Page 1

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


Volvo: Safety


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 products‌


…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

Total cost

Low cost access to good innovation practice

University & mentor brand Consortium brands Non-competitive environment

Target market & job done

industry leaders

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 born‌


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’s graphical”


„It works as one”


It becomes far more difficult to articulate differentiation


„This is a phone that has no wires”


You’ve got to be really precise how you’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?


The solution


Mohan Sawhney Kellogg School of Management Value Proposition Expert


VALUE

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?


BENEFITS COSTS

The benefits need to exceed the cost of doing business with us


Value Proposition __________________________ Teeter Totter framework by Mohan Sawhney

3

5

Promise

4

Differentiation

6

Reasons to believe

1

Target market

7

2

Total cost

Effort

Scenario of use

8

Risk


So what are the 4 steps to craft a winning value proposition?


Pick a challenge – 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 customers’ 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.


Southwest Airlines


IKEA


It is very tempting to move into a new segment or add new features‌


It takes years to build the products and reinforce the positioning


What are the biggest mistakes?


#1. Too broad definition of the target audience


Segway


#2. Lack of clarity of what your product does that cannot be done by substitutes


The customer always has an alternative


eBooks


Scooters in India


When should we work on this?


Is there a strong bias in response to your value proposition?


Perception

Is there a perception that your offering is distinct, differentiated, relevant & valuable?


Perception

Preference

Does it translate into preference?


Perception

Preference

Sales and profits

Does it ultimately lead to sales and profits better than competition?


Get started now!


Get a team together.


Step-by step guidance for your team. www.icanpilot.com


Make a difference. Š iCanPilot 2011

iCanPilot Value Proposition Design Workshop  

An iCanPilot workshop presenting the metod of Prof. Mohan Sawhney for designing winning value propositions. The method is available in iCanP...

Advertisement