One of the biggest reasons for product failure is that too many companies come up with an idea of a product and, assuming they know what is best, immediately start to build it … usually from inside a conference room.
The product building process is typically a very internal and insular process that many companies do under the cloak of darkness and behind closed doors. There is a predominance of hubris and a strong belief that if we build it, and market it, they will come. This is a cultural issue that has to be addressed.
The reason why being in a conference room creates risk is you are only accessing the knowledge in the room. While there is great knowledge amongst the people gathered it is usually a small percentage of what you need to build a successful product.
The first thing you need to do is assess if there is a business fit by talking to key individuals from other teams. You have to ask hard questions and dig for constructive answers. Does it align with business goals? Are there sufficient resources to build and support the product? This, and much more, needs to be reviewed thoroughly and discussed critically.
Then you have to leave not only the conference room but also the building. Go observe customers (in the wild!). You’ll be amazed by what you learn from the very people you are thinking of selling your product to. When customers are left out of the equation, product failure is the result.
I leave you with this: A product shouldn’t be internally determined; it should be externally inspired.