Defining Value Domains
A value domain is a center of gravity for your org design.
Different names are known for this concept: Tribe, Track, Base, Product, Value Stream, Nexus... Whatever name is used, it is essential to ensure customer-centricity.
Examples of Value Domains
Each domain is formed around an insurance type
Each domain is a large game or a set of games.
Important: the platform that the games are built on top of is not a value domain as it is not customer-focused, and it doesn't make money on its own.
If, on the other hand, the platform is sold separately to external vendors as a product, then such a value domain can exist, but technically the platform code will be shared among all domains.
Each domain is a business line with its investment strategy, almost like separate businesses that can be started and shut down independently.
Online banking (b2c), large business accounts (b2b).
Domains can be formed around different brands (for several large brands) or sales types (online sales, brick-and-mortar).
Avoid funnel-like domain forming: acquisition, activation, retention - creating value domains along these lines will lead to an under-optimized user experience due to a lack of holism in looking at the user journey.
User Scenarios, User Journeys
When forming Value Domains, it is critical to have an outside-in perspective.