In the current ecosystem where technology has been able to spread scalability in every stage of the value chain, the ability to generate an attractive value proposition is becoming more and more important.
Digital transformation is changing the way companies design or create value. Either internal or external, it is important to feed the structure rightly with the objective of reinforcing the system itself. Intangibles are the reason that make things work, bring talent people on board and overcome challenges.
Organizations, no matter the size, are becoming decentralized units where different kind of skills set are needed. The ability to build your network across your company working in cross-functional teams while gaining the trust is not an easy process. In fact, companies fail dramatically at this point not because they are not able to cope with the constant change, but because at some point the value proposition is not clear and different stakeholders lose their understanding of why. Failing in perceiving why the company is doing what they are doing is the first stone for failing.
Value proposition is crucial for investors, entrepreneurs and employees, but they way those different stakeholders look at it is completely different. As entrepreneurs or employees the most important thing is your ability to execute, learn and question your value proposition.
One of the best methodologies, in my humble opinion, to assess and implement a value proposition is digital transformation blocks, you can find a infographic here. To be more specific, the process, when it come to value proposition, can be limit to 5 different steps shown below
All the steps will vary from company to company, industry to industry but the purpose is still the same :
“Fail Fast to Succeed Faster” by Lean Startup Machine
It is all about to allocate resources quickly, test the market, collect information to test your hypothesis and take a business decision based on data.
Accordingly, the general framework would be:
- Value Proposition Canvas
- Come up with a prototype to test the market
- Experiment with design
- Gather metrics and define your key metric, the one relevant for your business
- A/B test
- Gather information from users
- Market insights and learning
- Take a decision and feed your Value Proposition
It is worth it to remind everyone that there is no perfect process, framework or formula. That been said, if you apply a business sense with a Customer centric focus you will be able to reach your early adopter within your market triggering your innovation diffusion chain, those that are really interesting on your value proposition.