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Elevator Pitch

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A Powerpoint presentation on the Elevator Pitch, with emphasis on the Watering Hole method of assessing a business idea

A Powerpoint presentation on the Elevator Pitch, with emphasis on the Watering Hole method of assessing a business idea

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Transcript

  • 1. What is the Definition of a “Value Proposition”?
    • Val·ue: relative worth, utility, or importance; a fair return or equivalent in goods, services, or money for something exchanged; a numerical quantity that is assigned by calculation or measurement; the monetary worth of something
    • Prop·o·si·tion: an expression in language or signs of something that can be believed, doubted, or denied or is either true or false; the point to be discussed; something offered for consideration or acceptance: a theorem or problem to be demonstrated or performed
  • 2. Value proposition A statement of an important client problem ( Need ) that proposes the way ( Approach ) you will use client resources (££) to deliver superior client features per unit cost ( Benefits ) compared to others in their market(s) ( Competition ).
  • 3. A Systematic Process for Value Proposition Development N Customer/Market Need A Your unique Approach B Client/Customer Benefits C Alternative approaches Competition “ NABC” captures the essential, defining ingredients of a Value Proposition
  • 4. A Typical First Value Proposition
    • N A BC
  • 5. Test of a Value Proposition
    • Compelling answer to the question: “Why will we win business?”
    • Applies to all clients
    • The end goal is a compelling, quantitative Value Proposition that is easy to remember
  • 6. Example – 1 st draft NABC
    • Need
    • – Mobile phone use is increasing
    • – People like to use mobile phones while driving
    • – Government is regulating use because it is worried about the danger of distracted drivers talking on mobile phones in their cars
    • – An emerging need for a safe way to communicate while driving
    • Approach
    • – Leverage SRI’s world-class voice recognition technology to provide a hands-free solution
    • – Sell low-cost software that enables cell phones to use voice activation for dialing and hanging up
    • Benefits
    • – Hands free is safer
    • – Software applies to most mobile phones
    • – Software is easy to install
    • – Value added service for mobile carriers
    • Competition
    • – Growing number of cars have built in speech-activated car phones
    • – Not all states are pushing the mobile phone safety issue through legislation
  • 7. Quantitative not qualitative
    • Need
    • – Not: The market is growing fast
    • – Rather: Our market segment is £2M per year and growing at 20% per year
    • Approach
    • – Not: We have a clever design
    • – Rather: We have created a one-step process that replaces the current two-step process with the same quality
    • Benefits
    • – 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 3
    • Competition
    • – 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
  • 8. Example – 2 nd draft NABC
    • Need
    • • Consumers want to continue being able to use their mobile phones while driving
    • • Mobile phones are difficult to use when you have to see where you are going!
    • • Many governments are legislating against use of mobile phones in cars
    • • Mobile phone usage will decrease in cars with a loss of £10M telecom revenue
    • • For us, as a mobile phone provider, this represents a £5M-per-year opportunity
    • Approach
    • • Voice-activated dialing
    • • Simple software overlay on existing phones
    • • Downloadable to existing phones with a subscription to the “in car service”
    • • Cost: under £5 per phone
  • 9. Example – 2 nd draft
    • Customer Benefits
    • • Convenience – Allows increased phone usage
    • – Safe, comfortable, easy to use: does not require a new phone
    • • Quality – Excellent speech recognition (99% accuracy with untrained users, 12 languages)
    • – Robust (>95%) performance in noisy environments
    • Company Benefits
    • • New product = increased sales (10% of phones @ £5 each = £5M)
    • • Fast time to market = increased market share (75% of headset market)
    • • Hands-free use = reduced litigation
    • • Low risk = prototype developed and channels identified
    • Competition
    • • Existing phones (requires usage out of the car)
    • • Speech-activated phone built into car (expensive, £50 more per car – we have 10% better quality with handheld devices and more convenience due to mobility)
  • 10. Storytelling
    • Not just about NABC
    • What is the “hook” that will excite someone
    • Structure with beginning, middle and end
  • 11. Why “Watering Holes”? Watering Holes are focused on specific business opportunities and come and go as needed
  • 12. The Value Proposition Development Process
    • Focus on Important Client Needs
    • Write down the Value Proposition (NABC) and Elevator Pitch
    • Iterate often
    • Regularly
    • In a group (Watering Holes)
    • Get out of the office
    • Use pictures, simulations and visuals
    • Protect any IP generated