How to create products and services customers want. Get started with... Value Proposition Design strategyzer.com/vpd written by Alex Osterwalder Yves Pigneur Greg Bernarda ‘Alan Smith Designed by Trish Papadakos WILEY1. Canvas 2. Design 1.1 customer Profile 10 2.1 Prototyping Possibilities 74 12 Value Map 26 2.2 Starting Points 86 aa Fitao 2.3 Understanding Customers 104 24 Making Choices 120 2.5 Finding the Right Business Model 142 .6 Designing in Established Organizations 1583. Test 4. Evolve 3:1 What to Test 18 3.2 Testing Step-by-Step 195, 3.3 Experiment Library 214 3.8 Bringing It All Together 238 create Alignment 260 Measure & Monitor 262 Improve Relentlessly 264 Reinvent Yourself Constantly 256 ‘Taobao: Reinventing (E-)Commerce 268 Glossary 276 core Team 279 Prereaders 279 Bios 280 Index 282Intro < You'll love Value Proposition Design if you’ve been... 0942164 Overwhelmed by the task of true value creation Sometimes you feo ke... + Tere shouldbe beter tools valableto help you create valve for your customers and your business + You might be pursuing the wrong tasks and you fee insecure ‘about the nat steps + test to learn what customers really want + Theinformation andl data you get rom {potenti custorersis overwhelming and you don tknow now to best organize + Its challonging to go beyond products ane features toward ‘deep understanding of customer value creation. + You lack the bg picture oF how al the puzzle pieces ft together Frustrated by unproductive meetings and misaligned teams ‘You have experienced teams that. + Locked a shared language end a shored understanding of + Got Boge! down by unpreductive meetings with tons unstructured “blah elah Bich” conversations jorked without clear processes and too + Were focused mainly on teemnologies, procuct, and feetures rather than customers. + Conducted meetings that drained energy and ended without a + vere misaligned: Sane Involved in bold shiny projects that blew up ‘You have seen projects that. + Were big bold bets that filed anc wasted alot money, + Putenergy inte palsing anc refing business plan unt it perpetuated teillusion that it could actualy work. + Spenta lot of tie building detalled spreadsheets that were coreletly made up ond tured out tobe wrong, * Spent more time developing and debating ideas rather thon testng them with customers cn stakenolders, + Lotepinions dominate ove facts rom the fl + ached cioar processes and toa ta minimize risk + Used processes suited for rnning @ busines rather than anes for developing new ideas a) von Disappointed by the failure of a good idea. © cer From Faure o Success: posterValue Proposition Design will help you successfully... irre = Leverage the experience and skills ‘of your team quip your team with a shared onguage to overcome “blah bah Understand the patterns bch? conduct more strateiecomesators, un create ete of value creation cies and get algned he wl lead to mre enable meetings that oe fl of energy and produce actontle outcomes beyond Corgan information about hat cisomers wart inasirole focus on technlopy prods and echres towerdereatng way tht makes the pattems ot vale crecton easy vise. As value or your customers an your sines. Crest, ou ll mare efectively design value propestions and proftabletusness models that ects target your customers’ Get your team aligned. ‘most pressing and important jobs, pains, and gains. Gain clarity.Avoid wasting time with ideas that won't work Aelentlesly test the most important yptheses underung our businesses in oer to reduce the risk of fale. This wil allow you to pursue big bold ideas without having to break the bank Your processes to shape new ideas il be fi or the task and complement your existing processes that hele you run our business Minimize the risk of a flop. Design, test, and deliver what customers want. © cor'From Foire to Success” posterOur Value Proposition to You The links you see on the side of every page point to resources in the online Wino = companion. eee Watch for the vPD online Companion @Strategyzer logo [HEY HS and follow the link to i | os online exercises, Do Wtools/templates, = | 4 “ ree 1] posters, and more. Web App + Online Courses Go further with pro tools and coursesApply ow" =. Shered language ta communicate and-allaborate Share with and Helps create products and services peopte want. Integrates with other business Minimizes sk methods of ig failure Integrates withthe Helps Succeed! Proven ond elective ute of business tools tocustomers ‘Access to advanced ‘material and knowledge ‘multimedia content s Practical, visual, + Reba i Se learn from peers ‘Enables practice + skills Bro, clear, (sath assessment ‘and applicable Instructions nmewm ome | earn‘The heart of Value Proposition Design is about applying Tools to the messy Search for value propositions that customers want and then keeping them aligned with what customers want in Post search. Value Proposition Design shows you how to use the Value Proposition Canvas to Design and Test great value propo- sitions in an iterative search for what customers want. Value propesition design is a never-ending process in which you eed to Evolve your value proposition(s) constantly to keep it relevant to customers, Tro. Progress Manage the messy and nonlinear process of value proposition design and reduce risk by systematically applying adequate tools and pracesses. Evolve Post search eng Sual cae Dann Newman cetAn Integrated Suite of Tools The Value Proposition Canvas is the tool at the center of this book. It maces value propositions visible and tangible ‘and thus easier to discuss and manage. It perfectly integrates with the Business Model Canvas and the Environment Map, two tools that are discussed in detail in Business Model Generation, the sister book to this one. Together they shape the foundation of a suite of business tools. The Value Proposition Canvas zooms into the details of two of the building blocks of the Business Model Canvas. Zoom out Zoom inThe Business Model Canvas helps you : create value for your business. The Value Proposition Canvas helps you create value for your customer.Refresher: The Business Model Canvas 2 embed your value proposition ina ‘customer Segments seoment. tis how an organization = Viable business model to capture value are the groups of people andjor orga captures value with aprice that for your organization. To do 50, you izations a company ororgenization customers are wing to pau, can use the Business Model Canvas, a ims toreach and create vale for tool to describe how your organization witradscicates value propostion Key Resources creates, delivers, and captures value. are the mast important assets ‘The Business Model Canvas and Value Value Propositions required 0 afer cn debvershe previ Proposition Canvas perfectly integrate, arebased ona bundle of products _eusy describe elements with the latter being lke a plug-in to ard services tna create va fr the former that allows you to zoom customer segment Key Activities into the details of how you are creating ‘are the most important ctv an value for customers. chanel raenisation nonde to porform wall, sescrive how a value propostion is The refresher of the Business Model communicstedanddsiverestoe Key Partnerships Canvas.on this spread is sufficient to cstomersegment through cammu~ shows the network o suppers work through this book andi create cation, distribution, ard sles ‘nd partners that bring in external {great value propositions. Go to the channels. resources and actwties ‘online resources if you are interested In more or get Business Mocet ‘Customer Relationships cost structure Generation, the sister publication to outline what pect relations describes cl costs incurred to oper this book estoblenes andmaitsined with ata business model teach customer segment, and ey explain now customers re acquired Profit ‘ona eetained ‘calculated by subteacting the total of al costs a the cost structure Revenue Streams from he total ofa revenue streams. result om a velue proposition successfully offered to acustomerThe Business Model Canvas — — - wee oy Pars | eyrcries | sereronentans | cstonernesionnes | catunerseomens stra © cownioad detaied Business Model Canvas Explanation and the Business Model Canvas patnro. Value Proposition Design works for. ‘Are you creating something fram scratch on your own or ‘are you part of an existing organization? Some things will be easier and some harder depending on your strategic, playground, | start-up entrepreneur deals with different constraints than @ project leader for anew venture within en existing organization The tools presented inthis bock apply to bath contexts. Depending on your starting pont you wil, ‘execute them in a ciflerent way to leverage ailerent strengths and overcame diferent obstacios Main challenges + Produce prt that your ideas con vworcon a tinted budget + Manage inoivement of avestors (you seate your ideas. + Riskrunring out of money before New Ventures Iniuals or teams setting out to create a great value proposition ‘nal business model rom seratch ‘Main opportunities + Use speedy decision mating and cniity to your advantage, + Leverage the motuation a owner: ship as adrverfor success.Established OrganizationsUse Value Proposition Design to... Invent and improve value propositions. The tools we wil study work for managing and renewing value propositions. xx (and business models) just as much as for creating new ‘ones. Put the value proposition and business model to work ‘to create a shared language of value creation in your orga- nization. Use them to continuously invent and improve value propositions that meet customer profiles, which is an under ‘taking that never ends. intro gia “SH e Invent rent ne ve proves tat pcre want wn buss model tat worAssess Your Value Proposition Design Skills Complete our online test and assess whether you have the attitude and skills required to systematically be ‘4 successful at value proposition design, Take the test before and after working through Value Proposition Design to > measure your progress. © reke your skits test oniine Entrepreneurial Knowledge ‘You en tung aut new things. You dont se the sk of fling as 2 threat but an opportunity to learn and progres, Yousasiy navigate between the strategic ane the cacteat Tool Skills You systematically use the Value Proposition CCarwas, Business Model Canvas, and ether tools ‘ane! processesin your search for creat value prep: ostione cna business modese e — & ; | | Design Thinking Customer Experimentation Skills Empathy Skills ‘You reletlesiy take a customer perspective andSell Your Colleagues on Value Proposition Design ‘wore that we fous toe much on products ard fectures instead of creating valu for custornrs really dlsoppointed by how much we tolled ‘about value propostions ‘and businass models at ‘ur last meeting without really geting tangle results concemed tha ou product evelopment process doesnt se amore customer focused rmethodciogy, cstonched at how poorly igre procuct devolopment, soles, end marketing ore when comes to develorina new value propositions own avey byhow unclear that ast prosentationon that new vai propos sion ana business model we surprised that we invest s0 muchinreseare an sevelaoment (RAO) but at ‘tives ndoveloping the right value propositions ond business modal. concemed that we dent have ‘2methodology to tre:k ur progress onthe devebpment cofthatrew value prepesion cond bine model surprised at howotten we make stuff nobody wants, despite our goed ideas ard ‘9004 intentions amazed by how many resources we wested when ‘that orect ean sha ast business plan turned outto bea fp because we dant not sure if everybedyin ‘ourteam has hare Lnderstanding of whet @ good ‘value propostion actualy iSo, what if we tried out the Value Proposition Canvas (and Business Model Canvas) in our next project? © cera side deck with 10 arguments to use with the Value Proposition and Business Model CanvasesThe Value Proposition Canvas has two sides. With the Customer Profile ° 1° you clarify your customer understanding. With the Value Map °:76 you describe how you intend to create value for that customer. You achieve Fit °° between the two when one meets the other.‘CANVAS Create Value The set of value proposition benefits that you design to attract customers, DEF-NLTION VALUE PROPOSITION Describes the benefits customers can ‘expect from your products and services.canvas 1.0. Ta) Observe Customers ‘The set of customer characteristics that you assume, observe, and verify in the market.ain Creators eccib= hove our products and services ‘create customer gains. Value Map ‘The Value (Proposition) Map describes the features of a specific value proposition = In your business model in a more structured ‘and detailed way, it breaks your value ‘proposition down into products and services, ppain relievers, and gain creators. CANVAS 11.0 This sa st of al the value propositions bl rounds Pain Relievers describe how our praducts and services‘ins describe the outcomes ‘customers want to achive or theconcrete benefits they are seeking Customer Profile ‘The Customer (Segment) Profile describes «a specific customer segment In your business model in a more structured ‘and detailed way. t breaks the customer ‘down into its jobs, pains, and gains. canvas) 1.0 ‘customer Jobs descrbe what customers are tying to get done in theie wore ane in thai ves, as expensed in their Onn wore Pains descrive bad outcomes risks, and abstoces related to customer jobs, You achiove Fit when your value map meets your ‘customer profle—when your products and services produce pin relievers and gain creators that match ‘one o more of thejobs, pains and gins that are Important to your customer.Customer Profilecanvas) 1.1 Customer Jobs Jobs describe the things your customers are ‘ruing to get done In thalr work or in thei fe _Acustemar jb could be the tasks thoy ore ting ‘to parform and complete, te problems they ‘re trang to solve, o the needs they are tung to sorsty. Make sure you take the customer's perspective when investigating jobs. what you think of as important from your perspective might rnotbe ajob customers are actually trying to get sone: Distinguish besween three main types of ‘eustomer jobs to be done and supporting fobs: Functional jobs ‘when your customers ty to pater or complete {or example, mothe lawn, ea heathy as ‘consumer wite areport or helo clients 08 ‘a peotesional Social jobs ‘hven our eustorners want look gacd or gain power or status. These jobs describe how custom: ‘ars want tobe perceived by others, fr example, look trendy as a consumer a be perceived at ‘competent a5 professional Personal/emotional jobs ‘when your customers seek a specif emotional state, such es Teving goed or secure for examale, seeking peace of mind regarding one invest: rants as @ consumer or achieving the feling of Jb security at one's worplace, ‘Supporting jobs Customers ale perform sugperting ts inthe context of purchasing ana consuming value ether 1s consumers or as protesionas. These jas aise from toe ferent roles BUYER OF VALUE: jobs related to busing value, such as comparing cers, dicing which product t aug, sani in. checkout tne, completing a purchase, or taking delivery of + COCREATOR OF VALUE: jobs related to cvereating valve with your organization, such ‘2 posting product reviews are feedback of + TRANSFERRER OF VALUE: jobs related tothe end ofa value propostions fe cycle. such as canceling « subscrition, disposing of «produ transfering tto others, orrasaing it owt and Pefer Oaeteracn eb! rs "arespunses2y cng cteen na econ omJob context Customer jobs often dependon the specie context invhich they ae performed. The context ‘may lmposeesrtain constraints cr timitations. <= Foresameia calingsomebocyontnetis = dierent wen you aro toveing natran tan ston your orideg acarLkewse, gongtotne trodes vith yurkideiseterent then aomawith veursernee Job importance Teisinparattoacknawiedse thatnot esos have the sare Important a {wil result na desired or unwaatea cutcome. Insigninicant © Downicnd wigger questions to help find customer jobsCANVAS 1.1 Customer Pains Pains deserbe anything that annoys your custom: ersbetore, during, and ater ring te get job done orsimely prevents them tom geting ajob dove. Pains also deze rks, thats, potenti bad outcomes, elated to getting «ob done hacky oenotatall ‘Seek to identity three types of custemer pains and how sever customers i them Undesired outcomes, problems, and characteristics Pins are functional ga selution doesn't work ‘doesnt work wel or has negative ste efects, social look bot dong tis), eetional 1 ee Ing t0 goto the store for this? Tis may aa Involve urdested characteristics customers dont Ike (9, "Running atte ayenis bong” oe "This design awa) obstactes ‘Tese ore things that prevent customers farm even gating started with job or tat si them oun fos," lackthe time to ost hisjob done lccuretelyy or "lean eord any ofthe axing solutions", Risks (undesired potential outcomes) ‘what could 90 wrong and have impertant ne: ‘ative conseauences (eg, "might lose ereibilty ‘when using tis tp of solution’ or secuty breach woul be dsastous for Us. Pain severity Acustomer paincan teextremeor ae rmederat, similar to ow jobs con extreme ‘be portant or insgifeant othe 1 ‘Tip: Make pains concrete. ‘Toca aferentioe jobs, pains. nd gins, Uescrbe them as concretely as possible For example, when a customer soys waiting in ne was a waste of time’ ask after how many minute ingin ine* When you understand how exact better pan relevers in your value proposition,‘The following lst of trigger questions ‘can help you think of different potential customer pains: Hew do wour customers deine to cost? “Takes lat of tine costs toa much money, or requires substantial efforts? What mokes your customers fet iad? What ‘ore thee rustrations, annoyances, or things that give them a heaciache? + How are curent walue propasiions underper: forming fr your customers? Which features fore they missing? Are there performance issues that annoy them or malfunctions they ce? What are the main dtfeues and chatenges our customers encounter? Do thay undersans aw things werk have dffeuties aetna ceriain things done, or resist parteular jobs for specie What negative social consequences de your {1058 of face, power, rust, or status? + Wratrisks do your customers fear? Are thay ‘aid of financial, soil of techni risks oF are ‘hey asking themseles what could go wrang? las keeping your customers anche at night? What ae theirbig issues, concerns, onc worries? + What common mistakes de your customers ‘make? Ae they using a solution the wrong wc? + What berirs are keepina your customers trom adopting a value propestion? Are there upton investment costs a steep learning curve, or other obstacies preventing adoption? © Downtoad trigger questions =2 caNvAS / 1.1 Customer Gains Gains descrite the outcomes and benefits yaur customers want Some gains are require, expected, or desired by customers, and some ‘Would surprige them. Gains incluse functional uly, social gain, postive emotions, and cost sovings. ‘Seek to identi tour types of customer gains in ‘ers of eutcomes and baneft: Required gains These are gains without which a solution woulnt work For example, the most basic expectation that we have tom a smartphone i that we can mae acall wit Expected gains These ar relatively base gains that we expect from azolution, evenif could werk without them, For example, since Azpleleuneheetthe Phone, we ‘expect shones tobe well-dsigned and look good. Desired gains ‘hace are gins that go beyond what we expect ‘roma solution but would ove to have we cou “hase are usually gains that customers woul come up with if wou asked them. Fr example, we desire smartphones a be seamiessyintearates with our other devices Unexpected gains ‘Thoco are gains that go beyond customer expec- tations and desies. They would’ even come up wit hem t you asked them. Before Apole brouaht touch screens and the App Store tothe ‘mainstream, nobody realy thought of them as partofaphane Gain relevance ‘A customer gain can feel essential ornice to have, jst ke pains car {eel extreme or moderate fo them. ‘Tip: Make gains concrete. ‘swith pais, 's better to ceszrbe gains as ‘concretely as possible to clearly oiferentate, 00s, pars, and gains trom one anther, Ask now jd axpect or dream of when e customer Indicates "beter performance” os a desiree gan | “Tot way yau can note “would ove an increases ‘etiormance of more than "Wha you und. stond how exarly customers measure gos e cutzomes ane benefits, you can design better ‘gain creators in your value propesiton,‘The following list of trigger questions can help you think of different potential customer gains: Wien saving would make your customers hapeu? Wrich savingsin toms of time, money ‘ne efter would they value? nat quality evel 9 thay expect ard what would they wih for more orless oP How do current value propositions deight your customers? Which specie features do they enjoy? What performance ard quality co they expect? + What would make your customers obs or ves easier? Could here bea ter learing curve, more services, oF loner costs of oamershin? ‘Wat postive social consequences do your ‘ustanses dese? What makes them lock good? What increases ther power or their status? ‘What ere customers looking fr most? ae they ‘or mere features? ‘What do customers ream bout? What 0 ‘they aspire to achieve or what would be a big relat to ther? How do your customers measure suceass and falure® How do they gauge performance or cost? ‘What would increase your customers tkethocd ‘of adopting a value proposition? Do they desire {ower cost, ess investment, lower rs or beter quaity? © dowricad winger questions <= canvas / 1.1‘CANVAS 1.1 Profile of a “Business Book Reader” We chose to use potential readers of this book to illustrate the customer profile. We deliberately went beyond jobs, pains, and gains merely related to reading books, since we intended to design an innovative and more holistic value proposition for businesspeople in general. “The customer profile sketohed au onthe rights informed by soveal intr ‘ews we conducted ans thousands of teractions we had with workshop parca, However it is not mandatory ta start with preexisting customer knontedge You may begin exploring deasby sketching out aproie based on what you believe yur patential customers ook ik, This an excelent starting point to prepare custome interdews and tests regarding your ‘assumptions about custome jobs, pains, and gas. GGaine are bones, resus an horacterstis that custom cers require or desire. They are ‘outzames of obs or wanted char loctersties ofa value preposition ‘that halp customers get aloo dane wall ‘The mere tangle and specie \yeu make pains and gains, the better For example, “examples from my industrs sme concrete than "relevant 19 my content Ask customers how they tigate how thay measure success or flue a job they want to get done Moke sure you deeply uncer sad your customer f you have only few sticky notes on your pola, that probeoly indicates & lack of customer understanding, Unearth as many obs, pains, and ‘gens as you can. Search beyondt those directly relates to your value proposition.indicators tomeasure ces Tei ma, eer ee bees) pregnant Yeu should know your customers j(deally quick tomeasure — “eEP soc) anel emotional jobs in add. LEON” “PTE ince ‘pies ttn her functionals, wich sasuto buysinfrom connect with with are usually easier to entity Understand helpwhen leadership (greet yw i" sruck teem "propia boss, cents lable helps me: o “Face tlesulth “eommtieate lads to eee mee Promationor mre etter core wan 1 Payraise “early collaboration” set* advance = homerun concrete ee Sed RE, Note surevougo beyond a > valle” tipsy to ezrngey) | improve | “scppig” < supernctuncersanding tbs Propesttions —reducerisk) @ tizbook lothersabout® oreulld metho ‘ng do customers want to “learn render, Prefered « atusines 7 osaace engl generic) | methods, folaborate = }want to bring new methods See rea wanton orhelpthem i> ther oreanation Ask why" run Important obs. “day job” well ‘Make sure you dot jst consider cbs, pans, and gins related to ‘evae prepestionor productin ming, ientty nose fea, ness books are ta ong’ as wall ‘as other extreme pains eg, "ack lor tie® or "get boss's attention’ canvas) 1.1canvas /1.1 Ranking Jobs, Pains, and Gains Although individual customer preferences vary, you need t2 get a sense of customer priorities. Investigate which jobs the majority consider important or insignificant. Find out whict pains they find extreme versus merely moderate. Learn whizh gains they find essential and which are simply nice to have. ankina jobs, pais, ond gain is exsenalin oder to design value propos tions thot ecress things customers really care about OF course difiut to unearth what realy matters to customers, but your uncerstanig wil improve with every customer interaction and experiment edoesrt matter if you start ot wth a ranking that based on whet you think important to your potential custemers os long as you strive to test that rarking unfit rly reflects rors from the customers perspective.Job importance ve os Rank abs accarang tether ss BR) mm ane pains according to Rank gains accoraing to how extreme they arain the haw esserta they aren custornars eyes thecustomers eyes + services currently create expected elves, and gain creators accord ete painsby eliminating undesited or desred outcomes and benefits for ing te how essential they are to ‘utcomes,chstacles, or sks Use one customers Use ane sticky nate per customers. Sticky noteper pain reliever, ‘in creator, © 00 tnis exercise ontinele & ? 2° ‘a Palin relievers vs. Gain creators ‘What Is the difference with the pains. = Fain relievers end gain creators both ereate value ‘and gains in the customer profile? forthe customarinlifferent woys. The aference Pain retevers and gain creators are disney 2 is that the former specifically addresses pains diferent from pains and gains, You have control 3 inthe customer profi, while the tater spect cover the former whereas you don'thave contol cally adresses gains tis okay f ether of tram ver the latter. You decide G2, design) how you edoresees pans and gar at the some tie, Intend 9 create vlue ay edaressng specific obs “The main goa af these twe areas i tomake the pains ane! gains. You dont cide over which customer value creation of your products and {obs pains, and goins te customer has. And no ‘value propasition addresses all acustomer’s jobs, pains. and gains. The best ones ascress those that matier most to customers anc do £0 services exptBest Practices for Mapping Value Creation xX Common Mistakes ustll your products ond services Add products and services to the pain ater than just those targeted ata relever and goin creator feds specif segment. ¥ Best Practices oducts and services create value Pain ealeverecnd gain crectors are Jato segment Lst ony the make the value eration of your unde of products and servees that products and services expt Exam Joint formaveive prepestton fora ples include helps save time” and saci customer segment well-designed” canvass12 Cfferpaln eievors and gain creators Make the unease attempt to ‘thathave nothing todo with the pains adkdess all customer pains anc ‘and gains inthe customer profi, gains. Remember that procucts end services Realize that great value propositions ‘ont create value in obsotute tars. are about making cholees vega Isatways rectve to customers jobs, ing which obs, pans, ond gain to pains, and gains aderess and which to forgo No value ropositin acirasses ol of them. your value map incites so, ts probably because youre not honest ‘outa the jobs, pans, and gains that shouldbe in yur customer profileANAS | 1.3 Fit You achieve fit when customers get excited about your value proposition, which happens when you address important jobs, alleviate extreme pains, and create essential gains that customers care about. As we will explain throughout this book, fit is. hard to find and maintain. Striving for fit is the essence of value proposition design. ‘Customers expact and desire a lot from procucts ‘and services, yt thoy iso know they cant have ‘tall Focus on those gains that matter most to customers and make a erence, {customers have alt of pins. No organization can reasonably aderess olf ther Focus on thase eadcehes tat matter mest and ae insufclenty‘Your customers are the judge, Jury, and executioner of your value proposition. They will be merciless if you don't find fit! caNvas /13CANVAS /12 Fit? When we designed the value proposition for this book, we strived to address some of the most important jobs, pains, and. gains that potential customers have and that are insufficiently addressed by current business book formats. ‘check marks signify that prod- ucts and services relieve pains or create gains and directly ‘address one of the customers’ Jobs, pains, or gains.mi Omar igpaty quick Cents quick CONE £6" Qettinn QS. asst Wn correc OO ox phen Fe comes th Onn en Sadan @ 29 Gand he 7 ‘communicate leeds to co thinge promotionor ‘2m Setten Improve swat an | searly ecollaboration’ set + advance People want ‘aD On a ac -peations —_ tibatea.to \ Sno QD inernd Divert P Fisk) bizbook ‘pry, ' orbuid Preferred reader atilg * abusinesgethod ceeneriey Bs communicate decane wemihothers ideas paiea oO \ 7) ca stay uptodate Xs show which jobs, pains, ‘and gains the value proposition ‘does not address.ourcome: Connection between = | your products and terstocustomers | services and customer jobs, pins, and gains © do this execise online 1 Instructions [seen ey Bring inthe Valse Proposition Map and Customer ‘Segment Pofie you completed earler. Go trough ain reeves end gcin creators ene oy one, anc canvas 13 &2 outcome IFerpainrelever or gan creator doesnt anuthing, may not be creating customer value Dore worryifyouhavent checked al pains) ‘ains—you car satisy them al. Ask yours, your customer? © dowrioac tne value Propostion Carvas paf 2 ‘canvas /13Geka uss Quickly with Ad-Libs Adtlbs are a great way to quickly shape alternative tions for your value proposition. They force you to pi opiectivE ourcome how exactly you are going to create value. Prot three to five different directions by filling out th the ad-lib below. S @ downloaa the template Our Lal help(s) & who ————- Sooo ynlike your own verb (eg, increasing, enabtina)Our i help(s) aia who antto_ == by MS and okDESIGN 12 Push vs. Pull ‘The push versus pull debate is a. common one, Push indi cates that you're starting the design of your value proposi- tion from a technology or innovation you possess, whereas pull means you're beginning with a manifest customer job, pain, or gain, These are two common starting points, many Of which we outlined previously © p. 88. Consider both as Viable options depending on your preferences and context. Technology Push start from en invetion.navation, or technological resaure for which wou Sovelop a wolue proposition that acdrasses c customer jot, pain.]ne gin Inslmgte terms, this sa solution in search ofa peabler. ‘Explore valve proposition prototypes that are based an your invention, innovation, or technological resource with patently interested customer cepnunte Design a dedicated value mar foreach secment until you nd problem-alution fit Read nore about the bu, measure, laa cycle oF Bp. 185 Technology 1.solution| (invention, innovation, technology) a6 FINDA PROBLEM, Jobs, pains gains 2.value proposition prototype 2. customer insights i | yrlr Market 1. Problem (dobs, pains, gains) learn ait 98 FIND A § SOLUTION 3 Adjust 9g 2.value t technology 2th proposition = (and resource) prototype needs || Market Pull Start froma manest custome job, pain or gain for which you desion a ‘value proposition, n simple terms, his sa prem in search of a solution Lean what technologies and ater resources ere requires fer each value propestion prototype designed to aldrass manfest customer jobs, pains, ‘and gains. Redesign your value map and cast resources until you fd | ible solution to adress custome obs, pans, end gains. Mere about the bull, measure ecm cycle on & p96,Push: Technolog Pains, and Gains se oBsEcTIVE ourcone wy racte the improved skits 3 ecmoiogy 3 _eporoach wth nek ‘This push exercise starts withthe soltion aS 1 Design. Design a value proposition based on ‘the technology outlined in the press excerpt fram the Swiss Federal Institute of Technology in Lausanne (EPFL) by targeting a customer Se9- ‘ment that might be interested in ‘adopting this technology. solar and aeotian sources are great candi dates forthe electity generation ofthe ture. However solar anal wind sources! peak evaltabilty takes place at ties that do rot usualy correspond fo peak demand Nous TTerefore, « way must be devise 9 store ac later reuse the eneray generated. in Search of Jobs Ideate. ome up wth an ea for velue proposition using the comoressed cr eneray sto “The Business Model Canvas 3 Segment. Selecta customer segment ‘would be ready te pa for it Tanna O |mvnonn @ ~flm, 9 —— ad — EpPL nas worked for over fen years on an orig Jal storage syste: comaressed ai: Te use ofa hydraulic plston delivers the best systers performance. Te obtained nigh pressure tir can be safely stored in bots without (856 tint tts necessary to generate new electcty by expanding the gas inthe cyte. One of he ‘advantages of our systems nat dees not require rare materials. ostrat “Asplzoff has been created to devon th principte ond create turkey’ electrical Storage and retriavat uns. n2074, a 25 vit be instae ato phocovttale par in te fture, there wil be 250 Ki stall fest and 2500 kW ones afterwards"ee Tips + Ad design constraints to tect ny push exerses. Your gant zon might not wart to edorese certain customer segments (eg, specie regions, tc}.Or youmiart refer certain strategic directions, 97 forexampie,leersing rater than bulaingsousions. 5 + Follow upon your customer Fi aseumptons by researching a cumomet prune produc: ingens @ pare yee setcted a poten merested 6 ‘aren Aseess, faves bebe trecitome poe crete store van proponton semerammase | ‘The Value Proposition canvas 4 prota | Sheehan caterer, Maecsuarpinn = | coutebeio bene, Sketch pesierae tne he val prop- | putin bu sate : cuthow wi customer pains ond create gains @strategyzeresion/22 Pull: Identify High-Value Jobs De Great value proposition creators master the art of focusing on the jobs, pains, ‘and gains that matter. How will you know which of these jobs, pains, and gains to focus on? Identity high-value Jobs by asking if they are important, ‘tangible, unsatisfied, and lucrative, High-value jobs are characterized by pains {and gains that are. Important When te customer's successor fare to et the jb cone leads to essential gains or extreme pains, respectvea + 02s ain the ob leas to extreme eas? + Do2s fang the ab ead to missing out on ‘essential gains? Tangible \Wihen the pains o- gains related to ajob can fest or experienced immediately or often not ays or weaks later + can you fee! the paleo + Can you sea the gain?nsatisfied e.current value propositions ort help relieve sor create desred gains in a satisying way oly dont ax sethere unrealized gains? Lucrative High-value jobs ‘When many people have tne ob with rlatet Focus on the highest vale jobs ‘pains and gains ar @ small number ef customers and elated pains and gains ‘re wt to pay @ premium, + Are there mang with this}eb, pain or acin? + Are there few witing to pay alot? Desion/22 8omecrive dentity high-value customer jobs that {you cout foeus on & Imagine your customers are chief information officers (CIOs) and you have to understand which jobs matter most to them. Do this exercise to prioritize their jobs or apply it to one ‘of your own customer profiles. ‘customer Profile synthesized customer profile of @ C10 ourcome Rnking of eustomer js from your perspective This put. the customer. Tips + Tisexercise helps you prlrtize bs fom the customer’ perspective. doesnt mean you have to mendatoriy adoss te most important cones in your volue provost: those might be ‘outside your scope However, ake sure your ‘yalue proposition does adress jobs that an hil ralevont to customers Great value rapostion creators often focus conan few jbs, pains and gains, but do that ‘extremely al ‘Complement this exerese with geting customer insights from the fete @ p. 106 and experiments that produce evidence @ p 216 © Strategyzer corporation securiey+ Dees fing theo lead to extreme pains? + Doasfaling the jen leceto missing out on ‘essential gains? Important @°65 + can you feo the pain? + Can you ee the gain? ‘Tangible + Are thereunresoived pans? + Ave there unrealized Unsatisfied + Are thore manyvith Focus ante highest ‘hisjob, pain or gain? value jobs ant reed are there few viling pains and gains. topay alot? igh-vatue jobs sale: «ow! to Sande itt wa by enastarcy. aih,six Ways to Innovate from the Customer Profile 1) Youve mapped your customer profit. What to do from ere? Foye rags to trigger your next value proposition move Vv switch to a more important job? Address more jobs? Go beyond functional jo! rewamereconcnmenetofone neucng _Yainastemer doco els me rom Look beyond functional jos and create ie feloted ond ancitory jabs Nee oer omrneatarscarertiyfecuron, aka fang enporion soeaiond eg jobs. it the machine tool manufacturer understood tat construction managers needed 0 Keep schedules to avin penatties, nt ony fl ‘Ther fleet management solution adlaressedt he Jorma in aston tothe ater Min Cooper ereatedl ear that became os ttn te Phone, Ape nat ony reinvented he mach omeons of transport as a statement mobte phone but enabled us to store and tGy Imusic ona browse she web on ore device. oes. Identity, © dourioac tigger avestions