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SaaS Products and DDD Core Subdomains ​

Chat with ChatGPT about DDD in SaaS products and also a discution about Core Subdomains not implemented using in-house solutions

TL;DR: ​

ChatGPT

We've discussed the application of Domain-Driven Design (DDD) in various contexts, particularly focusing on SaaS companies and furniture e-commerce businesses. The key points covered include:

  1. DDD in Different Contexts: DDD is a versatile approach that can be applied to both complex systems like e-commerce platforms and more focused environments like SaaS products. It helps in identifying and segregating bounded contexts, establishing a ubiquitous language, focusing on core domains, and dealing with specific challenges like multi-tenancy.

  2. SaaS Products: In SaaS, DDD aids in defining distinct bounded contexts and subdomains such as core, supporting, and generic. The core domain is typically the unique features that differentiate the SaaS product from its competitors.

  3. Software Houses: For software houses developing custom solutions, DDD helps model each client's domain accurately and identify common patterns across projects for reusable components.

  4. Furniture E-commerce: We explored how a furniture e-commerce business might have different core, supporting, and generic subdomains compared to a SaaS product, with core domains focused more on physical products and their attributes.

  5. Use of OTS Solutions: We discussed that for companies whose primary focus isn't software (like a furniture e-commerce business), core subdomains could be effectively managed using Off-The-Shelf (OTS) solutions, provided they fit the specific needs, offer competitive advantage, integrate well with other systems, and align with the company's strategic goals.

Discussion ​

markdown
# Prompt

let me ask you something. Usually, when talking or reading about
Domain Driven Design it uses examples that seem to apply better
to big and complex environments.
But one thing I noticed was that we always talk about companies
with various departments and so one, for example, an e-commerce
shop, where you have orders, logistics, supply chain etc.

I think I've heard little or nothing at all of DDD being applied
in SaaS products or software houses that sell their solution to
various clients.

Can you help me understand if DDD can be applied to these other scenarios,
such as a more focused SaaS product for example? Can you elaborate on it
and maybe use a couple of fictitious examples to help the explanations?
# Prompt

let me ask you something. Usually, when talking or reading about
Domain Driven Design it uses examples that seem to apply better
to big and complex environments.
But one thing I noticed was that we always talk about companies
with various departments and so one, for example, an e-commerce
shop, where you have orders, logistics, supply chain etc.

I think I've heard little or nothing at all of DDD being applied
in SaaS products or software houses that sell their solution to
various clients.

Can you help me understand if DDD can be applied to these other scenarios,
such as a more focused SaaS product for example? Can you elaborate on it
and maybe use a couple of fictitious examples to help the explanations?

ChatGPT

Domain-Driven Design (DDD) is indeed often exemplified using large, complex systems like e-commerce platforms because these domains showcase the various moving parts and complexities DDD aims to address. However, DDD is not limited to such contexts and can be effectively applied to a wide range of software development scenarios, including SaaS products and software houses serving multiple clients. Here's how DDD can be relevant and beneficial in these contexts:

Application of DDD in SaaS Products ​

  1. Defining Bounded Contexts: In a SaaS product, different functionalities might serve different sets of users or purposes. DDD helps in segregating these into bounded contexts. For example, a project management SaaS might have separate bounded contexts for task management, time tracking, and reporting.

  2. Ubiquitous Language: DDD emphasizes a common language that is shared across team members and stakeholders. In a SaaS environment, this helps ensure that when developers, designers, and product managers talk about a feature, they are all on the same page.

  3. Focus on Core Domain: SaaS products often need to focus on their core domain to differentiate from competitors. DDD aids in identifying and enhancing this core domain, ensuring that the most valuable features receive the most attention.

  4. Dealing with Multi-Tenancy: SaaS applications often have to handle data and operations for multiple clients (tenants). DDD can guide the design of the system to handle this complexity without compromising on the integrity and performance of the application.

Application of DDD in Software Houses ​

  1. Custom Solutions for Various Clients: For a software house that develops custom solutions, DDD can help in understanding and modeling each client's domain accurately. This ensures that the software developed aligns closely with the client's business processes and needs.

  2. Reusable Components: DDD can assist in identifying common patterns and functionalities across projects, leading to the development of reusable components, which can increase efficiency and reduce time-to-market for new projects.

  3. Agility and Scalability: DDD's emphasis on modular design helps software houses to be agile in their development process. They can scale parts of the system as needed without affecting the whole system.

Fictitious Examples ​

  1. SaaS Product - Online Education Platform

    • Bounded Contexts: Course Management, Student Interaction, Analytics.
    • Ubiquitous Language: Terms like "modules", "quizzes", and "engagement metrics" are consistently used across teams.
    • Core Domain: The platform focuses on innovative course delivery methods, making it a unique selling point.
    • Multi-Tenancy: Each educational institution has its own customized view and data, managed within the same system.

  2. Software House - Custom CRM Development

    • Client-Centric Solutions: Developing a CRM for a retail business, DDD helps model the retail domain's specific needs, like customer segmentation and loyalty programs.
    • Reusable Components: Common CRM features like contact management and task tracking are developed as reusable modules.
    • Agility and Scalability: As clients grow, the CRM can be scaled to accommodate more users and data, with minimal disruption.

In summary, DDD's principles are not confined to large, multi-department companies but are quite applicable and beneficial in developing focused SaaS products and in software houses working on varied client projects. Its methodologies in understanding and modeling domains, defining boundaries, and maintaining a ubiquitous language are universally valuable in software development.

markdown
# Prompt

so, for a saas product, would the system domains and bounded context
align with the client's domains and BCs? or not necessarily, since
the saas product could be for the client's company just one small
part of their bigger eco-system of domains and BCs?
# Prompt

so, for a saas product, would the system domains and bounded context
align with the client's domains and BCs? or not necessarily, since
the saas product could be for the client's company just one small
part of their bigger eco-system of domains and BCs?

ChatGPT

When it comes to a SaaS product, the alignment of the system's domains and bounded contexts with the client's domains and bounded contexts can vary depending on the nature and scope of the SaaS product as well as the client's business structure and needs. Let's explore both scenarios:

Scenario 1: Alignment of SaaS Domains and Bounded Contexts with Client's ​

  1. Integrated Solutions: If the SaaS product is designed to be a comprehensive solution that integrates deeply with the client's business processes, its domains and bounded contexts might align closely with those of the client. For example, a SaaS offering a complete HR management system might mirror the HR domain and its subdomains (like recruitment, payroll, employee engagement) as found in many client organizations.

  2. Customizable Platforms: Some SaaS products are highly customizable and can be tailored to fit the specific domain structure of each client. In such cases, the SaaS's bounded contexts might initially be generic, but they can be adapted to align closely with the client's specific domains and contexts.

Scenario 2: Partial or No Alignment ​

  1. Specialized Tools: A SaaS product might provide specialized services or tools that address only a part of the client's broader domain. For instance, a SaaS offering advanced analytics or reporting tools would fit into a specific niche in the client's ecosystem, without necessarily aligning with the entire range of the client's domains and bounded contexts.

  2. Modular Services: Some SaaS products are designed as modular services that clients can plug into their existing systems. These modules might operate within their own bounded contexts that don't directly map onto the client's domain structure but instead provide supplementary functionality.

Key Considerations ​

  • Client's Ecosystem Complexity: Clients with a complex ecosystem might use multiple SaaS products, each fitting into different parts of their domain structure. A single SaaS product may not need to encompass all of the client's domains.

  • Domain Versus Functionality: It’s important to distinguish between a domain in the DDD sense and a functional area of a SaaS product. A SaaS might offer specific functionalities (like data visualization) that are used across multiple domains within the client's organization.

  • Adaptability and Integration: How well a SaaS product needs to align with a client's domains often depends on the product's adaptability and the required level of integration with the client’s existing systems.

In summary, whether a SaaS product's domains and bounded contexts align with those of the client depends on the nature of the product and the client's requirements. Some SaaS products are closely aligned due to their comprehensive or customizable nature, while others serve more specialized roles within a client's broader domain ecosystem.

markdown
# Prompt

but in general terms, the saas product would have its own subdomains
core, supporting, generic implemented in their own BCs and ubiquitous
languages, right? Can you provide one more example of this scenario?
# Prompt

but in general terms, the saas product would have its own subdomains
core, supporting, generic implemented in their own BCs and ubiquitous
languages, right? Can you provide one more example of this scenario?

ChatGPT

Absolutely, in general terms, a SaaS product will indeed have its own subdomains—core, supporting, and generic—each implemented within their own bounded contexts and defined by a ubiquitous language. This structure allows the SaaS product to be self-contained, maintainable, and adaptable to various client needs. Let's consider a more detailed example:

Example: Online Project Management Tool ​

Overview ​

Imagine a SaaS product designed as an online project management tool. This tool offers features like task tracking, team collaboration, time logging, and reporting. Different organizations use this tool for managing their projects, ranging from software development to marketing campaigns.

Subdomains and Bounded Contexts ​

  1. Core Domain (Project and Task Management)

    • Bounded Context: This includes all functionalities directly related to managing projects and tasks, such as creating tasks, assigning them, setting deadlines, and tracking progress.
    • Ubiquitous Language: Terms like "task", "milestone", "sprint", and "backlog" are used consistently within this context.
    • Significance: This is the heart of the tool, offering the primary value to the users. It's where the most innovation and differentiation from competitors occur.

  2. Supporting Domain (Collaboration and Communication)

    • Bounded Context: This encompasses features that support team communication and collaboration, such as chat, comment threads on tasks, and file sharing.
    • Ubiquitous Language: Terms like "thread", "comment", "attachment", and "notification" are specific to this context.
    • Role: While not the primary focus of the tool, this domain significantly enhances the usability and effectiveness of the core domain.

  3. Generic Domain (User Management and Authentication)

    • Bounded Context: This area deals with user accounts, permissions, authentication, and security.
    • Ubiquitous Language: Terms like "user", "role", "permission", and "authentication" are standardized.
    • Characteristic: These are standard functionalities that are necessary but not unique to the project management tool. Often, pre-built solutions or external services are integrated for these features.

Interaction with Client's Domains ​

  • Adaptation to Client Needs: Each organization using this tool can customize aspects like project templates, workflow stages, and report formats to align with their internal project management processes.
  • Integration: The tool can integrate with other systems (like CRM or ERP) used by the client, but it maintains its own bounded contexts and does not need to completely align with the client's domain structure.
  • Flexibility: The clear separation of domains and bounded contexts in the SaaS product allows it to be flexible and useful for a wide range of clients, each with their own unique set of processes and terminologies.

In this example, the SaaS product has distinct subdomains and bounded contexts with a specific ubiquitous language for each, ensuring clarity and consistency within the product while allowing it to be adaptable and valuable to a diverse range of clients.

markdown
# Prompt

the difference between the core subdomains of a SaaS and e-commerce
that sells furniture is, for the SaaS, what makes money is the software
itself, so it needs its "core" domain is the set of features that
differentiates it from other SaaS competitors. Now for the e-commerce,
the core domain, since it makes money selling furniture, their core
domain might be to have a high quality wood or crafting, and not
necessarily a piece of software.
# Prompt

the difference between the core subdomains of a SaaS and e-commerce
that sells furniture is, for the SaaS, what makes money is the software
itself, so it needs its "core" domain is the set of features that
differentiates it from other SaaS competitors. Now for the e-commerce,
the core domain, since it makes money selling furniture, their core
domain might be to have a high quality wood or crafting, and not
necessarily a piece of software.

ChatGPT

You've made a very insightful observation regarding the distinction between the core domains of a SaaS product and a furniture e-commerce business. The core domain in any business is essentially what gives it a competitive edge and is central to generating revenue. Let's delve into this difference:

Core Domain in a SaaS Product ​

  • Primary Value Proposition: For a SaaS product, the software itself is the product. The core domain is typically the set of features and functionalities that distinguish it from competitors. This could be innovative technology, user experience, unique features, scalability, reliability, or integration capabilities.
  • Example: In a project management SaaS, the core domain could be its unique approach to visualizing project timelines or an AI-powered tool that predicts project risks and suggests mitigations.
  • Revenue Generation: The revenue comes directly from the usage of the software, either through subscriptions, usage fees, or licensing.

Core Domain in a Furniture E-commerce Business ​

  • Physical Product Focus: For an e-commerce business specializing in furniture, the core domain is likely to be the quality and uniqueness of the furniture it sells. This could involve high-quality materials (like premium wood), craftsmanship, design innovation, or sourcing rare or eco-friendly materials.
  • Example: The e-commerce might have a competitive edge due to its exclusive range of handcrafted wooden furniture that’s not available elsewhere, or perhaps its furniture is made from sustainably sourced wood, appealing to environmentally conscious consumers.
  • Revenue Generation: Revenue is generated through the sale of physical goods – the furniture. While the e-commerce platform (the website and its features) is crucial for sales, it supports rather than defines the core business.

Key Differences ​

  1. Nature of the Product: In SaaS, the software is the product; in e-commerce, the software (the website) is a means to sell the product (furniture).
  2. Source of Competitive Advantage: For SaaS, it's about the software's capabilities and features. For e-commerce, it’s about the quality, uniqueness, or appeal of the physical goods sold.
  3. Role of Technology: In SaaS, technology is central to the value proposition. In e-commerce, technology facilitates the display, marketing, and selling of products, but the core value lies in the physical goods.

Conclusion ​

This differentiation highlights how the core domain is intrinsically linked to what the business offers and where it finds its competitive edge. In SaaS, it’s about the software's unique features and capabilities, while in an e-commerce setting like a furniture store, it’s about the tangible products and their attributes. Understanding this distinction is crucial for effectively applying principles like Domain-Driven Design, as it informs where to focus resources and innovation efforts.

markdown
# Prompt

can you layout what could be examples of core, supporting,
and generic subdomains for them? Use a more real life example.
# Prompt

can you layout what could be examples of core, supporting,
and generic subdomains for them? Use a more real life example.

ChatGPT

Certainly! Let's consider more realistic examples of core, supporting, and generic subdomains for both a SaaS product and a furniture e-commerce business. These examples will illustrate how each type of subdomain plays a different role in the overall business strategy and operations.

SaaS Product: CRM (Customer Relationship Management) Software ​

Core Subdomains ​

  • Sales Pipeline Management: Key features include lead tracking, opportunity management, sales forecasting. This is the primary area where the CRM adds value, helping businesses manage their sales process effectively.
  • Customer Interaction Tracking: Keeping detailed records of all customer interactions, be it via email, phone, or meetings. This core functionality is what differentiates the CRM in the market.

Supporting Subdomains ​

  • Reporting and Analytics: Providing insights into sales performance, customer behavior. While not the primary service, these features greatly enhance the usability and effectiveness of the core domains.
  • Marketing Campaign Management: Tools for managing and analyzing marketing campaigns. Supports the sales process but isn’t the primary focus of the CRM.

Generic Subdomains ​

  • User Authentication and Access Control: Standard login and user management functionalities. These are necessary for security but don’t differentiate the CRM in the market.
  • Notification Services: Email or SMS notifications for various triggers. Common functionality found in many software applications.

Furniture E-commerce Business ​

Core Subdomains ​

  • Product Sourcing and Inventory Management: The quality and uniqueness of furniture, relationships with furniture makers, inventory management strategies.
  • Custom Furniture Design and Crafting: If the business specializes in custom-made furniture, this becomes a core domain, focusing on craftsmanship, design innovation, and material quality.

Supporting Subdomains ​

  • Delivery and Logistics: Efficiently managing the delivery of furniture to customers. Critical for customer satisfaction but not a primary business driver.
  • Customer Service: Handling customer inquiries, returns, and complaints. Supports the buying experience and helps in building customer loyalty.

Generic Subdomains ​

  • Payment Processing: Handling online transactions. It's a standard requirement for e-commerce but doesn’t set the business apart from competitors.
  • Website Management: Basic website functionalities like hosting, content management. Necessary for online presence but not a unique aspect of the business.

Analysis ​

In both examples, the core subdomains are what give the business its competitive edge. They are central to the business model and are where the most innovation and differentiation from competitors occur.

The supporting subdomains enhance and complement the core subdomains. They are important for the overall customer experience and operational efficiency but are not the primary business drivers.

Finally, the generic subdomains are necessary for basic functionality and operations. They don’t provide a competitive advantage and are often standardized or outsourced.

Understanding these distinctions helps businesses allocate resources efficiently, focus on their unique selling propositions, and make strategic decisions about where to innovate and where to utilize standard solutions.

markdown
# Prompt

for the Furniture e-commerce business, could its core subdomain needs
be fulfilled by a generic solution? or because it's a core for the
business it needs to be developed in-house?

Asking this, because you see in literatures out there that usually core
subdomains are "recommended" to be implemented and maintained in-house,
but if the focus of the company isn't software, or making money out of
the software, it seems to me that a core-subdomain could be "implemented"
using an OTS and more generic bought solution.
# Prompt

for the Furniture e-commerce business, could its core subdomain needs
be fulfilled by a generic solution? or because it's a core for the
business it needs to be developed in-house?

Asking this, because you see in literatures out there that usually core
subdomains are "recommended" to be implemented and maintained in-house,
but if the focus of the company isn't software, or making money out of
the software, it seems to me that a core-subdomain could be "implemented"
using an OTS and more generic bought solution.

ChatGPT

You've touched on a very important and practical aspect of Domain-Driven Design (DDD) and its application in business, especially in cases where the core business isn't directly related to software development.

For a furniture e-commerce business, while the core subdomains are critical to its success, it doesn't necessarily mean that all solutions for these core subdomains need to be developed in-house. The decision to use off-the-shelf (OTS) solutions or to develop in-house software depends on various factors:

Factors Influencing the Decision ​

  1. Core Competency: If the company's core competency isn't software development (like in the case of a furniture e-commerce business), it might make more sense to use OTS solutions that are already well-developed and supported, rather than diverting significant resources to build and maintain custom software.

  2. Customization Needs: Consider how unique the requirements are for the core subdomains. If the needs are highly specialized and cannot be adequately met by existing OTS solutions, then custom development might be justified.

  3. Cost-Benefit Analysis: Developing in-house solutions can be resource-intensive and expensive. It's important to weigh the costs against the potential benefits. If an OTS solution can fulfill the core needs effectively at a lower cost, it might be the better choice.

  4. Integration Capabilities: The ability of OTS solutions to integrate with other systems and processes is crucial. If an OTS solution can seamlessly integrate with the existing ecosystem and enhance the core subdomains, it can be a viable option.

  5. Strategic Importance: Sometimes, control over the software that manages core subdomains can be strategically important, especially if these domains are key differentiators in the market.

Example: Furniture E-commerce Business ​

  • Product Sourcing and Inventory Management: If there are advanced and well-supported OTS solutions available that can be customized to the specific needs of the business, it might be more efficient and cost-effective to adopt these solutions rather than building them from scratch.

  • Custom Furniture Design and Crafting: This might be an area where more specialized, bespoke solutions are needed. However, if there are OTS design tools that can be adapted to meet the business's unique requirements, they could be considered.

Conclusion ​

While DDD literature often emphasizes in-house development for core subdomains, this is not a one-size-fits-all rule. The decision should be based on the specific context of the business, including its competencies, strategic priorities, and the unique requirements of its core subdomains. For businesses where software development is not the main focus, leveraging robust and customizable OTS solutions for core subdomains can often be the most practical and effective approach.

markdown
# Prompt

so we can conclude that a Core Subdomain for such a company could be
very well solutioned by using an OTS, if there is one that can provide
competitive advantage to the business core domain
# Prompt

so we can conclude that a Core Subdomain for such a company could be
very well solutioned by using an OTS, if there is one that can provide
competitive advantage to the business core domain

ChatGPT

Yes, that's a correct and practical conclusion. For a company whose primary focus is not software development, such as a furniture e-commerce business, a core subdomain could indeed be effectively addressed using an Off-The-Shelf (OTS) solution, under certain conditions:

  1. Adequate Customization and Fit: The OTS solution should be customizable enough to fit the specific needs and processes of the business's core subdomain. It should be able to adapt to the unique aspects that give the business its competitive edge.

  2. Providing Competitive Advantage: The solution should either contribute to or enhance the company's competitive advantage in its core domain. This could be through superior functionality, better user experience, cost-effectiveness, scalability, or other factors that are crucial to the business.

  3. Integration Capability: It should seamlessly integrate with other systems and processes within the business, ensuring smooth operations and data consistency across different areas.

  4. Support and Evolution: The OTS solution should be well-supported and regularly updated to keep pace with evolving business needs and technological advancements.

  5. Strategic Consideration: The decision to go for an OTS solution should align with the company's strategic objectives and long-term vision.

Example Revisited: Furniture E-commerce ​

  • For instance, an advanced inventory management system that is readily available, can be tailored to the specific types of furniture and workflow of the e-commerce business, and offers superior features (like real-time stock updates, integration with suppliers, predictive analytics for stock replenishment) could provide a significant competitive advantage, even though it is an OTS solution.

  • Additionally, if this system improves operational efficiency, reduces costs, and enhances the customer experience (e.g., accurate stock information leading to better delivery times), it directly contributes to the company’s core objectives.

Conclusion ​

In summary, while Domain-Driven Design often emphasizes in-house development for core subdomains, this approach is flexible and should be adapted to the specific context and strategic needs of the business. In cases where an OTS solution can effectively meet the requirements of a core subdomain and provide a competitive advantage, it can be a very viable and strategic choice.

Conclusion ​

markdown
# Prompt

Given all we've discussed so far in this discussion, could you provide
a TD;DR; about it, and a conclusion and takeaways? Please consider all
since the beginning where we talked about DDD for SassS companies until
the last topic about core-subdomains not being implemented in house.
# Prompt

Given all we've discussed so far in this discussion, could you provide
a TD;DR; about it, and a conclusion and takeaways? Please consider all
since the beginning where we talked about DDD for SassS companies until
the last topic about core-subdomains not being implemented in house.

Conclusion and Takeaways ​

ChatGPT

  • Flexibility of DDD: Domain-Driven Design is not limited to complex, software-heavy environments. Its principles are adaptable to various types of businesses, including both SaaS and non-software-centric companies like furniture e-commerce.

  • Understanding Core Domains: Identifying and focusing on core domains is crucial for any business. In SaaS, this often revolves around unique software features, while in other businesses, like furniture e-commerce, it might be about product quality and sourcing.

  • Role of Software in Non-Software Businesses: Even in businesses where software isn't the primary product, software solutions, whether developed in-house or OTS, play a crucial role in managing core and supporting subdomains effectively.

  • Strategic Use of OTS Solutions: For core subdomains in non-software-centric businesses, using OTS solutions can be a strategic decision. It hinges on the solution’s ability to provide a competitive edge, customization to fit unique business needs, and alignment with overall business strategy.

In essence, the application of DDD and the strategic use of software solutions (in-house or OTS) should be tailored to the unique context, needs, and strategic goals of each business, whether it's a SaaS company or a different type of enterprise.

Giovanny Massuia 👨‍💻

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