In our previous post, we explored how the software development landscape is rapidly changing and why traditional methods are becoming less effective. Today, we’re diving deep into the concept of product engineering – a paradigm shift that’s reshaping how we approach software development.

What is Product Engineering?

At its core, product engineering is a holistic approach to software development that combines technical expertise with a deep understanding of user needs and business goals. It’s not just about writing code or delivering features; it’s about creating products that solve real problems and provide tangible value to users.

Product engineering teams are cross-functional, typically including software engineers, designers, product managers, and sometimes data scientists or other specialists. These teams work collaboratively, with each member bringing their unique perspective to the table.

The Purpose of Product Engineering

1. Innovating on Behalf of the Customer

The primary purpose of product engineering is to innovate on behalf of the customer. This means going beyond simply fulfilling feature requests or specifications. Instead, product engineers strive to deeply understand the problems customers face and develop innovative solutions – sometimes before customers even realize they need them.

For example, when Amazon introduced 1-Click ordering in 1999, they weren’t responding to a specific customer request. Instead, they identified a pain point in the online shopping experience (the tedious checkout process) and innovated a solution that dramatically improved user experience.

2. Building Uncompromisingly High-Quality Products

Teams are committed to building high-quality products that customers love to use. This goes beyond just ensuring that the code works correctly. It encompasses:

• Performance: Ensuring the product is fast and responsive
• Reliability: Building systems that are stable and dependable
• User Experience: Creating intuitive, enjoyable interfaces
• Scalability: Designing systems that can grow with user demand

Take Spotify as an example. Their product engineering teams don’t just focus on adding new features. They continually work on improving streaming quality, reducing latency, and enhancing the user interface – all elements that contribute to a high-quality product that keeps users coming back.

3. Driving the Business

While product engineering is customer-centric, it also plays a crucial role in driving business success. Engineers need to understand the business model and how their work contributes to key performance indicators (KPIs).

For instance, at Agoda, a travel booking platform, teams might focus on metrics like “Incremental Bookings per Day” in the booking funnel or “Activations” in the Accommodation Supply side. These metrics directly tie to business success while also reflecting improvements in the customer experience.

Key Principles of Product Engineering

1. Problem-Solving Over Feature Building

Teams focus on solving problems rather than just building features. Instead of working from a list of specifications, they start with a problem statement. For example, rather than “Build feature X to specification Y,” a product engineering team might tackle “We don’t have a good enough conversion rate on our booking funnel.”

This approach allows for more creative solutions and ensures that the team’s efforts are always aligned with real user needs and business goals.

2. Cross-Functional Collaboration

Teams are enabled with all the expertise needed to solve the problem at hand. This might include UX designers, security experts, or even legacy system specialists, depending on the project’s needs.

This cross-functional collaboration ensures that all aspects of the product – from its technical architecture to its user interface – are considered from the start, leading to more cohesive and effective solutions.

3. Ownership of Results

Teams take ownership of the results, not just the delivery of features. If a change doesn’t increase conversion rates or solve the intended problem, it’s up to the team to iterate and improve until they achieve the desired results.

This shift from being judged on feature delivery to business results can be challenging for engineers used to traditional methods. As one engineer put it, “It was easier before when I just had to deliver 22 story points. Now you expect me to deliver business results?” However, this ownership leads to more impactful work and a deeper sense of satisfaction when real improvements are achieved.

The Shift from Feature Factories to Problem-Solving Teams

Traditional software development often operates like a “feature factory.” Requirements come in, code goes out, and success is measured by how many features are delivered to specification. This approach can lead to bloated software with features that aren’t used or don’t provide real value, remember our 37% unused software? that’s how companies get to this number.

Product engineering turns this model on its head. Teams are given problems to solve rather than features to build. They have the autonomy to explore different solutions, run experiments, and iterate based on real-world feedback. Success is measured not by features delivered, but by problems solved and value created for users and the business.

Conclusion

Product engineering represents a fundamental shift in how we approach software development. By focusing on customer needs, maintaining a commitment to quality, and aligning closely with business goals, teams are able to create software that truly makes a difference.

In our next post, we’ll explore the mindset required for successful product engineering. We’ll discuss the concept of T-shaped professionals and the balance of technical skills with business acumen that characterizes great product engineers.

What’s your experience with product engineering? Have you seen this approach in action in your organization? Share your thoughts and experiences in the comments below!