Creating a compelling value proposition
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Creating a compelling value proposition
- 1. 1 6. How do you create a compelling value proposition for your venture? Andrew Maxwell Bergeron Chair in Technology Entrepreneurship, Lassonde School of Engineering download: https://tinyurl.com/y3rkh4xa
- 2. 2 • Our approach challenges perspective that best technology wins • Contests assumptions about what users (executors want) • Instead we seek to understand the psychology of the executor • The executor is defined as the person who uses the technology • Recognize that decision to adopt novel technology is complex • Adoption decision varies by executor, context and stakeholders • Link motivation to adopt to creating value proposition • Provide a decision framework for next steps in the process STIMULATING: FIRST USER ADOPTION
- 3. 3 • Allows us to better understand the executor’s motivation to adopt • Enables us to increase motivation to increase likelihood of adoption • Helps us to validate choice of first executor/customer • Creates context/stakeholders framework to understand adoption decision • Allows us to understand potential barriers to adoption • Offers systematic approach to remove barriers to adoption • Helps confirm critical aspects of offer to (and choice of) first customer VALUE PROPOSITION: CRITICAL INSIGHT
- 4. 4 Challenging to change people’s behaviours: • Users don’t always see benefits of changing • Users not incented to change behaviours or • Users tend to keep doing what they have already done • Users become familiar with current won’t change • Users have to learn to effectively use new technologies • Users have to persuade others in organization of • Users not comfortable with risks associated with new UNDERSTANDING: USER ADOPTION
- 5. 5 MAXWELL’S LAWS:OF INNOVATION INERTIA First Law In the absence of a force that leads to change, organizations will continue to do what they have always done. Second Law Larger organizations require more force to change what they are doing than smaller organizations Third Law When someone exerts a force on an organization, he or she gets pushed back in the opposite direction equally hard.
- 6. 6 OVERCOMING: INNOVATION INERTIA Definition: Innovation’s Value Proposition: perceived value to the executor of adoption either directly, or indirectly to their customer. The greater the Value Proposition the higher the motivation to adopt. Benefits are all advantages that accrue to executor from adoption. Costs include multiple factors including perceived increased risk. Given uncertainty about adoption outcomes, users weigh costs more heavily than risks – hence our introduction of the squared term. Value Proposition = Motivation = Perceived - Perceived2 To Adopt Benefits Costs
- 7. 7 POTENTIAL BENEFITS • Saving money • Increased effectiveness or utility • Pleasure, enjoyment, or fun • Coolness/excitement due to novelty • Reduced risks or uncertainty • Increase reliability, safety, or sustainability POTENTIAL COSTS • Monetary – acquisition, switching, or maintenance costs • Non-monetary – time and labor necessary to switch • Uncertain Outcomes – including reputation risk or embarrassment • Negative Side Effects DETERMINING: VALUE PROPOSITION Value Proposition = Motivation = Perceived - Perceived2 To Adopt Benefits Costs
- 8. 8 CALCULATING: VALUE PROPOSITION 1. Identify the executor who will be the first adopter 2. Use the framework to identify all of the benefits to him/her include stated & potential benefits (create gains/remove pains) rank benefits based on executor feedback / competitive position 3. Use the framework to identify all of the costs include stated and potential costs (include perceived risks) rank costs based on executor feedback / competitive position 4. Use the formula to determine if the benefits clearly outweigh the costs
- 9. 9 9 OSTERWALDER’S: VALUE PROPOSITION CANVAS
- 10. 10 Potential Functional Benefits: • Lower purchase price • Improved service • Reduced operating or maintenance costs • Higher performance, quality or throughput Potential Emotional Benefits: • Enhanced customer experience • Increased reputation (for example for innovation) • Reduced environmental impact or increased safety/usability • Reduced perception of risk of failure IDENTIFY BENEFITS: FUNCTIONAL / EMOTIONAL
- 11. 11 Potential Functional Costs: • Acquisition costs • Switching costs • Operating or maintenance costs • Material costs Potential Emotional Benefits: •Changes in work practices or skills required •Supplier survival •Damage to reputation •Uncertain impact on customer IDENTIFY COSTS: FUNCTIONAL / EMOTIONAL
- 12. 12 Technology risks • Technical Performance (cycle time, power, efficiency) • Reliability or quality Implementation risks • Complexity/Compatibility • Training/Current practice Environmental risks • Manufacturing/use/life cycle impact • Safety/ Operator impact Business risks • Financial performance (costs, efficiency) • Service, support, training IDENTIFY: RISKS
- 13. 13 CREATING: VALUE PROPOSITION 1. For the executor already identified 2. Identify the benefits of adoption 3. Identify the costs of adoption 4. Identify the risks of adoption 5. Based on the top five items (based on importance to the executor) identify whether the benefits clearly outweigh the costs 6. Identify any specific information you should gather to confirm this assessment.
- 14. 14 CREATING: THE VALUE PROPOSITION Identify Top Five Benefits: 1. 2. 3. 4. 5. Identify Top Five Costs: 1. 2. 3. 4. 5. Identify Top Five Risks: 1. 2. 3. 4. 5. If you sum the top 5 benefits and subtract the sum of the top 5 cost and top five risks (squared). Do you still have a compelling value proposition. TABLE 1: INITIAL VALUE PROPOSITION
- 15. 15 COMPELLING: VALUE PROPOSITION 1. For the executor already identified 2. Examine each of the top five benefits in turn to see if there is something you can do to the technology so you can significantly improve benefits 3. Examine the top five costs and risks in turn to see if there is something you can do to the technology to significantly reduce costs/risks 4. Redo table 1, noting how you have changed the technology to increase the benefits or reduce the costs/risks (or both) to reassess if the benefits now outweigh the costs
- 16. 16 COMPELLING: VALUE PROPOSITION Identify Top Five Benefits: 1. 2. 3. 4. 5. Identify Top Five Costs: 1. 2. 3. 4. 5. Identify Top Five Risks: 1. 2. 3. 4. 5. If you now sum the top 5 benefits and subtract the sum of the top 5 cost and top five risks (squared)., does the change in technology provide a compelling value proposition. TABLE 2: REVISED VALUE PROPOSITION
- 17. 17 DECISION TIME: STOP, CONTINUE or PIVOT Based on your initial Value Proposition Equation do you have sufficient confidence in ‘motivation to adopt’ to continue developing your current version of the technology so that it will meet identified first user needs? If not, do you think your revised technology will provide the compelling value proposition that will now motivate your first user to adopt the innovation? What would you have to do to move forward? CONTINUE Should you be looking for an alternate first user? PIVOT Should you be reviewing the whole project? STOP
- 18. 18 PRESENTATION: IN CLASS ON FRIDAY Complete Table 1 and show your current value proposition Focus on identifying critical elements in each quadrant Honestly answer the question in quadrant four. If No, or could be better than complete Table 2 Identify specific ways in which you can modify the technology to increase the benefits or reduce the costs/risks. Honestly answer the question in quadrant four. Be prepared to answer the questions on the last slide in class.
- 19. 19 VALUE PROPOSITION: ACTION PLAN As a result of these frameworks and modifications, you should now be ready to identify which of the following action plans you will now follow: CONTINUE with initial technology and first user (executor), perhaps with some with some minor modifications to technology to increase value proposition. PIVOT to different version of technology, or different first user (executor) based (executor) based on validating assumptions about the modified value proposition. STOP with current version of technology and planned first user to ask ask fundamental questions about where you can use your expertise to create a compelling value proposition (and recognize that maybe you can not).
- 20. 20 QUESTIONS • Stay on the call or email me at bestmax@yorku.ca
- 21. 21 7. Overcoming Barriers to Adoption Andrew Maxwell Bergeron Chair in Technology Entrpreneurship, Lassonde School of Engineering
- 22. 22 OVERCOMING: BARRIERS TO ADOPTION • Decomposing value proposition into benefits & costs helps explain (and where necessary modify) the executor’s motivation to adopt • However, in the B2B world, with multiple stakeholders, successful adoption is more complex than addressing individual executor motivation • Stakeholders are other people in the organization who have to approve the adoption of an innovation. Ignoring them lead to adoption failure • Each of these stakeholders has a different motivation to adopt (or block the adoption of) an innovation. • Understanding who they are and what motivates them is critical to
- 23. 23 • Recognize that organizational innovation adoption decisions complex • Cognizant of Maxwell’s Laws of Innovation Inertia • Our approach incorporates the roles of multiple stakeholders in the adoption decision (noting most do not share the executor’s motivation) • We provide a framework for identifying critical stakeholders • Use an approach that helps identify individual stakeholder barriers to adoption • Provide a framework for identifying how modifying the technology or the business/revenue model might overcome these barriers to adoption. • Provide a decision framework for next steps in the process STIMULATING: ORGANIZATIONAL ADOPTION
- 24. 24 STAKEHOLDERS: WHO INFLUENCE ADOPTION Adoption Influencers1: • Economic Buyer - Evaluates Return on holds purse strings • User Buyer (can be executor, but often their boss) - evaluates user experience and operational impact. Can also include supervisor, and management. • Technical Buyer (often CTO, CFO or CIO) - feasibility, and performance impact. Can also include environmental, quality & regulatory performance. • Coach - wants to see your solution implemented. De Bono Six Thinking Hats 1 Based on Miller Heiman Approach to Strategic Selling
- 25. 25 IDENTIFY: POTENTIAL STAKEHOLDERS TABLE 3: STAKEHOLDERS Stakeholder Nature of involvement in Innovation Adoption 1. Think about the context in which the executor operates, identify all of the people who can influence the adoption decision (you can always ask the executor). 2. Identify each stakeholder (using the stakeholder framework) 3. Identify the nature of their involvement in the innovation adoption decision
- 26. 26 IDENTIFY: BARRIERS TO ADOPTION 1. List each of the stakeholders identified based on their impact on the adoption decision process 2. Put yourself in the position of each of these stakeholders and identify one or two specific reasons they may say No. 3. Reasons to say NO are always usually seen in terms of perceived costs or risks 4. Identify what a solution might look like that overcomes each barrier (see example – this is not the solution – but the solution outcome) 5. Prioritize the impact of the specific barriers on adoption decision
- 27. 27 ADDRESSING: BARRIERS TO ADOPTION TABLE 4: STAKEHOLDER BARRIERS TO ADOPTION Rank Stakeholder Barrier to adoption What a solution might do Enviro. manager Concern over health / safety Meets enviro. standard 1. List stakeholders in order of impact on decision 2. Identify barrier (one or two) for each stakeholder 3. Identify what removing the barrier would look like 4. Rank importance of overcoming barrier
- 28. 28 We can change (modify) the core technology to: • Increase the value proposition (increase benefits/reduce costs) • Reduce the barrier to adoption for stakeholder • Allow us to modify the revenue model or business model • Increase the rate of technology diffusion Examples of changing technology: • Add an important feature to better match customer need • Make easier to integrate with legacy systems to reduce • Enhance usability to reduce adoption/training costs • Utilize approved components to facilitate certification OVERCOMING: BARRIERS TO ADOPTION
- 29. 29 Other examples of changing technology: • Change form factor to better suit specific application executor • Decrease capital costs to make economics more attractive • Reduce maintenance and operating costs to make more • Embed measurement feature to record and share benefits • Design so that technology can be easily trialed • Embed viral marketing into technology deployment • Integrate into other technology platforms • Design marginal cost virtually zero to facilitate freemium CHANGING: TECHNOLOGY
- 30. 30 CHANGING: TECHNOLOGY TABLE 5: TECHNOLOGY CHANGES TO OVERCOME ADOPTION BARRIERS Rank Barrier Solution outcome to address barrier Technology change 1. Identify list of biggest barriers to adoption 2. Use possible outcomes to identify potential technology change 3. Rank importance of specific technological changes
- 31. 31 We can change (modify) the revenue model to: • Reduce the initial capital costs to reduce upfront investment • Link costs directly to usage (and therefore savings) reducing • Create alternate revenue streams and therefore costs for a • Charge for different user benefits linking to outcomes Examples of changing revenue model: • Offer for free (trial) before purchase reducing barrier to • Turn a capital purchase into a service agreement reduces • Basic service for free, with premium options reduces barrier to • Integrate with other product or service offerings reduces risk CHANGING: REVENUE MODEL
- 32. 32 32 OSTERWALDER’S: BUSINESS MODEL CANVAS
- 33. 33 We can change the business model to: • Reduce the perceived risk of dealing with an unknown • Reduce the perceived technology risk by sourcing from a • Reduce the availability risk by incorporating a reputable • Reduce the performance risk by charging for performance Examples of changing business model: • Change the customer segment to one with a higher motivation • Build customer relationships and supply chain partners that perceived risks in dealing with a new supplier • Outsource certain activities to reputable and experienced CHANGING: BUSINESS MODEL
- 34. 34 CHANGING: REVENUE/BUSINESS MODEL TABLE 6: REVENUE AND BUSINESS MODEL CHANGES TO OVERCOME BARRIERS TO ADOPTION Rank Barrier Solution outcome to address barrier Revenue/Business model change 1. Identify list of biggest barriers to adoption 2. Use outcomes to identify potential revenue/business model change 3. Rank importance of specific revenue/business model changes
- 35. 35 DECISION TIME: STOP, CONTINUE or PIVOT Assuming that you have established a compelling Value Proposition that will motivate the user (executor) to adopt, have you been able to overcome critical stakeholder ’barriers to adoption’ to succeed with the current version of the technology and the current revenue/business model? If not, do you think your revised technology, revenue or business model will overcome the key barriers to adoption of critical stakeholders. ? What would you have to do to move forward? CONTINUE Should you be looking for an alternate first user, or technology, revenue or business model? PIVOT Should you be reviewing the whole project? STOP
- 36. 36 MOVING: FORWARD Complete Table 3 to identify stakeholders Complete Table 4 to identify their barriers to adoption How might you change the technology to address barrier (outcome) Complete Table 5 to show what this would mean in terms of technology development? How might you change the revenue/business model to address barriers to adoption Complete Table 6 to show what this would mean . Be prepared to answer the questions on the last slide
- 37. 37 VALUE PROPOSITION: ACTION PLAN As a result of these frameworks and modifications, you should now be ready to identify which of the following action plans you will now follow: CONTINUE with initial technology, revenue and business model, to model, to target the first user (executor) perhaps with minor modifications PIVOT to a different version of technology, revenue or business model, business model, or a different first user (executor) based on validating assumptions STOP technology development to ask fundamental questions about about where you can use your expertise to overcome identified barriers
- 38. 38 QUESTIONS • Stay on the call or email me at bestmax@yorku.ca
Editor's Notes
- At this point we are going to assume that you have identified your first user, based on your initial plan, and confirmed by ethnographic studies, and user engagement. During this phase of your project we will need to keep validating this.
- Safety Reliability Compliance Convenience Capital cost Availability Operating cost Throughput Quality Environmental lifecycle Cycle time
- Safety Reliability Compliance Convenience Capital cost Availability Operating cost Throughput Quality Environmental lifecycle Cycle time
- A compelling value proposition is one that motivates adoption – in other words it motivates users, consumers, or customers to use or purchase your product or service or work with your business. To be successful your value proposition needs to describe a product or service in which the benefits of change and adoption are significantly more than the costs and risks of adoption. I say significantly more because people have a tendency to remain the same, this is called inertia. All things being equal, change creates uncertainty and ambiguity and most people want to limit uncertainty in their lives. The strength of your value proposition will ultimately drive people’s tendency to adopt. [TAB] [TAB] When we talk about costs and benefits, benefits can include almost any element of value for consumers, for example… •Saving money •Increased effectiveness or utility •Pleasure, enjoyment, or fun •Increase reliability, safety, or sustainability •Reduced risks or uncertainty •Coolness or excitement associated with something novel [TAB]Conversely, costs can include … •Monetary – for example, acquisition costs (that is the cost to buy something), switching costs (the costs to move over to a new product, service, or platform), or maintenance costs (the cost to use the innovation going forward after implementation). •Non-monetary costs – for example time and labor necessary to switch as well as inconvenience, aggravation, or discomfort during the switchover. •Uncertain outcomes – including reputational risks and chance for embarrassment as well as increased technology, financial, or operational risk to you or your organization •And finally, negative side effects (in other words negative consequences or outcomes of the change such as increased pollution, boredom, etc…) [TAB] You might notice that squared term up there – this is how we showcase inertia – costs are compounded or multiplied and can easily outweigh benefits. [TAB]
- A compelling value proposition is one that motivates adoption – in other words it motivates users, consumers, or customers to use or purchase your product or service or work with your business. To be successful your value proposition needs to describe a product or service in which the benefits of change and adoption are significantly more than the costs and risks of adoption. I say significantly more because people have a tendency to remain the same, this is called inertia. All things being equal, change creates uncertainty and ambiguity and most people want to limit uncertainty in their lives. The strength of your value proposition will ultimately drive people’s tendency to adopt. [TAB] [TAB] When we talk about costs and benefits, benefits can include almost any element of value for consumers, for example… •Saving money •Increased effectiveness or utility •Pleasure, enjoyment, or fun •Increase reliability, safety, or sustainability •Reduced risks or uncertainty •Coolness or excitement associated with something novel [TAB]Conversely, costs can include … •Monetary – for example, acquisition costs (that is the cost to buy something), switching costs (the costs to move over to a new product, service, or platform), or maintenance costs (the cost to use the innovation going forward after implementation). •Non-monetary costs – for example time and labor necessary to switch as well as inconvenience, aggravation, or discomfort during the switchover. •Uncertain outcomes – including reputational risks and chance for embarrassment as well as increased technology, financial, or operational risk to you or your organization •And finally, negative side effects (in other words negative consequences or outcomes of the change such as increased pollution, boredom, etc…) [TAB] You might notice that squared term up there – this is how we showcase inertia – costs are compounded or multiplied and can easily outweigh benefits. [TAB]
- A compelling value proposition is one that motivates adoption – in other words it motivates users, consumers, or customers to use or purchase your product or service or work with your business. To be successful your value proposition needs to describe a product or service in which the benefits of change and adoption are significantly more than the costs and risks of adoption. I say significantly more because people have a tendency to remain the same, this is called inertia. All things being equal, change creates uncertainty and ambiguity and most people want to limit uncertainty in their lives. The strength of your value proposition will ultimately drive people’s tendency to adopt. [TAB] [TAB] When we talk about costs and benefits, benefits can include almost any element of value for consumers, for example… •Saving money •Increased effectiveness or utility •Pleasure, enjoyment, or fun •Increase reliability, safety, or sustainability •Reduced risks or uncertainty •Coolness or excitement associated with something novel [TAB]Conversely, costs can include … •Monetary – for example, acquisition costs (that is the cost to buy something), switching costs (the costs to move over to a new product, service, or platform), or maintenance costs (the cost to use the innovation going forward after implementation). •Non-monetary costs – for example time and labor necessary to switch as well as inconvenience, aggravation, or discomfort during the switchover. •Uncertain outcomes – including reputational risks and chance for embarrassment as well as increased technology, financial, or operational risk to you or your organization •And finally, negative side effects (in other words negative consequences or outcomes of the change such as increased pollution, boredom, etc…) [TAB] You might notice that squared term up there – this is how we showcase inertia – costs are compounded or multiplied and can easily outweigh benefits. [TAB]
- Safety Reliability Compliance Convenience Capital cost Availability Operating cost Throughput Quality Environmental lifecycle Cycle time
- Safety Reliability Compliance Convenience Capital cost Availability Operating cost Throughput Quality Environmental lifecycle Cycle time
- A compelling value proposition is one that motivates adoption – in other words it motivates users, consumers, or customers to use or purchase your product or service or work with your business. To be successful your value proposition needs to describe a product or service in which the benefits of change and adoption are significantly more than the costs and risks of adoption. I say significantly more because people have a tendency to remain the same, this is called inertia. All things being equal, change creates uncertainty and ambiguity and most people want to limit uncertainty in their lives. The strength of your value proposition will ultimately drive people’s tendency to adopt. [TAB] [TAB] When we talk about costs and benefits, benefits can include almost any element of value for consumers, for example… •Saving money •Increased effectiveness or utility •Pleasure, enjoyment, or fun •Increase reliability, safety, or sustainability •Reduced risks or uncertainty •Coolness or excitement associated with something novel [TAB]Conversely, costs can include … •Monetary – for example, acquisition costs (that is the cost to buy something), switching costs (the costs to move over to a new product, service, or platform), or maintenance costs (the cost to use the innovation going forward after implementation). •Non-monetary costs – for example time and labor necessary to switch as well as inconvenience, aggravation, or discomfort during the switchover. •Uncertain outcomes – including reputational risks and chance for embarrassment as well as increased technology, financial, or operational risk to you or your organization •And finally, negative side effects (in other words negative consequences or outcomes of the change such as increased pollution, boredom, etc…) [TAB] You might notice that squared term up there – this is how we showcase inertia – costs are compounded or multiplied and can easily outweigh benefits. [TAB]
- The value proposition must achieve the motivation to adopt: Motivate beyond doing nothing Motivate to replace current solution Motivate to choose your solution over competitors.
- A compelling value proposition is one that motivates adoption – in other words it motivates users, consumers, or customers to use or purchase your product or service or work with your business. To be successful your value proposition needs to describe a product or service in which the benefits of change and adoption are significantly more than the costs and risks of adoption. I say significantly more because people have a tendency to remain the same, this is called inertia. All things being equal, change creates uncertainty and ambiguity and most people want to limit uncertainty in their lives. The strength of your value proposition will ultimately drive people’s tendency to adopt. [TAB] [TAB] When we talk about costs and benefits, benefits can include almost any element of value for consumers, for example… •Saving money •Increased effectiveness or utility •Pleasure, enjoyment, or fun •Increase reliability, safety, or sustainability •Reduced risks or uncertainty •Coolness or excitement associated with something novel [TAB]Conversely, costs can include … •Monetary – for example, acquisition costs (that is the cost to buy something), switching costs (the costs to move over to a new product, service, or platform), or maintenance costs (the cost to use the innovation going forward after implementation). •Non-monetary costs – for example time and labor necessary to switch as well as inconvenience, aggravation, or discomfort during the switchover. •Uncertain outcomes – including reputational risks and chance for embarrassment as well as increased technology, financial, or operational risk to you or your organization •And finally, negative side effects (in other words negative consequences or outcomes of the change such as increased pollution, boredom, etc…) [TAB] You might notice that squared term up there – this is how we showcase inertia – costs are compounded or multiplied and can easily outweigh benefits. [TAB]
- A compelling value proposition is one that motivates adoption – in other words it motivates users, consumers, or customers to use or purchase your product or service or work with your business. To be successful your value proposition needs to describe a product or service in which the benefits of change and adoption are significantly more than the costs and risks of adoption. I say significantly more because people have a tendency to remain the same, this is called inertia. All things being equal, change creates uncertainty and ambiguity and most people want to limit uncertainty in their lives. The strength of your value proposition will ultimately drive people’s tendency to adopt. [TAB] [TAB] When we talk about costs and benefits, benefits can include almost any element of value for consumers, for example… •Saving money •Increased effectiveness or utility •Pleasure, enjoyment, or fun •Increase reliability, safety, or sustainability •Reduced risks or uncertainty •Coolness or excitement associated with something novel [TAB]Conversely, costs can include … •Monetary – for example, acquisition costs (that is the cost to buy something), switching costs (the costs to move over to a new product, service, or platform), or maintenance costs (the cost to use the innovation going forward after implementation). •Non-monetary costs – for example time and labor necessary to switch as well as inconvenience, aggravation, or discomfort during the switchover. •Uncertain outcomes – including reputational risks and chance for embarrassment as well as increased technology, financial, or operational risk to you or your organization •And finally, negative side effects (in other words negative consequences or outcomes of the change such as increased pollution, boredom, etc…) [TAB] You might notice that squared term up there – this is how we showcase inertia – costs are compounded or multiplied and can easily outweigh benefits. [TAB]
- A compelling value proposition is one that motivates adoption – in other words it motivates users, consumers, or customers to use or purchase your product or service or work with your business. To be successful your value proposition needs to describe a product or service in which the benefits of change and adoption are significantly more than the costs and risks of adoption. I say significantly more because people have a tendency to remain the same, this is called inertia. All things being equal, change creates uncertainty and ambiguity and most people want to limit uncertainty in their lives. The strength of your value proposition will ultimately drive people’s tendency to adopt. [TAB] [TAB] When we talk about costs and benefits, benefits can include almost any element of value for consumers, for example… •Saving money •Increased effectiveness or utility •Pleasure, enjoyment, or fun •Increase reliability, safety, or sustainability •Reduced risks or uncertainty •Coolness or excitement associated with something novel [TAB]Conversely, costs can include … •Monetary – for example, acquisition costs (that is the cost to buy something), switching costs (the costs to move over to a new product, service, or platform), or maintenance costs (the cost to use the innovation going forward after implementation). •Non-monetary costs – for example time and labor necessary to switch as well as inconvenience, aggravation, or discomfort during the switchover. •Uncertain outcomes – including reputational risks and chance for embarrassment as well as increased technology, financial, or operational risk to you or your organization •And finally, negative side effects (in other words negative consequences or outcomes of the change such as increased pollution, boredom, etc…) [TAB] You might notice that squared term up there – this is how we showcase inertia – costs are compounded or multiplied and can easily outweigh benefits. [TAB]
- A compelling value proposition is one that motivates adoption – in other words it motivates users, consumers, or customers to use or purchase your product or service or work with your business. To be successful your value proposition needs to describe a product or service in which the benefits of change and adoption are significantly more than the costs and risks of adoption. I say significantly more because people have a tendency to remain the same, this is called inertia. All things being equal, change creates uncertainty and ambiguity and most people want to limit uncertainty in their lives. The strength of your value proposition will ultimately drive people’s tendency to adopt. [TAB] [TAB] When we talk about costs and benefits, benefits can include almost any element of value for consumers, for example… •Saving money •Increased effectiveness or utility •Pleasure, enjoyment, or fun •Increase reliability, safety, or sustainability •Reduced risks or uncertainty •Coolness or excitement associated with something novel [TAB]Conversely, costs can include … •Monetary – for example, acquisition costs (that is the cost to buy something), switching costs (the costs to move over to a new product, service, or platform), or maintenance costs (the cost to use the innovation going forward after implementation). •Non-monetary costs – for example time and labor necessary to switch as well as inconvenience, aggravation, or discomfort during the switchover. •Uncertain outcomes – including reputational risks and chance for embarrassment as well as increased technology, financial, or operational risk to you or your organization •And finally, negative side effects (in other words negative consequences or outcomes of the change such as increased pollution, boredom, etc…) [TAB] You might notice that squared term up there – this is how we showcase inertia – costs are compounded or multiplied and can easily outweigh benefits. [TAB]
- At this point we are going to assume that you have identified your first user, based on your initial plan, and confirmed by ethnographic studies, and user engagement. During this phase of your project we will need to keep validating this.
- User buyer - people who will be affected by your technology Usually users - who will see that you address a pain or create a gain Economic buyers - people who will signs off on decision (faced with competing priorities) Often viewed as the decision maker, need to consider all of the benefits and costs across the organization, can be a committee, or several levels of decision maker Technical buyer - people who will be concerned about performance issues (including reliability, and outcomes) Often person responsible for assessing technology risk, and ensuring technology delivers on promise. (Often vested interest in existing technology). Includes purchasing, manufacturing and project management – who will each be affected by technology use. Influencer - an internal champion, or external influencer with vested interested in adoption These people are role models, or advisors who can directly help you navigate the adoption decision, or indirectly influence your adoption motivation
- There are pros and cons of each, in terms of impact, recognition, engagement, financial reward.
- There are pros and cons of each, in terms of impact, recognition, engagement, financial reward.
- There are pros and cons of each, in terms of impact, recognition, engagement, financial reward.
- There are Can you improve the value proposition for a specific application? Customer Segment: Can you identify a specific segment that needs, but does not have, a solution? Customer Relationships: Can you build a strong customer relationship that enables them to adopt? Channels Can you find channel partner (distributor or OEM) who will facilitate adoption? and cons of each, in terms of impact, recognition, engagement, financial reward.
- A compelling value proposition is one that motivates adoption – in other words it motivates users, consumers, or customers to use or purchase your product or service or work with your business. To be successful your value proposition needs to describe a product or service in which the benefits of change and adoption are significantly more than the costs and risks of adoption. I say significantly more because people have a tendency to remain the same, this is called inertia. All things being equal, change creates uncertainty and ambiguity and most people want to limit uncertainty in their lives. The strength of your value proposition will ultimately drive people’s tendency to adopt. [TAB] [TAB] When we talk about costs and benefits, benefits can include almost any element of value for consumers, for example… •Saving money •Increased effectiveness or utility •Pleasure, enjoyment, or fun •Increase reliability, safety, or sustainability •Reduced risks or uncertainty •Coolness or excitement associated with something novel [TAB]Conversely, costs can include … •Monetary – for example, acquisition costs (that is the cost to buy something), switching costs (the costs to move over to a new product, service, or platform), or maintenance costs (the cost to use the innovation going forward after implementation). •Non-monetary costs – for example time and labor necessary to switch as well as inconvenience, aggravation, or discomfort during the switchover. •Uncertain outcomes – including reputational risks and chance for embarrassment as well as increased technology, financial, or operational risk to you or your organization •And finally, negative side effects (in other words negative consequences or outcomes of the change such as increased pollution, boredom, etc…) [TAB] You might notice that squared term up there – this is how we showcase inertia – costs are compounded or multiplied and can easily outweigh benefits. [TAB]
- A compelling value proposition is one that motivates adoption – in other words it motivates users, consumers, or customers to use or purchase your product or service or work with your business. To be successful your value proposition needs to describe a product or service in which the benefits of change and adoption are significantly more than the costs and risks of adoption. I say significantly more because people have a tendency to remain the same, this is called inertia. All things being equal, change creates uncertainty and ambiguity and most people want to limit uncertainty in their lives. The strength of your value proposition will ultimately drive people’s tendency to adopt. [TAB] [TAB] When we talk about costs and benefits, benefits can include almost any element of value for consumers, for example… •Saving money •Increased effectiveness or utility •Pleasure, enjoyment, or fun •Increase reliability, safety, or sustainability •Reduced risks or uncertainty •Coolness or excitement associated with something novel [TAB]Conversely, costs can include … •Monetary – for example, acquisition costs (that is the cost to buy something), switching costs (the costs to move over to a new product, service, or platform), or maintenance costs (the cost to use the innovation going forward after implementation). •Non-monetary costs – for example time and labor necessary to switch as well as inconvenience, aggravation, or discomfort during the switchover. •Uncertain outcomes – including reputational risks and chance for embarrassment as well as increased technology, financial, or operational risk to you or your organization •And finally, negative side effects (in other words negative consequences or outcomes of the change such as increased pollution, boredom, etc…) [TAB] You might notice that squared term up there – this is how we showcase inertia – costs are compounded or multiplied and can easily outweigh benefits. [TAB]
- A compelling value proposition is one that motivates adoption – in other words it motivates users, consumers, or customers to use or purchase your product or service or work with your business. To be successful your value proposition needs to describe a product or service in which the benefits of change and adoption are significantly more than the costs and risks of adoption. I say significantly more because people have a tendency to remain the same, this is called inertia. All things being equal, change creates uncertainty and ambiguity and most people want to limit uncertainty in their lives. The strength of your value proposition will ultimately drive people’s tendency to adopt. [TAB] [TAB] When we talk about costs and benefits, benefits can include almost any element of value for consumers, for example… •Saving money •Increased effectiveness or utility •Pleasure, enjoyment, or fun •Increase reliability, safety, or sustainability •Reduced risks or uncertainty •Coolness or excitement associated with something novel [TAB]Conversely, costs can include … •Monetary – for example, acquisition costs (that is the cost to buy something), switching costs (the costs to move over to a new product, service, or platform), or maintenance costs (the cost to use the innovation going forward after implementation). •Non-monetary costs – for example time and labor necessary to switch as well as inconvenience, aggravation, or discomfort during the switchover. •Uncertain outcomes – including reputational risks and chance for embarrassment as well as increased technology, financial, or operational risk to you or your organization •And finally, negative side effects (in other words negative consequences or outcomes of the change such as increased pollution, boredom, etc…) [TAB] You might notice that squared term up there – this is how we showcase inertia – costs are compounded or multiplied and can easily outweigh benefits. [TAB]