Product development dictionary

One of the secrets of successful product managers? Daily commitment — to your work, team, and self-improvement. Solving customer problems requires an incredible breadth and depth of expertise. After all, daily activities can range from setting high-level strategy to defining detailed feature requirements. And you collaborate with a cross-functional product development team that includes folks from engineering, marketing, sales, support, and beyond. To accomplish your tasks, you will use classic tools such as a product development framework, product roadmaps, and a design platform.

We created this dictionary to help you quickly learn the most common product terms. You will also find links to related articles so you can deepen your understanding of core product development concepts.

A

acceptance criteria	Conditions of satisfaction used to determine whether a user story or feature achieves the desired outcome
agile development	A collection of software development methodologies that support adaptive planning, evolutionary development, and continuous delivery. The first agile manifesto was published in 2001 and is the foundation of many agile methods teams use today.
Agile Manifesto	A foundational document for agile development that was published in 2001. It outlines 12 principles and four core values focused on prioritizing individuals, collaboration, working software, and responsiveness to change over traditional processes.
agile product management	Product management in an agile environment. Planning is done in iterations, allowing product and engineering to continuously adjust the near-term roadmap and meet customer needs.
agile release train	A cross-functional agile team that incrementally develops, delivers, and, if applicable, operates solutions within a value stream—encompassing the products, services, and systems delivered to customers. As a core construct of the Scaled Agile Framework® (SAFe®), it aligns multiple agile teams around a shared mission and common deliverables.
The Aha! Framework for product development	A flexible product development model that blends upfront strategic planning with rapid delivery — helping organizations achieve value-first product development Related: The activities in The Aha! Framework What is value-based product development?
analytics (product)	The process of monitoring how users engage with your product. Product analytics involves collecting data, tracking users' actions and metrics, and analyzing trends to inform product enhancements.
annual contract value	The average annual revenue received from a customer. SaaS companies use this metric to normalize subscription revenue from each contracted customer across a year.
annual recurring revenue	Yearly revenue from new sales, renewals, and upgrades adjusted for downgrades and churn. This metric is used to track how much revenue a company can expect based on yearly subscriptions.
application (software)	A software package (such as a product or program) that is designed so end users can perform a specific task
application programming interface	A set of rules in an operating system used in software programs to communicate and facilitate interactions between systems

B

backlog (product)	A prioritized list of user stories or features for a product or service that are ready to be implemented
backlog (sprint)	A prioritized list of user stories or features that the development team will work on during a sprint or iteration
backlog grooming	The continuous process of organizing, refining, and prioritizing the product backlog to prepare for sprint planning
beta testing	A way to gather feedback on design, functionality, and usability from end users before a new product or feature becomes broadly available to customers
blended agile	An approach that combines elements from multiple agile frameworks — such as Scaled Agile Framework® (SAFe®), scrum, and kanban — to create a customized methodology that meets a team or organization's unique needs.
blocked	Indicates a problem with a work item that prohibits it from moving forward
burndown chart	A chart that shows the amount of work completed per day against the amount of work remaining for a release or sprint. Work can be measured in time or story points.
business case	The business justification for implementing an initiative or feature that demonstrates the expected benefit. Benefits can include revenue potential, customer satisfaction, or cost savings.
business model	A framework for how a business will deliver value. A business model typically includes a high-level vision, key objectives, customer targets and challenges, solution, value, pricing, messaging, go-to-market channels, investment required, and growth opportunity. Related: 10 components of a business model Business model examples
business model canvas	A template for developing new or capturing existing business models. It includes building blocks such as challenge, solution, value proposition, competitive advantage, key metrics, operating costs, and revenue streams.

C

capacity planning	The process of estimating the amount of work to complete and comparing it against team availability. Capacity planning helps teams balance workloads and set realistic timelines. Capacity is often measured in time, effort, or cost.
chief product officer	An executive-level role that is responsible for all of an organization's product activities. The CPO sets the overall product strategy, making sure the direction serves the company's vision and goals. Related: The chief product officer vs. the chief technology officer Product management job titles
churn	The annual percentage of customers who stop using a product or service
competitor analysis	An assessment of the strengths and weaknesses of competitors, either direct or indirect Related: How to research and evaluate competitors Competitor analysis templates
Complete Product Experience (CPE)	The CPE optimizes all aspects of how a customer interacts with a product and company — creating a seamless, well-rounded experience. Its seven core areas include marketing, sales, technology, supporting systems, third-party integrations, support, and policies. Related: 7 components of the CPE The benefits of a cross-functional product team
conversion rate	The percentage of prospects or visitors who become paying customers of a product or service Related: Product analytics Digital advertising roadmap 18 metrics every SaaS product marketing manager should know
continuous delivery	The ability to deploy code changes (such as new features, configuration changes, and bug fixes) at any time. This approach uses small build cycles to package software for deployment in a production-like environment so it can be rapidly deployed.
continuous deployment	A process in which software code changes automatically deploy to the final production environment. Automatic run tests ensure the code functions properly before it is deployed.
continuous integration	A software development practice that requires engineers to continuously integrate or merge code into a shared repository. Automated build and test processes help teams quickly identify code issues.
control chart	A statistical tool used to track variations in process performance over time. In agile, control charts help teams monitor cycle time and throughput to identify trends and areas for improvement.
cost of delay	A calculation used to quantify the impact of time on outcomes by estimating the revenue an initiative or feature is expected to generate and how much a delay will cost. Cost of delay is used in the Scaled Agile Framework® to make prioritization decisions based on value and urgency.
cross-training	A practice where team members learn skills outside of their primary expertise to increase flexibility and collaboration within agile teams, improving overall responsiveness to project demands.
Crystal	A family of agile methodologies developed by Alistair Cockburn that is designed to prioritize team communication and flexibility. Crysta l adapts to project size and criticality, promoting a lightweight and people-centered approach.
cumulative flow diagram	A visual chart that shows cycle time, work in progress, and throughput during a given time period in colored bands
customer advisory board	A group of existing customers that convenes periodically to provide a company with observations and guidance based on its experience with a product or service Related: Building roadmaps for different audiences How to get clear customer feedback
customer experience	The summation of all the interactions between a customer and an organization
customer journey map	A visual representation of the touchpoints a customer has with a company. A journey map can be used to capture the entire customer experience or a specific interaction. Related: Customer experience User story mapping User story template
customer research	A set of research techniques focused on understanding customers' needs, preferences, behaviors, and motivations
customer retention	The activities or actions a company takes to retain as many current customers as possible. Strategies might include improving customer service, customer loyalty programs, and increasing purchase frequency. Related: Product analytics 10 building blocks of lovability
cycle time	The time it takes for a work item to move from prioritization to completion

D

definition of done	An agile term for acceptance criteria that must be met before a user story is considered complete. The definition of done includes all conditions necessary for a customer or user to accept the work.
dependency management (product)	A relationship between features or requirements that determines the order in which they can be implemented. In product management, dependencies are typically business-, technical-, or resource-related.
design (product)	The process of imagining, creating, and iterating products to address a customer's specific needs
development (product)	The steps involved in creating a new product or enhancing an existing one to meet a customer's wants and needs Related: Stages of product development Value-based product development
diagram (product)	A visual aid representing product-related processes and workflows. A product diagram can be used to show team processes, depict a user flow within your product, capture early feature work, and more.
differentiation (product)	The unique value of a product or service that distinguishes it from direct and indirect competitors in the marketplace
digital transformation	The use of digital technologies to create new customer experiences and business processes or optimize existing ones

E

ecosystem (product)	A collection of products meant to be used together. Each product can exist by itself, but provides greater value to customers as part of an integrated category of solutions.
engineer (software)	An engineer who specializes in developing software products
epic	An agile term for a large effort of work that can be broken down into smaller user stories. An epic typically takes more than one sprint to complete.
escaped defects	Defects found after a release, typically by customers or end users. Measuring escaped defects provides insight into product quality and helps teams improve testing processes.
Extreme Programming (XP)	A disciplined agile methodology that emphasizes technical excellence and customer satisfaction through practices such as pair programming, test-driven development, and continuous integration.

F

feature	A product feature describes a customer benefit and the target end result. An individual feature can impact a product's appearance, components, or capabilities.
feature-driven development	An agile methodology focused on delivering working software through feature-based iterations. FDD promotes short development cycles, regular builds, and ongoing progress tracking.
feature score	An objective way to rank features against strategy using a set of metrics (such as sales increases, customer retention, marketing potential, operational efficiencies, and effort to develop) Related: Feature prioritization templates How to estimate and track product value
feedback (customer)	A customer's opinion about a product or service. This information can be collected in a variety of ways, such as ideas portals, interviews, user forums, surveys, and product analytics.
Fluid Adaptive Scaling Technology (FAST)	An agile scaling framework focused on flexibility. Its adaptive processes allow large organizations to respond to changes quickly and efficiently. FAST emphasizes self-organization and decentralized decision-making.
framework (agile)	An approach to agile software development that emphasizes moving quickly and iteratively. Some popular agile frameworks include SAFe, kanban, scrum, and lean development. Recently, we also released our own: The Aha! Framework for product development. Related: Agile software development Kanban Scrum The Aha! Framework for product development

G

Gantt chart

A visualization used for planning and scheduling projects that maps activities (tasks or events) against time. A Gantt chart displays project phases in the order they need to be completed and shows important milestones and dependencies.

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goal (product)

A measurable, time-bound objective that has a clearly defined success metric

go-to-market roadmap and strategy

The strategy for bringing a specific new experience — such as a product launch, new feature, or expansion — to market. It includes goals and initiatives, positioning and messaging, pricing, customer personas, and distribution channels.

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H

hardware product	Tools, machinery, and other durable equipment. In technology, hardware describes the physical elements of a computer such as a keyboard, monitor, and central processing unit.
hurdle rate	The minimum rate of return from a project that is required by a company or investor. Hurdle rate is calculated based on the weighted average cost of capital and the level of risk associated with the project.
hypercompetition	An intense level of competition among companies in a rapidly changing market
hypertext transfer protocol	Also known as HTTP, this is an application protocol used to enable communication between a user's browser and a web server
hypertext transfer protocol secure	An extension of HTTP that uses encryption protocol to ensure secure communication between a user's browser and a web server (also known as HTTPS)

I

idea management	The process of capturing, sorting, and prioritizing ideas from customers, partners, and internal teams. Effective idea management is vital for understanding what customers want, driving product innovation, and achieving business growth. Related: Idea management software How to build an idea management process
incremental development	An approach where a team builds and delivers the product in increments. Each increment typically builds on the last and becomes another stepping stone to delivering a Complete Product Experience.
initiatives	Themes or big efforts of work that need to be implemented to achieve a set of goals. Initiatives roll up to the company's overall vision and goals and provide a way to prioritize work.
innovation (product)	Solving a problem in a new way. Product innovation might include introducing a new solution to customers or improving the functionality and performance of an existing offering. Related: 6 traits of successful chief innovation officers Feature innovation vs. product innovation Idea management
integration (application)	Point-to-point interactions between two software applications that synchronize data and workflows
iterative development	A software development approach that promotes designing, developing, and testing code in short, iterative cycles Related: Agile development methodologies Kanban vs. scrum The Aha! Framework for product development

J

JavaScript	A client-side scripting language commonly used in web development
jidoka	A lean concept that empowers team members to stop a process to address quality, process, or supply issues so problems are not passed further down the value stream
jobs to be done	A framework for understanding what "job" (task, action, etc.) a customer is trying to accomplish at a given moment. The goal is to better understand their fundamental motivation for choosing a product or service.

K

kanban	An agile-lean development methodology that helps teams work more efficiently by visualizing work, limiting work in progress, and maximizing flow Related: How development teams implement kanban How product managers use kanban Kanban vs. scrum The Aha! Framework for product development
kanban board	Visual card-based representation of work and workflow. Cards represent work, and columns represent each stage of the process. As work progresses, cards move from left to right across the board. Kanban boards can be physical or digital.
kaizen (lean)	A concept that promotes a continuous improvement mindset. First developed in Japan after World War II, kaizen encourages all team members to look for ways to improve based on their own observations and experience.
Kano model	A theory for prioritizing product features by weighing potential customer delight against the implementation investment Related: Common product prioritization frameworks Feature prioritization templates
key performance indicators	Metrics that indicate how a team is performing against strategic goals

L

Large-Scale Scrum (LeSS)	A framework for scaling scrum at large organizations that is designed to keep processes simple while coordinating multiple teams. LeSS emphasizes cross-functional collaboration and a single product backlog to maintain alignment.
lead time	The time it takes for a work item to be prioritized from when it was added to the backlog
lean canvas	A model designed for startup companies to quickly validate business ideas using a problem-focused approach
lean software development	The application of lean principles to product development. These principles include eliminating waste, instilling quality, creating knowledge, deferring commitment, delivering fast, respecting people, and optimizing the whole. Related: Common product development methodologies Agile vs. lean The Aha! Framework for product development
lifetime value (customer)	The predicted value of a customer over the life of the relationship, including the value of upgrades or additional purchasing opportunity

M

market requirements document	A document that communicates the customer’s wants and needs for a product or service. It ensures the team clearly understands the customer’s unmet needs before defining requirements. Related: MRD template Product requirements document
market research	A set of research techniques focused on understanding market characteristics, opportunity, and past or future trends. The findings are often summarized on a market requirements document.
milestone	A marker denoting an important date on your roadmap timeline. Milestones typically indicate key benchmarks and accomplishments, such as a major product launch.
Minimum Lovable Product	A product that solves problems and delights users right from the start, creating customer love
minimum viable product	A minimum level of functionality needed to bring a product to market and gather feedback for future product development
mockup (product)	A realistic rendering or prototype of what a product or feature will look like and how it will be used
monthly recurring revenue	Monthly revenue from new sales, renewals, and upgrades adjusted for downgrades and churn. MRR is used as a key indicator to track the growth of a SaaS business.
MoSCoW prioritization	A prioritization technique used to reach a consensus on the importance of specific requirements. The acronym stands for "Must have, Should have, Could have, and Will not have."

N

needfinding	A design method that focuses on looking for needs rather than solutions. This helps designers better understand the problem a customer needs to solve before identifying how to solve it.
need-gap analysis	An approach for identifying unmet customer needs and how a product or service can fill that gap in the market
net promoter score	A tool for measuring a customer's overall satisfaction with a product or service. The score is calculated by asking customers to answer this question using a scale of one to 10: "How likely is it that you would recommend this product to a friend or colleague?"
Nexus	A scaled-up agile framework built on scrum principles to help coordinate multiple teams working on a single product. Nexus aims to minimize dependencies and streamline delivery across teams.

O

objectives and key results	A goal-setting framework for defining business objectives and measuring their outcomes. They are usually established on a quarterly basis.
opportunity score	A metric used to understand how well a product or feature meets customers' needs by calculating importance minus satisfaction
owner (product)	The person responsible for detailing user stories and participating in scrum rituals (such as sprint planning, stand-ups, and retrospectives.

P

platform (product)	A collection of products built on the same underlying architecture. Product platforms use a common set of technical components to meet the needs of different customers.
portfolio product manager	The person responsible for managing a company’s product portfolio. A portfolio product manager analyzes and optimizes existing products, identifies opportunities to expand the portfolio, and creates the product portfolio roadmap.
positioning	Where a product or offering fits in a marketplace. Positioning is based on what makes a product unique and why it is better than alternative solutions. Related: Product positioning templates Product value
product	Any item or service that is sold to serve a customer’s need or want. A product can be physical (durable or nondurable), virtual (services or experiences), or a hybrid of both.
product-led growth	A business strategy that focuses on product usage as the main way to acquire, engage, and retain customers. It highlights the product at every stage of the customer journey — with the goal of enabling users to experience and purchase your product with minimal interference from the company.
product-market fit	The degree to which a product meets the needs of customers in a viable market. Achieving product-market fit is viewed as an early benchmark in building successful products.
product lifecycle	Stages describing how a product evolves and performs over time. The stages include development, introduction, growth, maturity, saturation, and decline.
product manager	The person responsible for driving the success of a product that meets customer, market, and business demands. A product manager sets product strategy, understands what customers want, and prioritizes features. Related: Product management job titles Product manager responsibilities Product manager skills
product operations	A function designed to help product teams operate efficiently. Product operations involves improving internal workflows, promoting best practices, managing data and analytics, and overseeing product team tools. This term can refer to a discipline, role, or team.
product owner	The agile team member responsible for defining and prioritizing the product backlog to deliver maximum value with each iteration. Product owners represent the customer's needs and advocate for the business case, collaborating with the product manager on planning and feature definition. As the sole authority on backlog order, they also decide if a sprint is ready for release.
product portfolio	An entire group or set of products in an organization
product requirements document	A document used to define the value and purpose of a product or feature. It details who a product or feature is for, the key capabilities that will be delivered, and the benefits. Related: Product requirement document templates Market requirements document
product value	This measures how well what you build serves business goals and delivers what customers need. It is not a single metric, but an aggregate of all the work that a company does to strategize, build, launch, market, sell, and support a product. Related: Value-based product development How to measure product value
program manager	The person responsible for the success of all the interconnected projects within a specific program. A program manager sets the strategic direction, schedule, and budget for a program
project manager	The person responsible for coordinating the cross-functional work required to deliver a project on schedule and within budget
prototype (product)	An early model or release of a product to test a concept with customers before it is fully developed

Q

quality assurance	A way of preventing issues when delivering products or services to customers. Its purpose is to ensure an offering meets customer requirements and performance expectations.
quality function deployment	An approach for translating customer requirements into detailed engineering specifications to build products that meet those requirements
quality plan	Describes the standards, practices, resources, and processes required to meet the quality objectives for a product or service

R

release (product)	The launch of a new experience (such as a new product or combination of features) that will provide new value to customers. Related: Product vs. release vs. sprint backlog Product roadmap vs. release plan
requirements management	The process of collecting, analyzing, refining, and prioritizing product requirements and planning for their delivery
The Responsive Method	An human-centric philosophy based on eight key principles designed to help people and organizations respect and serve others — while also staying on track toward a goal Related: The Responsive Method Minimum viable product vs. Minimum Lovable Product
retrospective	A meeting that takes place after an activity or event to identify what worked well and what could be improved. For example, product teams often hold a retrospective after a major release.
roadmap (product)	A visual representation of how a product is going to meet a set of business objectives and the work that is required to get there. Roadmaps communicate the product direction and progress against plans to different audiences (such as leadership, internal teams, customers, and partners). Related: Agile roadmap Product portfolio roadmap Roadmap planning

S

sales-led growth	A business strategy that focuses on sales teams as the primary driver for customer conversion and retention
Scaled Agile Framework (or SAFe)	A set of guidelines for implementing agile and lean principles at scale Related: The role of a product manager in SAFe Scrum certifications
scrum	An agile project management approach that focuses on delivering products in short iterative cycles Related: Scrum roles Themes, epics, stories, and tasks in scrum Implementing scrum
scrumban	A hybrid methodology originally meant to facilitate teams moving from scrum to kanban Related: Kanban vs. scrum
scrum master	The scrum team member who helps the development team stay on task, maintain alignment with scrum techniques, and eliminate roadblocks. Scrum masters play the role of coach and motivator — not enforcer.
sprint	A short timeboxed period between one and four weeks during which a scrum team works to complete a shippable increment of work Related: Sprint planning meeting Sprint review Sprint retrospective templates
stage gate process	A five-stage product development process that includes scoping, business case, development, testing, and launch. Review gates are used to evaluate progress between each state and determine whether the project should proceed.
strategy (product)	How a product will achieve business goals (this is used to align the organization on what needs to be achieved) Related: Product differentiation Product vision Product strategy vs. marketing strategy
swimlane	Horizontal lines that split status columns into sections. Swimlanes can be used to represent teammates or organize tasks by type/priority.
SWOT analysis	A strategic market analysis of a company or product's strengths, weaknesses, opportunities, and threats

T

technical debt	Additional development work that is required when code needs to be reworked after it is deployed. This typically occurs when delivery speed is prioritized over implementing the best long-term solution.
technical product manager	A product manager who brings deep technical expertise to the role while focusing on core product management responsibilities
theme (strategic/product)	A strategic initiative or grouping of related work that must be implemented to achieve a goal
throughput	The number of work items that move through statuses during a given time period
time-boxing	A time-management technique used in agile to set fixed periods for activities. Time-boxing helps teams focus, prevents scope creep, and keeps projects on schedule by enforcing clear boundaries.

U

unique selling proposition	A unique benefit or feature that is meaningful to potential buyers and makes a product stand out from competitors
unique value proposition	A clear statement that articulates the unique value a product or service provides and how it benefits customers
usability testing	The practice of testing a product or feature with real users. Users are asked to complete specific actions while being observed to understand how they use the system and identify where they experience confusion.
user experience	The summation of interactions a user has with a product. UX describes a person's emotions and attitudes about using all aspects of a product. Related: UX designer User story mapping
user interface	The way a user controls a software application or hardware device to complete actions
user persona	A fictional character that represents the ideal profile of the people who directly use a product or service
user story mapping	A visual map of the customer journey meant to help product teams design and build functionality that provides desired outcomes for end users

V

value-based product development	This involves moving beyond tactical discussions and looking more holistically at the overall worth of what you prioritize, the effort it takes to build, and the actual benefit of doing so Related: Complete Product Experience Product value Stages of product development
velocity	The amount of work a team can accomplish during a period of time. Velocity is commonly used in agile development to calculate how much work a team can complete during a sprint. Related: Agile metrics Burndown chart
verification and validation	The process for checking that a product or service meets the requirements and accomplishes the expected purpose
vertical market products	Products that are tailored to meet the needs of a specific industry — such as energy, healthcare, financial services, or information technology
vision (product)	A short, simple statement that captures the essence of where a product is headed and what it will deliver in the future
voice of the customer	A market research method that uses qualitative and quantitative data to understand customers' needs and wants Related: How to gather customer feedback Customer research templates

W

waterfall development	A sequential model for planning, building, and delivering new products and features in phases. This approach is commonly used for managing the development of physical or hardware products, as well as hybrid products that include both hardware and software components.
weighted shortest job first	A prioritization technique that ranks jobs to be done based on value and duration. The jobs that provide the most value in the shortest duration are prioritized for implementation.
wireframe	A basic visualization of the framework of a product. Usually a black and white rendering, a wireframe focuses more on what the product does (rather than how it looks).
work in progress	The total number of work items a team is executing at any given time. This term is also used to broadly describe a nonfinalized work status.
work-in-progress limits	A limit on the number of work items a team can have in progress at any one time. The purpose of these limits is to create a smooth workflow by avoiding bottlenecks.

X

extensible markup language

Also known as XML, this text-based markup language stores, transports, and organizes data in a way that is readable to machines and humans

Y

year over year	The statistical process of comparing one year of data to the previous year of data
yield management	A pricing strategy for rapidly adjusting the price of a product due to market changing conditions (such as competition, demand, and consumer behavior)

Z

zeta score

A scoring formula used to calculate a company's likelihood of going bankrupt. It is calculated using the zeta model or z-score formula.

Ready to learn more? You can also refer to our agile dictionary, IT dictionary, and marketing dictionary.

Product development dictionary

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