Value proposition

As explained in Collaborative Software Design: How to facilitate domain modeling decisions

A value proposition is a statement of the benefits and value an organization offers to its customers.

A value proposition states what an organization offers customers and why they choose it instead of a competitor. It anchors the offerings section of the Business Model Canvas and helps shape the remaining sections. section 2.3.1

Discover value propositions by asking:

• What are we offering the customer? section 2.3.1
• Why would customers use our products or services? section 2.3.1

Start the canvas with value propositions, then clarify customer segments, customer relationships, channels, infrastructure, and finances. This connects customer choice to communication, activities, resources, partners, costs, and revenue. section 2.3.1

BigScreen canvas

A finished BigScreen Business Model Canvas uses a sticky-note color legend and captures the domain language and knowledge discovered while validating the business model with domain experts. section 2.3.1

Figure 2.7 The four sections of the Business Model Canvas tool. This canvas gives us an understanding of what we offer, who we offer it to, what we need to do to succeed, and what finances we have.

Use the Business Model Canvas overview to relate offerings and value propositions to customers, infrastructure, and finances. section 2.3.1

How Collaborative Software Design: How to facilitate domain modeling decisions covers it

How deep it goes

Defines value propositions and supplies two discovery questions, then connects them to the canvas without detailing proposition design.

Examples

Uses the BigScreen canvas, sticky-note color legends, domain language, and customer-offering questions as concrete artifacts and prompts.

What it assumes

Uses a company’s marketing strategy and business model as inputs for identifying customer-facing value.

What you can do after

Apply it via Business Model Canvas to articulate offerings and relate customer choice to the organization’s operating model.

How it connects

Connects value propositions to the Business Model Canvas, marketing strategy, customer segments, customer relationships, channels, infrastructure, and finances.

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Related concepts

• target audienceuses · A target audience is the intended person or group of recipients for a product, service, system, or communication, often identified by shared characteristics, needs, or interests.
• marketingproduced by · Marketing is the business practice of understanding markets and promoting, positioning, and managing offerings to attract and retain customers.
• competitive advantageproduces · A competitive advantage is a condition, capability, asset, or position that enables an organization to outperform competitors in a market.
• business model canvaspart of · The Business Model Canvas is a visual strategic-management framework for describing and analyzing the key elements of a business model.

This explainer was generated by Manning's knowledge graph from the text of Collaborative Software Design: How to facilitate domain modeling decisions. The section links point to the parts of the book it draws on.