Business 101 Value Proposition
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Value Proposition Design, Competing Value Proposition Mental Models, Jobs-to-be-Done, Pain Points, and the Purpose of Business
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Business 101 Value Proposition
- 1. Business 101.1 A class in business. And entrepreneurship. Fall 2016 NYU ITP October 3, 2016 Josh Knowles Jen van der Meer Extra love from Tom Igoe And the Leslie E-Lab
- 2. Syllabus Map START + Form Teams Business Models Customer Development How to Interview Value + The Purpose of Business Values Motivation Team Customer Relationships + Channels Analytics Key Resources Activities Partners Biggest Vision Analyze Test The Money Plan MVP Turning Insights Into Features More MVP How small, How big? Launch MVP Lessons Learned Go/No Go? Sketch Paper Prototype Oz Test Smallest MVP Tech Architecture
- 3. The center of a business model: value proposition Versions of the truth: Value Prop in Practice Crossing the Chasm The Value prop Canvas (osterwalder) Value + The Purpose of Business Smallest MVP
- 4. TEAMS Fragrances Yu Shi Joy (Eun Jee Kim) Igor Carrasco Fashion Socent Soy (Soyeon Chung) Peter Winne Asad Lilani Lin Yang Prisons Social Community for Designers Dhruv Daniel Silber Baker Molly O’Shea Isobel Donjon Predictive Social Listening Tattoo Artist Matching Fernanda Eric Ramirez Javiera Valle Toro Fashion 3 D Angie Aguilar Olivia Ergonomic Design Ashley Williams Yan Max Theony Malcolm Pittman
- 6. CREATED BY: CREATED FOR: VERSION: Customer Segments Customer Relationships Value Proposition Key ActivitiesPartners Key Resources Customer Channels RevenuesCosts Source: Strategyzer Osterwalder, Pigneur HOW WILL YOUR BUSINESS WORK? Whom do you help? What pains do you solve? What do you uniquely offer? Distinct segmentsWhere do we reach them? How do we get keep and grow? How will you charge? What will it cost? What do you need to have? How do you do it? Who will help you?
- 8. CREATED BY: CREATED FOR: VERSION: Customer Segments Customer Relationships Value Proposition Key ActivitiesPartners Key Resources Customer Channels RevenuesCosts Source: Strategyzer Osterwalder, Pigneur GET TO VALUE PROPOSITION FIT
- 9. CREATED BY: CREATED FOR: VERSION: Customer Segments Customer Relationships Value Proposition Key ActivitiesPartners Key Resources Customer Channels RevenuesCosts Source: Strategyzer Osterwalder, Pigneur AND THE REST OF THE BUSINESS MODEL WILL FOLLOW
- 11. Gain Creators Pain Relievers Pains Gains Products & Services Customer Job(s) Value Proposition Customer Segment copyright: Strategyzer AG The makers of Business Model Generation and Strategyzer The Value Proposition Canvas strategyzer.com
- 12. WHAT IS A BUSINESS MODEL FOR?
- 13. DEFINE WHAT IS A VALUE PROPOSITION
- 14. VALUE PROPOSITION VS. VALUE PROPOSITION BRANDING VS. INNOVATION THE VALUE PROP SCHOOLS THE VALUE PROP CONFUSION
- 15. VALUE PROPOSITION VALUE PROPOSITION PAIN POINTSBRAND PILLARS JOBS TO BE DONEREASONS TO BELIEVE PAIN RELIEVERS DIFFERENTIATION ORIGIN: CHRISTENSENORIGIN: VALUE PROP CANVAS STRATEGY, MAD AVE INNOVATION THEORY UNIQUE SELLING PROPS
- 16. THE PROBLEM FACTORY VIEW OF VALUE CREATION R&D This is where design and brand types got to play This was typically very engineering / science heavy NPD
- 17. “The social responsibility of corporations is to increase profits.” Milton Friedman, 1970 SHAREHOLDER VIEW OF COMPANIES
- 18. THE SOLUTIONEEr’S SOLUTION INNOVATORS VIEW OF VALUE CREATION
- 19. THE SOLUTIONEEr’S SOLUTION INNOVATORS VIEW OF VALUE CREATION Disruption Theory - Christensen Innovator’s Solution
- 20. THE SOLUTIONEEr’S SOLUTION INNOVATORS VIEW OF VALUE CREATION “Excuse me, but could you please tell me what job you were needing to get done for yourself when you came here to hire that milkshake?”
- 21. THE SOLUTION SOLUTION INNOVATORS VIEW OF VALUE CREATION
- 22. Job-defined markets are generally much larger than product category–defined markets. Marketers who are stuck in the mental trap that equates market size with product categories don’t understand who they are competing against from the customer’s point of view. Clayton Christensen, Innovator’s Solution MILKSHAKE INSIGHTS
- 23. The .. mistake was to adopt a narrow view of the type of food people have always eaten in the morning, as if all habits were deeply rooted traditions instead of accumulated accidents. Neither the shake itself nor the history of breakfast mattered as much as customers needing food to do a nontraditional job – serve as sustenance and amusement for their morning commute – for which they hired the milkshake. Clay Shirky, Cognitive Surplus MORE MILKSHAKE MUSINGS
- 25. VALIDATION + GENERATION Be playful with your value proposition, human-centered, focused on whom you are here to serve Jen van der Meer
- 26. VALIDATION + GENERATION LET’S PLAY
- 28. VALUE PROP MADLIBS VALUE PROPOSITION My organization is developing company name defined offering to help Why we’re better: to solve target customer segment defined problem or pain our differentiation Why we’re believable: our proof point, secret sauce
- 31. NOW YOU
- 32. VALUE PROP MADLIBS VALUE PROPOSITION My organization is developing company name defined offering to help Why we’re better: to solve target customer segment defined problem or pain our differentiation Why we’re believable: our proof point, secret sauce
- 33. PAIN TIME
- 34. WHY DOES PAIN MATTER IN STARTUPS?
- 35. WHY DOES PAIN MATTER IN STARTUPS? CROSSING THE CHASM Innovators 2.5% Early Adopters 13.5% Early Majority 34% Late Majority 34% Laggards 16% Geoffrey Moore: Crossing the Chasm. At the start focus here
- 36. WHY DOES PAIN MATTER IN STARTUPS? CROSSING THE CHASM Innovators 2.5% Early Adopters 13.5% Early Majority 34% Late Majority 34% Laggards 16% Geoffrey Moore: Crossing the Chasm. The most difficult step is making the transition between visionaries (early adopters) and pragmatists (early majority). You do this by reducing the risks that the pragmatists are unwilling to take on
- 37. WHY DOES PAIN MATTER IN STARTUPS? QUIZ: WHERE SHOULD YOU FOCUS AND WHY? Innovators 2.5% Early Adopters 13.5% Early Majority 34% Late Majority 34% Laggards 16% QUIZ: WHERE SHOULD YOU NOT FOCUS AND WHY?
- 38. WHY DOES PAIN MATTER IN STARTUPS? FIND THE GROWTH SKI JUMP Innovators 2.5% Early Adopters 13.5% Early Majority 34% Late Majority 34% Laggards 16% Geoffrey Moore: Crossing the Chasm.
- 39. WHY DOES PAIN MATTER IN STARTUPS? FIND THE GROWTH SKI JUMP + GUARD RAILS Agile Development Customer Discovery Have we identified a customer segment with a clearly defined, known pain point? Does out offer and experience deliver a solution to our customer’s problem? Solution Problem
- 41. Gain Creators Pain Relievers Pains Gains Products & Services Customer Job(s) Value Proposition Customer Segment copyright: Strategyzer AG The makers of Business Model Generation and Strategyzer The Value Proposition Canvas strategyzer.com
- 42. FINAL Q TODAY
- 43. DOES THE CURRENT WAY WE MAKE NEW COMPANIES CHALLENGE THE SHAREHOLDER-ENTERIC VIEW OF THE PURPOSE OF A COMPANY?
- 44. LE FIN
- 46. CONTACT: Jen or Josh for Office Hours