Category: Exploring Value

Understanding value and how it is created (and destroyed) is critical to understanding innovation. As well as understanding the purpose of an enterprise.

A value proposition details how the offer will help a beneficiary make progress.

I've defined this as the proposed value (whereas realised value is the amount of value co-created)

We can use a formula way to describe a value proposition:

  1. I (beneficiary)
  2. who (functional progress being sought [job to be done, hindrance to avoid, problem to solve])
  3. the (product/brand name) is a (product category)
  4. that (functional and non functional progress offered)
  5. unlike (primary competitor alternatives), (product/brand name) (primary differentiation statement).
Reading time <3 mins

Value - it's more than the price someone is prepared to pay

It is the proposal to help a beneficiary make functional and/or non-functional progress in some aspect of their life. And it is the amount of progress made in use (co-creation of value).

That we measure value today by price paid and/or volume sold is a result of our product-dominant logic view of the world. It turns out, these are proxies we end up using as we are not relational enough. Something service-dominant logic opens our eyes up to.

Reading time <11 mins