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product design

the important questions to build a product

sabeiro

14-05-2026

Created: 2026-10-12 Mon 16:00

product design

While working in different companies and serving multiple clients I collected a lot of experience and exposure to products.

evolution of products design

When I started my enterprise career in 2013 the market looked like the golden age for product design. The companies where pivoting around products re-structuring teams around ideas, breaking hierarchies and building sub companies to be ready to treat as external entities.

company’s evaluation

For VCs investing in startups the most important moment is the company exit more than the relevance of the business or the durability of the company. The exit value is based on company evaluation which in many cases around 2020s wasn’t really tight to revenue figures.

bad return

Among all the strange evaluations we saw big investments in products who didn’t have enough market or enough maturity to disrupt. We paid with increased service costs some of these investments that didn’t bring the expected return. The question is whether the buyer or the seller had a bad understanding of the profitability of the products. To name a few:

virtual reality
hard to think you can spend hours a day with an visor on your head
5G
hard to quantify the improvement. The moment I switched it off from my self phone my battery lasted 3 times longer
web3
a lot more computation needed and unclear advantages
blockchain
I don’t see any more companies offering this service
autonomous drive
in 2015 everybody said in 3y we will stop buying private cars
SaaS
in 2026 it’s hard to see how can they be profitable
LLMs
we’ll see. It’s hard to think that a subscription model could bring long term revenues

cost saving

The easiest argument for selling to a client is cost saving.

needs

The easiest path is to start from market needs. The most important aspect is optimization and I see different areas where the industry needs a huge productivity boost:

healthcare
one of the most significant expense for the state budget
predictive
prevention is a huge cost saving which rarely get considered. Data are not collected correctly, shared, anonymized, used…
logistics
humans have many means of transportation but there is no infrastructure for goods in city centers

logistics

Logistic is a field where the optimization potential is huge but the resistance against changes is even larger.

delivery

Delivery sounds like a well established market where everything is highly optimized. I rarely order something online but when I needed some hardware components my experience was in 2025:

China
the provider didn’t have debit card nor IBAN options to pay
US
the price wasn’t considering custom fees which wasn’t clear at the time of the order
EU
the product wasn’t in stock and the price was much higher due to hypothetical custom fees
account
I had to open two different accounts for the two different regions for the same company. Each region has separated customer service, terms and conditions
delivery
I find in my mailbox a note that the courier didn’t find me when I actually was at home
tracking
I opened the different emails to find out who was the carrier but the link for the tracking ID was broken
customer service
I contacted the Indian contact center multiple times, people where kind but couldn’t help, nobody could tell me where my parcel I paid for was delivered
parcel
I went all over the shops in the neighborhood where usually parcels get delivered and finally found the product I paid for
laptop
when my company sent me the laptop they delivered it to a neighbor breaking the confidential terms of my contracts. The delivery service sent me a note instead naming a shop close by who didn’t actually received my laptop

It is pretty clear that the optimization potential is huge and the industry is not mature enough. The idea itself that running vans across the city for door-to-door activity consuming boxes and trash is not competitive against a well organized mini hub logistics is not comparable. The labor, even with automation, for door-to-door is not convenient.

agentic in software engineering

Agents can be really useful for software engineering, they are proficient in writing code and they shift the paradigm from coding to overview. This should be measurable to understand the real benefit because instead of writing the code you need you should instead:

models.json
list of models to use, their function and limitations
settings.json
describe the system you are using and the resources to allocate
system.html
how your system is configured, what servers and what volumes
system_append.html
sub-agent specific configuration
rules.html
how the agent should behave in general (test, don’t break, don’t access…)
hooks
hard coded tools to test agent behavior
agents.html
agent definition for the specific project
orchestrator
instruction for the orchestrating agent
skills.html
what each sub-agent should be capable to do
readme.html
what is the project about, scope and objectives
architecture decision records
document technical choices and evaluate alternatives
mcp
integration with other tools
tools
enable/restrict tools at sub-agent level
sessions
record history of each sub-agent run
repository
define at repository level the naming conventions and standards
PR
define a strategy for each PR review
testing
define the tests that the agents should run before committing
guardrails
how to control agent’s output
sandboxes
create sandboxes to restrict permissions allow/ask/deny
security
mitigate jailbreak and malicious prompt injection
success criteria
measurable metrics for evaluation
costs
instructions how to keep costs within a budget (the tiniest sub-agent still has a pre-push script, a fix-failing-test hook, AI code review …) trigger/scope/feedback/review
CI/CD
organize the access and CLI for each sub-agent
maintainability
check whether the code is easy to read and maintain
harness
building the system around models to turn them into work engines: tools execution, feedback, evaluation
pen-test
the engineer needs to run tests to see whether any rule breaks

Despite all of this work no agent can be accounted as responsible for anything going wrong and the engineer approving should be able to review.

IT providers

In IT you don’t have many options for infrastructure providers, in the past there were many small-size vendors of small data centers that where highly customizing solutions for their clients. Cloud won a big part of these market promising cheap and scalable solutions. As per many other business we live nowadays in an economy where we have less and less players. Investors allow few company to beat small business and they are able to rise service prices once competition is gone. It is always really important to keep the ability of switching to custom solutions in case your business will be put at risk by the increase of running costs you can’t control.

Naming few providers:

cloud
aws, azure, gcp
analytics
databricks, snowflake
LLMs
anthropic, openai, gemini
CRM/tickets
salesforce, pega, servicenow,

Risks from an external providers.

service costs
if the provider changes subscription costs your margins will instantaneously decline
lock-in
sometimes you are not allowed to create your own solution is the provider has a paid solution
quality drop
if the provider drops the quality of the service your business is directly impacted
deadlines
relying on factors you can’t control can severely affect deadlines
big size
those providers won’t adapt any solution for your case, you would need to hire externals
big catalog
the services they provide are many, it takes competences and time to understand how to configure them for your use-case.

dependencies

To design a product it is crucial to understand the chain of dependencies and compute the volatility of changes in input prices and perform some stress tests.

drafts

We are working at different product drafts:

barrique app
social entrepreneurship
postamble