A model of all your digital product’s features and modules in a logical structure based on the benefits provided to your users.
Here's an analogy.
In the same way a retail store organizes its products into categories like sweaters, shirts, and pants, your digital product should have the same clear organizational structure for the modules and features of your product.
Why does it matter?
An effective product hierarchy establishes a shared internal language, guides product growth, eases the sales process, and allows for customers to easily understand what your product does and how they can use it.
How does it apply?
When you establish a product hierarchy, you are creating a framework for organizing all of your modules and features within the product, which adds structure to your business, clarity to your offerings, and guides future growth.