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PRD is a product specification concept that describes what a product change should do and why it matters.
PRD matters because a PRD gives agents and engineers a concrete target instead of a vague wish. It gives builders a precise word for the thing they are changing, debugging, reviewing, or shipping.
Plainly
Think of PRD as a repeatable work method. It gives one small job a clear name so the whole app is easier to understand.
In practice
Use it to make work repeatable, reviewable, and auditable. In practice, name the owner, input, output, failure mode, and proof before relying on PRD.