The Compass of Direction and Evaluating New Ideas

Reflections from an AI Product Management Course

In the middle of the product-building journey, new ideas emerge. They may spring from the team’s insights or appear on the horizon as promising opportunities. But not every idea is worth pursuing. How do we distinguish between ideas that deserve a pause and reflection—and those that might hinder progress?

Ignoring valuable ideas can lead to missed opportunities, while adopting poorly thought-out ones wastes time and resources. So, what’s the solution?

The course offered a clear answer: Evaluate any new idea using three essential criteria to determine its true value.

Let’s walk through these criteria:

1. Market Need

• Is there a real problem this idea helps solve?
• Is there a target audience waiting for it?
• Does it address an existing problem or fulfill an unmet need?

2. Feasibility

• Is the idea technically and practically doable?
• Do we have the resources and capabilities to implement it?
• Is the cost of implementation reasonable?
• Do we have the right tools and expertise?

3. Business Viability

• Is there a real opportunity to generate revenue?
• Will it attract customers?
• Does it align with the company’s goals?

Evaluation Tools

• Market Analysis: Understand customer needs and preferences.
• Prioritization: Focus on ideas that align with company goals.
• Internal Capability Assessment: What can we realistically deliver as an organization?

Key Questions to Ask

• Is there genuine interest in the idea? (If not, it’s likely not worth pursuing.)
• Does it solve a customer problem?
• Can we execute it successfully? (Do we have the tools, skills, and time?)
• Is this the right time? (Is the market ready?)
• Does it align with our strategic goals?
• What is the expected return on investment (ROI)?
• Does it help differentiate us from competitors?

The Importance of Balance

It’s essential to look at the full picture—not just one side of it.

Balanced Scorecard:

• Financial Perspective: Will it be profitable?
• Customer Perspective: Do customers actually need it?
• Team Perspective: Can our team build it?
• Operational Perspective: Do we have an effective development process?

The Compass I Found

This part of the course might be my favorite so far. Those who know me well may guess why—ideas are always knocking on my door.

It wasn’t just a lesson. It was a discovery. A discovery of the compass that guides me—a tool I return to whenever a new idea comes to mind.

Also Read: Part One of This Series