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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
3D printing
My Product
ue proposition
Landing page
$1’150
luding a
130
3
Prototype
»
OnlineVideo
Wizard of Oz
n
Product box
Prototypes (MVP)
ctions
concept car
strategyzer.com
2.2
Starting Points
STARTING POINTS
109108
DESIGN
108
The
Business Mod
helps you
create value f
The
Value Propos
helps you
create value f
zoom out
zoom in
The
External Envi
describes the
where you cre
Tools
Where to start
Cost Structure
Key Partnerships
Key Resources
Key Activities Value Propositions
e
ition
ype
Channels
Customer
Relationships
Customer
Segments
Revenue Streams
3. adj
technolo
(and resour
ne
Market
Start from a manifes
proposition. In simple
Learn what techn
proposition prototyp
gains. Redesign your
solution to address c
build, measure, learn
. “Push”
value prop-
ess, while
stomer job,
nts many
both as a
d context.
or which you
in, and gain. In
r invention,
d customer
til you find
n circle on
technological
resources
Push vs Pull
Cost Structure
Key Partnerships
Key Resources
Key Activities Value Propositions
e
ition
ype
Channels
Customer
Relationships
Customer
Segments
Revenue Streams
3. adj
technolo
(and resour
ne
Market
Start from a manifes
proposition. In simple
Learn what techn
proposition prototyp
gains. Redesign your
solution to address c
build, measure, learn
. “Push”
value prop-
ess, while
stomer job,
nts many
both as a
d context.
or which you
in, and gain. In
r invention,
d customer
til you find
n circle on
technological
resources
Technology
1. solution
(invention, innovation, technology)
2. value
proposition
prototype
3. customer
insights
build
measure
learn
FIND A
PROBLEM
jobs, pains, gains
for starting from a manifest customer job, pain, or gain.
These are two common starting points of many which we
outlined previously p. ## →. Consider both as a viable option
depending on your preferences and context.
Technology Push
Start from an invention, innovation or (technological) resource for which you
develop a value proposition that addresses a customer job, pain, and gain. In
simple terms this is a solution in search of a problem.
Explore value proposition prototypes that are based on your invention,
innovation or (technological) resource with potentially interested customer
segments. Design a dedicated value map for each segment until you find
problem-solution fit. (Read more about the build, measure, learn circle on
page xxx).
114114
Push vs Pull
Cost Structure
Key Partnerships
Key Resources
Key Activities Value Propositions
e
ition
ype
Channels
Customer
Relationships
Customer
Segments
Revenue Streams
3. adj
technolo
(and resour
ne
Market
Start from a manifes
proposition. In simple
Learn what techn
proposition prototyp
gains. Redesign your
solution to address c
build, measure, learn
. “Push”
value prop-
ess, while
stomer job,
nts many
both as a
d context.
or which you
in, and gain. In
r invention,
d customer
til you find
n circle on
technological
resources
Push vs PullMarket
1. problem
(jobs, pains, gains)
2. value
proposition
prototype
3. adjust
technology
(and resource)
needs
FIND A
SOLUTION
build
measure
learn
Market Pull
Start from a manifest customer job, pain, or gain for which you design a value
proposition. In simple terms this is a problem in search of a solution.
Learn what technologies and other resources are required for each value
proposition prototype designed to address manifest customer jobs, pains, and
gains. Redesign your value map and adjust resources until you find a viable
solution to address customer jobs, pains, and gains. (Read more about the
build, measure, learn circle on page xxx).
I never perfected an invention
that I did not think about in
terms of the service it might
give others... I find out what
the world needs, then I
proceed to invent …
– Thomas Edison
”
“
OBSERVATION
2.3
Understanding
Customers
127126
DESIGN
126
The Data Detective The AnthropologistThe Journalist
Techniques to gain customer insights
The Data Detective The AnthropologistThe Journalist
Techniques to gain customer insights
The Data Detective The AnthropologistThe Journalist
Techniques to gain customer insights
The Impersonator The Co-creator The Scientist
Google Keyword Planner
Learn what’s popular with potential
customers by finding the top five
search terms related to your idea.
How often are they searched for?
Google Trends
Compare three search terms repre-
senting three different trends related
to your idea.
3rd Party Research Reports
Identify three readily available
research reports that can serve you
as a starting point to prepare your
own customer and value proposition
research
Government Census Data,
Worldbank, IMF & more
Identify the (government) data that’s
relevant to your idea and at your
fingertips via the Web.
128128
Google Trends
Google Keyword Planner
Misc. data
Research reports
The data detective
Social Media Analytics
Existing companies and brands should:
Identify the shakers and movers
related to their brand on social
media.
Spot the ten most frequently
mentioned positive and negative
things said about them on social
media?
Customer Relationships (CRM)
List the top three questions,
complaints, and requests that you
are getting from your daily interac-
tions with customers (e.g. support)
Tracking Customers on your Website
List the top three ways customer reach
your site (e.g. search, referrals, etc.).
Find the ten most and least popular
destinations on your website.
Data Mining
Existing company should mine their
data to:
Identify three patterns that could be
useful to their new idea.
Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die, Siegel & Davenport (20
Social media analytics
Customer Relationships
Tracking customers on your
website
Data mining
terview Your Customers
in insights relevant to your context.
ue Proposition Canvas to prepare interviews and
ss of information that will be coming
u during the interviews process.
Customer Profile
Sketch out the
jobs, pains and
gains you believe
characterize the
customer you are
targeting. Rank
jobs, pains, and
gains in order of
importance.
Interview Outline
Ask yourself what
you want to learn?
Derive the interview
questions from your
customer profile.
Ask about the most
important jobs, pains,
and gains
10 x1
2
Conduct Interview
Conduct the inter-
view by following the
interview ground rules
outlined on the next
spread.
interviews
Capture
Map out the jobs,
pains, and gains you
Make sure you also
capture business
Search for Patterns
Can you discover simi-
lar jobs, pains, and
Wh
a
y
3
4
Synthesize
Make
synthesized customer
profile for ever
customer segment
that emerges from
all your interviews.
Write down
import
sticky
6
7
Review Interview
Assess if you need to
review the interview
51
Customer
profile
2
Interview
outline
3
Conduct
interview
4
Capture
5
Review
interview
6
Search
for patterns
The journalist
B2C: Family Homestay
Stay at one of your potential customers’ home for
several days and live with the family. Participate in
daily routines. Learn. What drives them?
B2B: Work Alongside/Consult
Spend time working with or alongside (potential)
customers (e.g. in a consulting engagement).
B2C: Shadow your customers for
Be your (potential) customer’s shadow
them for a day. Write down all the jobs, p
gains you observe. Time stamp them. S
Learn.
B2C: Observe Shopping Behavior
Be your (potential) customer’s shadow
B2C: Family home stay
B2B: Work along side
B2C: Shadow your
customer for a day
B2C: Observe
shopping behaviour
The anthropologist
2.4
Making
Choices
ASSESSMENT
TO
TESTING
FAILED
7QUESTIONS
BU
SINE
SS
MO
DE
L
143142142
DESIGN2.4
Questions
Is it embedded in a
great business model?
Does it focus on the
most important jobs,
most extreme pains,
and most essential
gains?
Does it focus on unsat-
isfied jobs, unresolved
pains, and unrealized
gains?
Does it concentrate on
only a few pain relievers
and gain creators but
does those extremely
well?
Does it address func-
tional, emotional, and
social jobs all together?
1 2 3 4 51 2 3 4 5
Does it align with how
customers measure
success?
Does it focus on jobs,
pains, or gains that a
large number of cus-
tomers have, or for
which a small number
are willing to pay a lot
of money?
Does it differentiate
from competition in a
meaningful way?
Does it outperform
competition substan-
tially on at least one
dimension?
Is it difficult to copy?
6 7 8 9 10
Jobs Important Tangible Unsatisfied Lucrative High-value jobs
= 9
= 7
create
value for
corporation
design IT
strategy
Scoring scale: (low) to (high)
Does failing the job
lead to extreme pains?
Does failing the job
lead to missing out on
essential gains?
Can you feel the pain?
Can you see the gain?
Are there unresolved
pains?
Are there unrealized
gains?
Are there many with
this job, pain, or gain?
Are there few willing
to pay a lot?
Focus on the highest
value jobs and related
pains and gains.
Based on initial work by consultancy, Innosight.
Scoring
VP Design com
well to MOOCs
executive educ
It performs sim
to the
a much
point.
factors o
progression
path to
expertise
applicable
tools
custom
learning
through easy
navigation
reputation/
brand
free
Compare with competitors
strategy canvas
t up to this point
Use low-fidelity
prototypes to
make your ideas
tangible
Always refer back
to customer jobs,
pains, and gains in
your presentation
Avoid Cognitive Murder
?
?
?
?
? ?
?
+Zoom-Zoom
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.
Are you creating value for your business?
The Business Model Canvas makes explicit how you
are creating and capturing value for your business.
Are you creating value for your customer?
The Value Proposition Canvas makes explicit how
you are creating value for your customers.
169
* Working preview content for private review only, do not distribute — © Copyright Osterwalder, Pigneur, Bernarda, Smith, and Papadakos
Present to get feedback
Present early Don't judge Evolve ideas
× √ √Listen
d)
,
y
be
Master the art of critique
ASSESSMENT
TO
TESTING
FAILED
7QU
ESTION
S
BUS
INE
SS
MO
DEL
PROTOTYPING
2.5
Finding the Right
Business Model
169168
DESIGN
168
?
?
?
?
? ?
?
+Zoom-Zoom
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.
The Business Model Canvas makes explicit how you
are creating and capturing value for your business.
Are you creating value for your customer?
describes
how you
create value
for your
customer
describes
how you
create value
for your
business
Back and forth
?
?
?
?
? ?
?
+Zoom-Zoom
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.
The Business Model Canvas makes explicit how you
are creating and capturing value for your business.
Are you creating value for your customer?
describes
how you
create value
for your
customer
describes
how you
create value
for your
business
Back and forth
?
?
?
?
? ?
?
+Zoom-Zoom
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.
The Business Model Canvas makes explicit how you
are creating and capturing value for your business.
Are you creating value for your customer?
describes
how you
create value
for your
customer
describes
how you
create value
for your
business
Back and forth
129
[sources: Mark W. Johnson, photo: Hilti.com]
illustration
?
?
?
?
? ?
?
+Zoom-Zoom
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.
Are you creating value for your business?
The Business Model Canvas makes explicit how you
are creating and capturing value for your business.
Are you creating value for your customer?
The Value Proposition Canvas makes explicit how
you are creating value for your customers.
?
?
?
?
? ?
?
+Zoom-Zoom
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.
Are you creating value for your business?
The Business Model Canvas makes explicit how you
are creating and capturing value for your business.
Are you creating value for your customer?
The Value Proposition Canvas makes explicit how
you are creating value for your customers.
Design, Test, Repeat
design
test
test
SUCCESS
HYPOTHESIS
Why do businesses fail ?
. Test those first!
http://media.100firsthits.com/2013/11/Startup-Mistakes-Infographics.png
2014
?
?
?
?
? ?
?
+Zoom-Zoom
Zoom out to the
bigger picture to
analyze if you can
profitably create,
deliver, and capture
value around this
particular customer
value proposition.
The Business Model Canvas makes explicit how you
are creating and capturing value for your business.
Are you creating value for your customer?
a business model or
a value proposition
might look great
on paper...
?
?
?
?
? ?
?
+Zoom-Zoom
Zoom out to the
bigger picture to
analyze if you can
profitably create,
deliver, and capture
value around this
particular customer
value proposition.
The Business Model Canvas makes explicit how you
are creating and capturing value for your business.
Are you creating value for your customer?
but really it’s
a set of hypotheses
HYPOTHESIS
HYPOTHESIS
HYPOTHESIS
HYPOTHESIS
HYPOTHESIS
HYPOTHESIS
HYPOTHESIS
HYPOTHESIS
HYPOTHESIS
HYPOTHESIS
HYPOTHESIS
HYPOTHESIS
4
Enter
the Learning
Loop
Learn
5A
UNCERTAIN
st more
Measure
Build
lean startup
there are no facts in the
building... so get the hell
out and talk to customers
– Steve Blank, entrepreneur & author
“
”
3
3.1 What to Test
3.2. Testing step-by-step
3.3. Bringing it all together
3.
What to Test
215214
TEST
214
Provide evidence showing
“what” customers care
about (the circle) before
focusing on “how” to help
them (the square)
Testing the circle
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
Provide evidence
showing that your
customers care about
how your products and
services kill pains and
create gains
Testing the square
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
RIGHT TOOL,
RIGHT PLACE
RIGHT TIME
ONLINE FLEET
MANAGEMENT
SYSTEM
SOUND COST
MANAGEMENT
ACCESS TO
MODERN FLEET
Business Model Canvas
Cost Structure
Key Partnerships
Key Resources Channels
Key Activities Value Propositions Customer
Relationships
Customer
Segments
Revenue Streams
15
Provide evidence
showing that the way
you intend to create,
deliver, and capture
value is likely to work
Testing the rectangle
Business Model Canvas
Cost Structure
Key Partnerships
Key Resources Channels
Key Activities Value Propositions Customer
Relationships
Customer
Segments
Revenue Streams
15
PARTNERS
CONSTRUCTION
COMPANY CEO
LARGE LONG-TERM
CONTRACTS
ONLINE FLEET
MANAGEMENT
SYSTEM
SERVICE FLEET
INVENTORY
HYPOTHESIS
3.2
Testing
Step-by-Step
223222
TEST
222
3.2
Testing Step-
by-Step
Test Card
+
-Extract Hypotheses Prioritize Hypotheses Design Test
TESTINGVALUEPROPOSTIO
Test Card
+
-Extract Hypotheses Prioritize Hypotheses Design Test
TESTINGVALUEPROPOSTIO
Test Card
+
-Extract Hypotheses Prioritize Hypotheses Design Test
TESTINGVALUEPROPOSTIO
Learning Card
+
!
-Prioritize Tests Run Tests Capture Learnings Make Progress
Learning Card
+
!
-Prioritize Tests Run Tests Capture Learnings Make Progress
Learning Card
+
!
-Prioritize Tests Run Tests Capture Learnings Make Progress
when testing hypotheses with customers …
What people say, and
what people do
are two different things
keep in mind …
What people say, and
what people do
are two different things
keep in mind …
What people say, and
what people do
are two different things
keep in mind …
…interest
Prove th
genuine
Show th
to get them to perform
service (e.g. em
makers
…priorities a
Show which jobs, p
customer and p
they value least. Provide evidence th
features of your val
what really matters to them
…willingness to pay
Provide evidence that potenti
interested enough in the features of
osition to pay. Deliver facts tha
their money where their mouth is.
interest and relevance
priorities and preferences
willingness to pay
Produce evidence with a call-to-action
strategyzer.com
Gain Creators
Pain Relievers Pains
Gains
Products
& Services
Customer
Job(s)
The Value Proposition Canvas
Value Proposition Customer Segment
strategyzer.comThe makers of Business Model Generation and Strategyzer
Copyright Business Model Foundry AG
What needs to be true
for a feature to work
and create value? ->
Hypotheses
SAVE 20% ON
SALES PROCESS
customer segment X wants to
save 20% on sales process
customer segment X wants to
save 20% on sales process
talk to 40 potential customers and give
them a trackable link with more information
customer segment X wants to
save 20% on sales process
how many of the interviewees
clicked on the follow-up link
talk to 40 potential customers and give
them a trackable link with more information
customer segment X wants to
save 20% on sales process
how many of the interviewees
clicked on the follow-up link
50% clicked the link
talk to 40 potential customers and give
them a trackable link with more information
SUCCESS
3.3
Experiment
Library
241240
TEST
240
テスト·ライブラリ
A mix of experiments
Scientist
DIRECT CONTACT with customers
Learn why and how to improve
INDIRECT OBSERVATION of customers
Learn how many and how much
Lab studies
Learning prototype/MVP → p. 222
Life-size prototypes → p. 226
Wizard of Oz → p. 223
Anthropologist → p. 114
For field studies
Sale actions
Mock sales → p. 236
Pre sales → p. 237
Crowdfunding → p. 237
Tracking actions
Ad and link tracking → p. 220
Landing page → p. 228
Split testing → p. 230
Participatory design
and evaluation
Illustrations, storyboards,
and scenarios → p. 224
Speedboat → p. 233
Product box → p. 234
Buy a feature → p. 235
Journalist → p. 110
For interviews
Detective → p. 108
For data analysis
WHATCUSTOMERSDO
Observetheirbehaviors
WHATCUSTOMERSSAY
Observetheirattitudes
A mix of experiments
Scientist
DIRECT CONTACT with customers
Learn why and how to improve
INDIRECT OBSERVATION of customers
Learn how many and how much
Lab studies
Learning prototype/MVP → p. 222
Life-size prototypes → p. 226
Wizard of Oz → p. 223
Anthropologist → p. 114
For field studies
Sale actions
Mock sales → p. 236
Pre sales → p. 237
Crowdfunding → p. 237
Tracking actions
Ad and link tracking → p. 220
Landing page → p. 228
Split testing → p. 230
Participatory design
and evaluation
Illustrations, storyboards,
and scenarios → p. 224
Speedboat → p. 233
Product box → p. 234
Buy a feature → p. 235
Journalist → p. 110
For interviews
Detective → p. 108
For data analysis
WHATCUSTOMERSDO
Observetheirbehaviors
WHATCUSTOMERSSAY
Observetheirattitudes
A mix of experiments
Scientist
DIRECT CONTACT with customers
Learn why and how to improve
INDIRECT OBSERVATION of customers
Learn how many and how much
Lab studies
Learning prototype/MVP → p. 222
Life-size prototypes → p. 226
Wizard of Oz → p. 223
Anthropologist → p. 114
For field studies
Sale actions
Mock sales → p. 236
Pre sales → p. 237
Crowdfunding → p. 237
Tracking actions
Ad and link tracking → p. 220
Landing page → p. 228
Split testing → p. 230
Participatory design
and evaluation
Illustrations, storyboards,
and scenarios → p. 224
Speedboat → p. 233
Product box → p. 234
Buy a feature → p. 235
Journalist → p. 110
For interviews
Detective → p. 108
For data analysis
WHATCUSTOMERSDO
Observetheirbehaviors
WHATCUSTOMERSSAY
Observetheirattitudes
A mix of experiments
Scientist
DIRECT CONTACT with customers
Learn why and how to improve
INDIRECT OBSERVATION of customers
Learn how many and how much
Lab studies
Learning prototype/MVP → p. 222
Life-size prototypes → p. 226
Wizard of Oz → p. 223
Anthropologist → p. 114
For field studies
Sale actions
Mock sales → p. 236
Pre sales → p. 237
Crowdfunding → p. 237
Tracking actions
Ad and link tracking → p. 220
Landing page → p. 228
Split testing → p. 230
Participatory design
and evaluation
Illustrations, storyboards,
and scenarios → p. 224
Speedboat → p. 233
Product box → p. 234
Buy a feature → p. 235
Journalist → p. 110
For interviews
Detective → p. 108
For data analysis
WHATCUSTOMERSDO
Observetheirbehaviors
WHATCUSTOMERSSAY
Observetheirattitudes
A mix of experiments
Scientist
DIRECT CONTACT with customers
Learn why and how to improve
INDIRECT OBSERVATION of customers
Learn how many and how much
Lab studies
Learning prototype/MVP → p. 222
Life-size prototypes → p. 226
Wizard of Oz → p. 223
Anthropologist → p. 114
For field studies
Sale actions
Mock sales → p. 236
Pre sales → p. 237
Crowdfunding → p. 237
Tracking actions
Ad and link tracking → p. 220
Landing page → p. 228
Split testing → p. 230
Participatory design
and evaluation
Illustrations, storyboards,
and scenarios → p. 224
Speedboat → p. 233
Product box → p. 234
Buy a feature → p. 235
Journalist → p. 110
For interviews
Detective → p. 108
For data analysis
WHATCUSTOMERSDO
Observetheirbehaviors
WHATCUSTOMERSSAY
Observetheirattitudes
3.4
Bringing it
all Together
ASSESSMENT
OBSERVATION
PROTOTYPING
TO
TESTING
FAILED
FROM
TESTING
STARTING POINTS
BUS
INES
S MOD
EL
7QU
ESTIO
NS
SU
CC
ES
S
HYPO
THES
IS
265264
TEST
264
3.3
Bringing it all
Together
The
testing
process
プロセスを
テストする
The
testing
process
2
Extract
your
Hypotheses
3
Design
Your
Tests
2
Extract
your
Hypotheses
Test Card
プロセスを
テストする
The
testing
process
2
Extract
your
Hypotheses
3
Design
Your
Tests
2
Extract
your
Hypotheses
Test Card
4
Enter
the Learning
Loop
Learn
5A
UNCERTAIN
test more
Measure
Build
プロセスを
テストする
The
testing
process
2
Extract
your
Hypotheses
3
Design
Your
Tests
2
Extract
your
Hypotheses
Test Card
4
Enter
the Learning
Loop
Learn
5A
UNCERTAIN
test more
Measure
Build
5
Capture
Learnings
and Next
Actions
5C
INVALIDATED
iterate or pivot
5A
UNCERTAIN
test
1 (6)
(re)Shape your
ideas
Learning Card
5A
UNCERTAIN
test more
プロセスを
テストする
3
Design
Your
Tests
4
Enter
the Learning
Loop
5
Capture
Learnings
and Next
Actions
6
Measure
Progress
Learn
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building
5C
INVALIDATED
iterate or pivot
5A
UNCERTAIN
test more
5B
VALIDATED
progress towards
next element
Measure
Build
2
Extract
your
Hypotheses
1 (6)
(re)Shape your
ideas
Test CardLearning Card
The
testing
process
プロセスを
テストする
Idea Designed Customer Assumptions Validated
Problem Solution Fit
Value Proposition Validated
Product Market Fit
Interest
Validated
Business Model and
Value Proposition
Prototyped
Assesed with
Competitors
Preference
Validated
Willingness to
pay Validated
Business Model
Validated
Business Model Fit
Business Model
Monitoring
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building 269
Measure your progress
Idea Designed Customer Assumptions Validated
Problem Solution Fit
Value Proposition Validated
Product Market Fit
Interest
Validated
Business Model and
Value Proposition
Prototyped
Assesed with
Competitors
Preference
Validated
Willingness to
pay Validated
Business Model
Validated
Business Model Fit
Business Model
Monitoring
Customer
Discovery
Customer
Validation
Customer
Creation
Company
Building 2691 2 3 4 5 6 7 8 9
Steve Blank
Measure your progress
Test Card
We believe that
Test Name
Assigned to
Deadline
Duration
And measure
To verify that, we will
We are right if
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Test Cost: Data Reliability:
Critical:
Time Required:
Test Card
We believe that
Test Name
Assigned to
Deadline
Duration
And measure
To verify that, we will
We are right if
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Test Cost: Data Reliability:
Critical:
Time Required:
Test Card
We believe that
Test Name
Assigned to
Deadline
Duration
And measure
To verify that, we will
We are right if
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Test Cost: Data Reliability:
Critical:
Time Required:
Test Card
We believe that
Test Name
Assigned to
Deadline
Duration
And measure
To verify that, we will
We are right if
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Test Cost: Data Reliability:
Critical:
Time Required:
Test Card
We believe that
Test Name
Assigned to
Deadline
Duration
And measure
To verify that, we will
We are right if
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Test Cost: Data Reliability:
Critical:
Time Required:
Test Card
We believe that
Test Name
Assigned to
Deadline
Duration
And measure
To verify that, we will
We are right if
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Test Cost: Data Reliability:
Critical:
Time Required:
Test Card
We believe that
Test Name
Assigned to
Deadline
Duration
And measure
To verify that, we will
We are right if
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Test Cost: Data Reliability:
Critical:
Time Required:
Test Card
We believe that
Test Name
Assigned to
Deadline
Duration
And measure
To verify that, we will
We are right if
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Test Cost: Data Reliability:
Critical:
Time Required:
Test Card
We believe that
Test Name
Assigned to
Deadline
Duration
And measure
To verify that, we will
We are right if
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Test Cost: Data Reliability:
Critical:
Time Required:
Test Card
We believe that
Test Name
Assigned to
Deadline
Duration
And measure
To verify that, we will
We are right if
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Test Cost: Data Reliability:
Critical:
Time Required:
Test Card
We believe that
Test Name
Assigned to
Deadline
Duration
And measure
To verify that, we will
We are right if
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Test Cost: Data Reliability:
Critical:
Time Required:
Test Card
We believe that
Test Name
Assigned to
Deadline
Duration
And measure
To verify that, we will
We are right if
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Test Cost: Data Reliability:
Critical:
Time Required:
invalidated
backlog build measure learn done
learn more
validated
Learning Card
We believed that
step 1: hypothesis
Insight Name
Person Responsible
Date of Learning
From that we learned that
step 3: learnings and insights
We observed
step 2: observation
Therefore we will
step 4: decisions and actions
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Data Reliability:
Action Required:
Learning Card
We believed that
step 1: hypothesis
Insight Name
Person Responsible
Date of Learning
From that we learned that
step 3: learnings and insights
We observed
step 2: observation
Therefore we will
step 4: decisions and actions
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Data Reliability:
Action Required:
Learning Card
We believed that
step 1: hypothesis
Insight Name
Person Responsible
Date of Learning
From that we learned that
step 3: learnings and insights
We observed
step 2: observation
Therefore we will
step 4: decisions and actions
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Data Reliability:
Action Required:
Learning Card
We believed that
step 1: hypothesis
Insight Name
Person Responsible
Date of Learning
From that we learned that
step 3: learnings and insights
We observed
step 2: observation
Therefore we will
step 4: decisions and actions
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Data Reliability:
Action Required:
Learning Card
We believed that
step 1: hypothesis
Insight Name
Person Responsible
Date of Learning
From that we learned that
step 3: learnings and insights
We observed
step 2: observation
Therefore we will
step 4: decisions and actions
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Data Reliability:
Action Required:
Learning Card
We believed that
step 1: hypothesis
Insight Name
Person Responsible
Date of Learning
From that we learned that
step 3: learnings and insights
We observed
step 2: observation
Therefore we will
step 4: decisions and actions
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Data Reliability:
Action Required:
Learning Card
We believed that
step 1: hypothesis
Insight Name
Person Responsible
Date of Learning
From that we learned that
step 3: learnings and insights
We observed
step 2: observation
Therefore we will
step 4: decisions and actions
The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG
Data Reliability:
Action Required:
back to the drawing
board: iterate or pivot
your design
advance to next step:
move on in your quest to
turn your idea into reality
3
Tests
Test CardLearning
Card
Learning
Card
Learning
Card
Learning
Card
Learning
Card
Learning
Card
Learning
Card
Test Card
Test Card
Test Card
Test Card Test Card
Test Card
Test Card
Test Card
Test Card
Test Card
Test Card
4
Insights
& Actions
5
Measure Progress
2
Hypotheses
1 (5)
(re)Shape your
ideas
Progress board
(Kanban)
The Progress Board
Business
Hypotheses
!
!
!
!
!
Test: Backlog Test: Build
Invalidated
Unclear Results
Validated
Test: Measure Test: Learn Progress
copyright: Strategyzer AG
The makers of Business Model Generation and Strategyzer strategyzer.com
21 43
List the key assumptions that need to be
true for your idea to work. Prioritize the most
critical ones that could kill your business.
The tests and experiments that
you intend to perform
The tests and experiments that are
being planned, designed, or built.
The tests and experiments that are
currently running and collecting data.
The tests and experiments that were
executed, collected data, and are
ready to be analyzed.
Your validation criteria step-by-step.
Back to the drawing board
Iterate or Pivot your design
Design another test, and
learn more before making a decision
Advance to the next step,
move on in your quest to make ideas reality
?
evolve
“ Business models expire like yogurt in your fridge “
Prediction is very
difficult, especially if
it's about the future.
– Niels Bohr, physicist 1952
“
”
Reinvent Yourself Constantly
What elements in your environment
are changing? What do market, tech-
nology, regulatory, macroeconomic,
or competitive changes mean for
your value propositions and business
models? Do those changes offer an
opportunity to explore new possibil-
ities or could they be a threat that
might disrupt you?
Is your business model expiring
you need to add new resource
activities? Do the existing ones
opportunity to expand your bu
model? Could you bolster your
business model or should you
completely new ones? Is your b
model portfolio fit for the futur
Continuously
ask
yourself…
What elements in your environment
are changing? What do market, tech-
nology, regulatory, macroeconomic,
or competitive changes mean for
your value propositions and business
Is your business model expiring? Do
you need to add new resources or
activities? Do the existing ones offer an
opportunity to expand your business
model? Could you bolster your existing
Today’s enterprise must be agile and
develop what Columbia Business
School Professor Rita McGrath calls
transient advantages in her book The
End of Competitive Advantage. She
to remember when you build transient
:
e exploration of new value
tions and business models
seriously as the execution of
ones.
n continuously experimenting
w value propositions and busi-
odels rather than making big
certain bets.
nt yourself while you are
sful; don’t wait for a crisis to
ou to.
w ideas and opportunities as
s to energize and mobilize
ees and customers rather
risky endeavor.
stomer experiments as a yard-
judge new ideas and oppor-
rather than the opinions of
Continuously
ask
yourself…
267
STRATEGYZER.COM/VPD/EVOLVE
Reinvent Yourself Constantly
What elements in your environment
are changing? What do market, tech-
nology, regulatory, macroeconomic,
or competitive changes mean for
your value propositions and business
models? Do those changes offer an
opportunity to explore new possibil-
ities or could they be a threat that
might disrupt you?
Is your business model expiring
you need to add new resource
activities? Do the existing ones
opportunity to expand your bu
model? Could you bolster your
business model or should you
completely new ones? Is your b
model portfolio fit for the futur
Continuously
ask
yourself…
What elements in your environment
are changing? What do market, tech-
nology, regulatory, macroeconomic,
or competitive changes mean for
your value propositions and business
Is your business model expiring? Do
you need to add new resources or
activities? Do the existing ones offer an
opportunity to expand your business
model? Could you bolster your existing
Today’s enterprise must be agile and
develop what Columbia Business
School Professor Rita McGrath calls
transient advantages in her book The
End of Competitive Advantage. She
to remember when you build transient
:
e exploration of new value
tions and business models
seriously as the execution of
ones.
n continuously experimenting
w value propositions and busi-
odels rather than making big
certain bets.
nt yourself while you are
sful; don’t wait for a crisis to
ou to.
w ideas and opportunities as
s to energize and mobilize
ees and customers rather
risky endeavor.
stomer experiments as a yard-
judge new ideas and oppor-
rather than the opinions of
Continuously
ask
yourself…
267
STRATEGYZER.COM/VPD/EVOLVE
Reinvent Yourself Constantly
What elements in your environment
are changing? What do market, tech-
nology, regulatory, macroeconomic,
or competitive changes mean for
your value propositions and business
models? Do those changes offer an
opportunity to explore new possibil-
ities or could they be a threat that
might disrupt you?
Is your business model expiring
you need to add new resource
activities? Do the existing ones
opportunity to expand your bu
model? Could you bolster your
business model or should you
completely new ones? Is your b
model portfolio fit for the futur
Continuously
ask
yourself…
What elements in your environment
are changing? What do market, tech-
nology, regulatory, macroeconomic,
or competitive changes mean for
your value propositions and business
Is your business model expiring? Do
you need to add new resources or
activities? Do the existing ones offer an
opportunity to expand your business
model? Could you bolster your existing
Today’s enterprise must be agile and
develop what Columbia Business
School Professor Rita McGrath calls
transient advantages in her book The
End of Competitive Advantage. She
to remember when you build transient
:
e exploration of new value
tions and business models
seriously as the execution of
ones.
n continuously experimenting
w value propositions and busi-
odels rather than making big
certain bets.
nt yourself while you are
sful; don’t wait for a crisis to
ou to.
w ideas and opportunities as
s to energize and mobilize
ees and customers rather
risky endeavor.
stomer experiments as a yard-
judge new ideas and oppor-
rather than the opinions of
Continuously
ask
yourself…
267
STRATEGYZER.COM/VPD/EVOLVE
Reinvent Yourself Constantly
What elements in your environment
are changing? What do market, tech-
nology, regulatory, macroeconomic,
or competitive changes mean for
your value propositions and business
models? Do those changes offer an
opportunity to explore new possibil-
ities or could they be a threat that
might disrupt you?
Is your business model expiring
you need to add new resource
activities? Do the existing ones
opportunity to expand your bu
model? Could you bolster your
business model or should you
completely new ones? Is your b
model portfolio fit for the futur
Continuously
ask
yourself…
What elements in your environment
are changing? What do market, tech-
nology, regulatory, macroeconomic,
or competitive changes mean for
your value propositions and business
Is your business model expiring? Do
you need to add new resources or
activities? Do the existing ones offer an
opportunity to expand your business
model? Could you bolster your existing
Today’s enterprise must be agile and
develop what Columbia Business
School Professor Rita McGrath calls
transient advantages in her book The
End of Competitive Advantage. She
to remember when you build transient
:
e exploration of new value
tions and business models
seriously as the execution of
ones.
n continuously experimenting
w value propositions and busi-
odels rather than making big
certain bets.
nt yourself while you are
sful; don’t wait for a crisis to
ou to.
w ideas and opportunities as
s to energize and mobilize
ees and customers rather
risky endeavor.
stomer experiments as a yard-
judge new ideas and oppor-
rather than the opinions of
Continuously
ask
yourself…
267
STRATEGYZER.COM/VPD/EVOLVE
4.1
Business model
layer Not today
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
A great value proposition

lives in a sustainable and
profitable business model
1
A great value proposition
starts with a deep
understanding of customers
2
Creating great value propositions
and profitable business models
requires a design mindset …
3

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Value Proposition Design

  • 1. How to Design and Test Business Models and Value Propositions Yves Pigneur HEC Lausanne Alex Osterwalder
  • 2. ?How to design innovative business models?
  • 3. ? 2009 How to design innovative business models? 1 million, 30 languages
  • 5. ?How to design attractive value propositions that sell in business models that work
  • 6. ?How to design attractive value propositions that sell … 2014
  • 7. Business Model Canvas Cost Structure Key Partnerships Key Resources Key Activities Value Propositions Customer Relationships Customer Segments Revenue Streams Channels 15
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. 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
  • 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 1 2
  • 14. 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
  • 15. 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
  • 17. 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
  • 18. 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
  • 19. 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
  • 20. 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
  • 21. 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
  • 22. 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
  • 23. 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
  • 24. 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
  • 25. 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. 26 [sources: Mark W. Johnson, photo: Hilti.com] illustration
  • 27. 27 [source photo: ceratizit.com] HILTI manufactures and sells light machine tools for builders
  • 28. 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
  • 29. 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
  • 30. 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
  • 31. 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
  • 32. 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
  • 33. 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
  • 34. 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
  • 35. 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
  • 36. 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
  • 38. 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)
  • 39. 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
  • 40. 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
  • 41. 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
  • 42. put yourself in the customers’ shoes
  • 43. The focus should be on what jobs customers are trying to get done. – Tony Ulwick, Founder Strategyn “ ”
  • 47. 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
  • 48. 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
  • 49. 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
  • 50. 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. 51[source photo: dholmes.com] the customer’s biggest job to get done is NOT to buy the tools
  • 52. 52[source photo: griffinindustrial.co.uk] but to manage, maintain, and replace the tools (right tool, right place, right time)
  • 53. 1 1.1 Customer Profile 1.2 Value Map 1.3 Fit
  • 55. 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
  • 56.
  • 57.
  • 62. 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
  • 64. 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 ?
  • 65. products & services A list of all the products and services a value proposition is built around
  • 67. pain relievers describe how your products and services kill or alleviate customer pains
  • 68. 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
  • 69. gain creators describe how your products and services create customer gains
  • 70. 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
  • 72. 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
  • 73. 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
  • 74. rching for Fit 1Problem-Solution Fit 2Product-Market Fit 3Business Model FitThree kinds of fit
  • 75. rching for Fit 1Problem-Solution Fit 2Product-Market Fit 3Business Model FitThree kinds of fit Understanding customers
  • 76. rching for Fit 1Problem-Solution Fit 2Product-Market Fit 3Business Model FitThree kinds of fit Understanding customers Design value propositions
  • 77. 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
  • 78. MARKET FORCESINDUSTRY FORCES MACRO ECONOMIC FORCES KEY TRENDS environment Not today
  • 81. We evaluate potential solutions through user observation & iterative rapid prototyping. – David Kelley, IDEO founder “ ”
  • 82. Ideas and Starting Points Understand Customers Prototype Possibilities prototype possibilities Starting points Understand customers
  • 83. prototyping(pro·to·typ·ing) def. * the process of building quick, cheap, and rough study models
  • 84. prototyping is NOT about making a refined picture of your first idea - it’s about exploring alternatives
  • 85.
  • 86.
  • 87.
  • 89. 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
  • 90. 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
  • 91. 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
  • 92. 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
  • 93. 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
  • 94. 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
  • 95. 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
  • 96. 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
  • 97. 2.1 Prototyping possibilities 2.2 Starting points 2.3 Understanding customers 2
  • 100. 1 Flesh out Ideas with Canvases
  • 101. 3D printing My Product ue proposition Landing page $1’150 luding a 130 3 Prototype » OnlineVideo Wizard of Oz n Product box Prototypes (MVP) ctions concept car
  • 104. The Business Mod helps you create value f The Value Propos helps you create value f zoom out zoom in The External Envi describes the where you cre Tools Where to start
  • 105. Cost Structure Key Partnerships Key Resources Key Activities Value Propositions e ition ype Channels Customer Relationships Customer Segments Revenue Streams 3. adj technolo (and resour ne Market Start from a manifes proposition. In simple Learn what techn proposition prototyp gains. Redesign your solution to address c build, measure, learn . “Push” value prop- ess, while stomer job, nts many both as a d context. or which you in, and gain. In r invention, d customer til you find n circle on technological resources Push vs Pull
  • 106. Cost Structure Key Partnerships Key Resources Key Activities Value Propositions e ition ype Channels Customer Relationships Customer Segments Revenue Streams 3. adj technolo (and resour ne Market Start from a manifes proposition. In simple Learn what techn proposition prototyp gains. Redesign your solution to address c build, measure, learn . “Push” value prop- ess, while stomer job, nts many both as a d context. or which you in, and gain. In r invention, d customer til you find n circle on technological resources Technology 1. solution (invention, innovation, technology) 2. value proposition prototype 3. customer insights build measure learn FIND A PROBLEM jobs, pains, gains for starting from a manifest customer job, pain, or gain. These are two common starting points of many which we outlined previously p. ## →. Consider both as a viable option depending on your preferences and context. Technology Push Start from an invention, innovation or (technological) resource for which you develop a value proposition that addresses a customer job, pain, and gain. In simple terms this is a solution in search of a problem. Explore value proposition prototypes that are based on your invention, innovation or (technological) resource with potentially interested customer segments. Design a dedicated value map for each segment until you find problem-solution fit. (Read more about the build, measure, learn circle on page xxx). 114114 Push vs Pull
  • 107. Cost Structure Key Partnerships Key Resources Key Activities Value Propositions e ition ype Channels Customer Relationships Customer Segments Revenue Streams 3. adj technolo (and resour ne Market Start from a manifes proposition. In simple Learn what techn proposition prototyp gains. Redesign your solution to address c build, measure, learn . “Push” value prop- ess, while stomer job, nts many both as a d context. or which you in, and gain. In r invention, d customer til you find n circle on technological resources Push vs PullMarket 1. problem (jobs, pains, gains) 2. value proposition prototype 3. adjust technology (and resource) needs FIND A SOLUTION build measure learn Market Pull Start from a manifest customer job, pain, or gain for which you design a value proposition. In simple terms this is a problem in search of a solution. Learn what technologies and other resources are required for each value proposition prototype designed to address manifest customer jobs, pains, and gains. Redesign your value map and adjust resources until you find a viable solution to address customer jobs, pains, and gains. (Read more about the build, measure, learn circle on page xxx).
  • 108. I never perfected an invention that I did not think about in terms of the service it might give others... I find out what the world needs, then I proceed to invent … – Thomas Edison ” “
  • 110. The Data Detective The AnthropologistThe Journalist Techniques to gain customer insights
  • 111. The Data Detective The AnthropologistThe Journalist Techniques to gain customer insights
  • 112. The Data Detective The AnthropologistThe Journalist Techniques to gain customer insights
  • 113. The Impersonator The Co-creator The Scientist
  • 114. Google Keyword Planner Learn what’s popular with potential customers by finding the top five search terms related to your idea. How often are they searched for? Google Trends Compare three search terms repre- senting three different trends related to your idea. 3rd Party Research Reports Identify three readily available research reports that can serve you as a starting point to prepare your own customer and value proposition research Government Census Data, Worldbank, IMF & more Identify the (government) data that’s relevant to your idea and at your fingertips via the Web. 128128 Google Trends Google Keyword Planner Misc. data Research reports The data detective
  • 115. Social Media Analytics Existing companies and brands should: Identify the shakers and movers related to their brand on social media. Spot the ten most frequently mentioned positive and negative things said about them on social media? Customer Relationships (CRM) List the top three questions, complaints, and requests that you are getting from your daily interac- tions with customers (e.g. support) Tracking Customers on your Website List the top three ways customer reach your site (e.g. search, referrals, etc.). Find the ten most and least popular destinations on your website. Data Mining Existing company should mine their data to: Identify three patterns that could be useful to their new idea. Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die, Siegel & Davenport (20 Social media analytics Customer Relationships Tracking customers on your website Data mining
  • 116. terview Your Customers in insights relevant to your context. ue Proposition Canvas to prepare interviews and ss of information that will be coming u during the interviews process. Customer Profile Sketch out the jobs, pains and gains you believe characterize the customer you are targeting. Rank jobs, pains, and gains in order of importance. Interview Outline Ask yourself what you want to learn? Derive the interview questions from your customer profile. Ask about the most important jobs, pains, and gains 10 x1 2 Conduct Interview Conduct the inter- view by following the interview ground rules outlined on the next spread. interviews Capture Map out the jobs, pains, and gains you Make sure you also capture business Search for Patterns Can you discover simi- lar jobs, pains, and Wh a y 3 4 Synthesize Make synthesized customer profile for ever customer segment that emerges from all your interviews. Write down import sticky 6 7 Review Interview Assess if you need to review the interview 51 Customer profile 2 Interview outline 3 Conduct interview 4 Capture 5 Review interview 6 Search for patterns The journalist
  • 117. B2C: Family Homestay Stay at one of your potential customers’ home for several days and live with the family. Participate in daily routines. Learn. What drives them? B2B: Work Alongside/Consult Spend time working with or alongside (potential) customers (e.g. in a consulting engagement). B2C: Shadow your customers for Be your (potential) customer’s shadow them for a day. Write down all the jobs, p gains you observe. Time stamp them. S Learn. B2C: Observe Shopping Behavior Be your (potential) customer’s shadow B2C: Family home stay B2B: Work along side B2C: Shadow your customer for a day B2C: Observe shopping behaviour The anthropologist
  • 119. Questions Is it embedded in a great business model? Does it focus on the most important jobs, most extreme pains, and most essential gains? Does it focus on unsat- isfied jobs, unresolved pains, and unrealized gains? Does it concentrate on only a few pain relievers and gain creators but does those extremely well? Does it address func- tional, emotional, and social jobs all together? 1 2 3 4 51 2 3 4 5
  • 120. Does it align with how customers measure success? Does it focus on jobs, pains, or gains that a large number of cus- tomers have, or for which a small number are willing to pay a lot of money? Does it differentiate from competition in a meaningful way? Does it outperform competition substan- tially on at least one dimension? Is it difficult to copy? 6 7 8 9 10
  • 121. Jobs Important Tangible Unsatisfied Lucrative High-value jobs = 9 = 7 create value for corporation design IT strategy Scoring scale: (low) to (high) Does failing the job lead to extreme pains? Does failing the job lead to missing out on essential gains? Can you feel the pain? Can you see the gain? Are there unresolved pains? Are there unrealized gains? Are there many with this job, pain, or gain? Are there few willing to pay a lot? Focus on the highest value jobs and related pains and gains. Based on initial work by consultancy, Innosight. Scoring
  • 122. VP Design com well to MOOCs executive educ It performs sim to the a much point. factors o progression path to expertise applicable tools custom learning through easy navigation reputation/ brand free Compare with competitors strategy canvas
  • 123. t up to this point Use low-fidelity prototypes to make your ideas tangible Always refer back to customer jobs, pains, and gains in your presentation Avoid Cognitive Murder ? ? ? ? ? ? ? +Zoom-Zoom 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. Are you creating value for your business? The Business Model Canvas makes explicit how you are creating and capturing value for your business. Are you creating value for your customer? The Value Proposition Canvas makes explicit how you are creating value for your customers. 169 * Working preview content for private review only, do not distribute — © Copyright Osterwalder, Pigneur, Bernarda, Smith, and Papadakos Present to get feedback
  • 124. Present early Don't judge Evolve ideas × √ √Listen d) , y be Master the art of critique
  • 126. ? ? ? ? ? ? ? +Zoom-Zoom 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. The Business Model Canvas makes explicit how you are creating and capturing value for your business. Are you creating value for your customer? describes how you create value for your customer describes how you create value for your business Back and forth
  • 127. ? ? ? ? ? ? ? +Zoom-Zoom 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. The Business Model Canvas makes explicit how you are creating and capturing value for your business. Are you creating value for your customer? describes how you create value for your customer describes how you create value for your business Back and forth
  • 128. ? ? ? ? ? ? ? +Zoom-Zoom 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. The Business Model Canvas makes explicit how you are creating and capturing value for your business. Are you creating value for your customer? describes how you create value for your customer describes how you create value for your business Back and forth
  • 129. 129 [sources: Mark W. Johnson, photo: Hilti.com] illustration
  • 130. ? ? ? ? ? ? ? +Zoom-Zoom 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. Are you creating value for your business? The Business Model Canvas makes explicit how you are creating and capturing value for your business. Are you creating value for your customer? The Value Proposition Canvas makes explicit how you are creating value for your customers.
  • 131. ? ? ? ? ? ? ? +Zoom-Zoom 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. Are you creating value for your business? The Business Model Canvas makes explicit how you are creating and capturing value for your business. Are you creating value for your customer? The Value Proposition Canvas makes explicit how you are creating value for your customers.
  • 134. Why do businesses fail ? . Test those first!
  • 136. ? ? ? ? ? ? ? +Zoom-Zoom Zoom out to the bigger picture to analyze if you can profitably create, deliver, and capture value around this particular customer value proposition. The Business Model Canvas makes explicit how you are creating and capturing value for your business. Are you creating value for your customer? a business model or a value proposition might look great on paper...
  • 137. ? ? ? ? ? ? ? +Zoom-Zoom Zoom out to the bigger picture to analyze if you can profitably create, deliver, and capture value around this particular customer value proposition. The Business Model Canvas makes explicit how you are creating and capturing value for your business. Are you creating value for your customer? but really it’s a set of hypotheses HYPOTHESIS HYPOTHESIS HYPOTHESIS HYPOTHESIS HYPOTHESIS HYPOTHESIS HYPOTHESIS HYPOTHESIS HYPOTHESIS HYPOTHESIS HYPOTHESIS HYPOTHESIS
  • 138.
  • 140. there are no facts in the building... so get the hell out and talk to customers – Steve Blank, entrepreneur & author “ ”
  • 141. 3 3.1 What to Test 3.2. Testing step-by-step 3.3. Bringing it all together
  • 143. Provide evidence showing “what” customers care about (the circle) before focusing on “how” to help them (the square) Testing the circle
  • 145. Provide evidence showing that your customers care about how your products and services kill pains and create gains Testing the square
  • 146. 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 RIGHT TOOL, RIGHT PLACE RIGHT TIME ONLINE FLEET MANAGEMENT SYSTEM SOUND COST MANAGEMENT ACCESS TO MODERN FLEET
  • 147. Business Model Canvas Cost Structure Key Partnerships Key Resources Channels Key Activities Value Propositions Customer Relationships Customer Segments Revenue Streams 15 Provide evidence showing that the way you intend to create, deliver, and capture value is likely to work Testing the rectangle
  • 148. Business Model Canvas Cost Structure Key Partnerships Key Resources Channels Key Activities Value Propositions Customer Relationships Customer Segments Revenue Streams 15 PARTNERS CONSTRUCTION COMPANY CEO LARGE LONG-TERM CONTRACTS ONLINE FLEET MANAGEMENT SYSTEM SERVICE FLEET INVENTORY
  • 150. Test Card + -Extract Hypotheses Prioritize Hypotheses Design Test TESTINGVALUEPROPOSTIO
  • 151. Test Card + -Extract Hypotheses Prioritize Hypotheses Design Test TESTINGVALUEPROPOSTIO
  • 152. Test Card + -Extract Hypotheses Prioritize Hypotheses Design Test TESTINGVALUEPROPOSTIO
  • 153. Learning Card + ! -Prioritize Tests Run Tests Capture Learnings Make Progress
  • 154. Learning Card + ! -Prioritize Tests Run Tests Capture Learnings Make Progress
  • 155. Learning Card + ! -Prioritize Tests Run Tests Capture Learnings Make Progress
  • 156. when testing hypotheses with customers …
  • 157. What people say, and what people do are two different things keep in mind …
  • 158. What people say, and what people do are two different things keep in mind …
  • 159. What people say, and what people do are two different things keep in mind …
  • 160. …interest Prove th genuine Show th to get them to perform service (e.g. em makers …priorities a Show which jobs, p customer and p they value least. Provide evidence th features of your val what really matters to them …willingness to pay Provide evidence that potenti interested enough in the features of osition to pay. Deliver facts tha their money where their mouth is. interest and relevance priorities and preferences willingness to pay Produce evidence with a call-to-action
  • 161. strategyzer.com Gain Creators Pain Relievers Pains Gains Products & Services Customer Job(s) The Value Proposition Canvas Value Proposition Customer Segment strategyzer.comThe makers of Business Model Generation and Strategyzer Copyright Business Model Foundry AG What needs to be true for a feature to work and create value? -> Hypotheses SAVE 20% ON SALES PROCESS
  • 162. customer segment X wants to save 20% on sales process
  • 163. customer segment X wants to save 20% on sales process talk to 40 potential customers and give them a trackable link with more information
  • 164. customer segment X wants to save 20% on sales process how many of the interviewees clicked on the follow-up link talk to 40 potential customers and give them a trackable link with more information
  • 165. customer segment X wants to save 20% on sales process how many of the interviewees clicked on the follow-up link 50% clicked the link talk to 40 potential customers and give them a trackable link with more information
  • 167. A mix of experiments Scientist DIRECT CONTACT with customers Learn why and how to improve INDIRECT OBSERVATION of customers Learn how many and how much Lab studies Learning prototype/MVP → p. 222 Life-size prototypes → p. 226 Wizard of Oz → p. 223 Anthropologist → p. 114 For field studies Sale actions Mock sales → p. 236 Pre sales → p. 237 Crowdfunding → p. 237 Tracking actions Ad and link tracking → p. 220 Landing page → p. 228 Split testing → p. 230 Participatory design and evaluation Illustrations, storyboards, and scenarios → p. 224 Speedboat → p. 233 Product box → p. 234 Buy a feature → p. 235 Journalist → p. 110 For interviews Detective → p. 108 For data analysis WHATCUSTOMERSDO Observetheirbehaviors WHATCUSTOMERSSAY Observetheirattitudes
  • 168. A mix of experiments Scientist DIRECT CONTACT with customers Learn why and how to improve INDIRECT OBSERVATION of customers Learn how many and how much Lab studies Learning prototype/MVP → p. 222 Life-size prototypes → p. 226 Wizard of Oz → p. 223 Anthropologist → p. 114 For field studies Sale actions Mock sales → p. 236 Pre sales → p. 237 Crowdfunding → p. 237 Tracking actions Ad and link tracking → p. 220 Landing page → p. 228 Split testing → p. 230 Participatory design and evaluation Illustrations, storyboards, and scenarios → p. 224 Speedboat → p. 233 Product box → p. 234 Buy a feature → p. 235 Journalist → p. 110 For interviews Detective → p. 108 For data analysis WHATCUSTOMERSDO Observetheirbehaviors WHATCUSTOMERSSAY Observetheirattitudes
  • 169. A mix of experiments Scientist DIRECT CONTACT with customers Learn why and how to improve INDIRECT OBSERVATION of customers Learn how many and how much Lab studies Learning prototype/MVP → p. 222 Life-size prototypes → p. 226 Wizard of Oz → p. 223 Anthropologist → p. 114 For field studies Sale actions Mock sales → p. 236 Pre sales → p. 237 Crowdfunding → p. 237 Tracking actions Ad and link tracking → p. 220 Landing page → p. 228 Split testing → p. 230 Participatory design and evaluation Illustrations, storyboards, and scenarios → p. 224 Speedboat → p. 233 Product box → p. 234 Buy a feature → p. 235 Journalist → p. 110 For interviews Detective → p. 108 For data analysis WHATCUSTOMERSDO Observetheirbehaviors WHATCUSTOMERSSAY Observetheirattitudes
  • 170. A mix of experiments Scientist DIRECT CONTACT with customers Learn why and how to improve INDIRECT OBSERVATION of customers Learn how many and how much Lab studies Learning prototype/MVP → p. 222 Life-size prototypes → p. 226 Wizard of Oz → p. 223 Anthropologist → p. 114 For field studies Sale actions Mock sales → p. 236 Pre sales → p. 237 Crowdfunding → p. 237 Tracking actions Ad and link tracking → p. 220 Landing page → p. 228 Split testing → p. 230 Participatory design and evaluation Illustrations, storyboards, and scenarios → p. 224 Speedboat → p. 233 Product box → p. 234 Buy a feature → p. 235 Journalist → p. 110 For interviews Detective → p. 108 For data analysis WHATCUSTOMERSDO Observetheirbehaviors WHATCUSTOMERSSAY Observetheirattitudes
  • 171. A mix of experiments Scientist DIRECT CONTACT with customers Learn why and how to improve INDIRECT OBSERVATION of customers Learn how many and how much Lab studies Learning prototype/MVP → p. 222 Life-size prototypes → p. 226 Wizard of Oz → p. 223 Anthropologist → p. 114 For field studies Sale actions Mock sales → p. 236 Pre sales → p. 237 Crowdfunding → p. 237 Tracking actions Ad and link tracking → p. 220 Landing page → p. 228 Split testing → p. 230 Participatory design and evaluation Illustrations, storyboards, and scenarios → p. 224 Speedboat → p. 233 Product box → p. 234 Buy a feature → p. 235 Journalist → p. 110 For interviews Detective → p. 108 For data analysis WHATCUSTOMERSDO Observetheirbehaviors WHATCUSTOMERSSAY Observetheirattitudes
  • 172. 3.4 Bringing it all Together ASSESSMENT OBSERVATION PROTOTYPING TO TESTING FAILED FROM TESTING STARTING POINTS BUS INES S MOD EL 7QU ESTIO NS SU CC ES S HYPO THES IS 265264 TEST 264 3.3 Bringing it all Together
  • 176. The testing process 2 Extract your Hypotheses 3 Design Your Tests 2 Extract your Hypotheses Test Card 4 Enter the Learning Loop Learn 5A UNCERTAIN test more Measure Build 5 Capture Learnings and Next Actions 5C INVALIDATED iterate or pivot 5A UNCERTAIN test 1 (6) (re)Shape your ideas Learning Card 5A UNCERTAIN test more プロセスを テストする
  • 177. 3 Design Your Tests 4 Enter the Learning Loop 5 Capture Learnings and Next Actions 6 Measure Progress Learn Customer Discovery Customer Validation Customer Creation Company Building 5C INVALIDATED iterate or pivot 5A UNCERTAIN test more 5B VALIDATED progress towards next element Measure Build 2 Extract your Hypotheses 1 (6) (re)Shape your ideas Test CardLearning Card The testing process プロセスを テストする
  • 178. Idea Designed Customer Assumptions Validated Problem Solution Fit Value Proposition Validated Product Market Fit Interest Validated Business Model and Value Proposition Prototyped Assesed with Competitors Preference Validated Willingness to pay Validated Business Model Validated Business Model Fit Business Model Monitoring Customer Discovery Customer Validation Customer Creation Company Building 269 Measure your progress
  • 179. Idea Designed Customer Assumptions Validated Problem Solution Fit Value Proposition Validated Product Market Fit Interest Validated Business Model and Value Proposition Prototyped Assesed with Competitors Preference Validated Willingness to pay Validated Business Model Validated Business Model Fit Business Model Monitoring Customer Discovery Customer Validation Customer Creation Company Building 2691 2 3 4 5 6 7 8 9 Steve Blank Measure your progress
  • 180. Test Card We believe that Test Name Assigned to Deadline Duration And measure To verify that, we will We are right if The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Test Cost: Data Reliability: Critical: Time Required: Test Card We believe that Test Name Assigned to Deadline Duration And measure To verify that, we will We are right if The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Test Cost: Data Reliability: Critical: Time Required: Test Card We believe that Test Name Assigned to Deadline Duration And measure To verify that, we will We are right if The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Test Cost: Data Reliability: Critical: Time Required: Test Card We believe that Test Name Assigned to Deadline Duration And measure To verify that, we will We are right if The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Test Cost: Data Reliability: Critical: Time Required: Test Card We believe that Test Name Assigned to Deadline Duration And measure To verify that, we will We are right if The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Test Cost: Data Reliability: Critical: Time Required: Test Card We believe that Test Name Assigned to Deadline Duration And measure To verify that, we will We are right if The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Test Cost: Data Reliability: Critical: Time Required: Test Card We believe that Test Name Assigned to Deadline Duration And measure To verify that, we will We are right if The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Test Cost: Data Reliability: Critical: Time Required: Test Card We believe that Test Name Assigned to Deadline Duration And measure To verify that, we will We are right if The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Test Cost: Data Reliability: Critical: Time Required: Test Card We believe that Test Name Assigned to Deadline Duration And measure To verify that, we will We are right if The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Test Cost: Data Reliability: Critical: Time Required: Test Card We believe that Test Name Assigned to Deadline Duration And measure To verify that, we will We are right if The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Test Cost: Data Reliability: Critical: Time Required: Test Card We believe that Test Name Assigned to Deadline Duration And measure To verify that, we will We are right if The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Test Cost: Data Reliability: Critical: Time Required: Test Card We believe that Test Name Assigned to Deadline Duration And measure To verify that, we will We are right if The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Test Cost: Data Reliability: Critical: Time Required: invalidated backlog build measure learn done learn more validated Learning Card We believed that step 1: hypothesis Insight Name Person Responsible Date of Learning From that we learned that step 3: learnings and insights We observed step 2: observation Therefore we will step 4: decisions and actions The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Data Reliability: Action Required: Learning Card We believed that step 1: hypothesis Insight Name Person Responsible Date of Learning From that we learned that step 3: learnings and insights We observed step 2: observation Therefore we will step 4: decisions and actions The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Data Reliability: Action Required: Learning Card We believed that step 1: hypothesis Insight Name Person Responsible Date of Learning From that we learned that step 3: learnings and insights We observed step 2: observation Therefore we will step 4: decisions and actions The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Data Reliability: Action Required: Learning Card We believed that step 1: hypothesis Insight Name Person Responsible Date of Learning From that we learned that step 3: learnings and insights We observed step 2: observation Therefore we will step 4: decisions and actions The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Data Reliability: Action Required: Learning Card We believed that step 1: hypothesis Insight Name Person Responsible Date of Learning From that we learned that step 3: learnings and insights We observed step 2: observation Therefore we will step 4: decisions and actions The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Data Reliability: Action Required: Learning Card We believed that step 1: hypothesis Insight Name Person Responsible Date of Learning From that we learned that step 3: learnings and insights We observed step 2: observation Therefore we will step 4: decisions and actions The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Data Reliability: Action Required: Learning Card We believed that step 1: hypothesis Insight Name Person Responsible Date of Learning From that we learned that step 3: learnings and insights We observed step 2: observation Therefore we will step 4: decisions and actions The makers of Business Model Generation and StrategyzerCopyright Business Model Foundry AG Data Reliability: Action Required: back to the drawing board: iterate or pivot your design advance to next step: move on in your quest to turn your idea into reality 3 Tests Test CardLearning Card Learning Card Learning Card Learning Card Learning Card Learning Card Learning Card Test Card Test Card Test Card Test Card Test Card Test Card Test Card Test Card Test Card Test Card Test Card 4 Insights & Actions 5 Measure Progress 2 Hypotheses 1 (5) (re)Shape your ideas Progress board (Kanban)
  • 181. The Progress Board Business Hypotheses ! ! ! ! ! Test: Backlog Test: Build Invalidated Unclear Results Validated Test: Measure Test: Learn Progress copyright: Strategyzer AG The makers of Business Model Generation and Strategyzer strategyzer.com 21 43 List the key assumptions that need to be true for your idea to work. Prioritize the most critical ones that could kill your business. The tests and experiments that you intend to perform The tests and experiments that are being planned, designed, or built. The tests and experiments that are currently running and collecting data. The tests and experiments that were executed, collected data, and are ready to be analyzed. Your validation criteria step-by-step. Back to the drawing board Iterate or Pivot your design Design another test, and learn more before making a decision Advance to the next step, move on in your quest to make ideas reality ?
  • 182. evolve
  • 183. “ Business models expire like yogurt in your fridge “
  • 184. Prediction is very difficult, especially if it's about the future. – Niels Bohr, physicist 1952 “ ”
  • 185. Reinvent Yourself Constantly What elements in your environment are changing? What do market, tech- nology, regulatory, macroeconomic, or competitive changes mean for your value propositions and business models? Do those changes offer an opportunity to explore new possibil- ities or could they be a threat that might disrupt you? Is your business model expiring you need to add new resource activities? Do the existing ones opportunity to expand your bu model? Could you bolster your business model or should you completely new ones? Is your b model portfolio fit for the futur Continuously ask yourself… What elements in your environment are changing? What do market, tech- nology, regulatory, macroeconomic, or competitive changes mean for your value propositions and business Is your business model expiring? Do you need to add new resources or activities? Do the existing ones offer an opportunity to expand your business model? Could you bolster your existing Today’s enterprise must be agile and develop what Columbia Business School Professor Rita McGrath calls transient advantages in her book The End of Competitive Advantage. She to remember when you build transient : e exploration of new value tions and business models seriously as the execution of ones. n continuously experimenting w value propositions and busi- odels rather than making big certain bets. nt yourself while you are sful; don’t wait for a crisis to ou to. w ideas and opportunities as s to energize and mobilize ees and customers rather risky endeavor. stomer experiments as a yard- judge new ideas and oppor- rather than the opinions of Continuously ask yourself… 267 STRATEGYZER.COM/VPD/EVOLVE
  • 186. Reinvent Yourself Constantly What elements in your environment are changing? What do market, tech- nology, regulatory, macroeconomic, or competitive changes mean for your value propositions and business models? Do those changes offer an opportunity to explore new possibil- ities or could they be a threat that might disrupt you? Is your business model expiring you need to add new resource activities? Do the existing ones opportunity to expand your bu model? Could you bolster your business model or should you completely new ones? Is your b model portfolio fit for the futur Continuously ask yourself… What elements in your environment are changing? What do market, tech- nology, regulatory, macroeconomic, or competitive changes mean for your value propositions and business Is your business model expiring? Do you need to add new resources or activities? Do the existing ones offer an opportunity to expand your business model? Could you bolster your existing Today’s enterprise must be agile and develop what Columbia Business School Professor Rita McGrath calls transient advantages in her book The End of Competitive Advantage. She to remember when you build transient : e exploration of new value tions and business models seriously as the execution of ones. n continuously experimenting w value propositions and busi- odels rather than making big certain bets. nt yourself while you are sful; don’t wait for a crisis to ou to. w ideas and opportunities as s to energize and mobilize ees and customers rather risky endeavor. stomer experiments as a yard- judge new ideas and oppor- rather than the opinions of Continuously ask yourself… 267 STRATEGYZER.COM/VPD/EVOLVE
  • 187. Reinvent Yourself Constantly What elements in your environment are changing? What do market, tech- nology, regulatory, macroeconomic, or competitive changes mean for your value propositions and business models? Do those changes offer an opportunity to explore new possibil- ities or could they be a threat that might disrupt you? Is your business model expiring you need to add new resource activities? Do the existing ones opportunity to expand your bu model? Could you bolster your business model or should you completely new ones? Is your b model portfolio fit for the futur Continuously ask yourself… What elements in your environment are changing? What do market, tech- nology, regulatory, macroeconomic, or competitive changes mean for your value propositions and business Is your business model expiring? Do you need to add new resources or activities? Do the existing ones offer an opportunity to expand your business model? Could you bolster your existing Today’s enterprise must be agile and develop what Columbia Business School Professor Rita McGrath calls transient advantages in her book The End of Competitive Advantage. She to remember when you build transient : e exploration of new value tions and business models seriously as the execution of ones. n continuously experimenting w value propositions and busi- odels rather than making big certain bets. nt yourself while you are sful; don’t wait for a crisis to ou to. w ideas and opportunities as s to energize and mobilize ees and customers rather risky endeavor. stomer experiments as a yard- judge new ideas and oppor- rather than the opinions of Continuously ask yourself… 267 STRATEGYZER.COM/VPD/EVOLVE
  • 188. Reinvent Yourself Constantly What elements in your environment are changing? What do market, tech- nology, regulatory, macroeconomic, or competitive changes mean for your value propositions and business models? Do those changes offer an opportunity to explore new possibil- ities or could they be a threat that might disrupt you? Is your business model expiring you need to add new resource activities? Do the existing ones opportunity to expand your bu model? Could you bolster your business model or should you completely new ones? Is your b model portfolio fit for the futur Continuously ask yourself… What elements in your environment are changing? What do market, tech- nology, regulatory, macroeconomic, or competitive changes mean for your value propositions and business Is your business model expiring? Do you need to add new resources or activities? Do the existing ones offer an opportunity to expand your business model? Could you bolster your existing Today’s enterprise must be agile and develop what Columbia Business School Professor Rita McGrath calls transient advantages in her book The End of Competitive Advantage. She to remember when you build transient : e exploration of new value tions and business models seriously as the execution of ones. n continuously experimenting w value propositions and busi- odels rather than making big certain bets. nt yourself while you are sful; don’t wait for a crisis to ou to. w ideas and opportunities as s to energize and mobilize ees and customers rather risky endeavor. stomer experiments as a yard- judge new ideas and oppor- rather than the opinions of Continuously ask yourself… 267 STRATEGYZER.COM/VPD/EVOLVE
  • 190. 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
  • 191. A great value proposition
 lives in a sustainable and profitable business model 1
  • 192. A great value proposition starts with a deep understanding of customers 2
  • 193. Creating great value propositions and profitable business models requires a design mindset … 3