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As DX projects gain momentum, we are increasingly hearing concerns such as, "We've appointed a product owner, but we don't know exactly what responsibilities to assign them," and "We want to implement Scrum development, but there's no one in the company who understands the role of a product owner." This article will clarify the definition, role, and necessary skills of a product owner (PO), and offer tips for developing talent within your company.

What is a Product Owner (PO)?

Definition of Product Owner

In Scrum development, an agile development methodology, a Product Owner is responsible for maximizing the value of the product.

My main job is to determine which features should be prioritized for development, balance customer requests with business objectives, and set the overall direction for the team. I'm not just someone who collects requests; I'm the one who steers the project, showing the business direction and leading the team to valuable results.

Position within the scrum team

A Scrum team is a small, autonomous team that primarily consists of three roles.

1
A "product owner" is responsible for maximizing the value of the product.
2
A "Scrum Master" is responsible for instilling the principles and rules of Scrum within the team.
3
The "developers" who actually bring the product to life.

The principle is that there should be one Product Owner and one Scrum Master per Scrum team, and that they should not hold both roles.
The basic structure of Scrum development involves a division of roles where the Scrum Master supports the operation of the development process, allowing the Product Owner to focus on business decision-making.

Product Owner's Role and Responsibilities

Product vision formulation

One of the product owner's key roles is formulating the product vision. The product vision is a guideline for the entire team to share the direction of development and the values they aim to achieve. The product owner works with stakeholders to create this vision, ensuring that the team is working towards the same goal.

Product backlog management and prioritization

The product owner must manage a "product backlog," which is a list of features and requirements necessary for development, and continuously update it as the situation changes.

By identifying the most value-generating functions within constraints such as time, cost, and personnel, and clearly defining priorities, we guide the team's energy in the most effective direction.

Coordination with stakeholders and the development team.

The product owner also acts as a liaison, connecting customers, management, and the development team. By delving into customer challenges and requests and clearly sharing them with the team, they ensure that everyone shares the objective of "solving whose problems and what problems they are solving."

One of the roles is to attend Scrum events that require the Product Owner's participation, such as sprint reviews and sprint planning.

Three main skills required of a product owner

To fulfill your responsibilities as a product owner, the following three skills are essential:

1. The ability to read the market and strategic thinking

This involves analyzing user behavior and market trends to align product direction with business strategy. It requires not only addressing immediate needs but also understanding product value from a medium- to long-term perspective.

2. Communication and negotiation skills

The ability to communicate smoothly with customers, management, and development team members, organize various opinions, and define common goals is essential. Since you will be acting as a bridge between stakeholders with differing perspectives, persistent dialogue is required.

3. Judgment and prioritization skills

It's impossible to fulfill every request simultaneously. Therefore, the ability to clearly define priorities and make responsible decisions is crucial. These decisions are based on documents such as the product vision and product canvas.

These skills cannot be acquired through classroom learning alone; they are honed through practical training using actual projects as case studies.

The difference between a Product Owner and a Scrum Master/Product Manager (PdM)

Differences from Scrum Master

While the product owner is responsible for the value of the product—what to build and what to prioritize—the Scrum Master is responsible for supporting the process—ensuring that the team can develop smoothly.

Since the roles of Product Owner and Scrum Master are different, if the same person holds both positions, there is a risk that the Product Owner will not be able to dedicate enough time to the business decisions that they should be focusing on. For this reason, it is more efficient for the Product Owner and Scrum Master to be handled by different people.

Differences from PdM (Product Manager)

Product managers (PdMs) are often described as having a broad overview of product strategy and the overall market, and being responsible for formulating medium- to long-term roadmaps and achieving business results. In contrast, product owners, in Scrum development, place more emphasis on daily product backlog management and collaboration with the development team.

In some organizations, the same person may hold both the roles of Product Manager (PdM) and Product Owner, but it's important to understand that there are differences in the timeframes and scope of involvement for each role.

[Learn with Videos] Product Owner Training Content

To become a product owner in a real-world setting, practical learning using specific projects is essential. Macnica produces video content for IT/DX promotion personnel that teaches Scrum development and the role of a product owner.

[Video Content Overview]

  • The concept of agile development in comparison to the waterfall model.
  • Scrum team structure and development process
  • Responsibilities and required skills for a product owner
  • Practical methods for creating product visions and documentation processes.

The full video, including the practical section, can be viewed via the form below.

[DX Talent Development] Introduction to Product Ownership Course: From Scrum Basics to Writing PO Documents

This introductory course uses videos to teach you everything from the basics of Scrum to the role of a Product Owner and how to write documentation.
*Registration is required to view.

Watch

Frequently Asked Questions about Product Owners

Q.
What is the difference between a product manager and a product owner?
A.
Product managers (PdMs) have a broad overview of the market and the entire business, and are responsible for the medium- to long-term product strategy and roadmap, while product owners, in Scrum development, place more emphasis on daily product backlog management and collaboration with the development team.
In some organizations, individuals may hold both positions, but there are differences in the timeframe and scope of their responsibilities.
Q.
Who is a product owner?
A.
The term "product owner" is not so much a specific job title, but rather refers to the "role" played within a Scrum team.
The role of product owner can sometimes be filled by a company's product planner or manager, or in contract development projects, it may be a representative from the client company. What is commonly required is the ability to understand customer and business needs and to make decisions that maximize the value of the product.
Q.
Who should be the product owner in a DX (Digital Transformation) promotion project?
A.
This is a "To be" system/product that leads to business improvement.
Therefore, we believe that someone who can envision both the current operations and future operations (To be) on the business side would be a suitable candidate.
Q.
What are the qualifications for a product owner?
A.
Representative certifications include "CSPO (Certified Scrum Product Owner)" certified by the Scrum Alliance and "PSPO (Professional Scrum Product Owner)" certified by Scrum.org.
All of these certifications demonstrate an understanding of the role and mindset of a product owner in Scrum through training and examinations. While obtaining these certifications is not mandatory, they are used as opportunities for systematic learning.
Q.
What does "product owner" mean?
A.
While a literal translation would be "owner of the product," it's actually used to mean "someone who takes responsibility for the value of the product," rather than someone who actually owns the product itself.
This title is used because it refers to a position where one decides what to create, what to prioritize, and takes responsibility for the results.
Q.
What is the product owner's job after the application is released?
A.
After release, managing whether the product is truly delivering value is also an important part of the job.
Regular maintenance is crucial, including deciding whether to discard unused apps and whether to make improvements to make them easier for users to use.

For product owner talent development, please consult Macnica

The Product Owner plays a crucial role in the success or failure of Scrum development, from formulating the product vision to managing the product backlog and coordinating with stakeholders. However, this role and the skills required cannot be acquired through classroom learning alone; practical training simulating actual projects is essential.

Macnica Our strength lies not only in technical support but also in “people-centered” hands-on support. Drawing on our track record of supporting over 300 smart factory and manufacturing DX projects for approximately 100 companies in Japan, we provide end-to-end support ranging from DX talent development to the establishment of Centers of Excellence (CoE).

If you are having trouble developing product owner talent or implementing Scrum development, please feel free to contact us.