The 1-Minute VALUE PROPOSITION ACT: A Simpler and Scalable Toolkit for Designing Magnetic Value...

Value Proposi-on Act (VPA) for Apple’s Classic iPod – The 4 Trade-‐off Scenes Collabora4vely Design a Magne4c Value Proposi4on (MVP) That Resonates, Inspires, Delights, Empowers, and Surprises

WHO? WHAT?

HOW? WHERE? WHEN?

VALUE PROPOSITION PLOT Similarity: Digital Music Player

Differen/a/on: 1,000 Songs in Pocket WHY (ACT/BUY, NOW)?

q  Past (“As Was”) q  Present (“As Is”) q  Future (“To Be”)

#VPGen. Dr. Rod King. [email protected] & hYp://businessmodels.ning.com & hYp://twiYer.com/RodKuhnKing

Value Proposi-on Act (VPA) for Apple’s Classic iPod – Triangula4on of Peripheral Scenes Collabora4vely Design a Magne4c Value Proposi4on (MVP) That Resonates, Inspires, Delights, Empowers, and Surprises

WHO? WHAT?

HOW? WHERE? WHEN?





Value Proposi-on Act (VPA) for Apple’s Classic iPod Collabora4vely Design a Magne4c Value Proposi4on (MVP) That Resonates, Inspires, Delights, Empowers, and Surprises

WHO? WHAT?

HOW? WHERE? WHEN?




q  Fitness (Synergy/Connec/on)


P.I.E.S.

Note P.I.E.S. is an acronym for Physical; Intellectual; Emo4onal; Spiritual

Details of Value Proposi-on Act (VPA) for Apple’s Classic iPod Collabora4vely Design a Magne4c Value Proposi4on (MVP) That Resonates, Inspires, Delights, Empowers, and Surprises

PRODUCT/SERVICE/TOOL (Output: Prototype/Full Scale)

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CUSTOMER/CONSUMER (Persona/Profile/Community)

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JOBS-‐TO-‐GET-‐DONE/WORKFLOW (Func4onality/Goal/Requirements)

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WHO? WHAT?

HOW? WHERE? WHEN?




CUSTOMER-‐PRODUCT Fitness

Problem-‐Solu/on (Market-‐Product Innova/on) Fit




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Posi4oning/Features/CRM/Pricing

WHO? WHAT?

HOW? WHERE? WHEN?







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Supply (Asserted/Hypothesized/Pushed)

Demand (AIDA/Required/Validated/Metrics)


WHO? WHAT?

HOW? WHERE? WHEN?





ENVIRONMENT

GLOBAL BUSINESS MODEL (GBM) STORYBOARD for Apple’s Classic iPod

#VPGen. Dr. Rod King. [email protected] & hWp://businessmodels.ning.com & hWp://twiWer.com/RodKuhnKing

Suppliers/ Partners

Processes/ Ac4vi4es

Internal Resources

(Employees; Tech.; Infra.; etc.)

VALUE CREATION ACT VALUE PROPOSITION ACT

Customers

Jobs-‐To-‐Be-‐Done

Value Proposi-on

(Plot)

Cost (Structure)

Profit (Margin)

Core Competence

SHARED VALUE (PROFIT) ACT

BUSINESS MODEL For Classic iPod

Revenue (Streams)

Shared Value

Product/ Service

LEARNING

VALUE PROPOSITION GENERATOR FOR APPLE’S CLASSIC IPOD Collabora4vely Document, Deconstruct, Construct, and Compare Value Proposi4on Acts (VPAs)

ORGANIZATION (Business/ Product/ Service/ Place/Situa4on/ Scene/ Object)

CUSTOMER/CONSUMER

JOBS-‐TO-‐GET-‐DONE/WORKFLOW PRODUCT/ SERVICE/ TOOL (INDUSTRY)

VALUE PROPOSITION STATEMENT (HEADING/PLOT)

Who? How? Where? When? What? WHY (Act/Buy, Now)?

Apple

“A Thousand Songs in Your Pocket”

Listen up to 1000 songs anywhere without CDs or tape or hassle

“Seamless music experience”


TRADE-‐OFF SCENE FOR CUSTOMER/CONSUMER OF APPLE’S CLASSIC IPOD

q  Past (“As Was”) q  Future (“To Be”)


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q  Present (“As Is”)


TRADE-‐OFF SCENE FOR JOBS-‐TO-‐GET-‐DONE OF APPLE’S CLASSIC IPOD


JOBS-‐TO-‐GET-‐DONE/WORKFLOW (Func4onality/Goal/Requirements: Physical/Intellectual/Emo/onal/Spiritual)

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TRADE-‐OFF SCENE FOR PRODUCT/SERVICE/TOOL OF APPLE’S CLASSIC IPOD



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PAST Value Proposi-on Act (VPA) for Music Players: Sony’s CD Walkman (Analog) Collabora4vely Design a Magne4c Value Proposi4on (MVP) That Resonates, Inspires, Delights, Empowers, and Surprises

WHO? WHAT?

HOW? WHERE? WHEN?

VALUE PROPOSITION PLOT Similarity: Music Player

Differen/a/on: Portable Music WHY (ACT/BUY, NOW)?

ü  Past (“As Was”) q  Present (“As Is”) q  Future (“To Be”)


q  Fitness (Synergy/Connec/on) P.I.E.S.


Past (“As Was”)

Value Proposi-on Act

Present (“As Is”)


Future (“To Be”)


VALUE PROPOSITION PLANNER (VPP) OR STORY FOR MUSIC PLAYER INDUSTRY

Evolu/on of Value Proposi/on Acts

3 21

4

Key (The 4 Scenes of a Value Proposi4on Act) 1: Value Proposi4on Plot (Statement) 2: Customers/Consumers 3: Product/Service/Tool 4: Jobs-‐To-‐Get-‐Done/Workflow

Strategy/Execu-on How SHOULD

business (model/system) get to desired VPT?


ULTIMATE JOB-‐TO-‐GET DONE: Aspira-ons/Mo-va-on/ Mission/Vision/Purpose/ Ideals/Ideal Trade-‐off/ Ideal Final Result/ Shared Value For Music Player Industry

Disrup4on Spot

Luxury Spot

Strategic Choice

Sweet Spot Value Proposi4on

Blue Ocean Value Proposi4on

Luxury Spot (“Differen/a/on”) Value Proposi4on

Disrup-on Spot/Lean (“Low Cost”/ “Disrup/ve”)

Value Proposi4on

TRADE-‐OFF MAP FOR MUSIC PLAYER INDUSTRY Red Ocean vs. Blue Ocean Value Proposi/ons (Strategies/Business Models)

Volcano Value Proposi4on

Green Ocean Value Proposi4on

Red Ocean Value Proposi4on

No-‐Man’s-‐Island Value Proposi4on

Oasis (‘Stuck-‐in-‐the-‐middle’) Value Proposi4on

(-‐): PAIN: Size (Inconvenience; Complexity of Use)

(+): DELIGHT: No. of songs stored

(Storage; Performance)

Key Profitable Value Proposi4on Unprofitable Value Proposi4on

“Insane” Happiness (Value) Ideal Final Result (IFR) Infinite Shared Happiness


Market Segment (Job-‐To-‐Get-‐Done/Goal; Product/Tool): Listen to music

Every Physical Object

Has

A Tacit/An Explicit Value Proposi-on,

A Tacit/An Explicit Trade-‐off, and

A Tacit/An Explicit Value

A Customer Value Proposi-on Is

The Heart, Brain, and Soul of

A Business (Model)

Value Proposi-on Act: Templates

VPA

“Because the purpose of business is to create a customer, the business enterprise has two – and only two – basic func4ons: marke-ng and innova-on. “Marke4ng and innova4on produce results; all the rest are costs. “Marke4ng is the dis4nguishing, unique func4on of the business.”

Peter Drucker

The 2 Basic Func-ons of a Business

A Value Proposi-on Act (VPA)

Focuses on

Marke-ng and Innova-on

A Value Proposi-on Act (VPA) Reflects, Tells, or Presents

An Emo-onal Story About

The Targeted Customer

A Value Proposi-on Act (VPA) is a Visual Marke-ng Tool

That Consists of 4 Interrelated Trade-‐off Scenes:

1. Trade-‐off Scene for Value Proposi-on Plot

2. Trade-‐off Scene for Customers/Consumers

3.  Trade-‐off Scene for Product/Service/Tool

4.  Trade-‐off Scene for Jobs-‐To-‐Get-‐Done/Workflow Note A Trade-‐off Scene is a visual ideas organizer that illustrates or describes an object together with the object’s impact of pain (-‐) and delight (+).

The 4 Trade-‐off Scenes of the Value Proposi-on Act (VPA) Collabora4vely Design a Magne4c Value Proposi4on (MVP) That Resonates, Inspires, Delights, Empowers, and Surprises

3 2

1

4

3

2

1

4


Natural Language Story of Value Proposi-on Act (VPA)

VALUE PROPOSITION PLOT Similarity: ………………………….…..……… Differen/a/on: …..……………………………

WHY (ACT/BUY, NOW)?


Subject (Protagonist/

Agent)

Verb (Ac/vity/ Task/

Func/on/ Outcome)

Object (Tool/

Product)


Storyboard of Value Proposi-on Act (VPA)


WHY (ACT/BUY, NOW)?


Customer Scene

Ac-on Scene

Product Scene


4 Basic Ques-ons for the Value Proposi-on Act (VPA)


WHY (ACT/BUY, NOW)?


How does your customer spend (valuable) -me?

What is your business/ product/ service?

Who is your customer/ consumer?

Out of the Enterprise (System) In the Enterprise (System)


The 4 Trade-‐off Scenes of the Value Proposi-on Act (VPA) Collabora4vely Design a Magne4c Value Proposi4on (MVP) That Resonates, Inspires, Delights, Empowers, and Surprises

WHO? WHAT?

HOW? WHERE? WHEN?


WHY (ACT/BUY, NOW)?



Triangula-on of Peripheral Scenes of Value Proposi-on Act (VPA) Collabora4vely Design a Magne4c Value Proposi4on (MVP) That Resonates, Inspires, Delights, Empowers, and Surprises

WHO? WHAT?

HOW? WHERE? WHEN?


WHY (ACT/BUY, NOW)?



Overview of Value Proposi-on Act (VPA) for Engaging, Acquiring, and Retaining More Customers Collabora4vely Design a Magne4c Value Proposi4on (MVP) That Resonates, Inspires, Delights, Empowers, and Surprises

WHO? WHAT?

HOW? WHERE? WHEN?


WHY (ACT/BUY, NOW)?





Details of Value Proposi-on Act (VPA) for Engaging, Acquiring, and Retaining More Customers Collabora4vely Design a Magne4c Value Proposi4on (MVP) That Resonates, Inspires, Delights, Empowers, and Surprises


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+


-‐ +


-‐ +

WHO? WHAT?

HOW? WHERE? WHEN?


WHY (ACT/BUY, NOW)?





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+


-‐ +


-‐ +

WHO? WHAT?

HOW? WHERE? WHEN?


WHY (ACT/BUY, NOW)?







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+


-‐ +


-‐ +

WHO? WHAT?

HOW? WHERE? WHEN?


WHY (ACT/BUY, NOW)?




Problem-‐Solu/on (Market-‐Product Innova/on) Fit



-‐

+


-‐ +


-‐ +

WHO? WHAT?

HOW? WHERE? WHEN?


WHY (ACT/BUY, NOW)?






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+


-‐ +


-‐ +


WHO? WHAT?

HOW? WHERE? WHEN?


WHY (ACT/BUY, NOW)?





Checklist for

Elements of Value Proposi-on Act

CHECKLIST FOR VALUE PROPOSITION PLOT


VALUE PROPOSITION PLOT (WHY ACT, NOW?)

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q  What features of the product/service/tool/business model are SIMILAR to those in the exis4ng marketplace?

q  What features of the product/service/tool/business model are DIFFERENT from those in the exis4ng marketplace?

q  What is your Value Proposi4on Statement (VPS) for the product/service/tool? q  Are you sa4sfied with the effec4veness of your Value Proposi4on Statement (VPS)?

q  What, on a scale of 1 (low) to 10 (high), is your

level of pain regarding the value proposi4on (plot)?


level of delight regarding the value proposi4on plot (statement)?

CHECKLIST FOR CUSTOMER/CONSUMER



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+


q  Who are the target customers/consumers?

q  How would you describe the persona and/or demographic profile of the most valuable customer/consumer?

q  What are important dislikes or pains of the customer/consumer? q  What fundamental problems are customers/

consumers trying to solve?

q  What are important likes or delights of the customer/consumer?


CHECKLIST FOR PRODUCT/SERVICE/TOOL



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+


VPM


q  What is (the name and product category of) the main product/service/tool that is (to be) offered to customers?

q  What are capabili4es of the product/service?

q  What are the key features of the product/service?

q  What are 3 serious pains or problems

encountered by customers when they use the product/service/tool?

q  What are 3 important benefits that the

product/service/tool offers to customers?

CHECKLIST FOR JOBS-‐TO-‐GET-‐DONE



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+



q  For what physical/intellectual/emo4onal/spiritual (P.I.E.S.) events, goals, ac4vi4es, and tasks do customers use the product/service/tool?

q  What is the most important event, goal, ac4vity, and/or task for which customers use the product/service/tool?

q  In what places, loca4ons, or areas do customers use the product/service/tool?

q  When (during the day/week/month/year) do customers use the product/service/tool?

q  What are typical obstacles or barriers that

prevent customers from effec4vely using the product/service/tool?

q  What are nega/ve evalua4on criteria for Jobs-‐To-‐Be-‐Done or undesirable Outcomes?

q  What are typical factors that help customers to

effec4vely use the product/service/tool?

q  What are posi/ve evalua4on criteria for Jobs-‐To-‐Be-‐Done or desirable Outcomes?



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+


Undesired Effects/Impacts/Outcomes/Results Desired Effects/Impacts/Outcomes/Results

Eliminate Reduce Increase Create

ANNOTATED TEMPLATE FOR JOBS-‐TO-‐GET-‐DONE

Format 1

Verb + Noun-‐Object + Contextual Clarifier

(Physical/Intellectual/Emo/onal/Spiritual Job @ Home/School/Work/Outdoor/Vehicle/Everywhere @ Time While Minimizing (Undesired Effects) and Maximizing (Desired Effects)

Format 2

[Person] wants to [Job-‐To-‐Get-‐Done] in [Context/Environment]

Value Proposi-on

Generator

DESCRIPTION OF INFORMATION REQUIRED (INPUTS) FOR VALUE PROPOSITION GENERATOR Collabora4vely Design a Magne4c Value Proposi4on (MVP) That Resonates, Inspires, Delights, Empowers, and Surprises


q Product Group q Name of Product q Main Func-onality (Features)

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q Customer Group q Customer Segment q Niche/Individual q Prospects (Non-‐customers)

-‐ +


q Vital (Core) Job-‐To-‐Get-‐Done: Physical/Intellectual/Emo4onal/ Spiritual (P.I.E.S.) Jobs q Complementary Jobs-‐To-‐Get-‐Done

-‐ +

WHO? WHAT?

HOW? WHERE? WHEN?


WHY (ACT/BUY, NOW)?


q Benefits (Noun/ Adjec/ve/ Statement) q Value Factors

q Pain (Problems) q Risks; Hassles q Fears; Doubts q Unmet Needs

q Desirable Result/ Outcome q Value Factors

q Aspira/ons q Strengths q Hierarchy of Needs & Tasks

q Obstacles/ Barriers q Value Constraints

q Cost (Price)

q Value Constraints


MULTI-‐VALUE PROPOSITION MODEL FOR DECISION-‐MAKING (COMPETITOR/SEGMENTATION) ANALYSIS Collabora4vely Document, Deconstruct, Construct, and Compare Value Proposi4on Models (VPMs)

3 2

1

4

Key 1: Value Proposi4on Plot (Statement) 2: Customers/Consumers 3: Product/Service/Tool 4: Jobs-‐To-‐Be-‐Done/Workflow

3

1

4

2 2

1

3

4

Compe/tor 1’s Value Proposi/on Model

Compe/tor 2’s Value Proposi/on Model

Given Value Proposi/on Model


THE 4 SCENES OF A VALUE PROPOSITION ACT – Storyboard/Mind Map Template Collabora4vely Document, Deconstruct, Construct, and Compare Value Proposi4on Acts (VPAs)

VALUE PROPOSITION ACT (VPA)

Core Trade-‐off Scene

3 Peripheral Trade-‐off Scenes

Why-‐Scene: Value Proposi-on Plot

Who-‐Scene: Customer/Consumer

How/Where/When-‐Scene: Jobs-‐To-‐Get-‐Done

What-‐Scene: Product/Service/Tool


VALUE PROPOSITION GENERATOR Collabora4vely Document, Deconstruct, Construct, and Compare Value Proposi4on Acts (VPAs)

ORGANIZATION (Business/ Product/ Service/ Place/Situa4on/ Object)

CUSTOMER/CONSUMER





VALUE PROPOSITION GENERATOR FOR FORMULATING VALUE PROPOSITION STATEMENTS Collabora4vely Document, Deconstruct, Construct, and Compare Value Proposi4on Acts (VPAs)


CUSTOMER/CONSUMER




For [Customer/ Niche] Who Hate [Pain]/ Who Want … [Benefit]

The [Name of Product] Is a [Product Group] That [Benefit]

[Name of Product] Is [Iconic/Breakthrough Product] For [Product Group]

We help [Customer/ Niche] Do [Cri/cal Job-‐To-‐Be-‐Done] By [Task]

Sheet 1 of 4



CUSTOMER/CONSUMER




We believe our best customers are [Customer/Segment/Niche] Who … [Pain]/ Because of [Root-‐cause of Pain/Constraint]

The [Name of Product] Is [List of Adjec/ves for Desirable Value Factors/Benefits]

[Shocking Fact or One-‐line Descrip/on of Related Big Urgent Market Problem or Societal Pain]

We offer [Product Category] That enables [Desirable Result/ Outcome]

Sheet 2 of 4 VALUE PROPOSITION GENERATOR FOR FORMULATING VALUE PROPOSITION STATEMENTS Collabora4vely Document, Deconstruct, Construct, and Compare Value Proposi4on Acts (VPAs)



CUSTOMER/CONSUMER




The [Superla/ve (most …) for Delight/Pain-‐Factor] for [Product Category]

[Unique Func/onali-‐ty: Verb + Object + Benefit-‐Adverb]

We are the only ones who offer [Customer/Niche]

[Product] that [Unique Benefit]




CUSTOMER/CONSUMER




To [Customers] who are looking [Key Benefit]

We provide [Product category] products/services

You know that [Customer Problems]

Well, we offer [Name of Product/Service] which [Benefits]



Blank Templates Of

Trade-‐off Scenes

THE 3 PARTS OF A TRADE-‐OFF SCENE (BLOCK)

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+


ROOF

STAGE

FOUNDATION (TRADE-‐OFF MAP)

TRADE-‐OFF SCENE: Visual Ideas Organizer (Template)


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TRADE-‐OFF SCENE: Visual Ideas Organizer (Annotated Template)


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Undesired Effects/Impacts/Outcomes/Results Desired Effects/Impacts/Outcomes/Results

Eliminate Reduce Increase Create

TRADE-‐OFF SCENE: Visual Ideas Organizer (Template) – Envelope (Picture Frame/Movie Screen) Format


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TRADE-‐OFF SCENE: Visual Ideas Organizer (Template) – 3 Part-‐Stage Theater Format


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TRADE-‐OFF SCENE: Visual Ideas Organizer (Template) – 4 Part-‐Stage Theater Format


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Addi-onal Concepts And

Tools of Value Proposi-on Act

DEFINITION OF VALUE PROPOSITION

Value Proposi-on refers to a promise of value – quan/ta/vely defined as a delight/pain or benefit/cost ra/o – to be delivered to a customer segment Note A Value Proposi4on Model has four trade-‐off scenes:

u  Value Proposi4on Plot: outline of value proposi/on statement u  Customer/Consumer u  Product/Service/Tool u  Jobs-‐To-‐Get-‐Done/Workflow


Disrup4on Spot

Luxury Spot

Strategic Choice

Sweet Spot Value Proposi4on

Blue Ocean Value Proposi4on

Luxury Spot (“Differen/a/on”) Value Proposi4on

Disrup-on Spot/Lean (“Low Cost”)

Value Proposi4on

TRADE-‐OFF MAP OF 9 ARCHETYPAL VALUE PROPOSITIONS

Profitable vs. Unprofitable Value Proposi/ons (Strategies/Business Models)

Michael Porter: “The essence of strategy is to find a different [but profitable] value proposi4on”

Volcano Value Proposi4on

Green Ocean Value Proposi4on

Red Ocean Value Proposi4on

No-‐Man’s-‐Island Value Proposi4on

Oasis (‘Stuck-‐in-‐the-‐middle’) Value Proposi4on

(-‐): PAIN: Cost; Time; Complexity; Inaccessibility; Inconvenience; Size; Defect; Waste; Risk

(+): DELIGHT: Benefit, e.g., Performance;

Quality; Cachet/Status;

Novelty; Interac4vity; Customiza4on

Key Profitable Value Proposi4on Unprofitable Value Proposi4on

“Insane” Happiness (Value) Ideal Final Result (IFR) Infinite Shared Happiness


Market Segment (Job-‐To-‐Get-‐Done/Goal; Product/Tool): ………………..…………………..…….………… ……………………………………………………………………….…………….………….………….

Past (“As Was”)

Value Proposi-on Model

Present (“As Is”)


Future (“To Be”)


VALUE PROPOSITION PLANNER (VPP) OR STORY

The Evolu/on of Value Proposi/on Acts


3 21

4

3 21

4

3 21

4

Strategy/Execu-on How SHOULD

business (model/system) get to desired VPT?

Key (4 Scenes of a Value Proposi4on Model) 1: Value Proposi4on Plot (Statement) 2: Customers/Consumers 3: Product/Service/Tool 4: Jobs-‐To-‐Get-‐Done/Workflow

ULTIMATE JOB-‐TO-‐GET DONE: Aspira-ons/Mo-va-on/ Mission/Vision/Purpose/ Ideals/Ideal Trade-‐off/ Ideal Final Result/ Shared Value For System or Object

VISUALIZATION OF A MAGNETIC VALUE PROPOSITION (MVP) Magne/c Value Proposi/on as Confluence of Relevant Customer Segment, Jobs-‐To-‐Be-‐Done, and Product Features

CUSTOMER/CONSUMER PRODUCT/SERVICE

JOBS-‐TO-‐GET-‐DONE

Less Valuable Customers Less Important Features

Unimportant Jobs To Be Done Magne4c Value Proposi4on

(MVP)

Valuable


3 STRUCTURAL CONDITIONS FOR A MAGNETIC VALUE PROPOSITION Magne/c Value Proposi/on as “Plot” for a Value Proposi/on Story

The 3 Peripheral Scenes Must Triangulate in Order to Have a Magne-c Value Proposi-on (MVP) 1.  “Product-‐Customer” Fitness or Synergy

2.  “Customer-‐Jobs-‐To-‐Get-‐Done” Fitness or Synergy

3.  “Jobs-‐To-‐Get-‐Done-‐Product” Fitness or Synergy

Note Any significant change in any of the 3 trade-‐off scenes above affects the quality and impact of the Magne4c Value Proposi4on (MVP)


VALUE PROPOSITION ACT FOR BETTER ENGAGING, ACQUIRING, AND RETAINING CUSTOMERS The 1-‐Minute Value Proposi/on Act

6 Steps for Preparing a Value Proposi-on Statement 1.  Obtain a copy of the “Overview” template of the 4 Trade-‐off Scenes of Value Proposi4on Act (VPA)

2.  Search for, obtain, and place a relevant picture on each of the following trade-‐off scenes:

WHO? (Customer/Consumer) WHAT? (Product/Service/Tool) HOW? (Jobs-‐To-‐Get-‐Done/Event: Physical/Intellectual/Emo/onal/Spiritual)

3.  Use the trade-‐off scene of “WHY? (Value Proposi-on Plot)” and write a phrase for the Point of Similarity (PoS), that is, how your product is similar to exis4ng compe4ng products

4.  Write a phrase for the Point of Differen4a4on (PoD), that is, how your product is different from exis4ng compe4ng products; use the “WHY?” trade-‐off scene for Value Proposi4on Plot

5.  Check the PoS and PoD for coherence with the 3 trade-‐off scenes: WHO? WHAT? HOW?

6.  Write (Test/Validate/Share), using a single sentence, your Value Proposi4on Statement

VPA


VALUE PROPOSITION ACT (VPA) CHECKLIST Ques/ons for Designing, Managing, and Tes/ng a Magne/c Value Proposi/on

4 Categories of Ques-ons for Designing, Managing, and Tes-ng a Magne-c Value Proposi-on (MVP) Product/Service/Tool q  What is (the name and product category of) the main product/service/tool that is (to be) offered to customers? q  What are func4onali4es or capabili4es of the product/service/tool? q  What are key features of the product/service/tool? q  What are 3 important benefits that the product/service/tool offers to customers? q  What are 3 serious pains or problems encountered by customers when they use the product/service/tool? Customer/Consumer q  Who are the target customers/consumers? q  How would you describe the persona and/or demographic profile of the most valuable customer/consumer? q  What physical/intellectual/emo4onal/spiritual problems are customers/consumers trying to prevent or solve? q  What are important likes or delights of the customer/consumer? q  What are important dislikes or pains of the customer/consumer? Jobs-‐To-‐Get-‐Done q  For what events, goals, ac4vi4es, and tasks do customers use the product/service/tool: physical/intellectual/emo/onal/spiritual? q  What is the most important event, goal, ac4vity, and/or task for which customers use the product/service/tool? q  In what places, loca4ons, or areas do customers use the product/service/tool? q  When (during the day/week/month/year) do customers use the product/service/tool? q  What are typical obstacles or barriers that prevent customers from effec4vely using the product/service/tool or achieving their

goals/objec4ves? q  What are evalua4on criteria for Jobs-‐To-‐Be-‐Done or desired outcomes (or unacceptable criteria for undesired outcomes)? Value Proposi-on Plot & Statement q  What features of the product/service/tool/business model are SIMILAR to those in the exis4ng marketplace? q  What features of the product/service/tool/business model are DIFFERENT from those in the exis4ng marketplace? q  What is your Value Proposi4on Statement (VPS) for the product/service/tool? q  Are you sa4sfied with the effec4veness of your Value Proposi4on Statement (VPS)?

VPA


VALUE PROPOSITION EVALUATOR Systema4cally Assess the Emo4onal Impact (“R.I.D.E.S.”) of a Value Proposi4on Statement


0

2

4

6

8

10 Resonated

Inspired

Delighted Empowered

Surprised

Worst Value Proposi4on

Ideal Value Proposi4on


LENGTH OF A MAGNETIC VALUE PROPOSITION Magne/c Value Proposi/on as “Plot” for a Value Proposi/on Story

A Magne-c Value Proposi-on (MVP) should be “TwiWerable”, that is, can be posted on TwiYer with no more than 140 characters


Business Model (Story)

Value Crea-on Act (VCA)

Value Proposi-on-‐and-‐ Delivery Act

(VPA)

Value Sharing (Profit/People/Planet) Act

(VSA)

Note A business model refers to a schema, story, or game of how an organiza4on creates, delivers, and shares value (happiness).

A business model has 3 sub-‐models or acts: Value Crea4on Act; Value Proposi4on Act; Value Sharing (Financial/Social/Environmental) Act

ENVIRONMENT

ANATOMY OF A GLOBAL BUSINESS MODEL (GBM) STORYBOARD


Product Innova/on Model Marke/ng Model Financial or Profit Model

ENVIRONMENT

3-‐ACT BUSINESS MODEL: The 3 Acts of a Business Model (Story/Storyboard)


VALUE CREATION ACT

(Product Innova4on)

VALUE PROPOSITION

ACT

(Marke4ng)

VALUE SHARING ACT

(Profitability)

BUSINESS MODEL (Story)

LEARNING

ENVIRONMENT

3-‐ACT BUSINESS MODEL: Scenes for Each Act of a Business Model (Story/Storyboard)


Suppliers/ Partners

Processes/ Ac4vi4es


Customers Value

Proposi-on (Plot)

Cost (Structure)

Core Competence


BUSINESS MODEL (Story)

Revenue (Streams)

Shared Value

Internal Resources

(Employees; Tech.; Infra.; etc.)

Profit (Margin)

Product/ Service

LEARNING

Jobs-‐To-‐Get-‐Done

BUSINESS MODEL: Storyboard (Visual Ideas Organizer/Template) – Theater Format


THE 3 SUB-‐MODELS OF A BUSINESS MODEL

Value Crea-on Act (VCA) Value Proposi-on Act (VPA)

Value Sharing Act (VSA): Financial/Social/Environmental


VPA

Product Innova/on Stage Marke/ng Stage

Financial (Value Sharing) Founda/on

BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE

Design Shared Value (Supply Infrastructure: Internal System)

“Back End”

Deliver Shared Value (Demand Infrastructure: External)

“Front End”

Business Model Environ-‐ment (BME)

Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)

Business Model Canvas (Extended Business)

Key Partners (KP)

Key Resources (KR)

Key Ac-vi-es (KA)

Value Prop. (VP)

Channels (CH)

Custom-‐er Rel. (CR)

Customer Segments (CS)

SEMPORCES Business Chain (Ecosystem)

S: Supplier/ Inputs

E: Employ-‐ees, etc.

M: Mach-‐inery

P: Process/ Strategy

O: Product/ Service

R: Retailers/ Distributors/CRM

C: Customer

E: Environ-‐ment

DESCRIPTIONS (Content: Outcomes/ Ac4vi4es/Tasks)

Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)

Financial Value or Profit Trade-‐off

Cost (-‐)

Benefit (+)

Social Value or People Trade-‐off

Cost

Benefit

Env. Value or Planet Trade-‐off

Cost

Benefit

Value Proposi-on Act (VPA) as “Front End” of the Global Business Model Canvas -‐ Overview

Copyright 2013. Dr. Rod King. [email protected] & hYp://businessmodels.ning.com & hYp://twiYer.com/RodKuhnKing


BUSINESS MODEL JOBS-‐TO-‐BE-‐DONE

Design Shared Value (Supply Infrastructure: Internal System)

“Back End”

Deliver Shared Value (Demand Infrastructure: External)

“Front End”

Business Model Environ-‐ment (BME)

Learn Ab

out B

usiness S

ystem

(PRO

JECT

/TOOL)

Business Model Canvas (Extended Business)

Key Partners (KP)

Key Resources (KR)

Key Ac-vi-es (KA)

Value Prop. (VP)

Channels (CH)

Custom-‐er Rel. (CR)

Customer Segments (CS)

SEMPORCES Business Chain (Ecosystem)

S: Supplier/ Inputs

E: Employ-‐ees, etc.

M: Mach-‐inery

P: Process/ Strategy

O: Product/ Service

R: Retailers/ Distributors/CRM

C: Customer

E: Environ-‐ment

DESCRIPTIONS (Content: Outcomes/ Ac4vi4es/Tasks)

Man

age Shared

Value

(S: Shared Va

lue/Mission/IM

PACT

ANALYSIS)

Financial Value or Profit Trade-‐off

Cost (-‐)

Benefit (+)

Social Value or People Trade-‐off

Cost

Benefit

Env. Value or Planet Trade-‐off

Cost

Benefit

Value Proposi-on Model (VPM) as “Front End” of the Global Business Model Canvas

Copyright 2013. Dr. Rod King. [email protected] & hYp://businessmodels.ning.com & hYp://twiYer.com/RodKuhnKing


1.   Design a Magne-c Value Proposi-on (MVP) That Solves a Personal or Team Problem

2. Design a Magne-c Value Proposi-on (MVP) That

Solves a Community, Society, or Social Problem 3. Design a Magne-c Value Proposi-on (MVP) That

Solves a Business or Enterprise (For-‐Profit) Problem 4. Design a Magne-c Value Proposi-on (MVP) That

Solves a Global (Worldwide) Problem

EXERCISES ON DESIGNING A MAGNETIC VALUE PROPOSITION A New Way to Visually Share, Capture, Organize, Present, and Evaluate Human-‐centered Problems


Simply Map

Your Inspira-ons, Business Ideas, and Projects

Using

The Value Proposi-on Act (VPA)

Appendix

Value Proposi-on Act Real-‐4me Case Study

VPA

THE CORE PROBLEM Fuzzy or Poorly Presented Value Proposi4ons (That are Not “TwiYerable”)

About 90% of Startups Fail Due to

Fuzzy or Poorly Presented Value Proposi-ons The 3 Habits of Failing Startups

1.  Failing startups do not explicitly formulate or systema4cally ar4culate a customer value proposi4on

2.  Failing startups do not have a value proposi4on that reflects the fitness triangle of “customer-‐product-‐jobs to be done”

3.  Failing startups do not systema4cally, con4nuously, or inexpensively test customer value proposi4ons to determine impact on customer engagement, acquisi4on, and reten4on as well as profit


THE SOLUTION One-‐minute Value Proposi4on Act


VPA


Value Proposi-on Act (VPA) for Tool of Value Proposi-on Act (VPA) – The 4 Trade-‐off Scenes Collabora4vely Design a Magne4c Value Proposi4on (MVP) That Resonates, Inspires, Delights, Empowers, and Surprises

WHO? WHAT?

HOW? WHERE? WHEN?


VPA

VALUE PROPOSITION PLOT Similarity: Visual Marke4ng Tool

Differen/a/on: 1-‐Minute Value Prop. WHY (ACT/BUY, NOW)?

ü  Present (“As Is”)

Marketer/

(Busy; limited resources; marke-ng problems; few or no customers)


Triangula-on of Value Proposi-on Act (VPA) for Tool of Value Proposi-on Act (VPA) Collabora4vely Design a Magne4c Value Proposi4on (MVP) That Resonates, Inspires, Delights, Empowers, and Surprises

WHO? WHAT?

HOW? WHERE? WHEN?


VPA




Marketer/



Value Proposi-on Act (VPA) for Tool of Value Proposi-on Act (VPA) Collabora4vely Design a Magne4c Value Proposi4on (MVP) That Resonates, Inspires, Delights, Empowers, and Surprises

Marketer/


WHO? WHAT?

HOW? WHERE? WHEN?


VPA








-‐

+


-‐ +


-‐ +

WHO? WHAT?

HOW? WHERE? WHEN?

q  Past (“As Was”) ü  Present (“As Is”) q  Future (“To Be”)




VPA


Problem-‐Solu/on (Market-‐Product) Fit



-‐

+


-‐ +


-‐ +




WHO? WHAT?

HOW? WHERE? WHEN?

q  Past (“As Was”) ü  Present (“As Is”) q  Future (“To Be”)




VPA


ENVIRONMENT

GLOBAL BUSINESS MODEL (GBM) STORYBOARD for Tool of Value Proposi-on Act (VPA)


Suppliers/ Partners

Processes/ Ac4vi4es

Internal Resources

(Employees; IP; etc.)


Customers Value

Proposi-on (Plot)

Cost (Structure)

Profit

Core Competence


BUSINESS MODEL For Tool of VPA

Revenue (Streams)

Shared Value

Product/ Service

LEARNING

Jobs-‐To-‐Get-‐Done

VALUE PROPOSITION GENERATOR FOR VALUE PROPOSITION ACT (VPA) Collabora4vely Document, Deconstruct, Construct, and Compare Value Proposi4on Acts (VPAs)


CUSTOMER/CONSUMER




VDD University hYp://businessmodels.ning. com

Visually Design a Magne/c Value Proposi/on (MVP) in 1 Minute

Master the Art and Science of Designing Magne4c Value Proposi4ons (MVPs)

VPA


Elements of Value Proposi-on Act

For Value Proposi-on Act

(VPA)

TRADE-‐OFF SCENE FOR VALUE PROPOSITION PLOT OF VALUE PROPOSITION ACT (VPA)



-‐

+



Visually Design a Magne/c Value Proposi/on (MVP) in 1 Minute

CHECKLIST FOR VALUE PROPOSITION PLOT OF VALUE PROPOSITION ACT (VPA)



-‐

+



q  What features of the product/service/tool/business model are SIMILAR to those in the exis4ng marketplace?

q  What features of the product/service/tool/business model are DIFFERENT from those in the exis4ng marketplace?

q  What is your Value Proposi4on Statement (VPS) for the product/service/tool? q  Are you sa4sfied with the effec4veness of your Value Proposi4on Statement (VPS)?


level of pain regarding the value proposi4on (plot)?


level of delight regarding the value proposi4on plot (statement)?

TRADE-‐OFF SCENE FOR CUSTOMER/CONSUMER OF VALUE PROPOSITION ACT (VPA)



-‐

+


Marketer/


REAL-‐TIME TRADE-‐OFF SCENE FOR CUSTOMER/CONSUMER OF VALUE PROPOSITION ACT (VPA)



-‐

+


I love the story format of your Value Proposi4on Model. The Value Plot is absolutely crea4ve as you set the mo4on for the 3-‐Act Structure of your value proposi4on story. I like the graphics, the movement between the scenes and the end of the story. Climax at its best.

Really great model/tool to explore/refine/clarify one's value proposi4on, Incorpora4ng/ integra4ng many of the current mainstream frameworks from the gurus (Drucker, Christensen, Osterwalder et al.)

Congratula4ons Dear Rod! Extremely Interes4ng! And Useful!

Rod, the MVP is a very clever tool. I much prefer the term Magne4c Value Proposi4on to the classic "Elevator Pitch”. Thank you for sharing this tool.


CHECKLIST FOR CUSTOMER/CONSUMER OF VALUE PROPOSITION ACT (VPA)



-‐

+



q  Who are the target customers/consumers?

q  How would you describe the persona and/or demographic profile of the most valuable customer/consumer?

q  What are important dislikes or pains of the customer/consumer? q  What fundamental problems are customers/

consumers trying to solve?

q  What are important likes or delights of the customer/consumer?

TRADE-‐OFF SCENE FOR JOBS-‐TO-‐GET-‐DONE OF VALUE PROPOSITION ACT (VPA)



-‐

+



CHECKLIST FOR JOBS-‐TO-‐GET-‐DONE OF VALUE PROPOSITION ACT (VPA)



-‐

+



q  What are typical obstacles or barriers that

prevent customers from effec4vely using the product/service/tool?

q  What are nega/ve evalua4on criteria for Jobs-‐To-‐Be-‐Done or undesirable Outcomes?

q  What are typical factors that help customers to

effec4vely use the product/service/tool?

q  What are posi/ve evalua4on criteria for Jobs-‐To-‐Be-‐Done or desirable Outcomes?

q  For what physical/intellectual/emo4onal/spiritual (P.I.E.S.) events, goals, ac4vi4es, and tasks do customers use the product/service/tool?

q  What is the most important event, goal, ac4vity, and/or task in which customers use the product/service/tool?

q  In what places, loca4ons, or areas do customers use the product/service/tool?

q  When (during the day/week/month/year) do customers use the product/service/tool?

TRADE-‐OFF SCENE FOR PRODUCT/SERVICE/TOOL OF VALUE PROPOSITION ACT (VPA)



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+


VPA


CHECKLIST FOR PRODUCT/SERVICE/TOOL OF VALUE PROPOSITION ACT (VPA)



-‐

+


VPM


q  What is (the name and product category of) the main product/service/tool that is (to be) offered to customers?

q  What are the key features of the product?

q  What are 3 serious pains or problems

encountered by customers when they use the product/service/tool?

q  What are 3 important benefits that the

product/service/tool offers to customers?

TYPOLOGY OF MARKETING PROBLEMS 3 Categories of Marke/ng Problems

Marke-ng Problems

Customer Engagement Problems

Customer Acquisi-on Problems

Customer Reten-on Problems


WANTED 1 Billion Entrepreneurs for Tes-ng the One-‐Minute Value Proposi-on Act VPA

The Value Proposi-on Act (VPA) is a One-‐Minute Value Proposi-on Tool.

As a Visual Marke-ng Tool,

the Value Proposi-on Act Helps Entrepreneurs and Startups To Uniquely Prepare and Share -‐ in 1 Minute -‐

Magne4c Value Proposi4on for Products, Services, and Organiza-ons.

Entrepreneurs and Startups Use the VPA When They Want to Engage, Acquire, and Retain More Customers.

Would You Like to Test-‐Drive the VPA for Your Product or Service?

In One Minute?


Acknowledgement The Value Proposi4on Act (VPA) is a unique synthesis of the best ideas for designing, managing, and tes4ng customer value proposi-ons.

The VPA mainly draws from the ideas, frameworks, and tools of the following authors:

q  Peter Drucker: Marke-ng and Innova-on as the Two Basic Func-ons of an Enterprise

q  Michael Porter: Value Proposi-on Triangle of “Customers-‐Needs-‐Price”; Trade-‐off; 3 Generic Strategies; Shared Value

q  Clayton Christensen: Job-‐To-‐Be-‐Done; Disrup-ve Innova-on

q  Anthony Ulwick: Outcome Driven Innova-on

q  W. Chan Kim & Renee Mauborgne: Blue Ocean Strategy; Strategy Canvas; Value Factors; Value Curve; 4 Ac-ons Grid

q  James Anderson & Wouter Van Rossum: Point of Parity & Point of Difference

q  Alexander Osterwalder: Value Proposi-on Canvas & Business Model Canvas

q  Eric Ries: Lean Startup (Problem-‐Solu4on Fit; Market-‐Product Fit); Steve Blank: Customer Development (“Get Out Of Building”)

q  Neil Borden’s Marke-ng Mix & E. J. McCarthy’s 4Ps of Marke-ng

q  Simon Sinek: Golden Circle & Start With Why

q  Genrich Altshuller: Theory of Inven-ve Problem Solving (“TRIZ”) Especially Contradic-ons; Contradic-on Matrix; Mul-screen Diagram; Substance-‐Field Analysis; Ideal Final Result; Evolu-onary PaWerns

q  Eli GoldraW: Theory of Constraints Especially Undesirable and Desirable Effects; Weakest Link in Chain #VPGen. Dr. Rod King. [email protected] & hYp://businessmodels.ning.com & hYp://twiYer.com/RodKuhnKing

Visually Document And

Share Your Value Proposi-on Acts


Inexpensively Translate and Test Value Proposi-on Acts

Especially Using Google AdWords,

Landing (Minimum Web) Pages, And

Getng Out of the Enterprise


Finally …

What are Your Ideas and Sugges-ons For Improving This Visual Handbook

On The 1 Minute-‐Value Proposi-on Act (VPA)?


Date post:	20-Aug-2015
Category:	Business
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