A review of the book 'Value Proposition Design' written by Alexander Osterwalder, Yves Pigneur, Patricia Papadakos, Gregory Bernarda, and Alan Smith.
If anyone has some knowledge of business they at least know they need to write a business plan. ‘Value Proposition Design’ from Strategyzer addresses everything that happens before this plan can be written. It covers the canvas tool, design, testing, and evolving portions of the cycle. As someone who hopes to start a business, I found the book simple, and full of legitimate tools and resources to build a plan I can trust.
The canvas tool is built with the goal of creating fit between the customers needs and the services or goods one would provide. It is all about how to deliver the right value to the right people.
Before I continue, I would like to add that I believe the transfer of value and the testing involved (validated learning) can apply to any situation. Value design does not have to be about selling goods or services. It can apply in business to business relationships or nonprofit missions. Value design could also be used in networking between companies.
I found the canvas as well as the rest of the book visually useful. It contains mostly pictures and diagrams and many links to tools on Strategyzer’s website. I enjoyed the customer profile side far more than the value map because it does what I think it most important which in essence is to understand the customer’s perspective. The main question I’ve had during the read and after is how exactly one could fully understand the people they are creating value for. The book does offer lists of trigger questions but doesn’t discuss the mechanics of actually getting out into the world until later on in the book around page 102. Are there spreadsheets that can quantify or qualify responses and provide actionable metrics? I think the questions are straightforward and would provide excellent learning material for any value proposition but I think there’s an opportunity for the user such as myself to insert assumptions and bias into the answers.
I do not have much to say about the value map. In my mind I’d prefer not to invest many resources into the value piece until I get a solid grasp of my customers. One thing to note however, is that it is actually great to get a minimum viable product (MVP) going. For great reading in that area I’d recommend chugging through ‘The Lean Startup’ by Eric Ries.
Phase two of ‘Value Proposition Design’ actually picks up right at the MVP. I’d honestly be lost without this section’s tools because there are so many and prototyping is a bit intimidating. I enjoyed how Strategyzer gets you to try and force yourself to think outside the box by presenting the value propositions of companies such AirBnb and Southwest Airlines. These real-world examples provide encouraging glimpses into how this theory can be employed.
The final section provides direction on testing. For me, when I think of creating value I immediately wonder if there will be demand or if I will be after the right customers where the demand can be found. It ultimately boils down to what I can act on that will produce the least amount of risk. The surprise is that we can “start experimenting to reduce risk”!
In closing, I hope this review was not a bland summary but a personal response that might encourage you to read the book or at least do some more research. I’d love to keep the discussion going so please feel free to leave comments, ask questions, or let me know if I missed something!
If you are interested in other books such as this check out my entire list of Good Reads.
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