Here is a short video from the developers of the Business Model Canvas and the Value Proposition Canvas. It’s less than 5 minutes long.
I’ve always felt that the value proposition is at the core of a business and often a great place to focus if the business needs to get unstuck or have a performance turnaround.
What is a value proposition? There are lots of definitions but, at the moment, let’s go with…
How you meet customers needs and differentiate your business away from competitors with an advantage that’s better, cheaper or different.
The logic behind the Business Model Canvas was introduced in the book Business Model Generation. The authors followed it up with a more detailed look at the connection between two of the nine elements in the Business Model Canvas in a book called Value Proposition Design. The two segments were the Products & Services and the Customer Segments.
I’ve been critical of the books for having more style than substance. They look great but they don’t provide enough information and guidance. The underlying concepts are sound, even if they use slightly different language than I prefer.
I also worry that the exercise can be reduced to form filling rather than deep thinking. It’s the old analogy that you can lead a horse to water but you can’t make it drink.” You can provide a useful framework but you can’t make business managers and owners consider all the implications. Too many are intellectually lazy but hopefully you’re different.
Why I Like The Video
- Value Propositions are poorly understood at the strategic/marketing levels. The Value Proposition Canvas can help you to focus on important issues.
- The video is very short so it gives you a chance to watch it and decide for yourself whether you like the approach.