{
  "version": "1.3.0",
  "releasedAt": "2026-05-20",
  "kpi": {
    "rogueId": "product.top_product_arr_concentration",
    "slug": "top_product_arr_concentration",
    "domain": "product",
    "defaultLabel": "Top Product ARR Concentration",
    "description": "Percentage of total ARR contributed by the single largest product line. Diversification-risk indicator at the product level (parallel to customer-concentration risk at the GTM level). Common pitfall: concentration risk is dismissed when the dominant product is performing well — but a one-product company is a one-feature-decision-away from existential risk. Boards should track this number alongside the portfolio narrative; sustained 70%+ concentration in a maturing company should pair with a documented diversification thesis or an explicit decision to remain a single-product company. Frames analogous to customer-concentration discussions in venture diligence (NfX / Bessemer founder essays cover the customer-side; the product-side analogue follows the same logic).",
    "fieldType": "percentage",
    "unit": "%",
    "maturity": "general",
    "suggestedForStages": [
      "seriesA",
      "seriesB",
      "seriesC",
      "public"
    ],
    "defaultOwningFunctions": [
      "Product",
      "Finance"
    ],
    "stageRelevance": {
      "seriesA": "recommended",
      "seriesB": "recommended",
      "seriesC": "recommended",
      "public": "recommended"
    },
    "definitionSource": {
      "tier": "editorial",
      "sourceName": "imboard Editorial",
      "sourceUrl": null,
      "sectionRef": null,
      "publicationDate": "2026-04-01",
      "attributionNotice": null
    },
    "formula": "top_product_arr_concentration_pct = (arr_from_largest_product / total_arr) × 100. Define \"product\" explicitly — a SKU, a billable module, or a packaging unit — and hold the definition stable. Surface both the percentage and the named top product.",
    "whyItMatters": "Quantifies single-point-of-failure risk in the product portfolio. The board reads this alongside `portfolio_strategy` to assess whether the company has a real second product or is effectively still single-SKU. Drives both strategic (build / buy / partner for diversification) and financial (valuation framing) conversations.",
    "interpretationGuidance": "Industry folk-wisdom, not citation-grade: concentration of 60–80% in the flagship product is common at early-growth multi-product SaaS; sustained 90%+ should be paired with an explicit single-product-strategy thesis or a documented diversification plan. The trend matters most — concentration falling from 95% to 70% over 4–6 quarters signals successful diversification; rising concentration during a multi-product strategy is a flag the secondary products are underperforming.",
    "relatedKpiIds": [
      "product.portfolio_strategy",
      "product.offensive_roadmap_pct",
      "sales.arr",
      "customers.gross_revenue_retention"
    ],
    "metricBasis": {
      "timeBasis": "point_in_time",
      "production": "computed"
    }
  }
}