Internalizing the Business Model

A critical aspect of aligning a team to produce the "right" product I often counsel the importance of getting everyone who contributes to fully internalize as much as possible the business model for the product.

By business model I mean that the perceived value of the product to the customer be highly aligned to the way that the customer pays, or will pay, for the value derived. For example, in a freemium model, the customer should pay for additional capabilities that's value is clearly understood to expand the value of the base product. The great aspect of this model is there is enough context in the base free model that the value is more obvious.

Once the model is truly internalized by your team they will be able to make clear and quick decisions during the development process that can dramatically speed up the creation of product. What is amazing is when the team discovers that the plans aren't aligned with the business model and they speak up to make the product better. They can champion the features that will more closely align to the business model and/or champion the change to the business model that more closely aligns to the true customer value derived from the product.

A team that is aligned in this manner is unstoppable. Some of my best experiences have been setting up this kind of environment then getting out of the way.

Comments

[Simjen]

Nice to be visiting your blog again, it has been months for me. Well this article is that i’ve been waited for so long. I need this article to complete my assignment in the college, and it has same topic with your article. Thanks, great share.

[web designers Melbourne]

Informative post, straight to the point. Great work here.