Value Proposition Workshop

Jul 8, 2024

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Value Proposition Workshop

Introduction

  • Value propositions are critical because the main reason companies fail is they don’t solve a valuable enough problem.
  • Today's goals: Define the problem/opportunity, evaluate it, and build a value proposition.
  • A framework is provided for the activities.

Key Steps in Building a Value Proposition

  1. Define the Problem/Opportunity
  2. Evaluate It
  3. Build It

Step 1: Define the Problem/Opportunity

  • Avoid focusing solely on ideas; they need to solve a problem or address an opportunity.
  • A value proposition statement should be clear: “For who that is dissatisfied with what due to some unmet need, you offer a product that solves that unmet need with compelling benefits.”

Identifying the Who

  • Be specific about your target audience. Avoid broad statements like “everyone.”
  • Example: ConnectED's target is children in marginalized communities in Kazakhstan without basic digital literacy skills and equipment.

Tools for Defining the Problem

  • Four key aspects to consider (4Us):
    • Unworkable: Causes immediate and significant problems if not addressed.
    • Unavoidable: Related to persistent problems (e.g., aging, taxes).
    • Urgent: Requires immediate attention.
    • Underserved: Areas needing more solutions or attention.
  • Example: Education gaps leading to social unrest in Kazakhstan.

Step 2: Evaluate the Value Proposition

  • Understand your target segment’s minimum viable needs.
  • Latent vs. Critical Need: Make sure your solution transitions from a nice-to-have to a must-have.
  • Example: Space Health - addressing urgent needs for medical care in space.

Step 3: Build the Value Proposition

  • Move beyond being faster, better, cheaper.
  • Focus on the Three D’s:
    1. Disruptive: Introduces a fundamental change (e.g., Airbnb's home-sharing model).
    2. Discontinuous: Enables something that wasn’t possible before (e.g., AWS's cloud computing).
    3. Defensible: Hard for others to replicate; can involve IP, network effects, data advantage.
  • Example: Sharon's bike seat with real-time data adaptation.

Framework for Evaluating Your Value Proposition

Before and After Scenario

  • Define the current problem (before) and the improved state (after) if the solution is adopted.

Gain-Pain Ratio

  • Measure the benefits (gain) against the difficulties of adopting the solution (pain).
  • Consider customer inertia and risk.
  • Ideal ratio: 10:1 (gain:pain).
  • Example: Venmo - significant reduction in payment friction.

Final Tips

  • Make sure your solution stands out as critical rather than a simple improvement.
  • Engage with users early to test your value proposition continuously and iteratively.

Interactive Examples & Breakout Discussions

  • Teams worked on defining their problems using the 4Us and evaluating them with gain-pain ratios.
  • Shared insights from various projects:
    • Taste of Kenya: Addressing the local availability of Kenyan coffee.
    • Space Health: Providing medical professionals for the expanding commercial space sector.
    • Teraflow: Helping pharmaceutical companies with clinical trials data analysis.

Conclusion

  • Bring frameworks together to ensure your value prop is solid and compelling.
  • Focus on founder-market fit: why you are uniquely positioned to solve this problem.

Q&A Session

  • Addressed participants' specific questions, providing personalized feedback on their projects.

Thank you all for participating!