value proposition canvas
The Value Proposition Canvas is a framework which helps ensure that a solution is good fit around what the customer values and needs. It is part of a bigger framework - Business Model Canvas, which we will discuss in the next section.
The Value Proposition Canvas is created by Alex Osterwalder, inventor of the Business Model Canvas, and co-author of Business Model Generation with Yves Pigneur. It breaks down the proposed solution to its discrete element of value proposition. The canvas is made up of two blocks: on the right side, it’s the Customer Profile, which is divided into Jobs-to-be-done, Pains, and Gains; On the left side, it’s the Value Proposition, also subdivided into three sections - Products & Services, Gain Creators, and Pain Relievers.
A. Customer/User Profile: A profile is created for each customer/user segment, as each segment has distinct ‘jobs to be done’, pains and gains.
1. Jobs-to-be-done: This is about what the user is trying to do. It includes all the tasks, user is trying to perform and the needs they want to satisfy.
2. Pains: This one encompasses everything that annoys your customer while they are performing their jobs-to-be-done, such as negative experiences and emotions, challenges, risks involved, financial costs, mistakes, and consequences, etc.
3. Gains: They are all the benefits your customer expects or wishes – or even something that would surprise them positively – whether they are functional, emotional, social or financial. In short, everything that delight them and make their life easier, more joyful or more successful.
B. Value Map:
1. Solution (Product & Service): Include all the solution you are planning to deliver, which create gain and relieve pain, and which underpin the creation of value for the customer.
2. Gain Creator: Involve how the product or service creates customer gains, how it offers added value to the customer, and how it delights them.
3. Pain Reliever: Describe how your product/service relieves the customer’s pains. Identify if you reduce their costs, negative feelings, efforts, risks, negative consequences etc.
After listing gain creators, pain relievers and products & services, each point identified can be ranked from ‘nice to have’ to ‘essential’ in terms of value to the user. A fit is achieved when the solution offered as part of the value proposition address the most significant pains and gains from the customer profile.
For more details, please refer https://businessmodelanalyst.com/value-proposition-canvas/
Business model canvas
A business model canvas is a one-page summary describing the high-level strategic details needed to get a solution (product, service, process or business model) successfully to the market.
The canvas was invented by Alex Osterwalder, a Swiss business theorist and entrepreneur as a part of his PhD research. The Business Model Canvas was elaborated in a book called Business Model Generation co-authored with his graduate supervisor Yves Pigneur, a Belgian computer scientist. The proposed Solutions are elaborated in form of Business Model Canvas.
1. Customer/User segments: These are the groups of users/customer, we are creating solution for.
2. Customer/User Relationship: We need to establish the type of relationship we will have with users, over the entire user Journey. This sets the guardrails for the culture, systems and tools that need to be established by the company.
3. Channels: Channels are the touchpoints that let our customer/users connect with our company. Channels play a role in raising awareness of our solution delivering our value propositions to them.
4. Revenue streams: Revenues streams are the sources from which a company generates money by selling the solutions.
5. Key Activities: What are the activities/ tasks that need to be completed to fulfill our business purpose?
6. Key Resources: This is where we list down which key resources we need to carry out our key activities, in order to create our value proposition.
7. Key Partners: Key partners are the external companies or suppliers that will help carry out our key activities.
8. Cost structure: In this block, we identify all the costs associated with operating our business model.
9. Value Proposition: This is the building block that is at the heart of the business model canvas. A value proposition should be unique or should be different from that of your competitors. It is detailed in the previous section.
For more details, please refer https://businessmodelanalyst.com/business-model-canvas/