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

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Elevator Pitch

  1. 1. What is the Definition of a “Value Proposition”? <ul><li>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 </li></ul><ul><li>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 </li></ul>
  2. 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. 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. 4. A Typical First Value Proposition <ul><li>N A BC </li></ul>
  5. 5. Test of a Value Proposition <ul><li>Compelling answer to the question: “Why will we win business?” </li></ul><ul><li>Applies to all clients </li></ul><ul><li>The end goal is a compelling, quantitative Value Proposition that is easy to remember </li></ul>
  6. 6. Example – 1 st draft NABC <ul><li>Need </li></ul><ul><li>– Mobile phone use is increasing </li></ul><ul><li>– People like to use mobile phones while driving </li></ul><ul><li>– Government is regulating use because it is worried about the danger of distracted drivers talking on mobile phones in their cars </li></ul><ul><li>– An emerging need for a safe way to communicate while driving </li></ul><ul><li>Approach </li></ul><ul><li>– Leverage SRI’s world-class voice recognition technology to provide a hands-free solution </li></ul><ul><li>– Sell low-cost software that enables cell phones to use voice activation for dialing and hanging up </li></ul><ul><li>Benefits </li></ul><ul><li>– Hands free is safer </li></ul><ul><li>– Software applies to most mobile phones </li></ul><ul><li>– Software is easy to install </li></ul><ul><li>– Value added service for mobile carriers </li></ul><ul><li>Competition </li></ul><ul><li>– Growing number of cars have built in speech-activated car phones </li></ul><ul><li>– Not all states are pushing the mobile phone safety issue through legislation </li></ul>
  7. 7. Quantitative not qualitative <ul><li>Need </li></ul><ul><li>– Not: The market is growing fast </li></ul><ul><li>– Rather: Our market segment is £2M per year and growing at 20% per year </li></ul><ul><li>Approach </li></ul><ul><li>– Not: We have a clever design </li></ul><ul><li>– Rather: We have created a one-step process that replaces the current two-step process with the same quality </li></ul><ul><li>Benefits </li></ul><ul><li>– Not: The ROI is excellent </li></ul><ul><li>– 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 </li></ul><ul><li>Competition </li></ul><ul><li>– Not: We are better than our competitors </li></ul><ul><li>– Rather: Our competitor is Evergreen Corporation, which uses the current two-step process. We own the IP for our new process </li></ul>
  8. 8. Example – 2 nd draft NABC <ul><li>Need </li></ul><ul><li>• Consumers want to continue being able to use their mobile phones while driving </li></ul><ul><li>• Mobile phones are difficult to use when you have to see where you are going! </li></ul><ul><li>• Many governments are legislating against use of mobile phones in cars </li></ul><ul><li>• Mobile phone usage will decrease in cars with a loss of £10M telecom revenue </li></ul><ul><li>• For us, as a mobile phone provider, this represents a £5M-per-year opportunity </li></ul><ul><li>Approach </li></ul><ul><li>• Voice-activated dialing </li></ul><ul><li>• Simple software overlay on existing phones </li></ul><ul><li>• Downloadable to existing phones with a subscription to the “in car service” </li></ul><ul><li>• Cost: under £5 per phone </li></ul>
  9. 9. Example – 2 nd draft <ul><li>Customer Benefits </li></ul><ul><li>• Convenience – Allows increased phone usage </li></ul><ul><li>– Safe, comfortable, easy to use: does not require a new phone </li></ul><ul><li>• Quality – Excellent speech recognition (99% accuracy with untrained users, 12 languages) </li></ul><ul><li>– Robust (>95%) performance in noisy environments </li></ul><ul><li>Company Benefits </li></ul><ul><li>• New product = increased sales (10% of phones @ £5 each = £5M) </li></ul><ul><li>• Fast time to market = increased market share (75% of headset market) </li></ul><ul><li>• Hands-free use = reduced litigation </li></ul><ul><li>• Low risk = prototype developed and channels identified </li></ul><ul><li>Competition </li></ul><ul><li>• Existing phones (requires usage out of the car) </li></ul><ul><li>• 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) </li></ul>
  10. 10. Storytelling <ul><li>Not just about NABC </li></ul><ul><li>What is the “hook” that will excite someone </li></ul><ul><li>Structure with beginning, middle and end </li></ul>
  11. 11. Why “Watering Holes”? Watering Holes are focused on specific business opportunities and come and go as needed
  12. 12. The Value Proposition Development Process <ul><li>Focus on Important Client Needs </li></ul><ul><li>Write down the Value Proposition (NABC) and Elevator Pitch </li></ul><ul><li>Iterate often </li></ul><ul><li>Regularly </li></ul><ul><li>In a group (Watering Holes) </li></ul><ul><li>Get out of the office </li></ul><ul><li>Use pictures, simulations and visuals </li></ul><ul><li>Protect any IP generated </li></ul>

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