How will your value get delivered?

Its one thing having the raw capability, but for a successful solution, your users need to access that capability in a way that works for them and works for the growth of your solution.

Here are some different types of options delivery mechanisms to consider when thinking about your solution.

Function as a Service (FaaS)

In the Function as a Service (FaaS) delivery model, the focus is on providing specific functionalities to the end-users, often in a straightforward and isolated manner.

This model is commonly seen in first and second-generation software platforms where the software offers a set of features that address particular tasks or problems. Users or teams interact with the software mainly to leverage these functionalities, whether it's for project management, data analysis, or document editing.

While FaaS is a tried-and-true model, it's worth noting that in some saturated markets, offering just a function may not be enough to differentiate your solution.

Therefore, FaaS is often a starting point for many SaaS platforms, but they may evolve into more complex delivery models to meet changing market demands and user needs.

Examples:

  • Project Management: Asana, Trello, JIRA

  • Document Editing: Google Docs, Microsoft Word Online

  • File Storage: Dropbox, Google Drive

  • Communication: Slack, Microsoft Teams

  • CRM: Salesforce, HubSpot

  • Accounting: QuickBooks, FreshBooks

  • Marketing Automation: Mailchimp, Marketo

  • Data Analytics: Tableau, Google Analytics

  • Code Repositories: GitHub, GitLab

  • Design Tools: Adobe Creative Cloud, Canva

  • Video Conferencing: Zoom, Cisco Webex

  • E-commerce: Shopify, WooCommerce

Platform as a Service (PaaS)

Platform as a Service (PaaS) goes beyond offering just a function; it provides an entire environment where multiple participants can collaborate, build, and deploy applications or services.

This model is particularly useful for businesses that require a cohesive platform to bring together different departments, teams, or even different companies to work on a shared project or goal.

This makes it an ideal choice for complex projects that involve multiple stakeholders and require a high degree of customization and scalability.

Examples:

  • Project Management: Asana, Trello, JIRA

  • Document Editing: Google Docs, Microsoft Word Online

  • File Storage: Dropbox, Google Drive

  • Communication: Slack, Microsoft Teams

  • CRM: Salesforce, HubSpot

  • Accounting: QuickBooks, FreshBooks

  • Marketing Automation: Mailchimp, Marketo

  • Data Analytics: Tableau, Google Analytics

  • Code Repositories: GitHub, GitLab

  • Design Tools: Adobe Creative Cloud, Canva

  • Video Conferencing: Zoom, Cisco Webex

  • E-commerce: Shopify, WooCommerce

API as a Service (APIaaS)

In the "As an API" (Application Programming Interface) delivery model, the primary customers are other software developers or platforms rather than end-users.

The focus here is on providing a set of functions, data, or capabilities that can be integrated into other applications. This model is particularly useful when your solution offers specialized functionalities that can enhance or extend the capabilities of existing software.

The goal is to make it as easy as possible for developers to incorporate your service into their own products, thereby expanding your reach and creating additional revenue streams.

APIs are often monetized through a subscription model, where customers pay based on the number of API calls made or the amount of data processed.

Examples:

  • Mapping Services: Google Maps API, Mapbox, HERE

  • Payment Gateways: Stripe API, PayPal API, Square API

  • Text Analysis: IBM Watson Natural Language Understanding, TextRazor

  • Image Recognition: Google Cloud Vision, AWS Rekognition, Microsoft Azure Cognitive Services

  • Social Media Integration: Facebook Graph API, Twitter API, Instagram Graph API

  • Messaging: Twilio SMS API, SendGrid Email API, Pusher WebSockets API

  • Search: Algolia Search API, Elasticsearch, Amazon CloudSearch

  • Data Storage: Firebase Realtime Database API, AWS S3 API, Azure Blob Storage API

  • Authentication: Auth0, Okta API, OAuth

  • Translation Services: Google Translate API, Microsoft Translator Text API

Result as a Service

In the Result as a Service (RaaS) model, the focus shifts from the process to the end result. Customers provide their inputs and receive the desired outcome without needing to understand or engage with the underlying mechanisms that produce it.

This model is often referred to as the "Wizard of Oz" technique, where the customer is unaware of which parts of the service are automated and which are manual.

The key advantage of this model is its simplicity from the customer's perspective: they don't need to worry about how the result is achieved, only that it meets their needs.

This makes RaaS particularly appealing in scenarios where the process is complex but the desired outcome is straightforward and well-defined.

Examples:

  • Mapping Services: Google Maps API, Mapbox, HERE

  • Payment Gateways: Stripe API, PayPal API, Square API

  • Text Analysis: IBM Watson Natural Language Understanding, TextRazor

  • Image Recognition: Google Cloud Vision, AWS Rekognition, Microsoft Azure Cognitive Services

  • Social Media Integration: Facebook Graph API, Twitter API, Instagram Graph API

  • Messaging: Twilio SMS API, SendGrid Email API, Pusher WebSockets API

  • Search: Algolia Search API, Elasticsearch, Amazon CloudSearch

  • Data Storage: Firebase Realtime Database API, AWS S3 API, Azure Blob Storage API

  • Authentication: Auth0, Okta API, OAuth

  • Translation Services: Google Translate API, Microsoft Translator Text API

Ecosystem

In the Ecosystem delivery model, the platform serves as a hub that connects multiple parties, each contributing their unique value to create a more comprehensive solution.

This model is highly collaborative and often involves a network of suppliers, partners, and customers working together. The ecosystem is designed to generate a flow of value among all participants, making the whole greater than the sum of its parts.

This model is particularly powerful for complex, multi-step processes that require diverse expertise or resources. It's often seen in supply chain management, multi-vendor marketplaces, and platforms that bring together various software applications into a unified experience.

The Ecosystem model thrives on network effects, where the value of the platform increases as more participants join, creating a virtuous cycle of growth and value creation.

Examples:

  • Supply Chain: SAP Integrated Business Planning, Oracle SCM Cloud

  • Multi-Vendor Marketplaces: Amazon Marketplace, Alibaba, Etsy

  • Social Media Platforms: Facebook, LinkedIn, Twitter

  • Financial Services: PayPal, Stripe, Square

  • Health and Wellness: Apple HealthKit, Google Fit, Fitbit

  • Smart Home: Apple HomeKit, Google Home, Amazon Alexa

  • Collaboration Suites: Microsoft 365, Google Workspace, Slack

  • Streaming Services: Netflix, Spotify, YouTube

  • Gaming Platforms: Steam, Xbox Live, PlayStation Network

  • Travel and Hospitality: Airbnb, Booking.com, Expedia

While the models described here cover a broad spectrum of delivery mechanisms, it's important to note that there are numerous other models tailored to specific solutions, technologies, and market needs.

The choice of delivery model can significantly impact how your solution is received and adopted, especially considering the unique requirements of your potential markets and users. Therefore, it's crucial to explore and evaluate various models to find the one that aligns best with your business objectives and customer expectations.