"The Age of Value Proposition": A blueprint for demonstrating the value of business models and services
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Perhaps inspired by the entrepreneurial success of Internet giants such as Google and Facebook, in recent years, there has been a wave of entrepreneurship in countries around the world, including Taiwan, Japan, and China. In recent years, there have been a lot of books on the topic of entrepreneurship, and today I want to continue this trend, and at the same time go deep into the core, and explore with you how companies can execute in order to move towards the road to success.
When it comes to the key to a company’s success, many people will immediately think of “Business Model”. Indeed, almost all successful companies around the world have clear business models. Google started with search services, Facebook relies on advertising, and China’s Alibaba Group relies on its powerful e-commerce platform and ecosystem to make money.
According to past surveys conducted by The Economist magazine, more than 50% of senior executives believe that business model innovation is more important than product innovation or service innovation. Coincidentally, when IBM conducted a survey of global corporate CEOs in 2006, it also found that the returns from business model innovation far exceeded product innovation or service innovation.
So, what exactly is a business model? Mark Johnson, chairman of Innosight, who wrote the book “White Land Strategy” (https://www.books.com.tw/products/0010487968), believes that “a business model describes a company’s method of creating and providing value to customers and the company.” Zhang Zhongmou, chairman of TSMC, defines it as “the way a company handles its affairs with customers and suppliers.”
In order to let the public better understand the structure of the business model, Alexander Oswald and others wrote “[The Profit Generation: Do It Yourself, Draw Your Business Model]” a few years ago (https://www.books.com.tw/exep/assp.php/vista/products/0010567254?u tm_source=vista&utm_medium=ap-books&utm_content=recommend&utm_campaign=ap-201707)” and breaks down complex business models into value propositions (Value Proposition (VP), Target Customer Segments (CS), Channels (CH), Customer Relationships (CR), Key Partners (KP), Key Activities (KA), Key Resources (KR), Cost Structure (CS) and Revenue Streams (RS).
Simply put, “Profit Generation” is based on the business model blueprint to outline and express the key points and characteristics of various business models. In the process of filling out this nine-square grid chart, you can not only analyze the current situation and participate in discussions with your business partners, but you can also further test and revise the development direction of your business, and then design the most ideal and feasible business model!
“[Profit Generation](https://www.books.com.tw/exep/assp.php/vista/products/0010567254?utm_source=vista&utm_medium=ap-books&utm_conten Many years after the book “t=recommend&utm_campaign=ap-201707)” was published, the author Alexander Oswald discovered that although the business model blueprint can help many companies establish a clear business model, before seeking a business model, the customer’s value proposition must first be clarified, which is the root of everything.
To this end, he teamed up with Yves Binuch, Greg Bernarda, Aaron Smith, Tracey Papadalas and others to develop the thinking structure of the “value proposition map”, hoping to use a simplified graphical strategy tool to answer the key question that every successful business model must first answer: How do I create value for customers?
As for what is “value proposition” (Value Proposition)? Simply put, it refers to the promised value that an individual or enterprise can make to customers for the products or services it provides, and this promised value must be based on meeting the needs of customers or potential customers and achieving the purpose of profit for the individual or enterprise. In other words, if it can solve certain problems or satisfy customers’ needs, it is considered to provide value.
The purpose of setting a “value proposition” is not just to improve the user experience, but also to examine or analyze the changes, gains and losses among individuals or companies in terms of costs, benefits, and customer value.
For example, McDonald’s, the global fast-food leader, its value proposition is to bring joy to customers. It is naturally a very clever way to combine eating burgers, drinking Coke and a happy atmosphere. Nike, a major sports brand, is no less generous. Its slogan “JUST DO IT” is catchy to everyone, and its value proposition is to inspire those passionate people to make progress at all times. Whether they are running on the sports field or in the field of life, they must understand the principle of “doing it all is mine.”
After reading “The Age of Value Proposition: Design Thinking The Profit Core of a Successful Business Model” After this book, we can clearly understand the importance of “value proposition”.
It can not only help operators identify or meet the unmet needs of their target markets. A good value proposition can help businesses generate faster and more sales profits and expand differentiation from competitors. What’s more important is to understand the real needs of customers, and then find value adaptation strategies through value maps and customer sketches.
If you have ever read “[Profit Generation](https://www.books.com.tw/exep/assp.php/vista/products/0010567254?utm_source=vista&utm_medium= ap-books&utm_content=recommend&utm_campaign=ap-201707)”, you will definitely have some understanding of the structure of the business model, and this time reading “The Value Proposition Era” can help us understand the multiplication effect of the value proposition and the business model.
With the help of business models, good ideas can be developed into good and profitable businesses; if a clear value proposition is set, the quality of products and services can be effectively improved, thereby creating value for customers.
In other words, “Value Proposition” is not just a slogan, but also a detailed philosophy of action. The book “The Age of Value Proposition” is more than just talk on paper. After the author leads everyone to understand the model of value creation, it will help to find appropriate value propositions based on customers’ most important tasks, pain points, and benefits, and then design a profitable business model.
If you are in the entrepreneurial stage, or want to help your company’s products and services find a more appropriate positioning, this book is worth reading. I would also like to suggest that while reading the book, you might as well start drawing. Through the combination of theory and practice, you may be able to clearly grasp your own value proposition.
★ Photo Credit: unsplash.com
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