ROI calculation by PM at Amazon

Oath
niceGood

Go to company page Oath

niceGood
May 3, 2020 13 Comments

How do product mangers calculate ROI to prioritize features at Amazon? Which are the most important factors?

comments

Want to comment? LOG IN or SIGN UP
TOP 13 Comments
  • Samsung
    statarb

    Go to company page Samsung

    statarb
    Use labour hours as a proxy for investment as SW development cost can be amortized over a fixed duration. Estimate revenue increase per feature. Revenue - Cost = Gross margin. Everything else being the same, prioritize features based on revenue timeline / market opportunity. This should be quick enough for a 5 minute answer.
    May 3, 2020 4
  • Amazon
    xoWp02

    Go to company page Amazon

    xoWp02
    LOL! I've been asking the same question for over five years.
    May 3, 2020 2
    • Oath
      niceGood

      Go to company page Oath

      niceGood
      OP
      What’s the answer?
      May 3, 2020
    • Uber
      acKK07

      Go to company page Uber

      acKK07
      Mainly the VP chooses projects for the year in planning and a crazy timeline to complete that project. Then everyone runs towards that date. For the interview start with the data and end user. Amazon LPs β€œdata driven decisions” and β€œcustomer obsession”
      May 3, 2020
  • Amazon
    yoyo girl

    Go to company page Amazon

    PRE
    Amazon
    yoyo girl
    Use a simple framework like ICE
    Impact Confidence Effort

    You won’t do great first time you use it but over a 2 year period you will begin to see how good it is. Google it.
    May 3, 2020 0
  • Uber
    acKK07

    Go to company page Uber

    acKK07
    Usually the PM works with finance to forecast the return or a VP looks at the competitors and decides to build something to stay competitive.
    May 3, 2020 1
  • Facebook
    23 🐐

    Go to company page Facebook

    23 🐐
    Basically pull some numbers out of your ass and call it the base case. Then reduce everything by 10% and call it worst case. Then increase everything by 10% and call it the best case. Then plot all of those on a chart. Congrats. You are a PM now!
    May 3, 2020 0