[To download this presentation, visit: https://www.oeconsulting.com.sg/training-presentations] The Value Proposition Canvas is a tool developed by Strategyzer which can be applied to understand your customers' needs, and design products and services they want. Understanding your value proposition for each customer segment is a fundamental part of a customer-centric organization and the first step in beginning a customer-centricity initiative. The Value Proposition Canvas consists of two key components that are used to invent and improve value propositions. The first component, the Customer Profile, is a useful tool to gather insights of customers' jobs, pains and gains. The second component, the Value Proposition Map, is used to define products and services to alleviate extreme pains and create essential gains that customers care about. As a visual tool, the Value Proposition Canvas serves as a shared language and can be integrated into your business model to improve customer satisfaction and drive growth. You can use this presentation to run a half-day or one-day workshop to facilitate participants to improve existing value propositions or develop new ones. 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 based on specific customer segments. 3. Apply the Customer Profile tool to gather insights of customers' jobs, pains and gains. 4. Apply the Value Map tool to alleviate extreme pains and create essential gains that customers care about. 5. Put the Value Proposition Canvas to work to create a shared language of value creation.

1. © Operational Excellence Consulting. All rights reserved.
VALUE PROPOSITION
CANVAS
Discover Your Competitive Edge

2. © Operational Excellence Consulting 2
Acquire knowledge of
the Value Proposition
Canvas to create
value that customers
want.
LEARNING OBJECTIVES
Put the Value
Proposition Canvas to
work to create a
shared language of
value creation.
Apply the Value
Proposition Canvas to
invent and improve
value propositions.
NOTE: This is a PARTIAL PREVIEW. To
download the complete presentation, please
visit: http://www.oeconsulting.com.sg

3. © Operational Excellence Consulting
CONTENTS
3
Basics of Design Thinking
2
Value Proposition Design Process
3
Introduction to the Value
Proposition Canvas
1
Value Proposition Map
6
Finding the Fit
7
Customer Segment Profile
5
Value Proposition Canvas
4 Best Practices
8

4. © Operational Excellence Consulting
A VALUE PROPOSITION DESCRIBES THE BENEFITS CUSTOMERS CAN
EXPECT FROM YOUR PRODUCTS & SERVICES
4
VALUE PROPOSITION
PRODUCT / SERVICE CUSTOMER

5. © Operational Excellence Consulting
72%
of new product and service innovations fail to
deliver on expectations.
5
Source: Simon-Kucher & Partners, 2014

6. 6
We need a better
approach to create
value for customers
and reduce the risk
of failure.

7. © Operational Excellence Consulting
BENEFITS OF USING A VALUE PROPOSITION CANVAS
7
Clear product-market
fit
Value representation Enhanced value
propositions
Customer-centric
approach
Competitive advantage
Improved decision
making
Innovation and
iteration
Efficient resource
allocation

8. © Operational Excellence Consulting
VALUE PROPOSITION CANVAS: A TOOL TO HELP ORGANIZATIONS
DESIGN PRODUCTS AND SERVICES THAT CUSTOMERS WANT
8
VALUE MAP CUSTOMER PROFILE
Source: Adapted from Strategyzer, 2014
Value Proposition Canvas

9. © Operational Excellence Consulting
WHAT IS DESIGN THINKING?
9
Only for the “creative”
people or product
designers?
Aesthetics and
crafts?
The latest
problem solving
technique?
Just a
brainstorming
session?

10. © Operational Excellence Consulting 10
DESIGN THINKING IS ‘OUTSIDE THE BOX’ THINKING
Design thinking is an
approach for creative
problem solving.

11. © Operational Excellence Consulting
WHAT IS UNIQUE ABOUT DESIGN THINKING?
11
Human-centered
Discover people’s real needs and wants.
Be able to gain deep insights of their
motivations and share the feelings of
others.
Hands-on
Ideas are made tangible through
prototyping. Build rough or lo-fi prototypes
to learn how to make ideas better.
z
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.
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.

12. © Operational Excellence Consulting 12
FRAMEWORK OF DESIGN THINKING
Empathize
with your users
Define your
users’ needs,
their problem,
and your
insights
Ideate by
challenging
assumptions
and creating
ideas for
innovative
solutions
Prototype to
start creating
solutions
Test solutions
Empathize
Define
Ideate
Prototype
Test
Source: Based on Stanford d.school

13. © Operational Excellence Consulting
INTEGRATED SUITE OF TOOLS
13
Zoom out
Zoom in
ENVIRONMENTAL MAP
BUSINESS MODEL CANVAS
VALUE PROPOSITION CANVAS
The Value Proposition Canvas is a crucial
component of an Integrated Suite of Tools,
which includes the Business Model
Canvas and the Environmental Map. This
suite offers a comprehensive framework
for organizations to holistically analyze
and refine their business strategies.
The Value Proposition Canvas
focuses specifically on understanding
and enhancing the value a company
provides to its customers.

14. © Operational Excellence Consulting
THE BUINSESS MODEL CANVAS IS A TOOL TO ALIGN ACTIVITIES TO
CREATE VALUE FOR CUSTOMERS
14
KP KA VP CR CS
KR CH
C$ R$
Source: Adapted from Strategyzer, 2014

15. © Operational Excellence Consulting
THE VALUE PROPOSITION CANVAS ALLOWS US TO DEEP DIVE INTO
THE VALUE PROPOSITION & CUSTOMER SEGMENTS OF THE BUSINESS
MODEL
15
- Zoom
?
?
?
? ?
?
?
Are you creating value for your business?
The Business Model Canvas makes explicit how you
are creating and capturing value for your business.
+ Zoom
Are you creating value for your customer?
The Value Proposition Canvas makes explicit how
you are creating value for your customers.
Zoom out to the bigger
picture to analyze if you
can profitably create,
deliver and capture value
around this particular
customer value
proposition.
Zoom in to the detailed
picture to investigate if
the customer value
proposition in your
business model really
creates value for your
customer.
Source: Adapted from Strategyzer, 2014

16. © Operational Excellence Consulting
VALUE PROPOSITION CANVAS – THE KEY ELEMENTS
16
VALUE MAP CUSTOMER PROFILE
Gain Creators
Pain Relievers
Products
& Services
Gains
Pains
Jobs
Source: Adapted from Strategyzer, 2014

17. © Operational Excellence Consulting
● The Tesla Model S is a
groundbreaking electric vehicle
that has revolutionized the
automotive industry. The Tesla
Model S is not just a car; it’s a
symbol of innovation,
sustainability, and cutting-edge
technology.
● When Tesla introduced the
Model S in 2012, it disrupted the
traditional automotive landscape.
It wasn’t just an electric car; it
was a paradigm shift.
TESLA MODEL S
17

18. © Operational Excellence Consulting
FIT
VALUE PROPOSITION CANVAS
18
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 TRAVEL
FREE
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
VALUE MAP
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
CUSTOMER PROFILE
Customer Segment:
UPPER MIDDLE CLASS MALE
$100K+ INCOME
Value Proposition:
MODEL S
Source: Strategyzer

19. © Operational Excellence Consulting
THE CUSTOMER PROFILE DESCRIBES THE SPECIFIC CUSTOMER
SEGMENT IN YOUR BUSINESS MODEL IN TERMS OF JOBS, PAINS &
GAINS
19
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.
Source: Adapted from Strategyzer, 2014

20. © Operational Excellence Consulting
CUSTOMER PAINS
20
Obstacles
§ Things that prevent the customer
from even getting started with a
job or that slow them down (e.g. I
have to queue up at the cashier
during peak hours)
Risks (undesired
potential outcomes)
§ What could go wrong and have
important negative consequences
(e.g. “A security breach would be
disastrous for us”)

21. © Operational Excellence Consulting
STEP 5 – RANKING (What is the customer priority?)
21
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
Job importance
Rank jobs according
to their importance to
customers.
Important
Insignificant
-
+
Gain relevance
Rank gains according to
how essential they are
in the customers’ eyes.
Essential
Nice to Have
+
-
Pain severity
Rank pains according
to how extreme they
are in the customers’
eyes.
Extreme
Moderate
+
-

22. © Operational Excellence Consulting
CUSTOMER PROFILE SUMMARY
22
OBJECTIVE: Visualize what matters to your
customers in a sharable format
OUTCOME: 1 page actionable
customer profile
1 2 3 4 5
Select
customer
segment
Identify
customer
jobs
Identify
customer
pains
Identify
customer
gains
Prioritize
jobs, pain
and gains

23. © Operational Excellence Consulting
THE VALUE MAP DESCRIBES THE FEATURES OF A SPECIFIC VALUE
PROPOSITION IN TERMS OF PRODUCTS, SERVICES, PAIN RELIEVERS &
GAIN CREATORS
23
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
Source: Adapted from Strategyzer, 2014

24. © Operational Excellence Consulting
STEP 4 – RANKING (How important are these to customers?)
24
Products &
Services
Rank products and
services from nice to
have to essential
Essential
Nice to Have
-
+ Essential
Nice to Have
+
-
Essential
Nice to Have
+
-
Pain Relievers
Rank pains from
nice to have to
essential
Gain Creators
Rank gains from
nice to have to
essential
TAXI
SMARTPHONE
APP
RATING
SYSTEM
PROFESSIONAL
DRIVERS
VISUAL MAP
SAVE TIME
INSTANT
BOOKING
NO CASH
Ranked
Ranked
COST
SYSTEM
ASSIGNED
DRIVER

25. © Operational Excellence Consulting
VALUE MAP SYMMARY
25
OBJECTIVE: Describe explicitly how your products
and services create value
OUTCOME: 1 page map of value
creation
1 2 3 4
List Products
and Services
Outline Pain
Relievers
Outline Gain
Creators
Rank by order of
importance

26. © Operational Excellence Consulting
FIT IS ACHIEVED WHEN YOUR VALUE PROPOSITION ALLEVIATE
EXTREME PAINS & CREATE ESSENTIAL GAINS THAT CUSTOMERS CARE
ABOUT
26
VALUE MAP CUSTOMER PROFILE
FIT
Source: Adapted from Strategyzer, 2014

27. © Operational Excellence Consulting
TAXI SMARTPHONE APPLICATION
27
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.

28. © Operational Excellence Consulting
ADJUST AND REDESIGN THE VALUE PROPOSITION CANVAS BASED ON
CUSTOMER FEEDBACK
28
Gains
Pains
Jobs
Adjust &
Redesign
✖
✔
✖
✖
✖
✖
✖
✔
✔

29. © Operational Excellence Consulting
COMMON MAPPING MISTAKES – CUSTOMER PROFILE
29
Mixing jobs and
outcomes
Mixing several customer
segments into one
profile
Focusing on functional
jobs only and forgetting
social and emotional
jobs
Identifying too few jobs,
pains and gains
Listing jobs, pains and
gains with your value
proposition in mind
Being too vague in
descriptions of pains
and gains

30. © Operational Excellence Consulting
Operational Excellence Consulting is a management
training and consulting firm that assists organizations
in improving business performance and effectiveness.
Based in Singapore, the firm’s mission is to create
business value for organizations through innovative
design and operational excellence management
training and consulting solutions. For more
information, please visit www.oeconsulting.com.sg
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