A Comprehensive Guide to Conducting Competitive Analysis for Enterprise Products

Introduction

As a product manager in the realm of enterprise software, conducting competitive analysis can be a daunting but essential task. With the wealth of information available today, the process has become much easier compared to just a decade ago. In this guide, we will explore the evolution of competitive analysis techniques and provide practical advice on how to approach and execute a thorough competitive analysis for enterprise products.

The Evolution of Competitive Analysis

Back in the day, obtaining information on competitors was a tedious and often challenging process. Sales engineers, webinars, and internal knowledge dumps were the primary sources of information. The internet was far from comprehensive, and relevant documents were not easily accessible.

“Back in the day, you couldn’t easily download free trials or access documentation or get detailed information on products. We relied on sales engineers, webinars, and knowledge dumps from ex-competitors.”

Today, the landscape has dramatically changed. Content marketing and digital resources have made it easier than ever to gather competitive information. Vendors now create multiple forms of content such as blogs, videos, white papers, and architecture overviews. YouTube offers a plethora of third-party explanations and walkthroughs. Cloud-based products have also provided a treasure trove of information directly from the vendor’s website.

What to Collect and Why

Early in my product management career, I used to meticulously perform detailed feature-level competitive analyses. However, looking back, I realize that such granular analyses were often unnecessary and narrow-sighted.

“Competitive analysis is not about feature wars. It’s about differentiation, value delivered, and competitive positioning.”

Instead of focusing on features, it’s crucial to look at the bigger picture. Understanding the pain points and needs of your customers and prospects is key. As enterprise customers, decision-makers like VPs and CIOs are concerned about success, risk reduction, and overall value, not just product features. Here are some points to consider:

Success and implementation history: Statistics such as the number of successful implementations can be powerful. Customer satisfaction and adoption: Understanding how many people know and trust your product can be a significant advantage. Value proposition: Highlight how your product addresses critical needs beyond just features. Design, implementation, deployment, and maintenance: These factors are often more critical than individual features.

Key Considerations for Competitive Analysis

When conducting competitive analysis, it’s important to keep the perspective of the customer in mind. Think about the following aspects:

Success and Differentiation: How do you stand out in terms of implementation and customer satisfaction? Risk Reduction: How do your solutions address the risks and uncertainties faced by enterprise customers? Value Proposition: What unique value does your product bring to the table? Design and Implementation: How well is your product designed and implemented compared to competitors? Deployment and Maintenance: Are there robust support and maintenance services in place?

Case Study: An Example of Effective Competitive Analysis

At one company I worked for, we leveraged the fact that there were significantly more job listings requiring experience in our products compared to our competitors. This not only indicated a higher demand for our products but also suggested better market penetration and customer trust. In many cases, this was a strong selling point for enterprise customers.

“We had a lot more successful implementations than them, and there were a lot more third-party people who knew our product than knew the competitors. This was very powerful.”

Conclusion

Competitive analysis is a crucial tool for any product manager, especially in the realm of enterprise software. By focusing on the big picture and emphasizing value, differentiation, and risk reduction, you can effectively position your product in the market. Utilize the wealth of information available today and think beyond just features to provide a comprehensive perspective that resonates with your target audience.