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TRIZ-BASED INNOVATION SERVICE.
BUSINESS MODEL &
VALUE PROPOSITION MODEL
May, 2017
2CONFIDENTIAL
ENGINEERING SYSTEM AND SOLUTION. VALUE
Engineering
system
Object
Useful
function
Customer
Value
Solution
Product
Service
User
process(s)
3CONFIDENTIAL
BUSINESS SYSTEM STRUCTURE
MARKET
(customers)
PRODUCTS
(mix of goods
and/or
services)
ORGANIZATION
Value
proposition
Product
scaling
Revenue
generation
Cost
structure
Our
company
Our partner(s)
Competitor
s
Understand who
are the
customers
Create value
proposition(s)
for the
customers
Differ value
proposition from the
competitors
Create product
(goods and/or
services)
Create organization
including contracts
with the partners
Collect
payments
Produce
products
4CONFIDENTIAL
A business model describes the
rationale of how an organization creates,
delivers, and captures value, in economic,
social, cultural or other contexts.
Alexander Osterwalder.
Business Model Generation
BUSINESS MODEL DEFINITION
Business model
5CONFIDENTIAL
A business model describes the
rationale of how
an organization creates, delivers,
and captures value, in economic,
social, cultural or other contexts.
Alexander Osterwalder.
Business Model Generation
Business model
BUSINESS MODEL CANVAS (of Alex Osterwalder)
• For whom are we
creating value?
• Who are our most
important
customers?
• What value do we
deliver to the
customer?
• Which one of our
customer’s
problems are we
helping to solve?
• What bundles of
products and
services are we
offering to each
Customer
Segment?
• Through which
Channels do our
Customer
Segments want to
be reached?
• What type of
relationship does
each of our
Customer
Segments expect
us to establish and
maintain with
them?
• For what value are our customers really willing
to pay?
• For what do they currently pay? How are they
currently paying?
• What Key
Resources do our
Value Propositions
require?
• What Key Activities
do our Value
Propositions
require?
• Who are our Key
Partners? Who are
our key suppliers?
• Which Key
Resources are we
acquiring from
partners?
• Which Key
Activities do
partners perform?
• What are the most important costs inherent
in our business model?
• Which Key Resources are most expensive?
Which Key Activities are most expensive?
6CONFIDENTIAL
BUSINES MODEL to BUSINES SYSTEM MODEL MAPPING
Market
Product / Service
Organization
7CONFIDENTIAL
BUSINESS MODEL
PATTERNS
Business systems
8CONFIDENTIAL
#1. “UNBUNDLED” CORPORATION BUSINESS MODEL
Infrastructure
management
•Low unit cost
•Cost focused
•Battle for scale
Product innovation
•Speed
•Employee centered
•Battle for talent
Customer relationship
management
•Large shares of wallet
•Customer comes first
•Battle for scope
© John Hagel III and Marc Singer.
Unbundling the corporation. Harvard
Business Review, 1999
9CONFIDENTIAL
#1 EXAMPLE. PRIVAT BANKING
© Alex Osterwalder. Business model generation
10CONFIDENTIAL
#2. THE LONG TAIL BUSINESS MODEL
 Long tail business models are about selling less of more. They focus on offering a
large number of niche products, each of which sells relatively infrequently
 Aggregate sales of niche items can be as lucrative as the traditional model whereby a
small number of bestsellers account for most revenues.
 Long tail business models require low inventory costs and strong platforms to make
niche content readily available to interested buyers.
© Alex Osterwalder. Business model generation
11CONFIDENTIAL
#2 EXAMPLE. LEGO FACTORY
© Alex Osterwalder. Business model generation
12CONFIDENTIAL
#3. MULTI-SIDED PLATFORM BUSINESS MODEL
 Multi-sided platforms bring together two or more distinct but
interdependent groups of customers.
 Such platforms are of value to one group of customers only if the other
groups of customers are also present.
 The platform creates value by facilitating interactions between the
different groups.
 A multi-side platform grows in value to the extent that it attracts more
users, a phenomenon known as the network effect.
13CONFIDENTIAL
#3 EXAMPLE. GOOGLE BUSINESS MODEL
© Alex Osterwalder. Business model generation
14CONFIDENTIAL
#4. FREEMIUM BUSINESS MODEL
 In the free business model at least one substantial Customer Segment is
able to continuously benefit from a free-of-charge offer.
 Different patterns make the free offer possible.
 Non-paying customers are financed by another part of the business model or
by another Customer Segment.
15CONFIDENTIAL
#4 EXAMPLE. FLICKR
© Alex Osterwalder. Business model generation
16CONFIDENTIAL
#5. OPEN BUSINESS MODEL
 Open business models can be used by companies to create and capture
value by systematically collaborating with outside partners.
 This may happen from the “outside-in” by exploiting external ideas within
the firm, or from the “inside-out” by providing external parties with ideas
or assets lying idle within the firm.
17CONFIDENTIAL
#5 EXAMPLE. INNOCENTIVE
© Alex Osterwalder. Business model generation
18CONFIDENTIAL
TRIZ for BUSINESS SYSTEMS.
VALUE PROPOSITION January, 2017
19CONFIDENTIAL
ENGINEERING SYSTEM AND SOLUTION. VALUE
Engineerin
g system
Objec
t
Useful
functio
n
Customer
Value
Solution
Classic
TRIZ
Design thinking
User
process(s)
User experience (UX) is an experience
related to user processes
20CONFIDENTIAL
“Customers – people and companies
– have “jobs” that arise regularly
and need to get done. They look
around for a product or service that
they can “hire” to get the job done.
…
The functional, emotional, and
social dimensions of the jobs that
customers need to get done
constitute the circumstances in
which they buy.”
Clayton M. Christensen. The
innovator’s solution
VALUE OF THE PRODUCT (THING OR SERVICE)
21CONFIDENTIAL
https://strategyzer.com/canvas
Value proposition canvas
Book
VALUE PROPOSITION CANVAS
22CONFIDENTIAL
PERSONA PROFILE & CUSTOMER JOBS
Engineering
system
Object
Useful
function
Customer
Value
Solution
User
process(s)
Customer Jobs
(process model)
Persona
profile
23CONFIDENTIAL
PERSONA PROFILE EXAMPLES
24CONFIDENTIAL
Olga the Woman
Buyer, woman 32 y.o.
Regularly buys cosmetics, high
awareness about brands, quality,
specifications of cosmetics
Igor the Man
Buyer, man 38 y.o.
Looking for a present for someone
else, infrequent cosmetics buyer
Inna the Student
Buyer, young man/woman with low
income
Looking for a present for a friend,
has limited budget
PERSONA PROFILE. EXAMPLE
Anna Panicheva, Dmitry Zdanovich. L’etoile innovation project
25CONFIDENTIAL
are jobs that customer performs in
his/her professional or personal life
CUSTOMER JOBS (PROCESS)
CUSTOMER JOBS (PROCESS)
© Alex Osterwalder. Value Proposition Design
26CONFIDENTIAL
CUSTOMER JOBS. L’ETOILE EXAMPLE
Identify need
Decide to purchase
Choose the best option
Decide where to buy
Visit POS and find the item
Make payment
Get the item
Use the item
© EPAM. Anna Panicheva, Dmitry Zdanovich. L’etoile innovation project
27CONFIDENTIAL
CUSTOMER JOBS ANALYSIS
Customer Jobs Mandatory/optional Physical / Metal Pains? Value-added
 Choose the best
option
Optional Mental doubts about the
choice
 Visit the POS Mandatory Physical
 Make selection Mandatory Mental & physical Insufficient selection
range
YES
 Make payment Mandatory Physical YES
 Get item Mandatory Physical Broken glass item YES
Focus on highly
value-added jobs
Does a job cause
any pains?
Physical or mental
job?
Mandatory or
optional job?
© Alex Osterwalder. Value Proposition Design
28CONFIDENTIAL
describe anything that annoys your
customers before, during, and after
trying to get a job done or simply
prevents them from getting a job
done. Pains also describe risks, that
is, potential bad outcomes, related
to getting a job done badly or not at
all.
Pain
CUSTOMER PAINS
© Alex Osterwalder. Value Proposition Design
29CONFIDENTIAL
PAINS. TRIGGER QUESTIONS
1. How do your customers define too costly (a lot of time, too much money, substantial
efforts)?
2. What makes your customers feel bad? What are their frustrations, annoyances, or
things that give them a headache?
3. What are the main difficulties and challenges your customers encounter?
4. What negative social consequences do your customers encounter or fear? Are they
afraid of a loss of face, power, trust, or status?
5. What risks do your customers fear? Are they afraid of financial, social, or technical
risks, or are they asking themselves what could go wrong?
6. What common mistakes do your customers make? Are they using a solution the wrong
way?
© Alex Osterwalder. Value Proposition Design
30CONFIDENTIAL
PAINS. L`ETOILE EXAMPLE
Action PAINS
Select specific item which is the
best for this customer
Lengthy selection process due to many parameters of cosmetic
products
Possibly missing some particular item in stock
Difficult to choose a good quality product given the low
available resources and limited selection
Not appropriate settings/atmosphere (e.g. for men women-
oriented shops, for women – shops where no one to talk to)
No way to test the product before usage
High price of high-quality goods
Anna Panicheva, Dmitry Zdanovich. L’etoile innovation project
31CONFIDENTIAL
describes the outcomes and benefits
your customers want. Some gains are
required, expected, or desired by
customers, and some would surprise
them. Gains include functional
utility, social gains, positive
emotions, and cost savings.
Gain
CUSTOMER GAINS
© Alex Osterwalder. Value Proposition Design
32CONFIDENTIAL
GAINS. TRIGGER QUESTIONS
1. What quality levels do they expect, and what would they wish for more or less of?
2. Which savings (in terms of time, money, and effort) would make your customers
happy?
3. What would make your customers’ jobs or lives easier (a flatter learning curve, more
services, or lower costs of ownership)?
4. What positive social consequences do your customers desire? What increases their
power or their status?
5. How do your customers measure success and failure? How do they gauge performance
or cost?
6. What would increase your customers’ likelihood of adopting a value proposition? Do
they desire lower cost, less investment, lower risk, or better quality?
© Alex Osterwalder. Value Proposition Design
33CONFIDENTIAL
GAINS. L`ETOILE EXAMPLE
GAINS:
1. Ecstasy of purchase cosmetics
2. More attractive look
3. Meeting social standards
Anna Panicheva, Dmitry Zdanovich. L’etoile innovation project
34CONFIDENTIAL
describe how exactly your products
and services alleviate specific
customer pains. They explicitly
outline how you intend to eliminate
or reduce some of the things that
annoy your customers before,
during, or after they are trying to
complete a job or that prevent them
from doing so.
PAIN RELIEVERS
PAIN RELIEVERS
© Alex Osterwalder. Value Proposition Design
35CONFIDENTIAL
PAIN RELIEVERS TRIGGER QUESTIONS
Could your product / service ...
1. ... produce savings? In terms of time, money, or efforts.
2. ... make your customers feel better? By killing frustrations, annoyances, and other things that
give customers a headache.
3. ... fix under-performing solutions? By introducing new features, better performance, or enhanced
quality.
4. ... put an end to difficulties and challenges your customers encounter? By making things easier or
eliminating obstacles.
5. ... wipe out negative social consequences your customers encounter or fear? In terms of loss of
face or lost power, trust, or status.
6. ... eliminate risks your customers fear? In terms of financial, social, technical risks, or things that
could potentially go wrong.
7. ... limit or eradicate common mistakes customers make? By helping them use a solution the right
way.
© Alex Osterwalder. Value Proposition Design
36CONFIDENTIAL
describe how your products and
services create customer gains. They
explicitly outline how you intend to
produce outcomes and benefits that
your customer expects, desires, or
would be surprised by, including
functional utility, social gains,
positive emotions, and cost savings.
GAIN CREATORS
GAIN CREATORS
© Alex Osterwalder. Value Proposition Design
37CONFIDENTIAL
GAIN CREATORS TRIGGER QUESTIONS
Could your product / service ...
1. ... create savings that please your customers? In terms of time, money, and effort.
2. ... produce outcomes your customers expect or that exceed their expectations?
3. ... make your customers’ work or life easier? Via better usability, accessibility, more
services, or lower cost of ownership.
4. ... create positive social consequences? By making them look good or producing an increase
in power or status.
5. ... fulfill a desire customers dream about? By helping them achieve their aspirations or
getting relief from a hardship?
6. ... produce positive outcomes matching your customers’ success and failure criteria? In
terms of better performance or lower cost.
7. ... help make adoption easier? Through lower cost, fewer investments, lower risk, better
quality, improved performance, or better design.
© Alex Osterwalder. Value Proposition Design
38CONFIDENTIAL
GAP ANALYSIS
GAINS / PAINS GAIN CREATORS / PAIN RELIEVERS GAPS
Ecstasy of purchase Buying process is easy and
comfortable
No people to talk and
discuss
More attractive look High-quality products are
available
<no gap>
Meeting social standards Trending products are
available
<no gap>
Lengthy selection process due to
many parameters of cosmetic
products
Mobile application allows
customer to make selection
at appropriate time
<no gap>
No way to test the product before
usage
<no pain reliever> How to provide the
possibility to test cosmetic
product from vending
machine
Anna Panicheva, Dmitry Zdanovich. L’etoile innovation project

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BUSINESS MODEL & VALUE PROPOSITION MODEL

  • 1. TRIZ-BASED INNOVATION SERVICE. BUSINESS MODEL & VALUE PROPOSITION MODEL May, 2017
  • 2. 2CONFIDENTIAL ENGINEERING SYSTEM AND SOLUTION. VALUE Engineering system Object Useful function Customer Value Solution Product Service User process(s)
  • 3. 3CONFIDENTIAL BUSINESS SYSTEM STRUCTURE MARKET (customers) PRODUCTS (mix of goods and/or services) ORGANIZATION Value proposition Product scaling Revenue generation Cost structure Our company Our partner(s) Competitor s Understand who are the customers Create value proposition(s) for the customers Differ value proposition from the competitors Create product (goods and/or services) Create organization including contracts with the partners Collect payments Produce products
  • 4. 4CONFIDENTIAL A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. Alexander Osterwalder. Business Model Generation BUSINESS MODEL DEFINITION Business model
  • 5. 5CONFIDENTIAL A business model describes the rationale of how an organization creates, delivers, and captures value, in economic, social, cultural or other contexts. Alexander Osterwalder. Business Model Generation Business model BUSINESS MODEL CANVAS (of Alex Osterwalder) • For whom are we creating value? • Who are our most important customers? • What value do we deliver to the customer? • Which one of our customer’s problems are we helping to solve? • What bundles of products and services are we offering to each Customer Segment? • Through which Channels do our Customer Segments want to be reached? • What type of relationship does each of our Customer Segments expect us to establish and maintain with them? • For what value are our customers really willing to pay? • For what do they currently pay? How are they currently paying? • What Key Resources do our Value Propositions require? • What Key Activities do our Value Propositions require? • Who are our Key Partners? Who are our key suppliers? • Which Key Resources are we acquiring from partners? • Which Key Activities do partners perform? • What are the most important costs inherent in our business model? • Which Key Resources are most expensive? Which Key Activities are most expensive?
  • 6. 6CONFIDENTIAL BUSINES MODEL to BUSINES SYSTEM MODEL MAPPING Market Product / Service Organization
  • 8. 8CONFIDENTIAL #1. “UNBUNDLED” CORPORATION BUSINESS MODEL Infrastructure management •Low unit cost •Cost focused •Battle for scale Product innovation •Speed •Employee centered •Battle for talent Customer relationship management •Large shares of wallet •Customer comes first •Battle for scope © John Hagel III and Marc Singer. Unbundling the corporation. Harvard Business Review, 1999
  • 9. 9CONFIDENTIAL #1 EXAMPLE. PRIVAT BANKING © Alex Osterwalder. Business model generation
  • 10. 10CONFIDENTIAL #2. THE LONG TAIL BUSINESS MODEL  Long tail business models are about selling less of more. They focus on offering a large number of niche products, each of which sells relatively infrequently  Aggregate sales of niche items can be as lucrative as the traditional model whereby a small number of bestsellers account for most revenues.  Long tail business models require low inventory costs and strong platforms to make niche content readily available to interested buyers. © Alex Osterwalder. Business model generation
  • 11. 11CONFIDENTIAL #2 EXAMPLE. LEGO FACTORY © Alex Osterwalder. Business model generation
  • 12. 12CONFIDENTIAL #3. MULTI-SIDED PLATFORM BUSINESS MODEL  Multi-sided platforms bring together two or more distinct but interdependent groups of customers.  Such platforms are of value to one group of customers only if the other groups of customers are also present.  The platform creates value by facilitating interactions between the different groups.  A multi-side platform grows in value to the extent that it attracts more users, a phenomenon known as the network effect.
  • 13. 13CONFIDENTIAL #3 EXAMPLE. GOOGLE BUSINESS MODEL © Alex Osterwalder. Business model generation
  • 14. 14CONFIDENTIAL #4. FREEMIUM BUSINESS MODEL  In the free business model at least one substantial Customer Segment is able to continuously benefit from a free-of-charge offer.  Different patterns make the free offer possible.  Non-paying customers are financed by another part of the business model or by another Customer Segment.
  • 15. 15CONFIDENTIAL #4 EXAMPLE. FLICKR © Alex Osterwalder. Business model generation
  • 16. 16CONFIDENTIAL #5. OPEN BUSINESS MODEL  Open business models can be used by companies to create and capture value by systematically collaborating with outside partners.  This may happen from the “outside-in” by exploiting external ideas within the firm, or from the “inside-out” by providing external parties with ideas or assets lying idle within the firm.
  • 17. 17CONFIDENTIAL #5 EXAMPLE. INNOCENTIVE © Alex Osterwalder. Business model generation
  • 18. 18CONFIDENTIAL TRIZ for BUSINESS SYSTEMS. VALUE PROPOSITION January, 2017
  • 19. 19CONFIDENTIAL ENGINEERING SYSTEM AND SOLUTION. VALUE Engineerin g system Objec t Useful functio n Customer Value Solution Classic TRIZ Design thinking User process(s) User experience (UX) is an experience related to user processes
  • 20. 20CONFIDENTIAL “Customers – people and companies – have “jobs” that arise regularly and need to get done. They look around for a product or service that they can “hire” to get the job done. … The functional, emotional, and social dimensions of the jobs that customers need to get done constitute the circumstances in which they buy.” Clayton M. Christensen. The innovator’s solution VALUE OF THE PRODUCT (THING OR SERVICE)
  • 22. 22CONFIDENTIAL PERSONA PROFILE & CUSTOMER JOBS Engineering system Object Useful function Customer Value Solution User process(s) Customer Jobs (process model) Persona profile
  • 24. 24CONFIDENTIAL Olga the Woman Buyer, woman 32 y.o. Regularly buys cosmetics, high awareness about brands, quality, specifications of cosmetics Igor the Man Buyer, man 38 y.o. Looking for a present for someone else, infrequent cosmetics buyer Inna the Student Buyer, young man/woman with low income Looking for a present for a friend, has limited budget PERSONA PROFILE. EXAMPLE Anna Panicheva, Dmitry Zdanovich. L’etoile innovation project
  • 25. 25CONFIDENTIAL are jobs that customer performs in his/her professional or personal life CUSTOMER JOBS (PROCESS) CUSTOMER JOBS (PROCESS) © Alex Osterwalder. Value Proposition Design
  • 26. 26CONFIDENTIAL CUSTOMER JOBS. L’ETOILE EXAMPLE Identify need Decide to purchase Choose the best option Decide where to buy Visit POS and find the item Make payment Get the item Use the item © EPAM. Anna Panicheva, Dmitry Zdanovich. L’etoile innovation project
  • 27. 27CONFIDENTIAL CUSTOMER JOBS ANALYSIS Customer Jobs Mandatory/optional Physical / Metal Pains? Value-added  Choose the best option Optional Mental doubts about the choice  Visit the POS Mandatory Physical  Make selection Mandatory Mental & physical Insufficient selection range YES  Make payment Mandatory Physical YES  Get item Mandatory Physical Broken glass item YES Focus on highly value-added jobs Does a job cause any pains? Physical or mental job? Mandatory or optional job? © Alex Osterwalder. Value Proposition Design
  • 28. 28CONFIDENTIAL describe anything that annoys your customers before, during, and after trying to get a job done or simply prevents them from getting a job done. Pains also describe risks, that is, potential bad outcomes, related to getting a job done badly or not at all. Pain CUSTOMER PAINS © Alex Osterwalder. Value Proposition Design
  • 29. 29CONFIDENTIAL PAINS. TRIGGER QUESTIONS 1. How do your customers define too costly (a lot of time, too much money, substantial efforts)? 2. What makes your customers feel bad? What are their frustrations, annoyances, or things that give them a headache? 3. What are the main difficulties and challenges your customers encounter? 4. What negative social consequences do your customers encounter or fear? Are they afraid of a loss of face, power, trust, or status? 5. What risks do your customers fear? Are they afraid of financial, social, or technical risks, or are they asking themselves what could go wrong? 6. What common mistakes do your customers make? Are they using a solution the wrong way? © Alex Osterwalder. Value Proposition Design
  • 30. 30CONFIDENTIAL PAINS. L`ETOILE EXAMPLE Action PAINS Select specific item which is the best for this customer Lengthy selection process due to many parameters of cosmetic products Possibly missing some particular item in stock Difficult to choose a good quality product given the low available resources and limited selection Not appropriate settings/atmosphere (e.g. for men women- oriented shops, for women – shops where no one to talk to) No way to test the product before usage High price of high-quality goods Anna Panicheva, Dmitry Zdanovich. L’etoile innovation project
  • 31. 31CONFIDENTIAL describes the outcomes and benefits your customers want. Some gains are required, expected, or desired by customers, and some would surprise them. Gains include functional utility, social gains, positive emotions, and cost savings. Gain CUSTOMER GAINS © Alex Osterwalder. Value Proposition Design
  • 32. 32CONFIDENTIAL GAINS. TRIGGER QUESTIONS 1. What quality levels do they expect, and what would they wish for more or less of? 2. Which savings (in terms of time, money, and effort) would make your customers happy? 3. What would make your customers’ jobs or lives easier (a flatter learning curve, more services, or lower costs of ownership)? 4. What positive social consequences do your customers desire? What increases their power or their status? 5. How do your customers measure success and failure? How do they gauge performance or cost? 6. What would increase your customers’ likelihood of adopting a value proposition? Do they desire lower cost, less investment, lower risk, or better quality? © Alex Osterwalder. Value Proposition Design
  • 33. 33CONFIDENTIAL GAINS. L`ETOILE EXAMPLE GAINS: 1. Ecstasy of purchase cosmetics 2. More attractive look 3. Meeting social standards Anna Panicheva, Dmitry Zdanovich. L’etoile innovation project
  • 34. 34CONFIDENTIAL describe how exactly your products and services alleviate specific customer pains. They explicitly outline how you intend to eliminate or reduce some of the things that annoy your customers before, during, or after they are trying to complete a job or that prevent them from doing so. PAIN RELIEVERS PAIN RELIEVERS © Alex Osterwalder. Value Proposition Design
  • 35. 35CONFIDENTIAL PAIN RELIEVERS TRIGGER QUESTIONS Could your product / service ... 1. ... produce savings? In terms of time, money, or efforts. 2. ... make your customers feel better? By killing frustrations, annoyances, and other things that give customers a headache. 3. ... fix under-performing solutions? By introducing new features, better performance, or enhanced quality. 4. ... put an end to difficulties and challenges your customers encounter? By making things easier or eliminating obstacles. 5. ... wipe out negative social consequences your customers encounter or fear? In terms of loss of face or lost power, trust, or status. 6. ... eliminate risks your customers fear? In terms of financial, social, technical risks, or things that could potentially go wrong. 7. ... limit or eradicate common mistakes customers make? By helping them use a solution the right way. © Alex Osterwalder. Value Proposition Design
  • 36. 36CONFIDENTIAL describe how your products and services create customer gains. They explicitly outline how you intend to produce outcomes and benefits that your customer expects, desires, or would be surprised by, including functional utility, social gains, positive emotions, and cost savings. GAIN CREATORS GAIN CREATORS © Alex Osterwalder. Value Proposition Design
  • 37. 37CONFIDENTIAL GAIN CREATORS TRIGGER QUESTIONS Could your product / service ... 1. ... create savings that please your customers? In terms of time, money, and effort. 2. ... produce outcomes your customers expect or that exceed their expectations? 3. ... make your customers’ work or life easier? Via better usability, accessibility, more services, or lower cost of ownership. 4. ... create positive social consequences? By making them look good or producing an increase in power or status. 5. ... fulfill a desire customers dream about? By helping them achieve their aspirations or getting relief from a hardship? 6. ... produce positive outcomes matching your customers’ success and failure criteria? In terms of better performance or lower cost. 7. ... help make adoption easier? Through lower cost, fewer investments, lower risk, better quality, improved performance, or better design. © Alex Osterwalder. Value Proposition Design
  • 38. 38CONFIDENTIAL GAP ANALYSIS GAINS / PAINS GAIN CREATORS / PAIN RELIEVERS GAPS Ecstasy of purchase Buying process is easy and comfortable No people to talk and discuss More attractive look High-quality products are available <no gap> Meeting social standards Trending products are available <no gap> Lengthy selection process due to many parameters of cosmetic products Mobile application allows customer to make selection at appropriate time <no gap> No way to test the product before usage <no pain reliever> How to provide the possibility to test cosmetic product from vending machine Anna Panicheva, Dmitry Zdanovich. L’etoile innovation project

Editor's Notes

  1. Here we will tell about how ES produces value and define the difference between function and value Then we will define the concept “solution”
  2. Customer segments: For whom are we creating value? Who are our most important customers? Value proposition: What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? Which customer needs are we satisfying? What bundles of products and services are we offering to each Customer Segment? Channels: Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? Customer Relations: What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How costly are they? How are they integrated with the rest of our business model? Revenue streams: For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? Key resources: What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? Key activities: What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? Key partnerships: Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? Cost structure: What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive?
  3. Here we will tell about how ES produces value and define the difference between function and value Then we will define the concept “solution”
  4. Here we will tell about how ES produces value and define the difference between function and value Then we will define the concept “solution”
  5. Non-engineering system doesn’t produce value.
  6. Non-engineering system doesn’t produce value.
  7. Non-engineering system doesn’t produce value.