#1 The DHM Model: Delight, Hard-to-copy, Margin-enhance

1 The DHM Model: Delight, Hard-to-copy, Margin-enhance

In the world of business and innovation, finding the right ideas and products can make all the difference. As Peter Hopkins emphasizes, good ideas can propel us forward, while bad ones can hold us back. The process of curation becomes essential in distilling the right ideas and transferring them quickly. But what exactly does it mean to curate?

Joanne McNeil describes curation as a form of creative and intellectual labor, a drive to find the interesting, meaningful, and relevant amidst the vast maze of overabundant information. It goes beyond mere acquisition and selection, as a good curator also focuses on contextualizing the curated content. By doing so, curators provide a framework for what matters in the world and why.

Curation, in essence, is about sharing enthusiasm and ideas with others. As Edith Zimmerman highlights, people respond to other people's enthusiasm about things. When a curator is passionate and excited about the content they curate, it becomes contagious, drawing in an audience who appreciates their perspective.

But how does curation relate to business and product strategy? This is where the DHM model comes into play. The DHM model, which stands for Delight, Hard-to-copy, and Margin-enhance, provides a framework for developing a successful product strategy.

First and foremost, a product must delight customers. Understanding what brings joy and satisfaction to consumers is crucial in creating a product that resonates with them. By jotting down the ways in which a product delights customers today and envisioning how it can continue to do so in the future, businesses can lay the foundation for success.

The second aspect of the DHM model is creating a hard-to-copy advantage. In Hamilton Helmer's book, "7 Powers," he outlines seven different ways to achieve this advantage. Building a trusted brand, leveraging network effects, capitalizing on economies of scale, counter-positioning, unique technology, and creating switching costs are all potential avenues for establishing a competitive edge that is difficult for others to replicate.

Lastly, the DHM model prompts businesses to consider how their product can enhance margins. By experimenting with pricing and business models, companies can find ways to maximize profitability while still delivering value to customers. This might involve exploring different pricing strategies, subscription models, or bundling options.

One example of a company that has effectively utilized the DHM model is Netflix. Their personalization technology allows them to understand the movie tastes of their 185 million members. This data-driven approach enables them to make accurate forecasts of streaming hours for each potential title and allocate resources accordingly. By "right-sizing" their investment in original content, Netflix can deliver a curated selection of movies and shows that delights their customers and enhances their margins.

In conclusion, curation is not just about acquiring and selecting content. It is a form of creative and intellectual labor that involves finding the interesting, meaningful, and relevant amidst the abundance of information. By incorporating the DHM model into product strategy, businesses can ensure they are delighting customers, creating hard-to-copy advantages, and enhancing their margins. Ultimately, curation becomes a means to an end, a way to distill and transfer the right ideas as quickly as possible.

Actionable Advice:

1. Understand your customers' preferences and strive to delight them with your product. Continuously assess how you can bring joy and satisfaction to your target audience.
2. Identify and develop a hard-to-copy advantage that sets your product apart from competitors. Explore different avenues such as building a trusted brand, leveraging network effects, or capitalizing on unique technology.
3. Experiment with pricing and business models to enhance your margins while still delivering value to your customers. Explore different pricing strategies, subscription models, or bundling options to find the right balance.

Incorporating the DHM model and embracing the essence of curation, businesses can navigate the vast maze of information, find the right ideas, and ultimately achieve success in a competitive landscape.