, orderable, manufacturable and deliverable through the relevant sales channels.
Measure: Which configurations sell at the expected margin, and which add complexity without sufficient demand?

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