The first and probably the most important question we're going to ask ourselves on this delivery half of the canvas is, what activities are strategically important? And the best way, I think, to focus that question and supply good and testable answer is to think about business model type. And this is an idea that originated in this Harvard Business Review article called Unbundling the Corporation. And what they basically found was companies that cohere, implicitly or explicitly, this one sort of business model type and focus their delivery that way performed better than those that do not. And we're going to go through these three types and then kind of think about what type you are at your company and why you think that. So you can sort of focus your view of what's really strategic on our delivery around the answer to that question. The first type is infrastructure driven and the private driver here is scale and repeatability. So for example, an electric utility will have this big, expensive, physical infrastructure and they want to run as much power through it as they can because that's what determines their profitability. Traditional Telecom is similar in that way. And when Dow invents some innovative new compound, what they really care about is, can we go sell a lot of this for lots of different purposes to lots of different people in pretty much the same way? And so that repeatability still is really important. And also say that, in infrastructure driven company doesn't have to have this kind of commodity product, exactly. I would say that educational institutions, everything from primary schools up to universities, those are infrastructure driven businesses. And even as we produce lots of original content here at Darden, still fundamentally, we're looking at how we deliver a similar kind of experience to lots of different students and consistently get them good outcomes with that. And so, that's the characteristic of, I would say, an infrastructure-driven organization. And the next one for contrast, is scope-driven. A lot of retailers are scope-driven. For example, Neiman Marcus is looking at how do we increase the share of that luxury clothing buyers spending and how do we get more of that? Bank of America, not all banking businesses are scope-driven but historically on the consumer side, Bank of America has been really focused on how do we have this customer that has a checking account, let's say, and we sell them savings and we sell them a retirement plan and a mortgage and if they have a business maybe a small business loan. And then corporate law firms or consultancies often have these relationships with large corporations and what they're really looking at is how do we provide a bunch of different related services? So deal with all the different legal advisory or advisory in some other area. And that's what drives their profitability, is that economy of scope, providing a lot of things in the same general area. Lastly, we have product-driven. And this is where the firm is creating something unique and proprietary that either unlocks a new way of delivering on a problem scenario or a new source of demand and or extracts a price premium. And consumer packaged goods, branded packaged goods like Nestle, Unilever, these are product-driven companies, application software, not an auto application software but for example, Electronic Arts EA that does games is a good example of this. I mean, they are creating a game that is unique and proprietary and they're trying to get people to buy it through whatever channel they can find. And media, in a similar vein, MGM for instance, makes movies. These are product-driven. What is it about this movie that's special that's going to get people to go see it. We're not going to operate the movie theater but we're going to supply the movie and it's our uniqueness and the originality and whether this movie is compelling for a given buyer is what's going to determine their profitability on it. Those are some ideas on business model type and what it means and what it might mean for you. In the next video, we'll look at some examples, in kind of some more examples, and we'll sort of tease this out for your particular business model.
