The markets for individual products and even entire product lines can change much faster than the business entity they belong to. When this occurs, the difference in change rates can cause the product line to perform below its potential. This causes the business as a whole to suffer in terms of financial losses and of organizational disarray as multiple parties discuss how best to respond.
I am not advocating that the product management function of an organization attempt to change their company’s business model. Business-level changes have to be made high in the organization with all pertinent business functions consenting.
Successful product managers learn the market, products, and competition and then define, develop, and launch the best product for the application. When these market-driven product requirements (the product strategy or “the what”) conflict with the businesses tactics (how things are done), the product manager is the one who will see it first and whose business will be most affected.
To improve results, product management should initiate business-wide discussions to resolve this misalignment between the business and the market.