Funding Internal Products
Funding Internal Products involves the strategic allocation of financial resources to internal teams that support the core business functions and streamline interactions between Stream teams and traditional departments.
Goal
The goal is to ensure these internal teams are well-resourced and that they are funded with the expectation that the internal departments will operate like a product team, with a focus on customer needs and product quality.
Context
A Stream Team cannot operate in isolation; it relies on various internal departments and services to function effectively. These internal departments are often monopolies within the organisation, providing essential services that Stream Teams rely on. However, monopolies are not known for their efficiency or customer focus. By creating dedicated internal product teams, organisations can set the expectation that the internal departments will operate like a product team, with a focus on customer needs and product quality.
Ecosystem teams treat funding like a VC fund, allocating resources to internal product teams based on the potential return on investment. They acknowledge that a lot of products will fail but by funding a portfolio of internal products they can ensure that the overall ecosystem is more efficient and effective.
Internal Team Types
| Type | Description | Examples |
|---|---|---|
| Traditional Departments | Internal departments that provide services to Stream teams. |
|
| Platform Teams | Internal teams that develop and maintain products used by multiple Stream teams |
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Inputs
| Artifact | Description |
|---|---|
| Ecosystem Strategy | A high-level plan for achieving the ecosystem vision within the next 1-3 years. |
| 6-Pager | A concise document outlining a project or proposal, including background, problem statement, solution, and next steps. |
| Press Release and FAQs | A press release format highlighting the benefits to customers and answering the key questions related to the product, how it will work and how to overcome potential challenges. |
Outputs
| Artifact | Description | Benefits |
|---|---|---|
| Internal Product Budget | The financial resources allocated to the internal product team for development and operations. | Ensures the internal product team has the necessary resources for development and growth. |
| Product Manager | The single-threaded leader who will be responsible for building and managing the internal product team. | Ensures clear accountability and ownership for the internal product team. |
Anti-patterns
- Siloed Budgeting: Treating internal product teams as isolated units without considering their impact on the overall product ecosystem.
- Overemphasis on Cost-Cutting: Prioritising budget cuts over the effective functioning of support teams, potentially undermining their ability to serve product teams.
- Lack of Strategic Alignment: Allocating funds without a clear understanding of strategic priorities and needs of product teams.