"value proposition" entries
Great user experience + clear value proposition = value innovation
"Blue ocean" products change the way people think; value innovation requires changing the rules of the game.
Editor’s note: this is an excerpt from our forthcoming book UX Strategy; it is part of a free curated collection of chapters from the O’Reilly Design library — download a free copy of the Experience Design ebook here.
Value! Value! Value!
The word seems to be used everywhere. It’s found in almost all traditional and contemporary business books since the 1970s. In Management: Tasks, Responsibilities, Practices, Peter Drucker talks about how customer values shift over time. He gives an example of how a teenage girl will buy a shoe for its fashion, but when she becomes a working mother, she will probably buy a shoe for its comfort and price. In 1984, Michael Lanning first coined the term “value proposition” to explain how a firm proposes to deliver a valuable customer experience. That same year, Michael Porter defined the term “value chain” as the chain of activities that a firm in a specific industry performs in order to deliver a valuable product.
All these perspectives on value are important, but let’s fast-forward to 2004 when Robert S. Kaplan discussed how intangible assets like computer software were the ultimate source of “value creation.” He said, “Strategy is based on a differentiated customer value proposition. Satisfying customers is the source of sustainable value creation.” Read more…