Value Proposition Canvas for Digital Business Startup

This document discusses the value proposition canvas and its usefulness for a digital business startup. It explains the elements of the canvas and how they can be applied to a business venture. The document also explores the limitations of the canvas and suggests alternative frameworks that may be more useful. Additionally, it discusses other models and tools that can be used to improve and add value to a pitch deck for the final assessment.

Digital Business Startup
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Table of Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY..................................................................................................................................................3
Explain value proposition canvas............................................................................................................3
What is the usefulness of the Value Proposition Canvas for your proposed digital business venture?
What worked well for you when using the value proposition canvas? What were some of the
limitations?..............................................................................................................................................4
CONCLUSION...............................................................................................................................................5
REFERENCES................................................................................................................................................6
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INTRODUCTION
The value proposition canvas is referred as tool which helps in identifying that products
or services of the company must be positioned according to the needs and value of customers
(Pokorná and et.al., 2015). This tool has been formulated by Dr. Alexander Osterwalder with the
motive to ensure that a proper balance must be maintain the product and marketplace. This tool
is mainly used by orgnaistaions when they want to refine their existing product or service or
when they are planning to launch new product or service in the marketplace. The organization
chosen for this report is Oxylus Networks. The company is known as ICT professional service
company which provides services such as IT data network solutions, software application
integrations and many more. The topic covered in the report are usefulness of value proposition
canvas, its limitations, alternative frameworks and the improve or add value.
MAIN BODY
Explain value proposition canvas
The Value Proposition Canvas is a device which can help guarantee that an item or
administration is situated around what the client esteems and needs (Meng, Somenahalli and
Berry, 2020). The Value Proposition Canvas focus on the two structure blocks – client profile
and client’s value proposition. Client profile – the advantages which the client expects and needs,
what might please clients and the things which may improve probability of receiving an offer.
Client occupations – the practical, social and enthusiastic assignments clients are attempting to
perform, issues they are attempting to unravel and needs they wish to fulfill. Value map
determines that how the product or service provide customer gain and are providing value to its
various potential customers. In the process of canvas methodology there are nine fundamental
elements that helps the company in obtaining its business objectives and to earn profit. The
elements which are important and are part of the digital business are describe below-
Customer Segments- Its important for the business unit to identify the needs and desires
of its potential customers and demonstrate them on the bases of social, geographic and
demographic sectors. It’s important for them to consider the overall market, the diversified
channels and the niche market before taking next step. The customer segment is based on three
factors that are gains, customer jobs and pains. In the gain phase they need to focus on improving
their support services, knowledge transfer and provide peace to its customers. In context of
customer jobs they focus on providing online business, cyber-security as crime rate is increasing
day by day due to which customers are not able to trust on online based activities. Whereas in
pain factor the main focus is on to identify the factors which are responsible for rapid design
changes, customers are not having proper information and knowledge and problems related to
time need to be considered.
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Value proposition- The products or services offered to the customers should be unique,
innovative and provide value in order to satisfy the needs and desires of the customers. The
factors on which the business need to focus on while planning are branding, cost reduction and
personalization. Branding helps in making customers aware about the new products or services
of the company where as the cost reduction techniques helps in saving the extra expense of the
company. The value proposition is based on three factors which are products and services, gain
creator and pain relievers. In case of product and services the focus is on the design, functioning
of hardware and software, support services and many other related activities. In context of gain
creator the focus is on price of competitors, customer satisfaction, on time delivery and related
factors. In the pain relievers the key focus is on developing the best product with design
validation, quick response and proper optimization activities.
Channels- With the use of various channels they can provide extraordinary experience to
its customers that is by focus on creating awareness, consideration, sales, delivery and post
delivery. With the effective use of various distribution channels they can increase their profits.
With the use of various social media platform they would be able to create brand awareness.
Customer relationship- By establishing effective relationship with the customers they
would be able to gain their trust and can increase their sales and profits. They should personally
assess its customers, must provide automated services and should focus on establishing
communities.
Key resources- While carry the business project various analysis and the methods need
to be consider in order to determine the project viability. Organisation need to identify the
various intellectual properties and need to focus on its human and financial resources.
In order to obtain the desire results the company need to focus on the key activities such
as need to regulate the production and focus on methods to solve the problems. The focus on the
cost structure in order to utilize the resources fully and to reduce the expenses that is by lowering
the cost and expenses. One of the major disadvantage of value proposition canvas is that the
mixing of several customer segments take place in one canvas while lead to the situation of
misunderstanding (Osterwalder and et.al., 2015). Moreover it focus on only on the functional
jobs and do not consider the social jobs. Furthermore the team face difficulty in collecting data
as it is a time consuming process.
What is the usefulness of the Value Proposition Canvas for your proposed digital business
venture? What worked well for you when using the value proposition canvas? What were
some of the limitations?
Developing a business plan in order to implement the value proposition canvas for the new
digital business venture helps in obtaining the business objective of the Oxylus Networks. In
business market is changing and friends are evolving with the changing period of time. It is
important to focus on changing behaviour of the consumers and customers so that their needs
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and at appropriate level.in relation with selected business venture, it has been seen that value
proposition Canvas is useful for the digital business because by focusing on this model it is easy
to make decisions regarding the needs of customers and implement strategies with the market
accordingly (Kyhnau and Nielsen, 2015).
Things which worked well when using value proposition Canvas were that it help in in
making and choosing of effective strategies according to the customer needs and stimulate their
wants with in a market by providing them total satisfaction.
Limitations-
Moreover there was some limitations of using this value proposition Canvas for the
chosen business venture as because which level of skill and knowledge of a specific field as well
as market to execute it properly. Resources and money is required at every stage of this model
which is also problematic situation for a business expansion.
What alternative frameworks or models might have been more useful for your digital enterprise?
Why, or why not?
As mentioned value proposition Canvas model is being investment framework but other than this
there is another alternative framework which can be useful for digital enterprise such as CBBE
model. It is a model which is used to improve brand equity by understanding and examining of
consumer behaviour. This is useful for the selected business venture because it assistant
improving good will as well as analysis of customers’ needs on the basis of which it is easy to
make decisions and implement strategies effectively (Strategyzer, 2015).
What other models or tools will you use to improve or add value to your pitch deck for the final
assessment?
To improve and had value to pitch deck for the final assessment are discussed below-
Problem-
The most successful start-ups have built a product or service that solves consumers’
problems. Identification of problem important identifies the problem connected with the
customers and through which pitch deck is also improved.
Vision-
It is also an important tool which is to be used for the final assessment because
developing vision leads to improving confidence and mind set.
Therefore, after analysing the above it has been stated that value proposition Canvas is an
most appropriate tool which can be used for digital business venture and it depends upon
enterprise to have an alternative framework so that objectives are achieved in most effective
manner (Sheehan and Bruni-Bossio, 2015).
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CONCLUSION
From the above study it has been concluded that The Business Model Canvas value
proposition offer gives a one of a kind blend of items and administrations which offer some
incentive to the client by bringing about the arrangement of an issue the client is confronting or
offering some benefit to the client. This is the purpose of crossing point between the item you
make and the explanation for the client's motivation to get it. An item can have a solitary
incentive or different offers.
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REFERENCES
Books & Journals
Pokorná, J.and et.al., 2015. Value Proposition Canvas: Identification of Pains, Gains and
Customer Jobs at Farmers' Markets. AGRIS on-line Papers in Economics and
Informatics. 7(665-2016-45080).p.123-130.
Meng, L., Somenahalli, S. and Berry, S., 2020. Policy implementation of multi-modal (shared)
mobility: review of a supply-demand value proposition canvas. Transport Reviews, pp.1-
15.
Osterwalder, A. and et.al., 2015. Value proposition design. Campus Verlag.
Kyhnau, J. and Nielsen, C., 2015. Value Proposition Design: How to create products and
services customers want. Journal of Business Models3(1).
Strategyzer, A.G., 2015. The value proposition canvas. Retrieved at January, 10, p.2016.
Sheehan, N.T. and Bruni-Bossio, V., 2015. Strategic value curve analysis: Diagnosing and
improving customer value propositions. Business Horizons58(3)pp.317-324.
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