Is it better for Zendesk to focus on expanding integrations with popular third-party tools or developing more proprietary features?

Introduction

The trade-off between expanding integrations with popular third-party tools or developing more proprietary features is a critical decision for Zendesk's product strategy. This scenario involves balancing external partnerships with internal innovation to drive user value and business growth. I'll analyze this trade-off by examining the product context, potential impacts, and key metrics, then design an experiment to inform our decision-making process.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking about Zendesk's current market position and competitive landscape. Could you provide some insight into our market share and primary competitors?

Why it matters: Helps assess the urgency of differentiation vs. ecosystem play Expected answer: Moderate market share, facing increasing competition Impact on approach: Would influence whether to focus on unique features or broader integrations

• Business Context: Based on our revenue model, I assume integrations and proprietary features have different impacts on our bottom line. How do these two approaches currently contribute to our revenue streams?

Why it matters: Aligns decision with financial objectives Expected answer: Integrations drive user acquisition, proprietary features increase ARPU Impact on approach: Would help balance short-term growth vs. long-term value creation

• User Impact: Considering our user segments, I'm curious about the adoption rates of our existing integrations versus proprietary features. Can you share any data on this?

Why it matters: Identifies user preferences and potential gaps Expected answer: Varied adoption rates across segments Impact on approach: Would guide feature prioritization and integration strategy

• Technical: Regarding our current architecture, how easily can we scale our integration capabilities compared to developing new proprietary features?

Why it matters: Assesses feasibility and resource requirements Expected answer: Integration platform is mature, new features require more effort Impact on approach: Would influence timeline and resource allocation

• Resource: Thinking about our team structure, how are our engineering resources currently split between integration work and proprietary feature development?

Why it matters: Determines capacity for each approach Expected answer: Roughly even split with some flexibility Impact on approach: Would inform realistic execution timelines for each option