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Glossary

Product Management

Explore the core principles and practices of product management. From product-process matrix to program management, enhance your skills for successful product delivery.

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A Product in Product Management

A product in product management is the result of work produced by a management team. It offers clients an innovative item or service with unique features. A product can be organized into different categories depending on its functions and purpose.

AARRR Framework

AARRR stands for Acquisition, Activation, Retention, Referral and Revenue. Bringing these metrics together in the AARRR framework helps start-ups to grow and scale.

AI Product Manager

AI Product Managers are responsible for managing AI-based projects.

Agile Product Management

Agile product management is a style of project management that involves incremental progress and adaptive strategies. It allows the vision for a product to evolve as the product is developed and launched.

Amplitude

Amplitude is a product intelligence app that gives companies greater insights into the relationship between their customers and their product. This allows businesses to make data-driven decisions, to improve their marketing, and their customer retention.

Assumption Matrix

What is an Assumption Matrix? Definition, Tips and FAQs

B

Bill of Materials (BOM)

A bill of materials is an exhaustive list of the components, parts, and raw materials required for manufacturing a product.

Bubble Sort

Bubble sort is a beginner's algorithm in programming that can be used throughout your career. It sorts data from high to low (or low to high) by comparing each element to the one that comes after it.

Business Intelligence (BI)

Business Intelligence refers to the uncovering, interpreting and application of relevant data and information to help businesses make better decisions.

Business Model Canvas

A short summary containing strategic details of the requirements to get a product to the marketplace.

Business Transformation

Business transformation is the process of redesigning, restructuring, or expanding a business to adapt to relevant internal or external changes.

Business-to-Business (B2B)

Business to business is a transactional model that describes companies who sell products or services to other companies.

Business-to-Consumer (B2C)

Business-to-consumer is the most popular commerce model in the business world. It is used to refer to companies that sell products or services directly to individual consumers.

Buy-a-Feature

Buy-a-Feature is a gamified approach to prioritizing a product’s development. Teams work directly with a group of customers or stakeholders to learn which features they value most as a collective.

C

CIO vs CTO

A CIO or Chief Information Officer is internally focused on the company and technology infrastructure, whereas a CTO or Chief Technology Officer is externally focused on customers and technical products.

CRC cards

CRC cards are visual tools used to brainstorm and better understand the role a software product can play for a certain group (“class”) and how it can allow them to perform jobs (“responsibilities”) with other members of their team (“collaborators”)

Cannibalization

Product cannibalization is when a company has several products that compete with one another within the same market.

Captive Product Pricing

When pricing captive products, businesses usually follow a twofold strategy that combines a lower price for the core product with a higher price for accessories or replaceable items.

Cash Flow

Cash flow shows how much cash is moving in and out of your business every month. As they say: “Cash is King”. So being aware of your cash flow is crucial to the running of a successful business.

Cash Flow Budget

Often referred to as a cash budget or a cash flow, the cash flow budget allows a company to keep on top of cash income and outgoings over time.

Change Management

A methodical approach to aiding staff covert from one system or process to another.

Channels of Distribution

Channels of Distribution (or a distribution channel) are channels of businesses or intermediaries which a product or service travels through before reaching the final customer.

Chief Product Officer in Business

In business, Chief Product Officer, or CPO, is the title given to the executive team member who is responsible for leading the entire product organization.

Context Diagram

A context diagram is a visual overview of how a product interacts with relevant external entities like organizations and systems.

Cost Of Goods Sold (COGS)

The Cost of Goods Sold (COGS) is how much it costs to produce a finished product for the market. Put simply: it is the cost of making the goods a company sells, including the cost of materials, production time and labor.

Cost of Sales

Cost of sales (also known as cost of goods sold) refers to the cost required to manufacture or purchase a product that is then sold to a customer.

Customer Development

A framework that assesses whether or not the product fulfills the customer’s needs.

Customer Journey Map

A customer journey map outlines each step, across all touchpoints, that a user takes to interact with or buy from your product, service or brand. Customer journey maps can increase empathy with users and reveal areas for added value.

Customer-Driven Product Management

Customer-Driven Product Management refers to the process of letting customers’ needs, preferences, and pain points guide the development of a given product.

D

DACI Decision-Making Framework

The DACI Decision-Making Framework is a model designed to make group decision making faster and more effective by assigning specific roles to team members. These roles establish clear responsibilities and help avoid unhealthy disagreements.

Data Product Manager

A data product manager is an emerging role in product development. A data PM is responsible for championing data-driven insights in design, and actively leveraging the flow of data, too.

Definition of Ready

In the Scrum agile framework, the definition of ready (DoR) marks the completeness of preliminary actions for a task or project to be processed.

Dependency

A dependency describes the relationship among activities and specifies the particular order in which they need to be performed.

Design Concept

A design concept establishes the core idea of driving the design and development of a product. It outlines what a product is, who it’s for, and how it works.

Design Ops

Design ops applies to the process of organizing and optimizing a design team’s workflow, structure, and processes to maximize its value to a company as a whole.

Design Thinking

Design Thinking is a user-centric approach to innovation and problem solving. Focused on empathizing with users, Design Thinking is concerned with developing meaningful products that keep users’ genuine wants and needs at heart.

Digital Product Management

Digital product management is the process of bringing digital products from idea to market.

Digital Transformation

Digital transformation refers to the integration of digital technology into all areas of a business to redesign processes and products for the digital age.

Director of Product

As the name suggests, a Director of Product is the person who leads and oversees the complete product development lifecycle, guiding others and ensuring the product is delivered on-spec and on time.

Disruptive Innovation

Disruptive Innovation refers to a product or solution that establishes a new market, business model, or industry (ultimately, “disrupting” those that already exist).

Distribution Models

A distribution model shows how products go from manufacturer to retailers and include every step along that path.

Divergent Thinking

Learn what divergent thinking means, how it helps product teams generate better ideas, and when to use it during discovery, feedback analysis and roadmap planning.

Documentation

This is the explanatory details relating to either the products or processes.

E

Enterprise Architecture

Enterprise architecture is a practice wherein a business makes decisions on how to handle various scenarios, typically disruptive ones. This enables businesses to quickly respond to critical situations with an informed and effective approach.

Enterprise Technology

Enterprise technology refers to any software or hardware used to perform or aid in completing tasks and workflows at a company. This includes familiar examples like accounting software and extends to more complex solutions like business intelligence.

Epic

An epic refers to a grouping of user stories (or development tasks) which together make it possible to achieve a product theme. The theme > epic > story structure is a popular method in agile development.

F

Feature Audit

A feature audit provides businesses with a quick snapshot of their product's feature usage. Using a graph that plots customer activity on two axes, they outline how features are performing.

Feature Bloat

Feature bloat relates to products carrying excessive features, perhaps becoming overloaded to a point that core functions are impaired.

Feature Factory

A feature factory is a company that consistently comes out with new features for an existing product. This is a derogatory term, as it implies that the features are poorly implemented or simply not necessary, and only serve to prop up a mediocre product.

Feature Flags

Used within software product development to change and deliver programming code.

Features

Features are the defining attributes of a product that make it valuable to customers and distinguish it from the rest of the market.

Features, Advantages and Benefits (FAB) Analysis

A FAB analysis describes the features, advantages and benefits of a product, and how they work together to help differentiate a product within the market.

Front End (In a Website)

Learn how to collaborate on front-end product management to drive UX, adoption, and product outcomes — and how airfocus supports cross-functional alignment.

Fundamentally New Product

A fundamentally new product is a breakthrough that delivers functionality and a user experience unlike any other product currently available. This may hinge on the technology utilized, the business model, or both.

G

Gantt Chart

A Gantt chart visually displays how tasks spread over a timeline. This technique helps project managers successfully plan, coordinate and track all resources and efforts related to a specific project.

Gantt Chart vs Kanban

Gantt Chart vs. Kanban board — both are great tools to help you visualize projects, but how are they different, and which one should you use?

Gap Analysis

A gap analysis in product management allows PMs to determine the gap between actual and predicted results, as well as what’s causing those gaps.

Get Out of the Building

Instead of getting involved in sales or design, startups first need to “get out of the building” and meet potential customers to better understand their market.

Growth Product Management

Growth Product Management involves identifying opportunities to increase an existing product’s value and encourage greater adoption among target users. It does so by finding new ways to empower customers to solve problems.

H

Hard Skills

Hard skills are teachable abilities or skill sets that are required for a particular occupation. This could be a full understanding of the Adobe Suite, coding ability, SEO or bookkeeping.

I

IT Product Management

In information technology, product management consists of defining, conceiving, delivering, refining, and monitoring products in a market to achieve maximum business results.

Ideation

Ideation involves generating ideas through group brainstorming sessions, which may include sketching and roleplay.

Implicit Requirements

Implicit requirements are those features of a product or app which are so fundamental that they don’t need to be explicitly specified during development.

Information Flows in Product Management

In product management, info flow is the strategy of making sure that everyone working on a product is on the same page. PMs who use strong info flow tactics can avoid miscommunications, reduce emergency meetings, and ensure a smoother development process.

Internal Product Management

Internal product management involves various processes within the company. Employees of the company become the consumers of the internal product management. This process is designed to improve the company’s inside processes and increase the business value.

Intuitive

Intuitive design is that which is accessible, user friendly, familiar and — crucially — tailored to its core users. Research, data-driven design, and an in-depth understanding of user needs are key.

K

Key Performance Indicator (KPI)

A KPI, or Key Performance Indicator, is a measurable value which aligns directly to an overall goal or objective of the business. KPIs are used to evaluate how well a company and its employees are achieving their targets.

M

Method of Procedure (MOP)

Method of Procedure refers to a step-by-step project plan, guiding employees or teams to the completion of a specific task.

Mind Map

A mind map is a brainstorming tool which allows you to explore a central idea, and all of its related topics, in a non-linear way.

Mission Statement

A mission statement is a clear definition of a business, its goals, its ethos, its reasons for being and its primary customers.

N

Needfinding

Needfinding is the process of discovery prior to product development. Developed by Robert McKim at Stanford University in the 1970s, it focuses on customer needs rather than customer wants.

O

Operating Expenses

Operating expenses are costs that are incurred by the day-to-day operations of a business. For example, overheads (rent, utilities, office supplies) and payroll.

Operations Management

Operations management refers to the business field responsible for the administration of all practices in the business to optimize overall efficiency within a company.

Outputs vs. Outcomes

Outcomes are what a business needs to achieve. Outputs are the actions or items that contribute to achieving the outcome.

P

Payback Period

The payback period refers to the length of time a business expects to wait before the initial investments in a product or project are recovered.

Pendo

Pendo is a platform created for companies dealing with software development. It is designed to help them understand their customers more accurately.

Persona

A persona is an imaginary profile designed to represent the details of a set of end-users.

Pitching a Product

Pitching a product is the process of trying to get investment for a new product launch by selling it to potential investors. A sales pitch is designed to explain the product and how much investors are expected to make.

Pivot

Pivot is a strategy that is used to redirect the business objective of a project or product.

Platform Product Manager

A Platform Product Manager is responsible for the management of not just a single application, but an entire platform. Examples of these platforms include operating systems, operating environments, and web services.

Product Analytics

Product analytics is essential for developing a comprehensive understanding of how users engage with products. This feedback is often more accurate than other forms of user input as it tracks actual user behavior rather than relying on qualitative remarks.

Product Culture

Product culture refers to the philosophy behind a product’s development. Product culture covers concepts such as innovation, customer focus, and product management principles.

Product Description Sheet

A product description sheet defines the scope of a product in specific terms. The document is used during the planning phase to create a clear idea of what the final product should look like, and is then passed on to the development team for execution.

Product Design

Product design refers to the process of conceptualizing, creating, launching and improving upon a product that solves a user problem (while adding value to the business). Winter coats are an outcome of product design, as is the laptop computer.

Product Designer

A product designer (sometimes known as an experience designer, user interface designer, interaction designer, information architect, etc.) takes responsibility for a product’s overall user experience.

Product Development Lifecycle

The product development lifecycle is the series of stages that a product goes through, beginning with product development and ending with the obsoletion of that product.

Product Development Manager (Pdm)

A Product Development Manager (PDM) is responsible for researching, assessing, and coordinating the development of innovative and compelling new products. They also work on the development and improvement of existing products to better meet customer needs.

Product Development Process

A Product Development Process can be described as all of the stages that must be completed by a business in order to take a product from its idea germination through to the point at which it becomes available on the market.

Product Differentiation

Product differentiation is how a business distinguishes a service or product from others that are available in the same category.

Product Disruptor

A product disruptor is an innovation that adds new value to a business, by future-proofing against market threats, competitor rivalry or customer behavior change.

Product Enablement

Product enablement increases awareness and understanding of a business’s product(s) across the entire organization, with the aim of making each and every employee higher performing.

Product Excellence

Product excellence refers to a framework for developing a product or feature based on a deep understanding of user needs. Product excellence enables businesses to innovate more efficiently, enabling them to get the right products to market quickly.

Product Leadership

Product leadership refers to a cross-departmental approach to making an organization’s products a success. It is not one singular role but a collection of responsibilities shared by department leads, managers, and even C-suite employees.

Product Levels

Product levels provide a way to visualize customers' needs about a particular product. They can be psychological needs or core needs.

Product Line

A product line represents the products that a company creates using a single brand. All products in a product line share traits and are designed for the same target market.

Product Management Audit

A comprehensive assessment concerning the processes and strategy of an organisation’s product management.

Product Management Process

The product management process refers to the sum of strategies that concentrate on launching a new product or improving an already existing one.

Product Management Talent

Product Management Talent refers to a selection of candidates who have the skills and qualifications required to be successful in a particular product role.

Product Manager

A product manager is responsible for the success of a product. The product manager has profound knowledge on the developed product and everything that goes with it.

Product Marketing Manager

This is the person who’s chief objective is to broadcast the value of the product to the market.

Product Mix

A product mix is the complete set of products or services offered by a business.

Product Ops

Product ops, referring to product operations, supports a cross-functional product team to constantly ensure and improve their efficiency.

Product Owner (PO)

The product owner (PO) represents next to the ScrumMaster and the development team a key player in a Scrum team.

Product Positioning

Product positioning refers to the practice of presenting your product as unique in the marketplace and describing the benefits to your target audience. A product’s positioning will either attract target buyers or turn them away.

Product Principles

Product principles form the foundation for your products that helps guide development.

Product Release Manager

The Product Release Manager ensures a product release runs smoothly by coordinating various teams and setting schedules.

Product Spec

A product spec provides teams with critical information to guide them as they bring products to market, covering such contextual details as the target audience, user goals, and intended outcomes.

Product Stack

This refers to the tools that a product manager has at their disposal in order to get the product to the marketplace.

Product Tree

The Product Tree is a visual tool used by product managers to prioritize and manage product feature inputs from both customers and stakeholders.

Product Value

Product value is the core benefit a product delivers to its customers. It represents a product’s ability to meet customer needs and is a crucial driver for product design and pricing strategy.

Product portfolio management

This refers to the strategic administration of all the products owned by the organization.

Product-market Fit

Product-market fit refers to the way in which a brand’s product is capable of satisfying the current market, by supplying enough units of a high-enough quality to meet demand.

Program Management

The grouping together of multiple projects to meet a strategic objective.

Program Manager

A program manager’s essential objective is to reconcile multiple projects and teams by coordinating them and giving strategic guidance to the company’s project managers.

Project Manager

A project manager is responsible for the execution of a project from start to finish. A project manager is often the bridge between the team, deliverables and upper management.

R

R&D: Research and Development

R&D (Research and Development) is the first stage of the product lifecycle. During this phase, a product team will conceptualize and assess the viability of a new product to decide whether it is worth taking to market.

Rational Product Management

Rational Product Management is a product-development approach based on the rational development method. It provides managers with a framework for planning, iterative development, and ongoing quality control, to maximize a product’s value.

Return on Sales (ROS)

Return on Sales is a ratio businesses use to calculate their operational efficiency. As a result, they can identify where improvements are needed to reduce operating expenses and boost revenue.

S

Scope Creep

Scope creep describes the tendency for projects to gradually expand, and take on a different scope of activity or output than was initially planned.

Serviceable Available Market

Serviceable available market is the segment of a market that a business can capture in its current form. Calculating SAM reveals the extent of opportunity within a market.

Shipyard Engine

A shipyard engine is a tool used to help teams communicate while continuously updating a software product. It goes above typical VCS systems, forcing team members to justify the updates they ship and to notify other team members of their updates.

Six Thinking Hats

Learn how product leaders use the Six Thinking Hats framework to navigate complex discussions, align teams, and improve decision quality — powered by airfocus.

Soft Skills

Soft skills are personal attributes that enhance our ability to perform our professional roles. Problem-solving, communication, and emotional intelligence are some of the most sought after soft skills.

Stakeholder

This is a person or group who can influence the success of the product, or in contrast, be affected by the product.

T

Technical Debt

The accumulated later cost in the development of a project - in time and resources - of a mistake or technical decision.

Technical Product Manager (TPM)

Responsible for getting the product to market and its success or failure, and similar to a product manager but with more in-depth technical expertise.

The 4 Ds of Time Management

Learn how product leaders use the Four Ds of time management to focus teams, reduce noise, and deliver against strategy, with help from airfocus.

The First Source of Guidance

The first source of guidance when creating an improvement roadmap is noticing your old working strategies just aren’t effective anymore. Recognizing the need for change is the first step when making an improvement roadmap.

Theme in Product Management

A theme in product management is a simple way to convey a product’s value, comprising multiple features or initiatives which contribute to this overall objective.

U

Unique Selling Proposition (USP)

A unique selling point (USP) is the key reason a customer should choose your brand, product or service — it’s what separates you from your competition.

V

VP of product

The Vice President of Product supports an organization's Chief Technology Officer (CTO). The VP of product is responsible for leading the team to achieve strategic goals and initiatives by creating a product roadmap.

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Glossary

Product Management

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