Getting the value proposition right is an iterative process and critically important.
Steps to Create a New Value Proposition
Author / Founder
Chief Digital Evangelist
Alex Osterwalder explains that creating a new value proposition is similar to building a new business model. Both are part of the journey of going from idea to real business. Creating a value proposition is an iterative process of testing, modifying, and re-testing the idea until there is sufficient evidence that the value proposition will succeed.
The steps to creating a new value proposition, and the steps to creating a new business model are very similar. Basically, it’s the journey from going from idea to a real business -something tangible, right. So, you first design some conceptual prototypes, how can my value proposition look like. So it’s this whole idea of prototyping, looking at alternatives, and asking what could be.
And then the next step is immediately, how do I test my value proposition? So on paper it looks great, now let me test it with the market, because customers are ultimately your judge, jury, and executioner so you immediately want to test.
You test it and you’re going to find out you were wrong, you go back to designing it it sent iterative process, and you go through this iterative process until you have enough evidence that you are going to succeed.
Now the only difference between without creating great value propositions is in bringing them to market and creating great business models and bringing them to market is when you are focusing on the value proposition and you probably have an additional task of getting the business model right. So one never works without the other. And you need to embed great value proposition within a great business model.
Published Date: Jul 02, 2015
Author: Michael Krigsman
Episode ID: 133