Practical workshop at UX London 2016, delivered by Doug Morwood of Business Models Inc UK. Great Value Proposition Design leads to great business success. Why? Because only by truly understanding the needs of the customer can we design solutions that last.

1. UX LONDON 2016
Wed 18th May
2016
Great Value Proposition Design
@busmodincuk
@dougmorwood

3. YOU ARE ALL
DESIGNERS!

4. LET’S DRAW!

5. WHAT ARE WE
GOING TO DO
TODAY?

6. NEW TOOLS
NEW SKILLS
NEW MINDSET

11. HOW OUR STORY
STARTS

14. WE WANTED TO
DISRUPT THE
PUBLISHING
INDUSTRY

17. USD

18. USD

19. USD

20. USD

21. USD

22. OVER 1 MILLION
30 TRANSLATIONS

24. ADDED VALUE IN
VALUE
PROPOSITION
DESIGN

25. LAUNCHED
LAST OCTOBER

26. WE (RE-) DESIGN
BUSINESSES

29. FEW JOURNEYS
ARE LINEAR!

33. WHY IS
INNOVATION SO
IMPORTANT?

35. DISRUPT BEFORE
YOU ARE
DISRUPTED

36. THE BUSINESS
MODEL CANVAS

37. Blah Blah Blah Blah Blah Blah Blah Blah Blah Blah
Blah Blah Blah Blah Blah Blah Blah
Blah Blah Blah Blah Blah
Blah Blah Blah Blah
Blah …

38. A BUSINESS MODEL
DESCRIBES THE
RATIONALE
OF HOW AN
ORGANIZATION
CREATES, DELIVERS,
AND CAPTURES VALUE

39. CUSTOMER SEGMENTS1

40. VALUE PROPOSITIONS2

41. CHANNELS3

42. CUSTOMER RELATIONSHIPS4

43. REVENUE STREAMS5

44. KEY RESOURCES6

45. KEY ACTIVITIES7

46. KEY PARTNERS8

47. COST STRUCTURE9

48. CUSTOM
ER
SEGMEN
TS
KEY
PARTNERS
COST
STRUCTURE
REVENUE
STREAMS
CHANNE
LS
CUSTOMER
RELATIONSH
IPS
KEY
RESOURCE
S
VALUE
PROPOSITIONS
KEY
ACTIVITIES

49. LET’S SWITCH
PERSPECTIVE

50. WHO ARE YOUR #1
CUSTOMERS?

52. PICK ONE!

53. EXERCISE
Empathetic Insight

55. CLIENT STORY

56. MANUFACTURER
FROM EUROPE

57. CONFIDENTIAL 57

58. CONFIDENTIAL 58

59. CONFIDENTIAL 59
AMCO
AMCO
AMCO AMCO AMCO
AMCO

60. CONFIDENTIAL 60

61. CONFIDENTIAL 61
AMCO

62. CONFIDENTIAL 62

63. EXERCISE
Who is your customer?

64. STOP!
ASSESS YOUR
VALUE PROPOSITION
DESIGN SKILLS

65. ON A SCALE OF 0-10,
WHERE 0 IS STRONGLY
DISAGREE AND 10 IS
STRONGLY AGREE, RATE
HOW MUCH YOU AGREE
WITH THE FOLLOWING
STATEMENTS.

66. JUST A FEW OF THE BASICS
I DON’T FEAR FAILURE, BUT SEE IT AS PART OF THE
CREATIVE JOURNEY.
I KNOW THAT GREAT VALUE PROPOSITIONS ALSO
NEED GREAT BUSINESS MODELS.
I AM COMFORTABLE WITH UNCERTAINTY AND IT
DOESN’T ROB MY SLEEP.
V
V
V
V
V
___
___
___
___
___
___
V
I KNOW THE TOOLS AND PROCESSES OF CREATION AND
APPLY THEM (ALMOST) DAILY.
I AM A DESIGNER AT HEART
I DON’T FALL IN LOVE WITH MY FIRST IDEAS –
I PROTOTYPE ALTERNATIVES.
I AM COMFORTABLE WITH UNCERTAINTY AND IT
DOESN’T ROB MY SLEEP.
V
___
V ___I RELENTLESSLY TAKE A CUSTOMER PERSPECTIVE.
Source: Strategyzer

67. MOST COMPANIES
START WITH A
BUSINESS PLAN

68. SOME MAP OUT THE
BUSINESS MODEL

69. MOST TRY TO WORK
OUT HOW TO SELL
THEIR PRODUCT IN A
MARKET (OFTEN BY
DOING WHAT OTHERS
DO).

70. HOW MANY TRULY
START WITH THE
CUSTOMER?

71. MOST COMPANIES HAVE
NO IDEA WHO THEIR
CUSTOMER IS. DATA IS
NOT ENOUGH

72. STOP!
STEP BACK INTO
YOUR CUSTOMERS’
SHOES

74. IDENTIFY CUSTOMER JOBS
ASK WHAT TASKS YOUR CUSTOMERS ARE TRYING TO
COMPLETE. MAP OUR ALL OF THEIR JOBS BY WRITING EACH
ONE ON AN INDIVIDUAL STICKY NOTE.

75. IDENTIFY CUSTOMER JOBS
WHICH JOBS MATTER MOST IN THIS CONTEXT? PICK 1 OR 2…

76. IDENTIFY CUSTOMER PAINS
WHAT PAINS DO YOUR CUSTOMERS HAVE? WRITE DOWN AS
MANY AS YOU CAN COME UP WITH, INCLUDING OBSTACLES,
RISKS AND NIGHTMARES.

77. IDENTIFY CUSTOMER GAINS
WHAT OUTCOMES AND BENEFITS DO YOUR CUSTOMERS
WHAT TO ACHIEVE? WRITE DOWN AS MANY GAINS AS YOU
CAN COME UP WITH.

78. ASSESS YOUR WORK
IS THE CUSTOMER YOU CHOSE TO PROFILE SPECIFIC
ENOUGH TO CREATE A MEANINGFUL PROFILE?
ARE ALL YOUR JOBS, PAINS AND GAINS AS
CONCRETE AS POSSIBLE?
DID YOU GO BEYONG FUNCTIONAL JOBS TO
EMOTIONAL AND PHYSICAL ONES?
DID YOUR CUSTOMER PAINS COVER OBSTACLES,
RISKS AND UNDESIRED OUTCOMES?
DID YOU KEEP YOUR CUSTOMER PROFILE
SOLUTION AGNOSTIC?
V
V
V
V
V
YES/NO
YES/NO
YES/NO
YES/NO
YES/NO
Source: Strategyzer

79. WHICH ARE
MOST
VALUABLE?

81. LIST PRODUCTS & SERVICES
LIST ALL THE PRODUCTS AND SERVICES OF YOUR EXISTING
VALUE PROPOSITION.

82. OUTLINE PAIN KILLERS
OUTLINE HOW YOUR PRODUCTS AND SERVICES CURRENTLY
HELP CUSTOMERS ALLEVIATE PAINS BY ELIMINATING
UNDESIRED OUTCOMES, OBSTACLES OR RISKS. USE ONE
STICKY NOTE PER PAIN KILLER.

83. OUTLINE GAIN CREATORS
EXPLAIN HOW YOUR PRODUCTS AND SERVICES CURRENTLY
CREATE EXPECTED OR DESIRED OUTCOMES AND BENEFITS
FOR CUSTOMERS. USE ONE STICKY NOTE PER GAIN
CREATOR.

84. ASSESS YOUR WORK
HAVE YOU LISTED ALL OF THE PRODUCTS AND
SERVICES THAT YOUR OVERALL VALUE
PROPOSITION BUILDS ON?
ARE THOSE PRODUCTS AND SERVICES TARGETED
AT A SPECIFIC CUSTOMER SEGMENT?
DO YOUR GAIN CREATORS DESCRIBE EXACTLY
HOW YOUR PRODUCTS AND SERVICES HELP
CUSTOMERS ACHIEVE GAINS?
DO YOUR PAIN KILLERS DESCRIBE EXACTLY HOW
YOUR PRODUCTS AND SERVICES KILL CUSTOMER
PAINS?
DO EACH OF YOUR PAIN RELIEVERS AND GAIN
CREATORS ADDRESS AT LEAST ONE OR MORE
CUSTOMER PAINS OR GAINS?
V
V
V
V
V
YES/NO
YES/NO
YES/NO
YES/NO
YES/NO
Source: Strategyzer

85. CHECK FOR FIT
MAKE SURE YOUR PAIN KILLERS AND GAIN CREATORS FIT WITH A
CUSTOMER JOB, PAIN OR GAIN. YOU ACHIEVE A FIT WHEN YOUR
CUSTOMERS GET EXCITED ABOUT YOUR VALUE PROPOSITION,
WHICH HAPPENS WHEN YOU ADDRESS IMPORTANT JOBS,
ALLEVIATE EXTREME PAINS AND CREATE ESSENTIAL GAINS THAT
CUSTOMERS CARE ABOUT.
FIT IS HARD TO FIND AND MAINTAIN. STRIVING FOR FIT IS THE
ESSENCE OF VALUE PROPOSITION DESIGN.

86. ASSESS YOUR WORK
IS THERE A CONNECTION BETWEEN YOUR
PRODUCTS AND SERVICES AND YOUR
CUSTOMER’S JOBS, PAINS AND GAINS.
DO ANY OF YOUR PRODUCTS AND SERVICES, GAIN
CREATORS, OR PAIN RELIEVERS NOT ADDRESS
ANYTHING FOR THE TARGET CUSTOMER?
ARE YOUR PRODUCTS AND SERVICES CREATING
REAL CUSTOMER VALUE BY ADDRESSING WHAT
MATTERS MOST TO THEM?
INSTEAD OF TRYING TO ADDRESS ALL OF YOUR
CUSTOMER’S JOBS, PAINS AND GAINS ARE YOU
FOCUSING ONLY ON WHAT MATTERS MOST?
V
V
V
V
YES/NO
YES/NO
YES/NO
YES/NO
Source: Strategyzer

87. EVERYBODY:
30 SECOND
PITCH!

88. AD LIBS
Product or Service Our named Customer
Job to-be Done Reducing/Avoiding Pain
Increasing/Achieving Gain
and/or
Our help(s)
want(s) to
who
by
Tip: add at the
beginning or
end of sentence
unlike

89. HERE’S OUR OWN
ATTEMPT 

93. BEFORE YOU
GO…

94. BASED ON
YOUR NEW
INSIGHT

95. WHAT
ASSUMPTIONS
ARE YOU
MAKING THAT
ARE CRITICAL?

96. WHICH IS THE
MOST
CRITICAL?

97. HOW COULD
YOU TEST THIS
QUICKLY AND
CHEAPLY?

99. Video and voice recorders are great for
capturing your conversations. Use with
permission and don’t use the technology
as a replacement for your notebook!
Getting the full picture, capturing body
language, can be used for later presentations
to show a real, existing need.
Subtle, unobtrusive way of recording, easily
editable, recording can be used in later
presentations.
Interviewee may feel “under the spotlight”
and may be more careful about their
answers. Ask permission before film i ng in a
public place. Video editing may be tricky.
Interviewee may hold back from giving full
answers to avoid recording being used
against them. Make sure you can transfer
your recording between the device and a pc.
VIDEORECORDER VOICERECORDER
GREATFOR: GREATFOR:
WATCHOUTFOR: WATCHOUTFOR:
TOPTIP
A simple conversation with the right person can open up many lines of thought and investigation that
may never had occurred to you before. Not only is effec t ive, but speaking with your customer is also
one of the easiest ways of fin
d
i ng out wh at ma kes them tick!
INTERVIEWSANDCONVERSATIONS ANINTRODUCTION
1
Remember, when speaking with your customer that you are not trying to solve their problems or offer
them gain creators. In terms of the Value Proposition Designer, we are focussing on the right side of the
tool - completely focussed on fin
d
i ng out the gai ns, pai ns and your cust ome r ’ s job to be done.
VALUEPROPOSITIONDESIGNER
INTERVIEWS
YOURCOMPLETEGUIDE
TOHAVINGMEANINGFUL
CONVERSATIONS&INTERVIEWS
CUSTOMERSAFARI
YOURCOMPLETEGUIDETO
OBSERVINGYOURCUSTOMER
INTHEWILD

100. WHAT IS YOUR
SIMPLE
COMMITMENT?

101. DOUG
MORWOOD
STRATEGY DESIGNER
Business Models Inc.
UK
doug.morwood@businessmodelsinc.com
@dougmorwood