Understanding “Value Proposition” and “Value Delivery”!

When you present a value proposition, you are essentially sharing your understanding of what the customer requires and proposing how your product or service can meet those needs effectively. This approach not only demonstrates your awareness of the customer’s challenges but also positions your offering as a viable (and valuable) solution.

It’s not so complex.

Simply put, a value proposition comes from what outcomes our solution delivers for customers, and why should they come to you or buy your services or product. A strong value proposition should be clear and easy to understand, directly relevant to the customer’s needs, differentiated from what competitors offer, and measurable.

A well-crafted value proposition provides direct and concrete quantitative insights into how your product or service has delivered business results for other customers. By showcasing specific examples and data, you can illustrate the tangible benefits that others have experienced, making your proposition more compelling.

If you have answered below the TOP 2 Concrete aspects while proposing your product/service/solution to your customer, I feel you are good to go.

Is our offering better than the alternative?

You must demonstrate how it stands out compared to competitors. Highlight the unique features and advantages that make your offering superior, addressing why it is the better choice.

In ways and how much better is it?

Explain how your offering outperforms others, whether it is through higher quality, cost, greater efficiency, or better customer support. You need to Quantify these benefits and show them the picture of “Value”, which could be immediate or over a period of time. Help the customer see the return on investment they can expect by choosing your product or service. Whether it is through cost savings, increased revenue, or enhanced productivity, make sure to articulate the financial impact clearly.

Well, that’s about “Value proposition” in layman’s language.

Now let’s understand what is “Value Delivery”. As a Business Analyst (BA) or Project Manager(PM) or a Business, understanding “Value Delivery” is very critical.

So, what exactly is “Value”? We often hear that business analysts need to focus on delivering “Value.” But what does that really mean?

Here’s my take. Feel free to add your thoughts.

As a BA (or PM in a Project), you gather and elicit requirements. You deliver what’s requested as part of the requirements. There are n number of ways a solution can be envisioned and delivered. Technically, you’ve done your job. But did it truly help the customer? Did it solve their pain points? Will the customer prefer your solution over what he/she is already using?

That’s what I mean by “Value.”

Let me give you an example.

Imagine a customer following a certain business process. You understand the current (AS-IS) process, and you propose a new (TO-BE) process. If your new design (of the same process) adds complexity or doesn’t offer a better experience, will the customer appreciate it?

You might have met the requirement, but the customer might find the old process easier and prefer not to use the new system. In this case, you delivered the requirement, but not the value. You missed delivering what the customer envisioned — it could be ease of use, improved productivity, and more.

When a BA or PM is not aligned with the core project vision and its purpose, they might end up just delivering requirements without delivering true value.

Therefore, as a BA or PM, it’s crucial to think about value. This can manifest as improved productivity, tangible benefits like better total cost of ownership (TCO), enhanced user experience, streamlined processes, and much more.

Agree?

What do you think?

Do Comment.

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