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Product Management

Enterprise Product Management: 5 Struggles Of Big Product Teams and Their Solutions

5 Sep 20225 mins read
Malte Scholz
Enterprise Product Management: 5 Struggles Of Big Product Teams and Their Solutions
By Malte Scholz
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The role of product manager is both highly rewarding and really quite complex. Not only are there general challenges that all product managers face — prioritization, in some companies tight deadlines, technical issues — but in addition to that, each product team comes with unique challenges that require unique solutions.

Take enterprise product teams, for example. Unless you’ve worked as an enterprise product manager or been part of an enterprise product team, you might not understand the day-to-day challenges that developing an enterprise product can present.

In this post, we're going to explore these challenges — and share our best practices to help you overcome them.

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What is an enterprise product manager?

Before we get too far into that, however, let's look at what a product manager is so that we can better understand why these challenges can hit so hard. 

Generally speaking, an enterprise product manager is a PM developing a product for which large enterprise businesses of 1000+ employees are the end user. You might also hear an enterprise PM described as a product manager within a large business, but this is less common. 

When a product manager is developing an enterprise product — aimed at enterprise users — they have all the same responsibilities as other PMs, but with a twist. While enterprise PMs also research their market, prioritize features, manage resources, and more, they do so while serving any number of different stakeholders. An enterprise product might be used by several different departments within the business, or it might be required to perform super-specific functions at scale.

So now that we’re starting to see just how complex that can be, let’s look at five challenges of enterprise product teams in more detail.

Enterprise PM

5 challenges of enterprise product teams

Below is a breakdown of the various challenges that product managers and their teams face. While there are a lot, each of these challenges can be approached with a strategic and sustainable solution. 

A large number of stakeholders

One of the key challenges that enterprise product teams face is having a large number of stakeholders. While this can be said for all PMs, it’s particularly true in an enterprise environment for the reasons we outlined above.

Enterprise product teams have to understand, cater for, and balance the needs and wants of a range of different users within the customer’s organization. While a product manager developing a b2c product — let’s say a map app, for example — may have one particular ‘job’ they are helping users achieve, enterprise PMs might be building software that encompasses multiple user journeys and buyer personas

If the product team is also involved in product marketing, they’ll need to understand how to appeal to the gatekeepers (C-Level, procurement, etc) who will purchase the product as well. 

Big-ticket clients

Large enterprise customers tend to come with strict needs and several demands. 

When working with these big-ticket clients, there is a level of pressure (sometimes unspoken) to say yes to every request. Otherwise, there is the fear of losing the client. This concern can lead to even more pressure being put on you and your enterprise product team, creating more complications around how to move forward. 

Lack of agility

During the development of a product, the ability to make changes and adapt is key. It allows you to take in and respond to feedback, solve unexpected problems, and refine your product even up to the later stages of development

The issue is, when working in an enterprise environment, your agility is usually pretty limited. Like a large oil tanker, enterprise businesses are slow to make adjustments. And the larger the adjustment, the longer it will take to implement. 

This means that you'll need to look as far ahead as accurately and as much as possible. Otherwise, you could end up with serious problems that are very difficult to correct.

Enterprise PM

Market validation can be slow

Market validation is a crucial part of the product development process. It lets you and your team know if you're on the right track at various stages of development. This in turn clues you into changes that you need to make, which as we just discussed, is very important, especially in an enterprise setting. 

The challenge with developing an enterprise product, though, is that market validation can be slow. There is usually a lengthy process to put an early product in a user’s hands, as there is a lot of internal approval that needs to take place. 

With all the tight deadlines and high-pressure demands your team can receive, the extra time that market validation takes can seriously add up. 

Aggressive timelines

Another challenge that enterprise product teams typically face is aggressive deadlines. And as you may have rightly predicted, this compounds every single one of the challenges we've mentioned thus far. 

Harsh deadlines limit your agility, give you less preparation time, and can, in general, lead to unsuccessful product development cycles. It's up to your team to learn to work under the pressure, learn from past mistakes, and sidesteps potential pitfalls at every turn. 

How to succeed as an enterprise product team

Now that we've covered most of the challenges enterprise product teams and product managers are likely to face, let's look at a few ways that you can overcome these challenges. By implementing these strategies, you can better prevent the challenges described above and mitigate their effects. 

Prioritize the needs of several personas

First, enterprise PMs can work to prioritize the needs of several personas at once. Rather than leading with one persona, it's best to aim for a broader variety when working with enterprise-scale products. 

What does your product need to do to support multiple user roles? Which departments will use your product most often and what are their absolute essential needs? 

How will you appeal to the gatekeeper or buyer? What do they need to know your product can do in order to pay for the software?

Balancing these (sometimes contradictory) motivations can be challenging, but prioritization frameworks can really help.

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Learn how to prioritize by making it a simple process, to build products that stand out. Learn more about how to source insight, choose the right prioritization framework and much more.

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Consider a direct selling strategy to focus your development efforts

By trying to do everything with your product, you risk truly delivering on nothing.

In an attempt to serve everyone’s needs and say ‘yes’ to the demands of each big-ticket client, you could end up with a product that’s bloated with features and unpleasant to use.

One solution could be to adopt a direct selling strategy; making your product(s) available via subscription or through individual licenses. By reaching out directly to potential enterprise customers and asking them what they need your product to do, you can co-create software that does what it has to for the people who are willing to buy.

Enterprise PM

Take advantage of cross-functional collaboration

Speaking of which, our third tip for enterprise product teams is to take advantage of cross-functional collaboration. That means working closely with all of the stakeholders and teams working to bring your product to life. Collaborate with your marketers, developers, stakeholders, and testers as often as you can.

It's the best way to mitigate the potential effects of slow market validation and lack of agility.

Learn all there is to know about product management challenges 

For more in-depth learning and insights on overcoming product management challenges with product management best practices, request a copy of airfocus’s How To Succeed as a Modern Product Manager guide or eBook called All You Need To Know About Product Management.

It covers everything product managers need to know to succeed with enterprise products and pressures. So grab your copy today.

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