---
title: You Must “Own the Product” for Long-term Success
description: Maintaining product ownership is all about decision making. Learn how to make the big decisions necessary to ensure your future success.
---

[Strategic Transformation Blog ](https://www.thinkingdimensions.com/blog/strategy)

# [You Must “Own the Product” for Long-term Success](https://www.thinkingdimensions.com/blog/strategy/you-must-own-the-product-for-long-term-success)

 Written by [Scott Newton](https://www.thinkingdimensions.com/blog/strategy/author/scott-newton) | 4/21/16 10:30 PM

Yesterday I was fortunate enough to spend the day working with one of our longest-term clients, who has been successful many times in creating long-term shareholder value. As we were driving down the highway after a meeting, he made a very insightful comment: **“To be successful, you must own the product.”**

What does “own the product” mean? Owning the product is a shorthand way to describe five elements:

    1. Understand why a customer buys from you  
    2. Understand what elements of a product and/or service a customer will pay a premium for  
    3. Understand which customers are strategically critical to your future success  
    4. Possess or control the capabilities necessary to develop the product and/or service  
    5. Possess or control the technical know-how and skills necessary to produce and deliver the product and/or service on time and budget

While outsourcing and third-party production/OEM systems are an excellent strategic alternative that should not be discounted, what we see in many companies today is that distancing the executives from the customer creates what I call “risk gaps.”

Risk gaps exist when the company no longer possesses the necessary technical know-how or skills to innovate at a faster rate than the competitor. While it is certainly logical in many situations to rely on third-party producers and suppliers, the technical know-how to develop new and better products and services needs to remain within the organization: that is how value is created.

Over the next few postings I will share with you how to close risk gaps and ensure that your organization retains control and develops the next-level innovative thinking necessary to remain in the above-average, higher profitability quadrants for your industry. **Closing risk gaps and maintaining product ownership is all about decision making: taking the big decisions necessary to ensure your future success.**

One question you can ask your management team today is: “**Which product categories do we need to own?**”

[Read on: What are your customers thinking? What can you do?](https://www.thinkingdimensions.com/resources/blog/strategy/what-are-your-customers-thinking-and-what-can-you-do)

 

[View full post](https://www.thinkingdimensions.com/blog/strategy/you-must-own-the-product-for-long-term-success)

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