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October 2008 Value Proposition www.stankirkwood.com (Make a comment)
Customer Expectations Business Blueprints ™ Copyright:  www.stankirkwood.com What does every customer want when making a purchase?
Customer Expectations Business Blueprints ™ Copyright:  www.stankirkwood.com What are you looking for when you go to buy a car, a television, computer, house,….?
Customer Expectations Business Blueprints ™ Copyright:  www.stankirkwood.com You want  the greatest return  on your investment
Customer Expectations Business Blueprints ™ Copyright:  www.stankirkwood.com What is   Return on Investment   from a customer’s perspective?
Value Proposition Business Blueprints ™ Copyright:  www.stankirkwood.com Value Proposition
Value Proposition Business Blueprints ™ Copyright:  www.stankirkwood.com “ What the customer gets for    what the customer pays .” Wikipedia
Value Proposition Business Blueprints ™ Copyright:  www.stankirkwood.com “ A business or marketing statement that summarizes why a consumer should buy a product or use a service.”   Investopedia
Value Proposition Business Blueprints ™ Copyright:  www.stankirkwood.com How do customers define Value Proposition?
Value Proposition Business Blueprints ™ Copyright:  www.stankirkwood.com Good, Fast and Cheap
Value Proposition Business Blueprints ™ Copyright:  www.stankirkwood.com How did suppliers meet  customer expectations?
Value Proposition Business Blueprints ™ Copyright:  www.stankirkwood.com Good, Fast and Cheap:  Pick Two   * http://www.sixside.com/fast_good_cheap.asp *
Value Proposition Business Blueprints ™ Copyright:  www.stankirkwood.com ,[object Object],[object Object],[object Object],[object Object]
Value Proposition Business Blueprints ™ Copyright:  www.stankirkwood.com Good, Fast and Cheap, pick two Imagine if you are a supplier who can make all three come true at the same time?  You will have the compelling Value Proposition and you will win in the market place
Dell Computers Business Blueprints ™ Copyright:  www.stankirkwood.com ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Wal-Mart Business Blueprints ™ Copyright:  www.stankirkwood.com ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Value Proposition Business Blueprints ™ Copyright:  www.stankirkwood.com Good, Fast and Cheap - Only three of the four components of the Value Proposition There is one more component
Value Proposition Business Blueprints ™ Copyright:  www.stankirkwood.com Desirability
Desirability Business Blueprints ™ Copyright:  www.stankirkwood.com Desirability in a House: -  May be style  -  May be landscaping -  May be number of bathrooms -  May be open floor plan
Desirability Business Blueprints ™ Copyright:  www.stankirkwood.com Desirability in a Car: -  May be styling of car -  May be options -  May be speed -  May be gas mileage
Desirability Business Blueprints ™ Copyright:  www.stankirkwood.com ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Desirability Business Blueprints ™ Copyright:  www.stankirkwood.com Not if you can help it. Your decision will depend on how you view the four components of the Value Proposition.
Relative Value Business Blueprints ™ Copyright:  www.stankirkwood.com Weight of Value Proposition (VP) Components depends on customer segment  Quantify the importance of each Value Proposition Component Lead Time Quality Price Desirability VP Components Car 25 25 25 25 All things equal 10 10 5 25 40 15 15 25 70 50 25 10 Empty Nester Family of five College graduate
Value Proposition Attributes Business Blueprints ™ Copyright:  www.stankirkwood.com Value Proposition Components are made up of VP Attributes which can be further decomposed into VP Elements. Sun Roof GPS Leather Seats Options Spoiler Mag Wheels Curved bumper Styling Desirability Elements Attributes Component
Management by Design Business Blueprints ™ Copyright:  www.stankirkwood.com The key to the Value Proposition effort: Defining and quantifying the Value Proposition so that you can measure and manage it. DQM ² = Define, Quantify, Measure and Manage You are creating a critical path for your company
Management by Design Business Blueprints ™ Copyright:  www.stankirkwood.com ,[object Object],[object Object],[object Object]
Business Blueprints ™ Market Performance ,[object Object],[object Object],Copyright:  www.stankirkwood.com
Business Blueprints ™ Customer Performance ,[object Object],Customers use your products and services.  Which customers will you appeal to?  Copyright:  www.stankirkwood.com
Business Blueprints ™ Product Performance ,[object Object],Your products and services must have a compelling Value Proposition.  Copyright:  www.stankirkwood.com
Value Proposition Business Blueprints ™ Copyright:  www.stankirkwood.com ,[object Object],[object Object],[object Object],[object Object],[object Object]

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Value Proposition

  • 1. October 2008 Value Proposition www.stankirkwood.com (Make a comment)
  • 2. Customer Expectations Business Blueprints ™ Copyright: www.stankirkwood.com What does every customer want when making a purchase?
  • 3. Customer Expectations Business Blueprints ™ Copyright: www.stankirkwood.com What are you looking for when you go to buy a car, a television, computer, house,….?
  • 4. Customer Expectations Business Blueprints ™ Copyright: www.stankirkwood.com You want the greatest return on your investment
  • 5. Customer Expectations Business Blueprints ™ Copyright: www.stankirkwood.com What is Return on Investment from a customer’s perspective?
  • 6. Value Proposition Business Blueprints ™ Copyright: www.stankirkwood.com Value Proposition
  • 7. Value Proposition Business Blueprints ™ Copyright: www.stankirkwood.com “ What the customer gets for what the customer pays .” Wikipedia
  • 8. Value Proposition Business Blueprints ™ Copyright: www.stankirkwood.com “ A business or marketing statement that summarizes why a consumer should buy a product or use a service.” Investopedia
  • 9. Value Proposition Business Blueprints ™ Copyright: www.stankirkwood.com How do customers define Value Proposition?
  • 10. Value Proposition Business Blueprints ™ Copyright: www.stankirkwood.com Good, Fast and Cheap
  • 11. Value Proposition Business Blueprints ™ Copyright: www.stankirkwood.com How did suppliers meet customer expectations?
  • 12. Value Proposition Business Blueprints ™ Copyright: www.stankirkwood.com Good, Fast and Cheap: Pick Two * http://www.sixside.com/fast_good_cheap.asp *
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  • 14. Value Proposition Business Blueprints ™ Copyright: www.stankirkwood.com Good, Fast and Cheap, pick two Imagine if you are a supplier who can make all three come true at the same time? You will have the compelling Value Proposition and you will win in the market place
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  • 17. Value Proposition Business Blueprints ™ Copyright: www.stankirkwood.com Good, Fast and Cheap - Only three of the four components of the Value Proposition There is one more component
  • 18. Value Proposition Business Blueprints ™ Copyright: www.stankirkwood.com Desirability
  • 19. Desirability Business Blueprints ™ Copyright: www.stankirkwood.com Desirability in a House: - May be style - May be landscaping - May be number of bathrooms - May be open floor plan
  • 20. Desirability Business Blueprints ™ Copyright: www.stankirkwood.com Desirability in a Car: - May be styling of car - May be options - May be speed - May be gas mileage
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  • 22. Desirability Business Blueprints ™ Copyright: www.stankirkwood.com Not if you can help it. Your decision will depend on how you view the four components of the Value Proposition.
  • 23. Relative Value Business Blueprints ™ Copyright: www.stankirkwood.com Weight of Value Proposition (VP) Components depends on customer segment Quantify the importance of each Value Proposition Component Lead Time Quality Price Desirability VP Components Car 25 25 25 25 All things equal 10 10 5 25 40 15 15 25 70 50 25 10 Empty Nester Family of five College graduate
  • 24. Value Proposition Attributes Business Blueprints ™ Copyright: www.stankirkwood.com Value Proposition Components are made up of VP Attributes which can be further decomposed into VP Elements. Sun Roof GPS Leather Seats Options Spoiler Mag Wheels Curved bumper Styling Desirability Elements Attributes Component
  • 25. Management by Design Business Blueprints ™ Copyright: www.stankirkwood.com The key to the Value Proposition effort: Defining and quantifying the Value Proposition so that you can measure and manage it. DQM ² = Define, Quantify, Measure and Manage You are creating a critical path for your company
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