How do you measure product performance (on based of COST/Time/Performance)?
Cost :
Take into account the costs associated with the production and upkeep of the product, which should include the costs of development, manufacturing, and continuing operational expenses. In order to establish whether or not the product is profitable, compare these costs to the money that it generates overall.
Time
Track how long it takes to develop and bring the product to market, as well as how quickly it can be updated or modified in response to customer feedback or changes in the market.
Performance
We need to test the product’s features and not-features, like how fast it works, how reliable it is, how well it can be scaled, and how happy the users are with it. For instance, an e-commerce platform can check how well it’s doing by keeping track of how long it takes for websites to load and how many people buy from them before and after making changes to the infrastructure.
Overall Impact:
We need to consider a combination of cost-effectiveness (cost), time-to-market (time), and customer satisfaction (performance) when evaluating overall impact on business success.
Formula to measure:
Product Cost = Development + Operational + Maintenance Costs Example: $100,000 Development Cost
Annual Operating Cost: $50,000
Annual Maintenance: $10,000
One-year product cost = $100,000 (Development) + $50,000 (Operational) + $10,000 (Maintenance).
The formula for time to market is: Conceptualization + Development + Testing + Launch.
Example:
Two months to conceptualise
Development: 6 months
Testing: 3 months
One month to launch
Times to Market = 2+6+3+1=12 months
3. Formula: Performance = (Output / Input) * Efficiency Factor
If a software processes 100 transactions per hour (Output) on a $50 server (Input) with an efficiency factor of 0.8, Performance = (100 transactions / $50). 0.8*1.6=1.6 transactions/dollar
Real-world situations require balancing these three factors. Shortening time to market may increase cost or lower performance. Focusing primarily on cost reduction may also effect product performance and development time.
