Product Value Proposition
In a typical Software engineering world for learning and development to pick a software language, the engineers use four “WH” (What, Where, Why, When, Who, How) for learning and growth.
In Java, in the case of a constructor, applies as what is a constructor, why it is used, where it’s used, when it will be used, and how it will be used, is a typical approach to get the inside-out view of features in a programming language.
Applying this to product work, the resultant good value proposition. Understanding the art of defining and design is important to craft an effective value proposition.
A good value proposition is defined as follows:-
- What is value?
- Who → Who is the value for?
- Why -> Why is it important?
- What is the AS-IS-> current/existing/ problem state?
- How-> How could it deliver value?
- What should the TO-BE -> the benefits or outcomes
- Where do we do this?
Answering the questions in order one by one
- What is the value?
Value is a trade, a person pays us for X, a customer incurs cost and reaps a benefit incrementally higher to secure more benefits
2. Who is the value for?
Persona or Market or Segment (define the target)
Persona we should have a strong understanding of actual people, who a representative icons for a segment of customers whom we want to serve
3. Why is it important?
Jobs to be done.
People don’t buy products, they hire products. Every individual (our Persona) has a pain point or wants to move to a more comfortable zone (gain) to get their job done.
4. What is the AS-IS state?
It is the current state the customer is in, their pain points, and their wishful gains to maintain their comfort zone
5. How do we deliver that value to the customer?
We do this by features and capabilities. Prioritize within our stakeholders and build MVP (Minimum viable product), which the customer should fall in love with translates to Minimum loveable product.
6. What is the To-Be state?
Benefits and outcomes. From the value journey map standpoint, it communicates the value, how it is better than competitors, showcases via whitepapers, demos, and voice of the customer
For example productivity = value management
7. Where do we do this?
We will deliver value via sales, Enabling the right channels, delivery partners
In Summary:
From a product perspective, we shall use a business model canvas that is the inside view of the organization that builds the product
Cheers, Happy value creating!!