A process model for initial product strategy development for B2B SaaS : supporting productization with state-of-the-art product management

Abstract

The novel part of this study is a process model for initial product strategy development for B2B SaaS that supports companies productizing their customer-specific software. The study follows the design science research approach by Johannesson and Perjons (2021) and aspires to contribute to both theory and practice by providing prescriptive design knowledge to product managers in charge of productizing customer-specific systems into B2B SaaS. The process model describes the key questions, tools and step-by-step instructions for each of its 6 phases. The process model was demonstrated at a Finnish B2B software company, and led to a detailed product strategy that created a shared understanding of the product. The strategy was approved by the company and will guide further product development. The model was commended by the management as a well-thought-out, well-arranged, and professional take on the process. The study found that the B2B SaaS context of the product influences the product strategy at least in the delivery model, tailorability, pricing, legal, and performance management aspects. The productization context influences at least the positioning and product definition, pricing, sourcing, and financial management elements. The linear structure of the model has been pointed out as a limitation to its generalizability. The study suggests a possible future variation of the model emphasizing the iterative nature of new product development. The study calls for further development and testing of the process model, and continuous refinement of its phases. In the sphere of pricing and financial management, a cross-disciplinary study with scholars of management and finance can further advance the process model. A comprehensive toolkit for product strategy development can also be created.