Value canvas

Revision as of 11:58, 9 April 2023

Developed by Ali Abdul-Ghani - s184640

Abstract

The following article will introduce "Value canvas" and it's context as a analytical tool in project asssesment. The “Value Canvas” is a business model tool developed by Alex Osterwalder. The model was developed in addition to the existing “Business Model Canvas (BMC)”. By outlining the tasks, the businesses use the canvas to visualize, design and test, how to create value for customers, by describing, the jobs they want to accomplish, the gains they desire, and the pains the wish to avoid. ^[1] The Values Proposition Canvas is a pivotal element of business model canvas (BMC) and focus on two building blocks from the BMC. The Canvas is composed of two parts The “Costumer Profile” and the “Value map”. ^[2] The costumer profile is divided to three parts, that describes the jobs the costumers trying to get done, and the pains and gains. The value map lists the products and services the value propositions build on, by describing the way the products, services and features are pain relievers and how they eliminate, reduce, and minimize costumers’ concerns, and outline which way these are gain creators, by how they produce, increase, or maximize outcome and benefits, that the costumers desire. A “Fit” can be achieved when a clear connection between what matters to costumers and how products, services and features ease pain and create gains. The costumer profile might contain numerous jobs, gains and pain, however the value map highlights the most important ones. ^[3] Values Proposition Canvas can be utilized and used by different business in all devolvement stage for project management, to obtain a better understanding of their costumers needs and utilize this to develop a better value proposition. Additionally, this tool can help enhance better communication between the stakeholders, for a progressive succes.

Big Idea

- Value canvas

(about value canvas and its purpose) - Addition to the business model canvas

(The cooperation between the models and how its fits)

- Using Value canvas in project management to create value

(The idea of how value canvas can be used to create value for both Project managers / developer)

- The needs of businesses to use the Value canvas

A description of the importance of operating businesses through the use of Value canvas.

Application

- Business model canvas(BMC) and relations to Value canvas and its applications.

(about BMC and how value canvas is integrated to BMC and insight to the bigger picture to understand cooperation between them)

- Value Canvas to vizulize, design and test.

(about value canvas, value proposition, costumer profile, costumer jobs, value map, value proposition canvas, value proposition design)

Costumer profile:

The costumer profile constitutes of the right hand side of the value proposition canvas. The costumer profile visualizes the costumers/stakeholder segment that is intended to create value for. This is done through description of the pains and gains.

Costumer jobs

- Pains

Bad outcomes, risks, and obstacles that customers want to avoid, since it prevents them from getting a job done (well).

- Gains

Outcomes and benefits customers must have, expect, desire, or hope to achieve.

Value map:

- Products and Services

The items that the value proposition is based on that your customers can see.

- Gain creators

By getting a job done (well), products and services create gains for costumers and help customers achieve the outcomes and benefits they expect, require, desire, or hope for.

- Pain relievers

By getting a job done (well), products and services alleviate customer pains by eliminating or reducing risks, obstacles and bad outcomes.

- The practice

How to use value canvas and how The Customer Profile and value map helps businesses understand their costumers and benefits from it

Limitations

- Using Value canvas for best benefits in combination with other tools and not as a singular tool

Although the model is developed to be used in various business stages. The model itself has some limitations. Rather than looking at the model’s completeness, the model should be seen as a tool of tools. This is also highlighted by the product developer, where the ‘Value canvas’ gives the project manager opportunity to be used in conjunction with other tools, to develop a successful business idea/product. Depending on the goal and scope of a project, a better understanding to choose the appropriate tools to best fit with business model. Some tools that can be used and integrated with ‘Value canvas’.

-SWOT analysis: Gives the opportunity for the product managers a better idea of the strengths, weaknesses, opportunities, and threats of the company to give the manager insight to identify parts of the project that need correction or improvements in the Value Canvas.

Business model canvas: helps you create value for your business, and value canvas works as a building block of the business model canvas. Therefore, the model completes the use of value canvas into a general business model canvas.

Environment Map: The environment map is a strategic foresight tool to map the context in which you design and manage value propositions and business models. Essentially it helps you understand the context in which you create.

Market research /analysis: Market research and analysis done by conducting interviews and surveys can help the product developer or manager to better understand the customers’ needs, which can help clarifying the costumer segment in the Value canvas. Moreover, by analyzing the market, the manager can identify opportunities and competition in the field.

- Limitation of costumors

Limited information about customers and their behavior

- Application on divergent Companies

However The use of Value canvas, does not necessarily fit all types of businesses.

- Value canvas as a tool and not a recipe for success

The value canvas is a powerful tool to use, however it’s important to note it’s a tool and not a recipe for success.

Annotated bibliography

1. ↑ Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design. Wiley.
2. ↑ Kyhnau, J., & Nielsen, C. (2015). Value Proposition Design: How to create products and services customers want. Journal of Business Models, 3(1), 81–89. https://doi.org/10.5278/ojs.jbm.v3i1.1105.
3. ↑ Strategyzer. (2016, November 22). The Value Proposition Canvas - 9 Steps to Creating Products Customers Love. YouTube. https://www.youtube.com/watch?v=ReM1uqmVfP0.