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Skip to 0 minutes and 2 secondsYou've thought about the type of business that you have. The type of business wrapped around your product. Infrastructure, scope or product driven. Now we can look at the delivery side of the business model canvas. And this is everything to the left here. Basically, your cost drivers and the relationship of your delivery capabilities to everything else. Some examples of this for Enable Quiz are on the key activities are quiz development, the creating new quizzes that are relevant to the types of jobs and skills that their customers want to develop. Process expertise, so how do companies do a good job at acquiring talent and upscaling talent?

Skip to 0 minutes and 42 secondsAnd how do we kind of bake those best practices into the way that customers interact with our product? And finally, product development itself, so taking this web app that they have and being able to execute an experiment quickly on these things. Now let's take a pause. What type of business do you think Enable Quiz is? Infrastructure, scope, or product?

Skip to 1 minute and 7 secondsI would say that it's infrastructure. And the reason why I say that is, you could say it's product. Most software companies would kind of go there in the beginning, but I would say it's really infrastructure. because they're really about we have these quizzes that we have to create and develop. How many people can we get to use them? Can we get them to use them for hiring people? Can we get them to use them for helping people decide their skills development plan? So I would say that it's most principally infrastructure oriented in that their profit driver is probably going to be how many quizzes they can get out to how many people.

Skip to 1 minute and 38 secondsThey may get paid a flat rate or something, but ultimately it's really the utilization of this quiz infrastructure that is going to be the thing that their customers most ascribe value to, I would think. If you don't agree, post to the discussion forum and I would love to hear about it. Key resources for them are these quiz banks, so all the different types of questions they have. The data that they have on the performance of the quizzes, which they will pair with some activity in data science and machine learning to improve the performance of their product beyond what they can figure out for themselves. And finally, their user base.

Skip to 2 minutes and 11 secondsNow, this is an assumption or a hypothesis about what they think will be important because in this case, we're looking at, and actually an H3 business, not an H1 business, a new business. But that's okay. If you have new product, still okay to spend time on this. Just make sure that it's this relationship or your emerging understanding of the relationship between customer segments and value proposition that is driving these things and not the other way around. Because as we discussed with the Venn diagram of product management, it's really that dimension of desirability that should be driving the rest of your activity. I think you'll find the business model canvas are really good focal tool.

Skip to 2 minutes and 49 secondsI think you'll find a good collaboration tool even if it's not sort of your job to create the business model or the strategy. It's a great place to quickly sketch out some ideas about what you think you're doing and how it relates to everything else and to ask questions of your collaborators. Be they your managers or people in other areas about how are we focusing on these things and how are we delivering something that's valuable to the customer and is going to drive good performance at the firm. Another thing I think is worth thinking about, assuming you are in digital, is how this business type affects the way that you approach your development and your work with your development team.

Skip to 3 minutes and 25 secondsNow these statements won't necessarily be true for every single case, but I think they are worth thinking about, and they made be a good kind of centerpiece for how you approach development. If you are an infrastructure based business, you're AWS for example, your core application is what creates access to the store of value. So this would be all the stuff about how Amazon spins up servers, and allows access to them, and manages security, and sign on, and things like that. And then, APIs and service layers are really important because if you, maybe you noticed in a URL that you get redirected to AWS or something.

Skip to 3 minutes and 59 secondsServices like Hiruko and WordPress instances, lots of different apps that are parts of totally different business model types. Scope oriented, product oriented are built on top of AWS and that's great for them that drives volume of that core application. So this API, this service, the way that other products interface to is probably going to be really important if you're an infrastructure business. And if we think enable quiz is an infrastructure business, that might mean sign on integration with if there's a core learning management system that the customer's using. It's probably pretty important. The View Layer/UI may not even exist or may not be super important.

Skip to 4 minutes and 41 secondsIf you are a scope-based business, you're probably consuming a lot of third party services. And so the Core Application is something that is focused on enhancing the user and buyer experience. And your probably a consumer of APIs and services, integrating them together and presenting them as a single experience to the user than a provider of these things or that may not necessarily be the case. And the view is pretty important to managing this buying experience and creating a unified experience across a lot of different things. It may also be very important to be able to customize this because there may be some variation among the buyers.

Skip to 5 minutes and 19 secondsAnd if you're a scope-based business, you may need to be able to be a little more flexible with regard to your buyer, since you want to take an expanded share of their activity and there may be some variation inherent in that. A product focused company or product is the core application enables user centric experimentation and innovation. So careful observation of user activity, continuous integration and continuous delivery, and the ability to really quickly experiment and change things is really important. And the API Services maybe important, I honestly kind of hard to make a really meaningful statement about this case I would say. And the View Layer is really important to delivering on whatever is this special proprietary user experience.

Skip to 6 minutes and 3 secondsThose are some ideas also here I would loved to here your thoughts in a discussion form if you think about this with regard your own product or other products you've worked on. So those are some ideas on how to think about how business model type relates to your focus and your execution on an existing product.

Business model design III: Delivery and execution

In this video, Alex talks about delivery and execution in a business model design. He uses the example of Enable Quiz to demonstrate how to categorize a product’s characteristics. Alex thinks in fall under an infrastructure-driven business model type. If you had to categorize Enable Quiz as customer driven or product driven, how would you support that idea?

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Digital Product Management

Darden School of Business, University of Virginia