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Value Proposition Design

The document discusses tools and processes for designing and testing value propositions for businesses. It describes using the Value Proposition Canvas tool to iteratively search for value propositions that customers want through designing, testing, and evolving propositions. It emphasizes managing the non-linear process of value proposition design by systematically applying tools like the Canvas to reduce risk.

Business◦
How to Design and Test Business Models and Value Propositions Yves Pigneur HEC Lausanne Alex Osterwalder
?How to design innovative business models?
? 2009 How to design innovative business models? 1 million, 30 languages
The Business Model Canvas
?How to design attractive value propositions that sell in business models that work
?How to design attractive value propositions that sell … 2014
Business Model Canvas Cost Structure Key Partnerships Key Resources Key Activities Value Propositions Customer Relationships Customer Segments Revenue Streams Channels 15
The Business Model Canvas helps you create value for your business The Value Proposition Canvas helps you create value for your customer zoom out zoom in The External Environment describes the space where you create 13
The Business Model Canvas helps you create value for your business The Value Proposition Canvas helps you create value for your customer zoom out zoom in The External Environment describes the space where you create 13
The Business Model Canvas helps you create value for your business The Value Proposition Canvas helps you create value for your customer zoom out zoom in The External Environment describes the space where you create 13
zoom out zoom in Canvas Design Search Post-SearchTools Test Evolve The Tools and Process of Value Proposition Design The heart of Value Proposition Design is about appl Tools to the messy Search for value propositions th customers want and then keeping them aligned wit customers want in Post-Search. Value Proposition Design shows you how to use the Proposition Canvas to Design and Test great value sitions in an iterative search for what customers wa proposition design is a never-ending process in whic need to Evolve your value proposition(s) constantly it relevant to customers. Manage the messy and non-linear process of value proposition design and reduce risk by systematically applying adequate tools and processes. Progres 10
zoom out zoom in Canvas Design Search Post-SearchTools Test Evolve The Tools and Process of Value Proposition Design The heart of Value Proposition Design is about appl Tools to the messy Search for value propositions th customers want and then keeping them aligned wit customers want in Post-Search. Value Proposition Design shows you how to use the Proposition Canvas to Design and Test great value sitions in an iterative search for what customers wa proposition design is a never-ending process in whic need to Evolve your value proposition(s) constantly it relevant to customers. Manage the messy and non-linear process of value proposition design and reduce risk by systematically applying adequate tools and processes. Progres 10 1
zoom out zoom in Canvas Design Search Post-SearchTools Test Evolve The Tools and Process of Value Proposition Design The heart of Value Proposition Design is about appl Tools to the messy Search for value propositions th customers want and then keeping them aligned wit customers want in Post-Search. Value Proposition Design shows you how to use the Proposition Canvas to Design and Test great value sitions in an iterative search for what customers wa proposition design is a never-ending process in whic need to Evolve your value proposition(s) constantly it relevant to customers. Manage the messy and non-linear process of value proposition design and reduce risk by systematically applying adequate tools and processes. Progres 10 1 2
zoom out zoom in Canvas Design Search Post-SearchTools Test Evolve The Tools and Process of Value Proposition Design The heart of Value Proposition Design is about appl Tools to the messy Search for value propositions th customers want and then keeping them aligned wit customers want in Post-Search. Value Proposition Design shows you how to use the Proposition Canvas to Design and Test great value sitions in an iterative search for what customers wa proposition design is a never-ending process in whic need to Evolve your value proposition(s) constantly it relevant to customers. Manage the messy and non-linear process of value proposition design and reduce risk by systematically applying adequate tools and processes. Progres 10 1 2 3
zoom out zoom in Canvas Design Search Post-SearchTools Test Evolve The Tools and Process of Value Proposition Design The heart of Value Proposition Design is about appl Tools to the messy Search for value propositions th customers want and then keeping them aligned wit customers want in Post-Search. Value Proposition Design shows you how to use the Proposition Canvas to Design and Test great value sitions in an iterative search for what customers wa proposition design is a never-ending process in whic need to Evolve your value proposition(s) constantly it relevant to customers. Manage the messy and non-linear process of value proposition design and reduce risk by systematically applying adequate tools and processes. Progres 10 1 2 3
BM Canvas
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com customer segments
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com customer segments value proposition
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com customer segments value proposition distribution channels
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com customer segments value proposition distribution channels customer relationship
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com customer segments value proposition distribution channels customer relationship revenue streams
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com customer segments value proposition distribution channels customer relationship key resources revenue streams
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com customer segments value proposition distribution channels customer relationship key activities key resources revenue streams
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com customer segments value proposition distribution channels customer relationship key activities key resources key partners revenue streams
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com customer segments value proposition distribution channels customer relationship key activities key resources key partners revenue streamscost structure
26 [sources: Mark W. Johnson, photo: Hilti.com] illustration
27 [source photo: ceratizit.com] HILTI manufactures and sells light machine tools for builders
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry AG The makers of Business Model Generation and Strategyzer This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com HIGH-END MACHINE TOOLS
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry AG The makers of Business Model Generation and Strategyzer This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com BUILDERS HIGH-END MACHINE TOOLS
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry AG The makers of Business Model Generation and Strategyzer This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com BUILDERS SALES FORCE HIGH-END MACHINE TOOLS
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry AG The makers of Business Model Generation and Strategyzer This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com BUILDERS SALES FORCE DIRECT 1-to-1 HIGH-END MACHINE TOOLS
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry AG The makers of Business Model Generation and Strategyzer This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com BUILDERS SALES FORCE DIRECT 1-to-1 HIGH-END MACHINE TOOLS TRANSACTIONAL SALES
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry AG The makers of Business Model Generation and Strategyzer This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com BUILDERS SALES FORCE DIRECT 1-to-1 HIGH-END MACHINE TOOLS TRANSACTIONAL SALES MANUFACTURINGPARTNERS
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry AG The makers of Business Model Generation and Strategyzer This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com BUILDERS SALES FORCE DIRECT 1-to-1 HIGH-END MACHINE TOOLS TRANSACTIONAL SALES MANUFACTURINGPARTNERS FACTORIES
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry AG The makers of Business Model Generation and Strategyzer This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com BUILDERS SALES FORCE DIRECT 1-to-1 HIGH-END MACHINE TOOLS TRANSACTIONAL SALES MANUFACTURINGPARTNERS FACTORIES BRAND NAME
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry AG The makers of Business Model Generation and Strategyzer This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com BUILDERS SALES FORCE DIRECT 1-to-1 HIGH-END MACHINE TOOLS TRANSACTIONAL SALES MANUFACTURINGPARTNERS FACTORIES BRAND NAME
1.2 Business model mechanics Not today
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com tells the story of how you create, deliver, and capture value (for your organization)
The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com zooming into the value proposition
Outcome If a Pain reliever or Gain creator doesn't Fit anything, it may not be creating customer value. Don't worry if not all pains/gains are checked – you can't satisfy them all. Ask yourself, how well does your Value Proposi- tion really fit your Customer? 71 The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com zooming into the value proposition
Outcome If a Pain reliever or Gain creator doesn't Fit anything, it may not be creating customer value. Don't worry if not all pains/gains are checked – you can't satisfy them all. Ask yourself, how well does your Value Proposi- tion really fit your Customer? 71 The Business Model Canvas Revenue Streams Channels Customer SegmentsValue PropositionsKey ActivitiesKey Partners Key Resources Cost Structure Customer Relationships Designed by: Date: Version:Designed for: designed by: Business Model Foundry GmbH, Switzerland www.businessmodelgeneration.com This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit: http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. strategyzer.com zooming into the value proposition
put yourself in the customers’ shoes
The focus should be on what jobs customers are trying to get done. – Tony Ulwick, Founder Strategyn “ ”
44 customer job-to-be-done
45 customervalue proposition job-to-be-done
VP Canvas
The set of value proposition benefits that you design to attract customers. Create Observe The set of customer characteristics that you assume, observe, and verify in the market. Fit customer profilevalue map
The set of value proposition benefits that you design to attract customers. Create Observe The set of customer characteristics that you assume, observe, and verify in the market. Fit Outcome If a Pain reliever or Gain cre anything, it may not be cre value. Don't worry if not all checked – you can't satisfy yourself, how well does you tion really fit your Custome customer profilevalue map
The set of value proposition benefits that you design to attract customers. Create Observe The set of customer characteristics that you assume, observe, and verify in the market. Fit Outcome If a Pain reliever or Gain cre anything, it may not be cre value. Don't worry if not all checked – you can't satisfy yourself, how well does you tion really fit your Custome customer profilevalue map
The set of value proposition benefits that you design to attract customers. Create Observe The set of customer characteristics that you assume, observe, and verify in the market. Fit Outcome If a Pain reliever or Gain cre anything, it may not be cre value. Don't worry if not all checked – you can't satisfy yourself, how well does you tion really fit your Custome customer profilevalue map tells the story of how you create value for your customer
51[source photo: dholmes.com] the customer’s biggest job to get done is NOT to buy the tools
52[source photo: griffinindustrial.co.uk] but to manage, maintain, and replace the tools (right tool, right place, right time)
1 1.1 Customer Profile 1.2 Value Map 1.3 Fit
. Customer Profile
customer jobs what customers are trying to get done in their work and in their lives Job Custo conte may exam when are d kids i * The “ Job It is im not a tance impo life b ing to signifi insign other find a or be felt o often when conse
FIND EXECUTE CONTRACTS RESPECT DEADLINES FLEET PLANNING SCHEDULE
The can cust Wh do mu Wh are tha Ho yo mi an Wh yo sta ge cer Wh cus afr Wh the or aw Wh E.g wo Wh ma wa Wh fro inv the describe bad outcomes, risks, and obstacles related to customer jobs customer pains
UPFRONT INVESTMENT BROKEN TOOLS THEFT DELAYS PENALTY COSTS STRESS FIND EXECUTE CONTRACTS RESPECT DEADLINES FLEET PLANNING SCHEDULE
The can cust Wh ha mo Wh wo Ho ers wh Wh ea cur shi Wh cus go Wh sea or Wh the rel Ho fai or Wh of low qu Link xxx describe the more or less expected benefits the customers are seeking customer gains
UPFRONT INVESTMENT BROKEN TOOLS THEFT DELAYS PENALTY COSTS STRESS FIND EXECUTE CONTRACTS RESPECT DEADLINES ACCESS TO NEWEST TOOLS SAFETY PROFITABLE CONTRACTS PREDICTABLE COSTS 100% UPTIME FLEET PLANNING SCHEDULE
.2 Value Map
UPFRONT INVESTMENT BROKEN TOOLS THEFT DELAYS PENALTY COSTS STRESS FIND EXECUTE CONTRACTS RESPECT DEADLINES ACCESS TO NEWEST TOOLS SAFETY PROFITABLE CONTRACTS PREDICTABLE COSTS 100% UPTIME FLEET PLANNING SCHEDULE ?
products & services A list of all the products and services a value proposition is built around
The can cust Wh ha mo Wh wo Ho ers wh Wh ea cur shi Wh cus go Wh sea or Wh the rel Ho fai or Wh of low qu Link xxx UPFRONT INVESTMENT BROKEN TOOLS THEFT DELAYS PENALTY COSTS STRESS TROUVER EXÉCUTER CONTRATS RESPECTER DÉLAIS ACCESS TO NEWEST TOOLS SAFETY PROFITABLE CONTRACTS PREDICTABLE COSTS 100% UPTIME ONLINE FLEET MANAGEMENT SYSTEM FLEET PLANNING SCHEDULE
pain relievers describe how your products and services kill or alleviate customer pains
The can cust Wh ha mo Wh wo Ho ers wh Wh ea cur shi Wh cus go Wh sea or Wh the rel Ho fai or Wh of low qu Link xxx UPFRONT INVESTMENT BROKEN TOOLS THEFT DELAYS PENALTY COSTS STRESS TROUVER EXÉCUTER CONTRATS RESPECTER DÉLAIS ACCESS TO NEWEST TOOLS SAFETY PROFITABLE CONTRACTS PREDICTABLE COSTS 100% UPTIME NO COST FOR REPAIR AND REPLACEMENT ONLINE FLEET MANAGEMENT SYSTEM FLEET PLANNING SCHEDULE SUBSCRIPTION
gain creators describe how your products and services create customer gains
The can cust Wh ha mo Wh wo Ho ers wh Wh ea cur shi Wh cus go Wh sea or Wh the rel Ho fai or Wh of low qu Link xxx UPFRONT INVESTMENT BROKEN TOOLS THEFT DELAYS PENALTY COSTS STRESS TROUVER EXÉCUTER CONTRATS RESPECTER DÉLAIS ACCESS TO NEWEST TOOLS SAFETY PROFITABLE CONTRACTS PREDICTABLE COSTS 100% UPTIME ONLINE FLEET MANAGEMENT SYSTEM SOUND COST MANAGEMENT ACCESS TO MODERN FLEET FLEET PLANNING SCHEDULE IMMEDIATE TOOLREPLACEMENT NO COST FOR REPAIR AND REPLACEMENT SUBSCRIPTION
.3 Fit
l r Customers expect and desire a lot from products and services. Yet, they also know they can’t have it all. Focus on those gains that matter most to customers and make a difference. Customers have a lot of pains. No organization can reasonably address all of them. Focus on those “headaches” that matter most and are insufficiently addressed. Your jury valu merc Are you addressing essential customer gains? Are you addressing extreme customer pains? Fit 適応
l r Customers expect and desire a lot from products and services. Yet, they also know they can’t have it all. Focus on those gains that matter most to customers and make a difference. Customers have a lot of pains. No organization can reasonably address all of them. Focus on those “headaches” that matter most and are insufficiently addressed. Your jury valu merc Are you addressing essential customer gains? Are you addressing extreme customer pains? Fit UPFRONT INVESTMENT BROKEN TOOLS THEFT DELAYS PENALTY COSTS STRESS TROUVER EXÉCUTER CONTRATS RESPECTER DÉLAIS ACCESS TO NEWEST TOOLS SAFETY PROFITABLE CONTRACTS PREDICTABLE COSTS 100% UPTIME NO COST FOR REPAIR AND REPLACEMENT ONLINE FLEET MANAGEMENT SYSTEM SOUND COST MANAGEMENT ACCESS TO MODERN FLEET FLEET PLANNING SCHEDULE IMMEDIATE TOOLREPLACEMENT SUBSCRIPTION
rching for Fit 1Problem-Solution Fit 2Product-Market Fit 3Business Model FitThree kinds of fit
rching for Fit 1Problem-Solution Fit 2Product-Market Fit 3Business Model FitThree kinds of fit Understanding customers
rching for Fit 1Problem-Solution Fit 2Product-Market Fit 3Business Model FitThree kinds of fit Understanding customers Design value propositions
rching for Fit 1Problem-Solution Fit 2Product-Market Fit 3Business Model FitThree kinds of fit Understanding customers Design value propositions Find the right business model
MARKET FORCESINDUSTRY FORCES MACRO ECONOMIC FORCES KEY TRENDS environment Not today
Design, Test, Repeat design test
design ASSESSMENT OBSERVATION PROTOTYPING TO TESTING FAILED FROM TESTING STARTING POINTS BU SINE SS MO DE L 7QUESTIONS
We evaluate potential solutions through user observation & iterative rapid prototyping. – David Kelley, IDEO founder “ ”
Ideas and Starting Points Understand Customers Prototype Possibilities prototype possibilities Starting points Understand customers
prototyping(pro·to·typ·ing) def. * the process of building quick, cheap, and rough study models
prototyping is NOT about making a refined picture of your first idea - it’s about exploring alternatives
November 2012 illustration
Cost Structure Key Partnerships Key Resources Channels Key Activities Value Propositions Customer Relationships Customer Segments Revenue Streams A Movie Theatre’s Business Model Movie distributors Run facilities Immersive storytelling experience Mass market Theatres Online ticketing Ticket sales Food & drinks (margins) Movie goers Display equipmemt Staff Rent Food distributors Theatres (good location) Movie rights Food & drinks Source movies Going to the Movies Let us walk through the concepts of the Value Proposition Canvas with another simple example. Imagine the owner of a movie theater chain wants to design new value proposi- tions for his customers. What drives the movie goer? comfortable haven't spent much money friends' reviews not having missed something feeling included in the storyorganized everything in advance share with someone relax escape real life long commute get entertained learn from another place expensivecrowded, long queues story too complex bad parking no convenient show times hurts my eyes waste of time limited options not able to get babysitter What should the new value proposition look like? He could start with tures and get exci of big screens, sta gies, tasty snacks riences, etc. But of if customers care better understand Traditionally he graphic profiles of this time he decide segmentation with a customer’s jobs, ? 78 CONCEPT1.3 78 In our ex in which our movie goer finds herse ma Add contextu customer profi The designing v
The kids’ afternoon off Date night affordable for group 2 hrs = right length of time kids are happy and calm safe environment both enjoyed moment leads to great conversation noise in the room manage kids attention not all kids are happy waiting in line not able to get babysit- ter not intimate enough occupy kids share moment of fun connect with each other relax during busy weekend When? Wednesday afternoon When? Saturday evening When? Any time Personal research visual story is easy to remember can consult internet for more info lack of light to take notes can't capture and share can't control speed too shallow for serious learning deepen expertise show off knowledge with friends accurate story
The kids’ afternoon off Date night affordable for group 2 hrs = right length of time kids are happy and calm safe environment both enjoyed moment leads to great conversation noise in the room manage kids attention not all kids are happy waiting in line not able to get babysit- ter not intimate enough occupy kids share moment of fun connect with each other relax during busy weekend When? Wednesday afternoon When? Saturday evening When? Any time Personal research visual story is easy to remember can consult internet for more info lack of light to take notes can't capture and share can't control speed too shallow for serious learning deepen expertise show off knowledge with friends accurate story
The kids’ afternoon off Date night affordable for group 2 hrs = right length of time kids are happy and calm safe environment both enjoyed moment leads to great conversation noise in the room manage kids attention not all kids are happy waiting in line not able to get babysit- ter not intimate enough occupy kids share moment of fun connect with each other relax during busy weekend When? Wednesday afternoon When? Saturday evening When? Any time Personal research visual story is easy to remember can consult internet for more info lack of light to take notes can't capture and share can't control speed too shallow for serious learning deepen expertise show off knowledge with friends accurate story
The kids’ afternoon off Date night affordable for group 2 hrs = right length of time kids are happy and calm safe environment both enjoyed moment leads to great conversation noise in the room manage kids attention not all kids are happy waiting in line not able to get babysit- ter not intimate enough occupy kids share moment of fun connect with each other relax during busy weekend When? Wednesday afternoon When? Saturday evening When? Any time Personal research visual story is easy to remember can consult internet for more info lack of light to take notes can't capture and share can't control speed too shallow for serious learning deepen expertise show off knowledge with friends accurate story
movie website big screen & surround sound ideal for conversation ideal for conversation home comfort intellectually stimulating instant access no babysitter needed intimate setting choose time to go stress relief duo seats advanced online booking home comfort largest library instant access movies on big screen movie home rentals dinner in town spa for couples online visual art exhibit Open slot for which potentially very different value propositions are competing. both enjoyed moment leads to great conversation waiting in line not able to get babysit- ter not intimate enough share moment of fun connect with each other control of experience 83 both enjoyed moment leads to great conversation waiting in line not able to get babysit- ter not intimate enough share moment of fun connect with each other
movie website big screen & surround sound ideal for conversation ideal for conversation home comfort intellectually stimulating instant access no babysitter needed intimate setting choose time to go stress relief duo seats advanced online booking home comfort largest library instant access movies on big screen movie home rentals dinner in town spa for couples online visual art exhibit Open slot for which potentially very different value propositions are competing. both enjoyed moment leads to great conversation waiting in line not able to get babysit- ter not intimate enough share moment of fun connect with each other control of experience 83 both enjoyed moment leads to great conversation waiting in line not able to get babysit- ter not intimate enough share moment of fun connect with each other
movie website big screen & surround sound ideal for conversation ideal for conversation home comfort intellectually stimulating instant access no babysitter needed intimate setting choose time to go stress relief duo seats advanced online booking home comfort largest library instant access movies on big screen movie home rentals dinner in town spa for couples online visual art exhibit Open slot for which potentially very different value propositions are competing. both enjoyed moment leads to great conversation waiting in line not able to get babysit- ter not intimate enough share moment of fun connect with each other control of experience 83 both enjoyed moment leads to great conversation waiting in line not able to get babysit- ter not intimate enough share moment of fun connect with each other
2.1 Prototyping possibilities 2.2 Starting points 2.3 Understanding customers 2
PROTOTYPING 2. Prototyping Possibilities 9796 DESIGN 96
an open peer-to-peer Napkin sketch
1 Flesh out Ideas with Canvases