Value Proposition Canvas

The Value Proposition Canvas is a “deep dive” based on the Business Model Canvas and – just like the Design Thinking method – puts the customer/user and its needs in the center of entrepreneurial action.

The question regarding the customer's needs is answered by true customer interviews. The design team enters the solution room not until the customer’s needs are fully understood.

Based on a profound understanding of its customers, an organization is in the position to design and enhance products and services that its customers want and love. A newly identified and hence unsatisfied customer need is often the source for innovation.

The Value Proposition Canvas is divided into two halves:

  1. The left-hand side describes the solution and is a tailor-made solution to meet the customer needs. This is where the design team has full discretion regarding structuring a solution.

  2. The right-hand side describes the customer profile and cannot be altered since the customer and his needs should be understood, but the design team cannot change him.

The right-hand side, which describes the customer profile, works with the “Job to be done” concept introduced by Clayton Christensen. The concept is based on the assumption that a customer buys a product or a service when such product or service helps him fulfill a task that has a certain priority for him.

This perspective represents a massive help for the design team in trying to understand the customer and to comprehend the deeper motivation for a potential purchase of a product.

Frequently, the Value Proposition Canvas poster is pinned on a wall in the room, and the design team – which ideally has conducted the customer interviews itself – fills in the customer profile in a collaborative effort during a workshop.
The interaction within the team is enhanced by this format; this very often results in astonishing insights about the customer.

After populating the customer profile, the team carries out the actual product or service design. This work represents the population of the left-hand side of the poster.

Andrea SchmittInnovationstrainerinAm Mittelpfad 24aD 65520 Bad Camberg+49 64 34-905 997+49 175 5196446
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