Succinct: Characterized by clear, precise expression in few words; concise and terse: Irrefutable: Impossible to refute or disprove; incontrovertible
The NABC Efficiently Answers Four Fundamental Questions An NABC comprises the four fundamentals that define a project's value proposition: N eed: What are our client's needs? A need should relate to an important and specific client or market opportunity, with market size and end customers clearly stated. The market should be large enough to merit the necessary investment and development time. Need level: Vitamin (nice to have), Aspirin (worth paying for), Antibiotics (critical). Approach : What is our compelling solution and unique advantage to the specific client need? Draw it, simulate it or make a mockup to help convey your vision. As the approach develops through iterations, it becomes a full proposal or business plan, which can include market positioning, cost, staffing, partnering, deliverables, a timetable and intellectual property (IP) protection. Look for paradigm-shifting approaches that address a specific need. B enefits: What are the client benefits of our approach? Each approach to a client's need results in unique client benefits, such as low cost, high performance or quick response. (better, faster, cheaper). Success requires that the benefits be quantitative and substantially better - not just different. Why must we win? C ompetition/alternatives: Why are our benefits significantly better than the competition? Everyone has alternatives. We must be able to tell our client or partner why our solution represents the best value. To do this, we must clearly understand our competition and our client's alternatives. For a commercial customer, access to important IP is often a persuasive reason to work with us. But, whether to a commercial or government client, we must be able to clearly state why our approach is substantially better than that of the competition. Our answer should be short and memorable.
Approach = not about technical implementations but about your uniqueness
Approach = not about technical implementations but about your uniqueness
All about understanding the market ecosystem instead of approach only
A water hole is one of the techniques in the NABC method which can be used to iterate during the development of the NABC. Stopping at a water-hole can actually make it possible to continue. The water-hole helps develop an idea further and can be used during and at the end of the development process. Formulating and articulating an idea and sharing it with others makes the good and bad points become apparent. We all know the feeling when an idea may seem clear in our thoughts, but becomes muddled up the minute we try putting it into words. Although at an early stage one tends to keep an idea to oneself, it is far better to share it with others. In so doing, it becomes possible to work further on it. It is, of course, important that the feedback be always constructive. In short, a water-hole is a way of structuring feedback during iterations.
A water hole can be organised in many different ways and can be used as many times as necessary. The idea with the water hole is to share your idea/proposition with others, thus encouraging the development process to continue. Spending time concentrating on an idea hinders possibilities for the development it would otherwise have when seen from different perspectives. Establish a water hole where persons from different walks of life are introduced to the proposition. One could, for example, invite: - Professionals - Colleagues - Outsiders - Users - Others
Practical Assignment : The elevator pitch & NABCGet your point across
Your Elevator Pitch It’s a communication tool Get your point across in the time span of an elevator ride. (2 minutes max) An elevator pitch is an overview of an idea, product, service, project, person, or other solution and is designed to just get a conversation started.
Elevator Pitch BasicsA good elevator pitch is made up of two key elements: The pain statement The value propositionEvery great elevator pitch must be: Succinct Greed-inducing Low in tech talk Irrefutable
Elevator Pitch StructureYour elevator pitch should have 3 parts:1. Gain attention & hook ! Introduce your team and background Introduce your idea Start with something catchy, a story1. Your value proposition: NABC2. Actions to get to the next step: What do you need to get started: People Skills Technology
The Core = The Value Proposition A statement of an important clientproblem [Need] that proposes the unique way [Approach] you will use client resources (€€€) to deliver superior client features per unit cost [ Benefits] compared to others in their market(s) [Competition] .You don’t define value - Customers do !
It’s a simple as NABC Example of NABC:“John, I understand you’re hungry as I am [Need]. Lets go have some lunch at the company café [Approach], instead of McDonald’s [Competition] because, for the cost of McDonalds it has great food, its quiet and we can continue our conversation [ Benefits per costs]. “
Four Fundamental questions :N Customer/Market NeedA Your unique ApproachB Client/Customer BenefitsC Alternative approaches Competition“NABC” captures the essential, defining ingredients of a Value Proposition
Creating what customers want: N ABC“ Work on what’s important, not just what’s interesting- there’s an infinite supply of both”
NABC example – Video on DemandNeed: Movie rental is a 500 Mio Euro business. The part people dislike is to return tapes and late fees.Approach: We will provide VOD via the cable system with access to all the titles of IMDB. The system uses existing channels and hardware. Customers need no new investments and pay the same price for a movie as in the rental shop.Benefits: End-user: no need to return movies; no more late fees. Same functions as with a DVD player: fast forward, trailers, ..etc. Customer: Higher revenue per movie with higher margin; 20% market share expected.Competition: competition : we have patented the distribution and VCR like features for VOD alternatives : on-line rentals have higher handling costs (0.75 Euro per movie). Sending the tape back is as inconvenient as returning it. 11
Quantitative not QualitativeNeed Not: The market is growing fast Rather: Our market segment is £2M per year and growing at 20% per yearApproach Not: We have a clever design Rather: We have created a one-step process that replaces the current two-step process with the same qualityBenefits Not: The ROI is excellent Rather: Our one-step process reduces our cost by 50% and results in an expected ROI of 50% per year with a profit of £3M in Year 3Competition Not: We are better than our competitors Rather: Our competitor is Evergreen Corporation, which uses the current two-step process. We own the IP for our new process
Iterate Often & Collect Feedback Focus on Important Client Needs Write down the Value Proposition (NABC) and Elevator Pitch Iterate often – every week In a group (Watering Holes) Get out of the office Use pictures, simulations and visuals Protect any IP generated
Who stops at the watering hole ? People with different backgrounds take on various roles. Negative criticism is banned at water-hole meetings. There are three typical roles at a water hole: 1. Those who concentrate on everything that makes an idea seem good 2. Those who concentrate on everything that can improve an idea 3. Those who take on the user perspective