When it comes to joining a company as a product leader, advisor, or board member, there are three important questions that need to be answered: how will the product delight customers, what will make the product hard to copy, and what business model experiments are required to build a profitable business? These questions form the basis of the DHM Model.

When it comes to joining a company as a product leader, advisor, or board member, there are three important questions that need to be answered: how will the product delight customers, what will make the product hard to copy, and what business model experiments are required to build a profitable business? These questions form the basis of the DHM Model.

Delighting customers is a crucial aspect of any successful product. To determine the "delighters" for your product, it's important to understand what customers value and what will make them choose your product over competitors. This can include factors such as convenience, quality, and unique features.

In his book "7 Powers," Hamilton Helmer outlines seven hard-to-copy advantages that can make a product stand out. These include brand recognition, network effects, economies of scale, counter-positioning, unique technology, switching costs, and process power. These advantages create barriers for competitors and make it difficult for them to replicate your product's success.

One example of a hard-to-copy advantage is Netflix's strong brand recognition. Today, almost all TVs, DVD/Blu-Ray players, game systems, set-top boxes, and mobile devices are pre-wired to stream Netflix. This widespread integration makes it difficult for competitors to compete on the same level.

Economies of scale is another advantage that can make a product hard to copy. As a company grows and produces more units of a product, they can achieve cost savings through bulk purchasing and increased efficiency. This allows them to offer competitive pricing and maintain high-profit margins.

Counter-positioning is a power that offers customers something that competitors are unable to match. An example of this is when Netflix advertised "No Late Fees" in 2004. This unique offer made it appealing to customers who were tired of paying late fees for movie rentals.

Unique technology is another advantage that can set a product apart. Netflix effectively "right-sizes" their investment in original content by leveraging data and analytics to determine what their customers want to watch. This allows them to create content that resonates with their audience and keeps them engaged.

Switching costs can also make a product hard to copy. In the case of Netflix, customers may be reluctant to switch to a competing streaming service like Amazon or Hulu because it would require recreating profiles for each family member. This added effort acts as a deterrent and keeps customers loyal.

Process power refers to the ability to capture resources that are valuable to the business. This can include things like customer data, intellectual property, or exclusive partnerships. By leveraging these resources effectively, a company can create a sustainable advantage that is difficult for competitors to replicate.

In order to generate margin and build a profitable business, it's important to experiment with different prices and business models. This is an ongoing process that requires constant evaluation and adjustment. No business model is set in stone, and it's important to be open to exploring new ideas and approaches.

To apply the DHM Model to your own product, there are a few exercises you can undertake. First, take a moment to jot down how your product currently delights customers and then brainstorm ideas on how you can further enhance that experience in the future.

Next, use the seven hard-to-copy powers as a springboard to brainstorm ways your product can create a hard-to-copy advantage. This could include things like building a strong brand, leveraging network effects, or investing in unique technology.

Finally, list a few price and business model experiments that you can explore over the next 1-3 years. This could involve testing different pricing tiers, subscription plans, or partnerships to see what resonates with your target audience.

By following these exercises, you will have a list of hypotheses to guide your product strategy. Remember that the process of delighting customers, creating a hard-to-copy advantage, and experimenting with pricing and business models is an ongoing one. It's important to always be open to new ideas and approaches to ensure the long-term success of your product.

In conclusion, the DHM Model provides a framework for product leaders, advisors, and board members to analyze and strategize their approach to product development. By focusing on delighting customers, creating hard-to-copy advantages, and experimenting with prices and business models, companies can build profitable businesses that stand out in the market.