Value Map Flashcards
Assess Your Value Proposition Design Skills:
- Entrepreneurial Knowledge
- Tool Skills
- Design Thinking Skills
- Customer Empathy
- Experimentation Skills
Value Proposition Design Skills: Entrepreneurial
Knowledge
You:
* enjoy trying out new things
* don’t see the risk of failing as a threat but an opportunity to learn
and progress
* easily navigate between the strategic and the tactical
Value Proposition Design Skills: Tool Skills
You:
* systematically use the Tools:
Value Proposition, Business Model Canvas etc.
* Focus on process:
Search for great value propositions and business models
Value Proposition Design Skills: Design Thinking
Skills
You:
* explore multiple alternatives before picking and refining a particular
direction
* are comfortable with the nonlinear and iterative nature of value
creation
Value Proposition Design Skills: Customer
Empathy
You:
* relentlessly take a customer perspective
* are even better at listening to customers than selling to them
Step into Your Customers‘ Shoes
- Select customer segments
- Identify customer jobs
- Identify customer pains
- Identify customer gains
- Prioritize jobs, pains, and gains
Customer Segments: Heterogeneity in Markets
Customer Segments: Criteria for Customer Segments
Customer Segments: Properties of Good Segment Definitions
Customer Segments: Heterogeneity in Markets
- Variation in customer needs is the primary
motive for market segmentation. - Most companies will identify and target the
most attractive market segments that they can
effectively serve.
Customer Segments: Criteria for Customer Segments
- Psychographic
(Status, Lifestyle, Beliefs, Attitudes, Social Groups, …) - Behavioral
(Solution Needs, Pricing, Media usage, Buying Channel
usage, etc.) - Geographic (Location)
- Demographics (Gender, Age, etc.) – increasingly irrelevant
Customer Segments: Properties of Good Segment Definitions
- Identifiable: clearly defined and distinguishable – to find
- Sizable: large enough to serve economically
- Accessible can be reached through media/buying channel
- Stable over time (important in developing econ)
- Responsive responds to marketing actions
- Actionable resources to target effectively
Ranking Jobs, Pains, & Gains of Your Innovation
S11 F09
Value Proposition Design Skills: Experimentation
Skills
You:
* systematically seek evidence that supports your ideas
* test your visions
* experiment at the earliest stages to learn what works and what
doesn’t
Prototyping‘s Value
„Old Thing“ – Forget it!
* Few business models dominate an industry
* Outside-in: industry defines business models
* Linear thinking
* Early choice of business model
* Focus:
* Implementation
* Efficiency
„New Thing“ – Just Do it!
* Multiple business models in and across industries
* Inside-out: business models transform industries
* Opportunistic thinking
* Exploratory search for business model
* Focus:
* Design
* Value- and efficiency-focused
10 Prototype Principles
- Make it visual and tangible
- Embrace a beginner’s mind
- Don’t fall in love with first
ideas – create alternatives - Feel comfortable in a “liquid
state” - Start with low fidelity, iterate,
and refine - Expose your work entirely –
seek criticism - Learn faster by failing early,
often, and cheaply - Use creativity techniques
- Create “shrek models”
- Track learnings, insights, and
progress
10 Characteristics of Great Value Propositions (I)
- Are embedded in great business models
- Focus on the jobs, pains, and gains that matter most to customers
- Focus on unsatisfied jobs, unresolved pains, and unrealized gains
- Target few jobs, pains, and gains, but do so extremely well
- Ge beyond functional jobs and address emotional and social jobs
- Align with how customers measure success
- Focus on jobs, pains, and gains that a lot of people have or that
some will pay a lot of money for
- Focus on jobs, pains, and gains that a lot of people have or that
- Differentiate from competition on jobs, pains, and gains that
customers care about - Outperform competition substantially on at least one dimension
- Are difficult to copy
Combine Your Insights: Value Map
…describes the features of a specific value proposition in your business
model in a more structured and detailed way.
Components:
* Products and services
* Gain creators
* Pain relievers
Match with for „Whom“: Customer Profile
Integrate Value Map & Customer Profile
…describes a specific customer segment in your business model in a
more structured way.
Components:
* Customer jobs
* Gains
* Pains
➡️ Every Segment has a separate Value Map
Integrate Value Map & Customer Profile
You achieve Fit when your value map meets your customers profile
S21 F09
Three Kinds of Fit
- Problem-Solution Fit
* Have evidence that customers care about certain jobs, pains, and gains
* Designed a value proposition that addresses those jobs, pains, and gains - Product-Market Fit
* Have evidence that your products/services, pain relievers, and gain creators
are actually creating customer value and getting traction in the market - Business-Model Fit
* Have evidence that your value proposition can be embedded in a profitable
and scalable business mode
