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Value Proposition Canvas

Value Proposition Canvas training presentation.

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Value Proposition Canvas

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

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

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

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

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

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

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

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

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

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

  11. WHAT IS UNIQUE ABOUT DESIGN THINKING? Iterative Repeat each phase backwards and forwards and arrive at each decision or desired result, after rounds of learning and discovery. Human-centered Discover people’s real needs and wants. Be able to gain deep insights of their motivations and share the feelings of others. Highly-creative Look at situations differently. Push past obvious solutions and existing alternatives to get to breakthrough ideas. Hands-on Ideas are made tangible through prototyping. Build rough or lo-fi prototypes to learn how to make ideas better. z Collaborative Work as a team to look at the problem holistically and implement solutions to improve people's experience. Show, don’t tell Enable the user to experience the story through action, words, thoughts, senses and feelings rather than pure description. 11 © Operational Excellence Consulting

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

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

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

  15. THE VALUE PROPOSITION CANVAS ALLOWS US TO DEEP DIVE INTO THE VALUE PROPOSITION & CUSTOMER SEGMENTS OF THE BUSINESS MODEL The Business Model Canvas makes explicit how you are creating and capturing value for your business. Are you creating value for your business? ? ? ? ? ? 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. ? ? + Zoom - Zoom Are you creating value for your customer? The Value Proposition Canvas makes explicit how you are creating value for your customers. 15 Source: Adapted from Strategyzer, 2014 © Operational Excellence Consulting

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

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

  18. VALUE PROPOSITION CANVAS Value Proposition: MODEL S Customer Segment: UPPER MIDDLE CLASS MALE $100K+ INCOME BRAND FIND MY WAY (GPS) DESIGN PERFORMANCE 0- 100 km/h 4.4s – 6.2s FOCUS ON DESIGN & STYLE ACCEPTABLE CHARGING TIME RANGE 250-350 KM STATE-OF-THE-ART ELECTRONICS HIGH-TECH FEEL WITH 17” TOUCH SCREEN RANGE 350-450 km MODEL S 60-85 kW-h COMMUTE TO WORK HIGH-END AFTER SALES PERFORMANCE HIGH-END BATTERY PERSONAL MONBILITY 5+2 SEATS 1,795 LITER STORAGE OCCASIONAL LONG DISTANCE TRIP 8 YEAR BATTERY WARRANTY SAFETY RATINGS SEATING 4-5 PEOPLE FIT DIFFERENTIATE FROM OTHERS CONVEY IMAGE OF SUCCESS CAR WITH BAD DRIVING BEHAVIOR HIGHEST SAFETY BY NHTSA ACCIDENT OPTIONS IN SYNC W/ PERSONAL VALUES ABOVE AVERAGE MAINTENANCE BUYING BEFORE PRICE DROP BATTERY DRAIN IN HOT WEATHER BATTERY 45-90 km/h SUPER- CHARGING STATIONS FREQUENT CHARGING FEAR OF DEAD BATTERY LACK OF CHARGING STATIONS ENABLING LONG DISTANCE TRAVEL FREE ½ CHARGE IN 20 MINS LACK OF NEARBY SERVICING LACK OF SPACE LAUGHED AT CUSTOMER PROFILE CUSTOMER PROFILE VALUE MAP VALUE MAP 18 Source: Strategyzer © Operational Excellence Consulting

  19. THE CUSTOMER PROFILE DESCRIBES THE SPECIFIC CUSTOMER SEGMENT IN YOUR BUSINESS MODEL IN TERMS OF JOBS, PAINS & GAINS Gains describe the outcomes customers want to achieve or the concrete benefits they are seeking. Jobs describe what customers are trying to get done in their work and in their lives, as expressed in their own words. Pains describe bad outcomes, risks and obstacles related to customer jobs. 19 Source: Adapted from Strategyzer, 2014 © Operational Excellence Consulting

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

  21. STEP 5 – RANKING (What is the customer priority?) + Essential FAIR PRICE Gains EASY PAYMENT Gain relevance Rank gains according to how essential they are in the customers’ eyes. + CALL TAXI PROFESSIONAL Important ARRIVE ON TIME Jobs Job importance Rank jobs according to their importance to customers. Nice to Have - FIND TAXI + GIVE DIRECTIONS Extreme WAIT A LONG TIME Insignificant - Pain severity Rank pains according to how extreme they are in the customers’ eyes. PAY COMPETE WITH OTHER CUSTOMERS UNSAFE DRIVER Pains OVERCHARGED BY TAXI Moderate - 21 © Operational Excellence Consulting

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

  23. THE VALUE MAP DESCRIBES THE FEATURES OF A SPECIFIC VALUE PROPOSITION IN TERMS OF PRODUCTS, SERVICES, PAIN RELIEVERS & GAIN CREATORS Gain Creators describe how your products and services create customer gains This is a list of all the Products and Services a value proposition is built around Pain Relievers describe how your products and services alleviate customer pains 23 Source: Adapted from Strategyzer, 2014 © Operational Excellence Consulting

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

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

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

  27. TAXI SMARTPHONE APPLICATION ARRIVE ON TIME ✓ ✓ SAVE TIME Gains FAIR PRICE ✗ PROFESSIONAL DRIVERS ✓ ✓ PROFESSIONAL RATING SYSTEM CALL TAXI ✓ EASY PAYMENT Jobs FIND TAXI ✗ ✗ VISUAL MAP TAXI SMARTPHONE APP GIVE WAIT A LONG TIME ✓ INSTANT BOOKING DIRECTIONS ✓ OVERCHARGED BY TAXI ✓ ASSIGNED DRIVER PAY ✓ COMPETE WITH OTHER CUSTOMERS COST SYSTEM ✓ ✓ Pains ✗ NO CASH UNSAFE DRIVER ✗ Check marks signify that products and services relieve pains or create gains and directly address one of the customer’s jobs, pains or gains. Cross marks show which jobs, pains and gains the value proposition does not address. ✗ ✓ 27 © Operational Excellence Consulting

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

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

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

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