Explore the intricate relationship between finance and product management, unravel the role of product management in finance, and why financial acumen is crucial for product managers.
What is the relationship of finance and product management?
Finance is the area that will allow product managers to understand if the product they manage is a good product for the company; that is if the return on the product is bigger than its costs. Of course, you and product marketing will keep track of your product revenue daily, but the costs aren’t as simple to track.
What is the role of product management in finance?
A finance product manager defines the terms of distribution and sales agreements. They also help these partners create distribution plans. Similarly, a finance product manager often connects directly with market analysts and, depending on the product type, key existing and potential clients.
Do product managers need to know finance?
The financial inputs and outputs of their products. The finance team allocates expenses to product lines, and product managers need to know which ones. If there is under/over allocation of indirect costs like HR, IT, and G&A, the profitability of a product can be distorted.
What is most important for product management?
Importance of product management This includes market research, figuring out what customers want, setting product strategy, making product roadmaps, and working with cross-functional teams to get the product to market. Product managers launch new user experiences.