More Related Content


Business for engineers part 4: Value proposition

  2. VALUE PROPOSITION BASICS • So what is a value proposition?! • Why do we need a value proposition?
  3. VALUE PROPOSITION Definition: A statement that describes what your company, product or service will bring to your clients • “Our solution X will help you work better and faster”! • .. how does that help us develop the product and optimize the sales pitch? Everybody says that.! • An old adage states that there are only three basic value propositions: save money, save time, waste money/time! • To define it, a better insight into our customers and product is needed
  4. VALUE PROPOSITION OF OTHERS • Why did you buy your mobile phone?! • Why did you buy your car?
  5. VALUE PROPOSITION ELEMENTS • We’ll use the “Value proposition designer” to define the elements! • (note: Business Model Canvas is also recommended reading) Source - concept and pictures
  6. CUSTOMER PROFILE Customer jobs • the tasks they are trying to perform and complete; the problems they are trying to solve; the needs they are trying to satisfy! Customer pains • negative emotions, undesired costs and situations, and risks that your customer experiences or could experience before, during, and after getting the job done! Customer gains • the benefits your customer expects, desires or would be surprised by; includes functional utility, social gains, positive emotions, and cost savings
  7. VALUE PROPOSITION Products & services • Which products and services do we offer that help our customer get either a functional, social, or emotional job done, or help him/her satisfy basic needs?! Pain relievers • How do our products and services alleviate customer pains?! • Eliminate or reduce negative emotions, undesired costs and situations, and risks! Gain creators • How do we create benefits our customer expects?! • Functional utility, social gains, positive emotions, cost savings..
  8. EXAMPLE: NETWORK SUPPORT Customer jobs • Safeguard from network failure (functional)! • Can be smug in front of the boss (social)! • Feels good about network state (emotional)! Customer pains (if they did it themselves) • Cost of required backup equipment! • Required internal resources! • Incomplete knowledge of network! • Loss of face! Customer gains • Quicker response time! • Measure of success: uptime, cost! • More likely to adopt if: cheaper, faster resolution .. Products and services • Monitor equipment and repair/replace if necessary according to SLA! • Maintain a perfect record! • Timely communication of failures! Pain relievers • Shared reserve equipment lowers cost for single customer! • Minimal internal resources required! • Lead engineers have an in-depth knowledge of customer network! • Take the blame! Customer gains • Non-stop monitoring and preparedness! • Ensure higher uptime and lower support cost! • Try and lower costs and SLAs
  9. WHAT ABOUT THE COMPETITION? • Our product/service is in competition with others for the same “slot”! • iPhone/Samsung Galaxy/Nokia Lumia! • What are the crucial distinguishing elements of our value proposition? Why should the customer choose us?! • That difference is the basis for your value proposition
  10. EXAMPLE “The low fares airline” “World's 5-star airline” Perfect positioning!
  11. A LOCAL EXAMPLE • “We are good because we are old”?! • Typical lack of differentiating vision Source
  12. What about your company?
  13. FIND THE VALUE PROPOSITIONS Your service Value proposition Main competitor Their value proposition Some possible value propositions: cheaper, higher quality, longer warranty, changeability, scalability, ecosystem, safety, design, user experience..
  14. BUSINESS FOR ENGINEERS 1: Customers and sales 4: Value proposition 2: Product conception 5: Core competencies 3: Minimum Viable Product 6: Company values Jan Isakovic! @iYan