product vision and strategy - value propositions

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  • Product Vision & Strategy Lessons Learned

    PREPARED BY

    Doug Henderson

    FrostHub

    www.frosthub.com

    @dougehenderson

    March 14, 2015

  • DEFINITION BUSINESS MODEL

    A business model describes the

    rationale of how and organization

    creates, delivers and captures value

    !

  • BUSINESS MODEL CANVAS

    The Business Model Canvas

    Revenue Streams

    Channels

    Customer SegmentsValue PropositionsKey ActivitiesKey Partners

    Key Resources

    Cost Structure

    Customer Relationships

    Designed by: Date: Version:Designed for:

    designed by: Business Model Foundry AGThe makers of Business Model Generation and Strategyzer

    This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit:http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA.

    What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?

    is your business moreCost Driven (leanest cost structure, low price value proposition, maximum automation, extensive outsourcing)Value Driven (focused on value creation, premium value proposition)

    sample characteristicsFixed Costs (salaries, rents, utilities)Variable costsEconomies of scaleEconomies of scope

    Through which Channels do our Customer Segments want to be reached? How are we reaching them now?How are our Channels integrated? Which ones work best?Which ones are most cost-efficient? How are we integrating them with customer routines?

    channel phases1. Awareness

    How do we raise awareness about our companys products and services?2. Evaluation

    How do we help customers evaluate our organizations Value Proposition?3. Purchase

    How do we allow customers to purchase specific products and services?4. Delivery

    How do we deliver a Value Proposition to customers?5. After sales

    How do we provide post-purchase customer support?

    For what value are our customers really willing to pay?For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues?

    For whom are we creating value?Who are our most important customers?

    Mass MarketNiche MarketSegmentedDiversifiedMulti-sided Platform

    What type of relationship does each of our Customer Segments expect us to establish and maintain with them?Which ones have we established? How are they integrated with the rest of our business model?How costly are they?

    examplesPersonal assistanceDedicated Personal AssistanceSelf-ServiceAutomated ServicesCommunitiesCo-creation

    What Key Activities do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue streams?

    catergoriesProductionProblem SolvingPlatform/Network

    What Key Resources do our Value Propositions require?Our Distribution Channels? Customer Relationships?Revenue Streams?

    types of resourcesPhysicalIntellectual (brand patents, copyrights, data)HumanFinancial

    Who are our Key Partners? Who are our key suppliers?Which Key Resources are we acquairing from partners?Which Key Activities do partners perform?

    motivations for partnershipsOptimization and economy Reduction of risk and uncertaintyAcquisition of particular resources and activities

    What value do we deliver to the customer?Which one of our customers problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment?Which customer needs are we satisfying?

    characteristicsNewnessPerformanceCustomizationGetting the Job DoneDesignBrand/StatusPriceCost ReductionRisk ReductionAccessibilityConvenience/Usability

    typesAsset saleUsage feeSubscription FeesLending/Renting/LeasingLicensingBrokerage feesAdvertising

    fixed pricingList PriceProduct feature dependentCustomer segment dependentVolume dependent

    dynamic pricingNegotiation (bargaining)Yield ManagementReal-time-Market

    strategyzer.com

  • CUSTOMER SEGMENTS

    FOR WHOM ARE WE CREATING VALUE?

    WHO ARE THE MOST IMPORTANT CUSTOMERS?

    WHO HAS PROBLEMS WORTH SOLVING?

  • CUSTOMER SEGMENT TYPES

    MASS MARKET

    NICHE MARKET

    SEGMENTED

    MULTI-SIDED PLATFORMS

    DIVERSIFIED

  • TARGET CUSTOMERS

    YOU ARE NOT THE TARGET AUDIENCE

    DONT MAKE ASSUMPTIONS BECAUSE YOU WOULD USE IT

  • CUSTOMER UNDERSTANDING

    RESEARCH

    $

    OBSERVATIONS WHERE THEY WOULD USE YOUR PRODUCT OR SERVICE

    TALK TO A LOT OF PEOPLE TO GAIN INSIGHT

    FORMULATE YOUR IDEAL CUSTOMER

  • TEST YOUR HYPOTHESES

    SKETCH A SIMPLE EXPERIENCE POSTER

    $

    OBSERVATION WHERE THEY WOULD USE YOUR PRODUCT OR SERVICE

    TALK TO A LOT OF PEOPLE TO GAIN INSIGHT

    DONT GET HUNG UP ON THE DESIGN

  • VALUE PROPOSITION

    SINGLE, CLEAR, COMPELLING MESSAGE THAT STATES WHY YOU ARE

    DIFFERENT AND WORTH PAYING ATTENTION TO

    %

    DESCRIBES THE BENEFITS CUSTOMERS CAN EXPECT FROM YOUR

    PRODUCTS AND SERVICES

    Uber Lyft

  • CHALLENGES

    BEING ABLE TO ARTICULATE THE VALUE TO A POTENTIAL CUSTOMER

    GETTING YOUR TEAM ON THE SAME PAGE

    CREATING THE VISION

    BENEFITS

    SIMPLE IS HARD

  • CUSTOMER PROFILE

    NEED TO VALIDATE

    %

  • VALUE MAP

    NEED TO VALIDATE

    %

  • USER STORIES

    AS A {role}, I WANT TO {goal/desire} SO THAT {benet}

    %

    DESCRIBES THE FUNCTIONALITY OF THE SYSTEM

    As a driver, I want to set the trucks cabin temperature so that the reghters

    are comfortable.

    ANYONE SHOULD BE ABLE TO UNDERSTAND THEM

  • It is a long way to the top if you want to rock and roll

    AC / DC

  • SCENARIO

    RECENTLY FORMED BAND

    &

    MUSICIANS WITH PASSION

    STARTING TO JAM AND GEL

    PLAYING COVERS IN THE GARAGE

    OPTIMISM HIGH AND SUCCESS IS UNKNOWN

  • START TO FOCUS

    START FORMULATING A PLAN

    '

    WHAT ARE WE GOING TO PLAY?

    WHO IS OUR AUDIENCE?

    WHERE DO WE START PLAYING?

    HOW DO WE WANT PEOPLE TO PERCEIVE US?

    HOW DO WE DESCRIBE OURSELVES?

  • PROTOTYPING

    CUT A DEMO

    (

    LOW COST & FIDELITY

    FEW SONGS

    GET FEEDBACK

    SHOWCASE CAPABILITIES

    WRITE MORE SONGS

  • TESTING THE MARKET

    LOW COST MARKETING

    )

    TOUR IN A VAN

    ON THE ROAD

    BUILD A FOLLOWING

    NOT GLAMOUROUS

    GRINDING IT OUT

  • FUNDING

    RECORD DEAL

    *

    GIVE UP OWNERSHIP RIGHTS

    INVEST IN ALBUM AND TOURING

    COMPROMISE YOUR VALUES?

    THINKING SUCCESS IS LIKELY

  • CHANGES

    REPLACE A BAND MEMBER

    *

    GET NEW MANAGEMENT

    CHANGE THE SOUND

  • DISRUPTION

    GREAT BAND CHANGES THE MUSIC SCENE

    +

    COMPETITION

    COPY CATS

    OTHER BANDS OBSOLETE

    MAJOR SHIFT IN EXPECTATIONS

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