Value Proposition Canvas

2. © Operational Excellence Consulting. All rights reserved. 2 Learning Objectives 1.  Acquire knowledge of the Value Proposition Canvas to create value that customers want 2.  Apply the Value Proposition Canvas to invent and improve value propositions: a)  Apply the Customer Proﬁle tool to gather insights of customers’ jobs, pains and gains b)  Apply the Value Map tool to alleviate extreme pains and create essential gains that customers care about 3.  Put the Value Proposition Canvas to work to create a shared language of value creation NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: http://www.oeconsulting.com.sg

3. © Operational Excellence Consulting. All rights reserved. 3 Contents 1.  Introduction to Value Proposition Canvas 2.  Basics of Design Thinking 3.  Value Proposition Design Process 4.  Value Proposition Canvas 5.  Common Mapping Mistakes 6.  Critical Success Factors

5. © Operational Excellence Consulting. All rights reserved. 5 What is a Value Proposition? §  Describes the beneﬁts customers can expect from your products and services VALUE PROPOSITION PRODUCT / SERVICE CUSTOMER

7. © Operational Excellence Consulting. All rights reserved. 7 Activity 1: Value Proposition Gone Wrong 1.  In your respective groups, discuss one (a or b) of the following: a.  A recent product or service failure or b.  A poorly performing product or service 2.  What customer needs and expectations were unmet? 3.  How did the customer feel about the experience? 4.  How did you feel being the producer or service provider? 5.  Draw the whole scenario on a ﬂip chart, capturing aspects of the failure and the people emotions. 6.  DO NOT attempt to identify the causes or try to solve the problem. 15 mins

10. © Operational Excellence Consulting. All rights reserved. 10 Principles of Design Thinking Human-centered Discover people's real needs and wants. Be able to gain deep insights of their motivations and share the feelings of others. Highly-creative Look at situations differently. Push past obvious solutions and existing alternatives to get to breakthrough ideas. Collaborative Work as a team to look at the problem holistically and implement solutions to improve people's experience. Hands-on Ideas are made tangible through prototyping. Build rough or lo-fi prototypes to learn how to make ideas better. Iterative Repeat each phase backwards and forwards and arrive at each decision or desired result, after rounds of learning and discovery. Show, don't tell Enable the user to experience the story through action, words, thoughts, senses and feelings rather than pure description.

11. © Operational Excellence Consulting. All rights reserved. 11 Value Proposition Design Process + Extract Hypothesis Prioritize Hypothesis + Test Card Design Tests Prioritize Tests Run Tests Learning Card Capture Learnings ! Make Progress Our focus

12. © Operational Excellence Consulting. All rights reserved. 12 Role of Value Proposition Designer – Determine the best fit between the value proposition and customer needs Key Partners Key Activities Value Proposition Customer Relationships Customer Segments Key Resources Channels Cost Structure Revenue Streams VALUE PROPOSITION CUSTOMER SEGMENT BUSINESS MODEL CANVAS VALUE PROPOSITION DESIGNER +

15. © Operational Excellence Consulting. All rights reserved. 15 Value Proposition Canvas 8 YEAR BATTERY WARRANTY MODEL S 60-85 kW-h OPTIONS PERFORMANCE 0-100 km/h 4.4s – 6.2s FOCUS ON DESIGN & STYLE HIGH-TECH FEEL WITH 17” TOUCH SCREEN SUPER- CHARGING STATIONS ENABLING LONG DISTANCE TRAVELFREE ½ CHARGE IN 20 MINS BATTERY 45-90 km/h 5+2 SEATS 1,795 LITER STORAGE RANGE 350-450 km HIGHEST SAFETY BY NHTSA CONVEY IMAGE OF SUCCESS OCCASIONAL LONG DISTANCE TRIP IN SYNC W/ PERSONAL VALUES DIFFERENTIATE FROM OTHERS COMMUTE TO WORK PERSONAL MONBILITY ABOVE AVERAGE MAINTENANCE BUYING BEFORE PRICE DROP BATTERY DRAIN IN HOT WEATHER ACCIDENT CAR WITH BAD DRIVING BEHAVIOR FREQUENT CHARGING FEAR OF DEAD BATTERY LACK OF CHARGING STATIONS LACK OF NEARBY SERVICING LACK OF SPACE LAUGHED AT ACCEPTABLE CHARGING TIME PERFORMANCE SAFETY RATINGS HIGH-END BATTERY RANGE 250-350 KM DESIGN FIND MY WAY (GPS) STATE-OF-THE- ART ELECTRONICS HIGH-END AFTER SALES BRAND SEATING 4-5 PEOPLE Value Map Customer Proﬁle Customer Segment: UPPER MIDDLE CLASS MALE $100K+ INCOME Value Proposition: MODEL S

16. © Operational Excellence Consulting. All rights reserved. 16 The Customer (Segment) Profile describes the specific customer segment in your business model in terms of jobs, pains and gains Pains describe bad outcomes, risks and obstacles related to customer jobs. Jobs describe what customers are trying to get done in their work and in their lives, as expressed in their own words. Gains describe the outcomes customers want to achieve or the concrete benefits they are seeking.

17. © Operational Excellence Consulting. All rights reserved. 17 3. Customer Pains Gains Pains Jobs What annoys the customer before, during and after getting the job done? WAIT A LONG TIME UNSAFE DRIVER COMPETE WITH OTHER CUSTOMERS OVERCHARGED BY TAXI CALL TAXI FIND TAXI PAY GIVE DIRECTIONS

18. © Operational Excellence Consulting. All rights reserved. 18 5. Ranking Gains Pains Jobs What is the customer priority? FAIR PRICE PROFESSIONAL EASY PAYMENT ARRIVE ON TIME WAIT A LONG TIME UNSAFE DRIVER COMPETE WITH OTHER CUSTOMERS OVERCHARGED BY TAXI CALL TAXI FIND TAXI PAY GIVE DIRECTIONS Gain relevance Rank gains according to how essential they are in the customers’ eyes. Pain severity Rank pains according to how extreme they are in the customers’ eyes. Job importance Rank jobs according to their importance to customers. Important Insignificant - + Essential Nice to Have + - Extreme Moderate + -

19. © Operational Excellence Consulting. All rights reserved. 19 The Value (Proposition) Map describes the features of a specific value proposition in terms of products and services, pain relievers and gain creators This is a list of all the Products and Services a value proposition is built around Pain Relievers describe how your products and services alleviate customer pains Gain Creators describe how your products and services create customer gains

20. © Operational Excellence Consulting. All rights reserved. 20 Value Map Overview OBJECTIVE: Describe explicitly how your products and services create value OUTCOME: 1 page map of value creation 1 2 3 4 Grab the Customer Profile you previously completed Download the Value Map Canvas Grab a set of small Sticky Notes Map out how you create value for your customers The Value Proposition Canvas Customer (Segment) Profile: copyright: Strategyzer AG The makers of Business Model Generation and Strategyzer strategyzer.com Pains Gains Customer Job(s) copyright: Strategyzer AG The makers of Business Model Generation and Strategyzer strategyzer.com The Value Proposition Canvas Gain Creators Pain Relievers Products & Services Value (Proposition) Map: copyright: Strategyzer AG The makers of Business Model Generation and Strategyzer strategyzer.com The Value Proposition Canvas Gain Creators Pain Relievers Products & Services Value (Proposition) Map:

21. © Operational Excellence Consulting. All rights reserved. 21 3. Gain Creators Gains Pains Jobs FAIR PRICE PROFESSIONAL EASY PAYMENT ARRIVE ON TIME WAIT A LONG TIME UNSAFE DRIVER COMPETE WITH OTHER CUSTOMERS OVERCHARGED BY TAXI CALL TAXI FIND TAXI PAY GIVE DIRECTIONS TAXI SMARTPHONE APP How your products and services create customer gains. RATING SYSTEM PROFESSIONAL DRIVERS VISUAL MAP SAVE TIME INSTANT BOOKING COST SYSTEMASSIGNED DRIVER NO CASH

22. © Operational Excellence Consulting. All rights reserved. 22 Fit is achieved when your value proposition alleviate extreme pains and create essential gains that customers care about Value Map Customer Proﬁle FIT

23. © Operational Excellence Consulting. All rights reserved. 23 Taxi Smartphone Application ✗ Gains Pains Jobs FAIR PRICE PROFESSIONAL EASY PAYMENT ARRIVE ON TIME WAIT A LONG TIME UNSAFE DRIVER COMPETE WITH OTHER CUSTOMERS OVERCHARGED BY TAXI CALL TAXI FIND TAXI PAY GIVE DIRECTIONS TAXI SMARTPHONE APP RATING SYSTEM PROFESSIONAL DRIVERS VISUAL MAP SAVE TIME INSTANT BOOKING COST SYSTEM ASSIGNED DRIVER NO CASH ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✗ ✗ ✗ ✗ ✗ ✓ Cross marks show which jobs, pains and gains the value proposition does not address. Check marks signify that products and services relieve pains or create gains and directly address one of the customer’s jobs, pains or gains.

24. © Operational Excellence Consulting. All rights reserved. 24 Test Your Assumptions with the Customer Gains Pains Jobs Best Fit Gains Pains Jobs ✔ ✖✖ ✖ ✔ ✔ Wrong assumptions! © Operational Excellence Consulting. All rights reserved. 24

25. © Operational Excellence Consulting. All rights reserved. 25 Summary Gains Pains Jobs Gains Pains Jobs ✔ ✖✖ ✖ ✔ ✔ Validate by talking to customers and getting their feedback. 3 The Value Proposition Canvas helps clarify the customer needs and how to create value for them. 1 Gains Pains Jobs Gather insights obtained and update the Value Proposition Canvas. 4 Extract value propositions using ad-libs. 2

27. © Operational Excellence Consulting. All rights reserved. 27 About Operational Excellence Consulting §  Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. §  One of our unique strengths is going beyond a tools-focused approach to seamlessly integrate people, processes, technology and continuous improvement initiatives to suit the specific needs and situations of our clients. §  We provide corporate learning programs and management advisory services to assist our clients to achieve breakthrough in business performance and effectiveness. Our aim is to support our clients in designing, managing and executing lasting beneficial change.

Value Proposition Canvas

Value Proposition Canvas

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Value Proposition Canvas