Web 2.0: Web Product Development Challenges

Product development is the most challenging assignment and web 2.0 product developments have its own different set of domain of problems. Creating web 2.0 product needs very imaginative strategies since it deals with virtual world and social interaction, also it needs capability to understand customer requirements deeply to deliver the best possible solution.
There were many challenges during web product development. Some key challenges, and hence success factors are as follows:
Technical challenges:
1. Technical & Architecture level challenges: A key success for any product is its platform independent, flexible, modular, maintainable and cost effective architecture. Product should be architected to manage scalability and flexibility to be deployed across various network topographies. Hence all the components should be oriented to run on web based platform enhancing their capability as independent functions.
For ease of customization and commercialization try to use open source framework and separate technology with open source as much as possible so that it can be easily replaceable by any other framework in future if required.
2. Faster development speed: Faster development speed is mantra for research based product. Use faster development techniques to get it in market faster. It is advisable to follow modular architecture which helps to develop all modules independently in parallel. Develop modules as web services, separate service layer and use shared resources like database, web servers etc.
3. Distinguish Factors: To stand high between all existing competitors in your product area, it is challenging tasks to build intelligence in your product to distinguish it from other available products. With extensive research in product area, build intelligence in your product by capturing domain specific, technology specific best design practices.
4. Lack of Product development Processes and Methodology: In case of lack of maturity level in product development methodology, try to select right set of people with research background, solid technical background, management background in your team to develop your product end to end.
Business Challenges:
5. Challenges in attracting revenue potential: It is always very challenging to get funds approved for any product development. One needs to convince management with solid revenue potential with product idea. It is beneficial to conduct research to find out importance of web product in today’s world and prepare solid business case to prove that your product has a potential for repeatable business and continuous demand in future.
6. Lack of early adopter customers: it is always a very challenging to attract customer initially. The amount of business you get is highly proportional to the amount of effort that you put in marketing your business. First it is important to figure out who are right customers for your product and then define a attractive revenue model for customer to buy and serve the needs of customer. It could be license, or license + services, along with support -- there are alternate transaction or revenue share models which have found wide acceptance.