In this paper we provide a conceptual approach to modelling value propositions. We argue that rigorous modelling in an ontological style could improve several aspects of business. Modelling and mapping value propositions helps better understanding the value a company wants to offer its customers and makes it communicable between various stakeholders. Using a common language (ontology) in defining a company's offering brings manager's mental models into a common form. Further, conceptually seized value propositions are comparable to the value propositions of a firm's competitors because the follow a rigid framework and make it possible to identify the competitive position of a firm's value proposition.
Gives a model of value life cycle
Value appropriation – creation
Value consumption – ownership/usage
Value renewal – for example firmware upgrades giving new functionality
Value transfer – value has gone for customer, but may still be able to gain value by transferring ownership (e.g. 2nd hand sales)
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