Every great product starts with a simple idea: solving a problem in a way that matters to people and businesses alike. But what exactly defines a product—and what doesn’t?
“Winning products come from the deep understanding of the user’s needs combined with an equally deep understanding of what’s just now possible.” ― Marty Cagan, Inspired: How To Create Products Customers Love
The Core Elements of a Product
A product is a solution that solves a meaningful problem for customers while driving measurable value for the business. It exists at the intersection of customer needs, business goals, and available technologies.
Products evolve continually, shaped by discovery, learning, and adaptation. Successful products go beyond outputs—they are outcomes, delivering real impact by addressing specific problems in innovative and effective ways. They are often built through iterative processes, balancing user feedback, strategic decisions, and creative problem-solving.
A great product delights users, aligns with organisational objectives, and remains flexible enough to grow and improve as needs and markets change.
Slack began as an internal tool for a gaming company but evolved into a product solving a widespread communication problem for teams. It integrates user needs, business goals, and innovative technology to create measurable impact. - How Slack Transformed From Gaming Failure to Billion Dollar Enterprise
At its core, a product is more than just what is built—it is how it delivers value, creates meaningful experiences, and achieves a shared vision.
Beyond Goods: How Services and Experiences Are Products, Too
A product isn’t limited to physical goods or digital tools—it also encompasses services. Services can be considered products when they deliver value and address customer needs through experiences or outcomes rather than tangible items.
Service-oriented solutions that behave like products:
- Netflix: A subscription-based digital service that disrupted physical DVD rentals by delivering value through a seamless streaming experience.
- Amazon Web Services (AWS): Offers cloud computing as a productised service, enabling businesses to scale without managing physical servers.
Whether it’s a subscription-based model, a consulting offering, or an on-demand service, these solutions solve problems and create impact in much the same way as traditional products.
Like physical and digital products, services require thoughtful design, continuous iteration, and strategic alignment with customer and business objectives to succeed.
As we broaden the definition of products to include services, it’s also important to consider how products often combine elements to deliver even greater value.
Composite Products: Building Solutions Through Integration
A product can be made up of other products. Many successful products are composites, integrating multiple components or services to deliver a cohesive solution. For instance, a smartphone combines hardware components like a screen, processor, and camera with software products like an operating system and apps to create a seamless user experience.
Similarly, service bundles or platforms often integrate various standalone offerings to provide greater value as a unified product. This modular approach enables flexibility, scalability, and the ability to adapt to evolving customer needs by leveraging existing products as building blocks.
What Doesn’t Qualify as a Product? Defining the Boundaries
Not everything is a product. While many things can be considered products—physical goods, digital tools, services, or even experiences—something must deliver value, solve a problem, or meet a need to qualify as a product. Products are intentionally designed or curated to serve a specific purpose for a target audience.
For example, a raw material like timber isn’t inherently a product until it’s processed and positioned for a use, such as construction or furniture-making. Similarly, ideas, emotions, or abstract concepts are not products unless they are structured, packaged, and offered in a way that creates value for others—such as in art, media, or consulting services. Therefore, while many things have the potential to become products, the defining characteristic lies in their ability to deliver purposeful value.
Final Thoughts
At its core, a product is about creating value—whether through goods, services, or experiences. By solving meaningful problems, aligning with business goals, and staying adaptable, great products make a lasting impact. Whether you're building software, hardware, or services, the principles remain the same: focus on outcomes, listen to users, and continuously evolve.