You can understand the value proposition as the answers to (and optimization of) these two questions:
Where does the money come from? What are the revenue streams? What customers are sought, and how much are they willing to pay?
Where does the money go? What is the cost structure? What does it cost to serve that customer?
This article will give you the example to help illustrate the helpfulness of the tools in generating strategic insight
Leaders of strategic initiatives need to have a working knowledge of the various perspectives on value propositions. Why? Because organizations often charter strategic initiatives to close the gap (or create advantage) on value propositions. To reinforce this point, PMI’s updated Standard for Program Management places more emphasis business value realization as a key rational for the use of program and project management techniques.
The term “value proposition” is a bit abstract, and borders on jargon. That probably explains why many managers shy away from developing them. As one research study explains,
“Value propositions can be intimidating because they strive to combine small size — often 10 words or less — with a lot of substance. After all, those 10 words are supposed to convey the unique qualities of your company and/or products and services.”
This article identifies two approaches for describing the value proposition, using elements of the Renew…
View original post 384 more words
olleh4u 