The Four Steps to the Epiphany

T

HE 

P

RODUCT 

D

EVELOPMENT 

D

IAGRAM

 

Every company bringing a new product to market uses some form of Product Development Model. 

(Figure 1.1)   Emerging early in the twentieth century, this product-centric model described a 

process that evolved in manufacturing industries. It was adopted by the consumer packaged goods 

industry in the 1950s and spread to the technology business in the last quarter of the twentieth 

century. It has become an integral part of startup culture.  

At first glance, the diagram appears helpful and benign, illustrating the process of getting a new 

product into the hands of waiting customers.  Ironically, the model is a good fit  when launching a 

new product into an established, well-defined market where the basis of competition is understood, 

and its customers are known.  

The irony is that few startups fit these criteria. Few even know what their market is. Yet they 

persist in using the product development model not only to manage product development, but as a 

road map for finding customers and to time their sales launch and revenue plan. The model has 

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The Four Steps to the Epiphany   

become a catchall tool for every startup executive’s schedule, plan, and budget. Investors use the 

product development diagram to set and plan funding. Everyone involved uses a road map that was 

designed for a very different location, yet they are surprised when they end up lost.