The DHM Model for Product Management: Desirability, Feasibility, Viability
The DHM model—Desirability, Feasibility, Viability—is a strategic framework widely used in product development and innovation. It emphasizes the balance between what customers want, what can be built, and what makes business sense. Originating from design thinking principles, the DHM model is especially useful for aligning cross-functional teams around shared goals in product management.
This article delves into the DHM model’s components, explains its importance in product development, and provides practical examples for implementation.
What is the DHM Model?
The DHM model ensures that a product idea is:
- Desirable: Solves a real customer need or problem.
- Feasible: Can be built with available technology and resources.
- Viable: Aligns with the organization’s business goals and generates sustainable value.
Balancing these three dimensions minimizes risks, improves customer satisfaction, and maximizes the product’s success potential.
The Three Dimensions of the DHM Model
1. Desirability: Is There a Need?
Desirability focuses on the customer. It evaluates whether the product solves a meaningful problem or fulfills a desire for the target audience. Without desirability, even the most innovative products fail due to a lack of demand.
Key Questions:
- Who are the target customers?
- What problem does this product solve for them?
- Is there a strong market demand?
Methods to Assess Desirability:
- User Research: Surveys, interviews, and focus groups.
- Customer Personas: Creating detailed profiles of ideal users.
- Journey Mapping: Understanding pain points in the customer’s current experience.
Example:
A food delivery app must address customers’ pain points, such as late deliveries or lack of healthy options. Identifying these needs ensures the app is desirable.
2. Feasibility: Can We Build It?
Feasibility examines whether the product can be developed using available resources, technology, and expertise. It also considers operational and technical limitations.
Key Questions:
- Do we have the required technology and skills?
- Are there operational challenges or constraints?
- What is the timeline for development?
Methods to Assess Feasibility:
- Technology Audits: Evaluate current systems and tools.
- Prototyping: Test technical concepts through small-scale models.
- Resource Planning: Assess team capacity, budgets, and infrastructure.
Example:
A startup developing an AI-driven chatbot must ensure their engineering team has the expertise to implement advanced natural language processing (NLP) algorithms.
3. Viability: Does It Make Business Sense?
Viability ensures the product aligns with the company’s business strategy and is financially sustainable. Even a desirable and feasible product can fail if it doesn’t generate sufficient value or fit the organization’s goals.
Key Questions:
- How will the product generate revenue?
- Does it align with our company’s long-term strategy?
- What is the projected return on investment (ROI)?
Methods to Assess Viability:
- Business Model Canvas: Map out revenue streams, cost structures, and value propositions.
- Market Analysis: Understand competition and pricing strategies.
- Financial Modeling: Project costs, revenues, and profitability.
Example:
For a SaaS platform offering premium analytics tools, a subscription-based pricing model might ensure steady revenue streams, making the product viable for the business.
Balancing the Three Dimensions
A successful product finds the sweet spot where desirability, feasibility, and viability intersect.
1. Focusing Too Much on Desirability
- Risk: Over-promising features that are technically or financially unsustainable.
- Example: A highly desirable smart home device with features beyond the company’s technical capabilities.
2. Prioritizing Feasibility Alone
- Risk: Developing a technically excellent product that no one wants.
- Example: A cutting-edge VR headset with no compelling use case for everyday users.
3. Solely Considering Viability
- Risk: Building profitable products that lack customer interest or innovation.
- Example: A subscription service for features users can access for free elsewhere.
How to Apply the DHM Model in Product Development
Step 1: Start with Desirability
Begin by understanding your customers’ needs. Use tools like empathy maps or design thinking workshops to uncover real pain points.
Action Item:
Conduct customer interviews to validate the demand for your product idea.
Step 2: Evaluate Feasibility
Assess whether your team can deliver the desired solution. Identify risks and plan for potential roadblocks.
Action Item:
Build a prototype or minimum viable product (MVP) to test technical concepts.
Step 3: Analyze Viability
Ensure the product aligns with your business goals and can sustain long-term profitability.
Action Item:
Develop a financial model that includes projected costs, pricing, and revenue streams.
Practical Example: DHM Model for an Electric Scooter Company
Desirability
- Customer Problem: Urban commuters need affordable and eco-friendly transport options.
- Validation: Surveys show 70% of respondents are interested in micro-mobility solutions.
Feasibility
- Challenge: Limited battery technology may restrict range.
- Solution: Partner with a battery manufacturer to co-develop lightweight, high-capacity batteries.
Viability
- Revenue Model: Introduce subscription plans for scooter rentals.
- Alignment: Supports the company’s sustainability goals and urban transport strategy.
Benefits of Using the DHM Model
- Customer-Centricity: Ensures the product solves real customer problems.
- Cross-Functional Alignment: Aligns design, engineering, and business teams.
- Risk Mitigation: Reduces the likelihood of market failure.
- Strategic Focus: Keeps the product aligned with business objectives.
Challenges of the DHM Model
- Balancing Trade-offs: Compromises are often needed to satisfy all three dimensions.
- Iterative Process: Requires continuous testing and refinement, which can be time-consuming.
- Cross-Functional Silos: Effective implementation depends on strong collaboration between teams.
Conclusion
The DHM model is a powerful framework for building successful products. By balancing desirability, feasibility, and viability, teams can ensure that their products meet customer needs, are technically achievable, and support business objectives. Whether you’re a startup or an established company, applying the DHM model will enhance your product strategy and drive sustainable growth.
