Does drilling down to your products true value creation make you want to cringe? Are you tasked with product innovation or even the sales or marketing of your products or services? Are you afraid that you focus too much on products and features, rather than customer value? Maybe your seemingly good idea is not flourishing and you want to figure out how to improve or innovate.
If you could creatively, thoughtfully and systematically, discover and create meaningful value propositions that your customers truly care about, would your previous cringe now turn into a smile (or at the very least, a sigh of relief)? If yes, I'd like you to meet my new favorite resource for uncovering and designing customer centric value propositions: Value Proposition Design, a follow up to the worldwide best seller, Business Model Generation, a book and series of tools written by Alex Osterwalder and Yves Pigneur and produced by Patrick van der Pijl of Business Models Inc, that provides the canvas and nine building blocks to describe how your organization creates, delivers, and captures value. Value proposition, is one of the nine building blocks of the Business Model Canvas.
Value Proposition Design, the second book in this Strategyzer series, is an experiential process and a set of tools that provides professionals with the resources and framework to do this, enabling you to avoid wasting time with unstructured and stressful development methods and ideas that won't work. At its root, it provides you with a customer centric mindset and a shared language that allows you to focus more granularly into how you are creating value for your customers. The Value Proposition Canvas (above), which consists of two parts:
Customer Profile (right) This is a visual understanding of your customer -- their jobs (functional, social, and emotional), pains (including risks, and potential bad outcomes), and their gains, (potential positive outcomes and benefits).
Value Map (left) This is a demonstration of how you intend to create value for that exact customer, is the central tool for visually and physically Designing, Testing, and Evolving great value propositions in an ongoing and dynamic search for what your customers really want, and is used in conjuntion with the Business Model Canvas, the platform used for generating these business models. The ultimate goal is to achieve a synergetic fit between the two sides.
I had the pleasure of attending Business Models Inc.'s Value Proposition Masterclass, in Chicago on Thursday, August, 27, at technology incubator, TechNexus. In this masterclass, I was able to work with a team of great visual thinkers and strategists to develop a new concept for Bank of America to attract unbanked prospects (only for the sake of this exercise). Our team was praised for our detailed and thorough output.