Innovations that Make a Difference A Process for Designing Winning Value Propositions Workshop with Tomasz Rudolf
We create tools that guide teams through strategic decisions so that their businesses can make a difference
Have you ever had these challenges?
Competition has cought up
Commoditization eats up your margins and limits your sales
Your differentiation erodes over time.
You can see many options, but are not clear which one to choose
You do something for everybody, but everything for nobody in particular.
You are frustrated, lost or confused
How do you want to make a difference?
In all of that excitement related to coming out with new productsâ€Ś
…sometimes the basic questions never get asked
My story of struggle
How do I want to make a difference?
Total benefits Innovation assessment Roadmap New Ideas
Low cost access to good innovation practice
University & mentor brand Consortium brands Non-competitive environment
Target market & job done
2.000$ per company 30.000$ sponsorship Time to participate in survey workshop roundtables
Too young? Too academic?
who want to improve innovation performance
Using the Kissinger Principle, we created a strong value proposition
14 industry leaders joined the project 30 global thought leaders shared their knowledge
A successful innovation consulting business was bornâ€Ś
How do we want to make a difference?
The world is changing fast
We know we have got to change something
DOS was green screens
„It works as one”
It becomes far more difficult to articulate differentiation
„This is a phone that has no wires”
Youâ€™ve got to be really precise how youâ€™re going to differentiate
Value propositions evolve faster than you think
Without a clear market & benefits products fail in the marketplace
Engineers tend to rule
A product is thrown over the wall to the marketing department
The tendency is to throw in everything
What is the secret of creating winning value propositions?
Mohan Sawhney Kellogg School of Management Value Proposition Expert
An organization exists to create value for its customers
Value is subjective and defined by customer
You really need to understand who the target customer is
A car for soccer moms
What does her day look like? Fears? Concerns? Aspirations? What are the things that she does with her car?
The benefits need to exceed the cost of doing business with us
Value Proposition __________________________ Teeter Totter framework by Mohan Sawhney
Reasons to believe
Scenario of use
So what are the 4 steps to craft a winning value proposition?
Pick a challenge â€“ an existing or new product
Pick your target customer & scenario(s) of use
Get insights on current customer experience & frustrations
You need to think through the ”job” lens
Analyze the experience with alternatives
Customer insight is about walking in the customersâ€™ shoes
Be like children.
Talk to your customers
DuPont: “We’re a global company.”
Customers: ”What we want is local presence.”
Come up with value proposition hypotheses
Go and test
Capture the value proposition in the product
Keep checking if hypotheses are valid
A new value proposition needs to be at least 10X better than the status quo to get people over the inertia.
Create a messaging and positioning framework
Align everyone in the organization around that value proposition.
Stay focused – don’t get distracted by the shiny objects around you.
It is very tempting to move into a new segment or add new featuresâ€Ś
It takes years to build the products and reinforce the positioning
What are the biggest mistakes?
#1. Too broad definition of the target audience
#2. Lack of clarity of what your product does that cannot be done by substitutes
The customer always has an alternative
Scooters in India
When should we work on this?
Is there a strong bias in response to your value proposition?
Is there a perception that your offering is distinct, differentiated, relevant & valuable?
Does it translate into preference?
Sales and profits
Does it ultimately lead to sales and profits better than competition?
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Make a difference. ÂŠ iCanPilot 2011