Product Owner vs Business Owner

Distinguishing between a Product Owner and a Business Owner may pose a challenge due to occasional role overlap. Both are pivotal stakeholders driving product and business advancement. Collaborating as a team, they aim to fulfill the business entity’s goals and projections. This article explores the disparities and similarities, highlighting potential conflicts in the roles and responsibilities of Product Owners and Business Owners.

Is a PO higher than the PM?
Is a PO higher than the PM?


The Role of a Product Owner

Product Owners, operate at a more detailed level, overseeing the day-to-day development process. Their main responsibilities include managing the backlog, planning sprints, and closely collaborating with the development team to ensure the efficient creation and delivery of the right features.

Now, let’s break down the common responsibilities of Product Owners within the context of Agile and Scrum methodologies:

  1. Product Vision: Define and communicate the product vision, ensuring alignment with the overall business strategy.
  2. Backlog Management: Maintain and prioritize the product backlog, containing features, enhancements, and fixes, based on customer and business needs.
  3. Collaboration: Work closely with cross-functional teams, including developers, designers, and stakeholders, to deliver a successful product.
  4. User Stories: Create and refine user stories, representing end-user requirements, and ensure they align with the product vision.
  5. Sprint Planning: Participate in sprint planning sessions to determine the scope of work for each development iteration.
  6. Acceptance of Deliverables: Review and accept completed product increments, ensuring they meet acceptance criteria and business requirements.
  7. Feedback Incorporation: Gather and incorporate feedback from stakeholders and end-users to improve the product continuously.

A Product Owner’s role is crucial in Agile methodologies, where they play a hands-on part in defining user stories, setting priorities, and maintaining a well-groomed backlog. They work in close collaboration with the Scrum Master and the development team to ensure the product increments meet the defined criteria and that customer needs are met.

In addition to these tasks, the Product Owner often acts as a bridge between stakeholders (such as customers, business leaders, and users) and the development team. They are responsible for ensuring that the development team is working on the highest-priority items that align with the overall business goals and objectives.

The Role of a Business Owner

A “Business Owner” refers to the person responsible for establishing and operating a business. From a technical standpoint, this individual is legally termed the proprietor, bearing corresponding responsibilities and duties. To swiftly establish a presence in the market, business owners draw upon their extensive knowledge of market dynamics and customer needs, successfully launching their products. Additionally, they hire employees to manage various departments within the business.

It’s common for people to mistakenly use the term “product owner” interchangeably with “business owner.” While a business owner does indeed own the products created for the business, a designated product owner focuses on the creative process of the product sponsored by the business owner. Here’s a breakdown of their primary responsibilities:

  1. Business Strategy: Develop and execute the overall business strategy, including long-term goals, market positioning, and growth plans.
  2. Financial Management: Oversee financial aspects, such as budgeting, financial reporting, and ensuring the business’s financial health.
  3. Leadership and Decision-Making: Provide leadership, make critical decisions, and set the overall direction for the business.
  4. Risk Management: Identify and manage risks that could impact the business’s success and stability.
  5. Stakeholder Management: Engage with various stakeholders, including investors, employees, customers, and the community.
  6. Legal Compliance: Ensure compliance with legal and regulatory requirements relevant to the industry and business operations.
  7. Team Management: Build and lead a team, delegate tasks, and create a positive work culture.

What is the difference between a Product Owner and a Business Owner?

In an organizational setting, the Business Owner holds a comprehensive responsibility for the entire business, overseeing its overall strategy, financial health, legal compliance, and stakeholder engagement. Conversely, the Product Owner’s focus is more specific, centered on the development, delivery, and success of a particular product or set of products.

  • Strategic vs. Tactical: Strategically, the Business Owner formulates and executes the long-term vision and goals for the business, making decisions that impact the organization as a whole. In contrast, the Product Owner operates more tactically, working to define and execute a distinct vision for a specific product, aligning it with the broader business strategy set by the Business Owner.
  • Stakeholder Engagement: In terms of stakeholder engagement, the Business Owner interacts with a diverse range of stakeholders, including investors, employees, customers, and the community. On the other hand, the Product Owner collaborates more directly with development teams, designers, and stakeholders involved in the specific product’s creation.
  • Decision-Making Authority: Decision-making authority follows a similar pattern, with the Business Owner making decisions on significant business matters, investments, and high-level strategic directions. The Product Owner, however, focuses on decisions related to the product backlog, feature prioritization, and sprint planning, albeit within the scope of the specific product.
  • Business Health vs. Product Success: While the Business Owner is primarily concerned with the overall health and success of the business, the Product Owner is dedicated to ensuring the success of a particular product or set of products.
  • Team Management: In terms of team management, the Business Owner oversees the overall team structure, sets the organizational culture, and delegates responsibilities. Simultaneously, the Product Owner collaborates with cross-functional teams involved in the product development process.
  • Legal and Regulatory Compliance: Finally, the Business Owner is responsible for ensuring legal and regulatory compliance for the business as a whole, while the Product Owner typically focuses on ensuring that product features align with relevant standards.


In conclusion, while the roles of a Business Owner and a Product Owner share the common goal of driving success within an organization, their distinctions are vital for effective business management. The Business Owner operates at a strategic level, overseeing the entirety of the business and making decisions that impact its overall health. On the other hand, the Product Owner focuses tactically on a specific product or set of products, ensuring their development aligns with the broader business strategy.

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