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What Customers Want




which is inundated with many titles on the creation, sustenance and evolution of value in enterprises and business, got another member in its fraternity. Authors Alex­ander Osterwalder, Yves Pigneur, GregBernarda, Alan Smith (co-author and art direction) and Trish Papadakos (design) have created this handbook, as a perfect sequel to their Business Model Gen­eration. The authors call themselves the Strategyzer crew, as they run an epony­mous website.

The authors had intro­duced the nine building blocks: customer seg­ments, value proposition, channels, customer rela­tionships, revenue streams,

VALUE PROPOSI­TION DESIGN Alex Osterwalder et. al


290 pages; Rs 699

key resources, key activi­ties, key partnerships, and cost structure, as part of their the business genera­tion model (BGM) canvas. While the BGM canvas creates value for your busi­ness, the value proposition (VP) canvas helps you cre­ate value for your custom­ers. The authors claim the VP canvas is a plug-in tool to the business model (BM) canvas and just like the BM canvas allows you to visualise business models, the VP canvas allows you

to visualise value proposi­tions in greater detail. Both canvases work hand in hand and this is especially valid as value propositions and customer segments live inside the framework of the BM canvas and expa­tiate upon it.

The authors approach starts from the VP canvas, which sets the stage for further design thinking leading to testing and followed with monitor­ing of the metrics lead­ing to evolution of the

value proposition. The design, test and evolution cycle is an iterative and never-ending process in such a way that the value proposition is always kept relevant to customers. By observing and identifying the customer’s task and understanding their needs and their pains (problems) and gains (outcomes or benefits), design thinkers need to develop a product or a service that delivers value. And this is one of the best ways of achieving the product-market fit.

Though the colourful diagrams and emoticons make the text engaging, overdose of it throughout the book leads to some distractions as some of the emoticons are not exactly relevant. The book is pri­marily meant for practitio­ners who can make exten­sive use of frameworks and guidelines as part of their design thinking. 

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