Value Proposition Design

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

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

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

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

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 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 propositions 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 babysitter 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 babysitter 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 babysitter 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 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 interview 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 customers 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

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.

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

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 …

…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

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, technology, regulatory, macroeconomic, or competitive changes mean for your value propositions and business models? Do those changes offer an opportunity to explore new possibilities 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, technology, 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