3 ms·

Except, if you can outsource your value driver, its not a value driver. Because anyone else can too.

• bob1029 6y ago
  That is an excellent observation to make. If you are planning to start a business and come to the realization that you could outsource your principal value driver, then you probably should not go into business doing that thing.
  • cercatrova 6y ago
    What kinds of value drivers exist? Are there any examples of outsourcing value drivers, either potentially or actually? I'm not quite understanding the statement. If I ran a digital agency, I could build websites, but I could also hire people to build websites, is that outsourcing my value driver?
    • throw14082020 6y ago
      I would say that some (not all) digital agencies add value not by coding a website up but by providing their service, for example: - They can build better overall experiences (not just the website, but whole UX). Some agencies/ people do have success in outsourcing the technology, because they might do QA and leadership, which these off shore teams would not get right. - They have deep expertise in some technology which you can't just hire someone for. I guess you can argue, everyone has a price and a company can just pay that rate, but if that employee is doing all the work, that employee would probably have a high rate and would be, themselves capturing the value, not the company. I think this point is almost just a repetition of the first example.