Wednesday, 4th April 2012
"Delivery framework" pricing looks at the context in which the content is delivered to the user. Products priced through delivery framework reflect a different set of investments and risks on the part of the vendor, and a buyer will need to negotiate accordingly.
This is the third in a four-part series of FreePint Features on how vendors of content products invest in product development. If you influence or negotiate contracts, you may find this approach to understanding the various levers you can pull to be useful.
A common trend in the information world is to develop content products aimed at specific business needs. Vendors assemble a foundation of content, through in-house creation, commissioning and/or licensing. However what they sell to buyers is a particular user experience – the packaging or framework that presents the content to the user.
The delivery framework pricing philosophy emphasises the focus and targeting of the interface, which may:
In these cases, the investment is first of all in a set of tools or in a user experience that is highly focused. The vendor has to have a clear understanding of exactly what a user needs to do with the information, and present it within a framework that shifts some of the work burden from the user to the product. At the same time, the vendor must also invest in content, much as it would for a value metrics product.
The risks with delivery framework are greater. If the vendor misunderstands the needs of the user, the product will fail. Users have very specific requirements and increasingly demand intuitive yet powerful interfaces. Vendors using this pricing philosophy must continually reinvest in state-of-the-art user experience.
And the risk of losing content is ever-present as well.
In negotiations, a smart early adopter may secure better pricing by partnering with the vendor to help refine the framework. Adding users who need different frameworks from each other will probably not result in price savings, as the key investment the vendor makes is in developing each framework. However, adding more users to the same framework may result in cost savings.
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