Mastering Value Proposition

• Iterate your ideas until you get it right
• Make customer value explicit
• Tell the story of how you create deliver and capture value
• Don’t be stuck in your product
• Getting the business model and value proposition right
• Value Proposition Canvas is a tool to be used in addition to the Business Model Canvas

Top 10 business mistakes

• Building a product that nobody wants
• Hiring poorly
• Lack of focus
• Fail to execute sales and marketing
• Not having the right co-founders
• Chasing investors and not customers
• Not making sure you have enough money
• Spending too much money
• Failing to ask for help
• Ignoring social media

Hilti Example

• Originally manufactures light machine tools for builders
• Over time, they evolved to kickstart their growth again
• They learned from the customers and found that what customers really wanted was to manage, maintain and replace tools. (Right tools at the right time and right place)
• Hilti Fleet Management – for monthly subscription, hilti help you to track, repair, replace and upgrade our tool at no additional costs.

Hilti’s Business Model Canvas

Value Proposition: High End Machine Tools (New: Online Fleet Management)

Customer Relations: Direct 1 to1  (New: Remains the same)

Channels: Sales Force  (New: Web)

Customer Segments: Builders  (New: Construction Company CEOs)

Revenue Streams: Transactional Sales  (New: Large Long term subscription contracts)

Key Resources: Factories, Patent, Brand Name   (New: Inventory)

Key Activities: Manufacturing  (New: Service Fleet)

Cost Structure: Manufacturing, Brand   (New: Service)

Key Partners: Partners

Difference between BMC AND VPC

Value Proposition: Value Proposition for your customers

Business Model Canvas: To visualise how you are generating revenue

Success = BMC + VMC + Execution

5 Common Mistakes Made In The Value Proposition Canvas

The Benefits Of Using The Value Proposition Canvas