Projects and Products – what is the difference and how you can’t have one without the other

A project is unique in that it is not a routine operation, but a specific set of operations designed to accomplish a singular goal.

A product, on the other hand, is a tangible or intangible item that is created as a result of a project or process, to meet customer or business needs. It can be a physical item, such as a piece of equipment or a building, or it can be a service, such as consulting or training. Products can also be digital, such as a software application or an e-book.

Here is a quick summary:

Why do we have both projects and products …

While a project is more temporary, a product is a permanent deliverable. The product is the outcome of a project or projects, and it will be used and/or consumed after the project ends.

You can’t have one without the other. A product is the end goal of a project, the project is the means by which the product is created. Without a project, there would be no product, and without a product, there would be no need for a project. A project is a means to an end, while a product is the end goal.

While projects focus on the outcome and the fixed constraints (cost, time, resources) available to achieve them, products need to focus on crafting a sustainable environment that allows the development of a high-quality outcome regardless of what it is.

A Product is a vehicle for an organization’s vision/strategy, a project can be one of the many steps taken in the making of a product or sometimes, just unrelated/complementary to the Product.

… let’s think in terms of an example …

Products are similar to a baby, once they are born/launched they need constant care, resources, and growth/learning opportunities. Products focus on creating value/outcomes for all stakeholders, especially consumers to solve their needs. There is no fixed end-of-life, it happens when a product is consciously retired and no longer addresses any consumer needs.

Projects are focused on outputs that flow from business mandates and may or may not add any specific value to the consumers. They are like a one-time life event such as a graduation ceremony, that has a start and end date.

Here is a short comparison between Products and Projects:

So, a project is a way of executing a product idea. In practical terms, with a project you need to understand a lot of things before you start (what time, money and people you have available, the expected quality and all the other constraints and drivers across the project execution). These all need to be outlined in the scope. A project is super focused on execution – if you deliver late or over budget, it’s usually not a success even if your story tells otherwise.

Unlike projects, which are about the result, products are about the journey. With a product you never know when each lifecycle stage will end – for example when you’ll move from experimenting to growth. Even if everything seems predictable in the maturity phase, you don’t know when there’ll be disruption. You can’t control the product lifecycle; all you can do is try to prepare for change.

What does this mean in terms of software development …

The product development process is typically divided into several phases, such as the conceptualization phase, the design phase, the prototype phase, the testing phase, and the production phase. Each of these phases is a project on its own, and they all contribute to the final product.

Projects are used in software product development for several reasons:

To manage the complexity of software development by breaking the work down into smaller, more manageable tasks
To organize the work and resources needed to complete the tasks
To set specific goals and objectives for the product, and measure progress towards those goals
To manage and mitigate risks associated with software development
To provide a framework for communication and collaboration among team members
To ensure that the final product meets the needs of the users and stakeholders.

For example, creating a new software application involves several projects, such as the research and development project, the design project, the coding and testing project, and the deployment and maintenance project. Each of these projects has its own specific goals, timelines, and budgets, and they all contribute to the final product – the software application.

In other words, a product is the result of a series of projects, each with its own specific goals, timelines, and budgets. These projects are typically interrelated and dependent on each other, and they all contribute to the final product.

This means we need both projects and products in software development because they serve different purposes. Projects provide a structured and organized approach for developing software, while products provide value to the user. Without projects, there would be no structured approach for developing software, and without products, there would be no value for the user.

How do these differences impact or influence risk …

The level of uncertainty embraced ultimately affects the relationship with risk and this is a major difference between products and projects.

When executing a project, risk is part of project management. For every risk, a decision needs to be made as to whether you accept it or mitigate it. This is possible because within a project you have your constraints and landscape mapped out for you. Risk is a constant for projects, you have the same risks throughout the project timeline, although in a good project the risk will decrease as you get closer to project delivery. Project execution is all about managing risk with the assumption that if you can control all risks everything will go smoothly.

With a product you must embrace risk, be aware of your surroundings and make decisions on the go, with everyone in the team accountable for different risks depending on their role. Risk changes a lot throughout the product process, and you must be ready to pivot on the fly. In a product the risk is constantly high because your product is affected by external factors that you have no control over. For example, when a new competitor releases a better, cheaper product.

Parting sentiment …

In software development, projects are used as a means to deliver the objectives of a product. A product is a solution that addresses a specific problem or need for the end-user. The objectives of the product define what it is supposed to do and what value it is supposed to provide.

A project is a temporary endeavour with a specific goal, and it is used to plan, organize, and manage the resources needed to achieve that goal. In software development, the goal of the project is to deliver the objectives of the product.

The project objectives are derived from the product objectives, and they are used to guide the development process. The project objectives define the specific tasks and deliverables that need to be completed in order to deliver the product.

For example, if the product objective is to create a new mobile application that allows users to track their daily fitness activities, the project objectives could include:

Design and develop the user interface
Implement the data storage and retrieval functionality
Test the application on multiple mobile platforms
Integrate with third-party fitness tracking devices
Release the application to the app store

In this way, we can say that the project objectives support and deliver the product objectives, by providing a structured approach to deliver a solution that addresses the problem or need of the end-user.

Informal resource/reference list:

Projects and Products – what is the difference and how you can’t have one without the other

Here is a short comparison between Products and Projects:

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