Tag Archive | value proposition canvas

Two different solution spaces

 

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As a part of School of Startups, Toni Perämäki from Valohai wanted to show us a structured way of finding customers via Lean Startup method. The one way of ideating is to build, measure and learn in a cycle. The key question in Lean Startup is: Do I have a problem worth solving? One idea is to make a list of problems (3-5) that your idea would be solving. You need to think many sectors in the beginning of the process. These include reviewing the customer pain, considering the size of the market and is it reachable. Also you need to think technical feasibility: are you able to build your product/service?

Even though Toni was telling about customer discovery through Lean Startup methology, I was able to find a lot of similarity to Design Thinking. First of all, they both are used in innovation processes to create something new. Iteration is a key action in both methods. Design process is always about iteration when building products or services. The Build-Measure-Learn feedback loop in Learn Startup is operating solemnly in the solution space in order to create Minimum Viable Products. That loop is very similar to Design Thinking prototypes and testing. They both collect feedback.

Understanding customers is crucial in both points of views. Who are the customers that the idea would help? In this part Toni urged us used user personas and value proposition canvas to help you understand the motivation and also the gain and pain of customers. These both are methods used in Design Thinking. User personas are based on fictional characters whose profile gathers up the features of an existing social group. In this way the personas assume the attributes of the groups they represent: from their social and demographic characteristics, to their own goals, challenges, behaviour and backgrounds. Value Proposition Canvas is a simple way to understand your customers needs, and design products and services they want. It works in conjunction with the Business Model Canvas and other strategic management and execution tools and processes.

 

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Value Proposition Canvas

 

In order of validating your concept Toni adviced us to think of ways of testing idea before prototyping or having a ready product. Good ways are storytelling and demos. Also used in Design Thinking.

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About customer understanding

 

 

 

 

 

 

 

 

Toni introduced us to few (many) rules that I find useful when trying to understand customers. When gathering information, don’t use surveys. Surveys are too structured and it’s not a dialog. Also don’t use focus groups. People tend to change their opinion due to external influence. You don’t want people to follow some strongheahed persons ideas under group pressure.

Don’t ask what they want. The idea is to experience and understand the problem. Don’t go in alone. You get more insight of the problem at hand when comparing gathered information. Select neutral location. People need to feel comfortable. Use pen and paper to make notes. It it important to document results but having a lapotop between you and customer is not a good idea.

 

More info and ideas:

https://valohai.com

http://www.servicedesigntools.org

https://strategyzer.com/canvas/value-proposition-canvas

https://www.boardofinnovation.com/blog/2017/07/18/lean-startup-versus-design-thinking/

 

The author Siru Sirén is MBA student in Futures Studies and Customer-Oriented Services in Laurea UAS// Licenced social service professional

Competing with Business Models

“If you are not thinking about business models, you are an irresponsible leader.”

Co-author of Business Model Generation (Osterwalder & Pigneur, 2010) Alexander Osterwalder challenged Finnish business experts in Business Model Innovation Seminar in Helsinki 6th of November 2012.  He stated business models makes organizations thrive or die.

“We will have more industries where companies compete with different business models, but with exactly same products”, and continued: “Nowadays we compete with our business models.”

From Nintendo Wii to Nespresso , Alexander Osterwalder proved his case. “A better business model almost always outcomes a better technology.” he pointed out, and also added in the case of Nespresso: “Business models also expire”. Continue reading