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Michael Skok

04/01/23

@ Harvard Innovation Labs

Value propositions are crucial because the primary reason companies fail is that they don't address a significant enough problem, leading to a lack of value that customers are willing to invest in.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

Today, we will help you define the problem you're addressing, evaluate it, and ultimately create a compelling value proposition.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

I want to eliminate the notion of just having ideas; they lack meaning until they address a specific problem or opportunity.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

When building a value proposition, it's essential to evaluate it yourself to determine if it's compelling enough to drive customer engagement.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

To create a successful value proposition, you need to clearly define who your target audience is, as trying to sell to everyone will lead to failure.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

If you don't know who your customer is and think it's everyone, you're likely to fail because targeting a broad audience is overwhelming for any startup.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

Understanding the difference between users and customers is vital; the user benefits from the product, while the customer pays for it.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

You need to ensure that your product has a pull from the user; if users aren't engaged, customers won't pay for it.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

A well-defined problem is half-solved; clearly identifying the pain or need you address helps your team focus on the right product or service.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

When defining your value proposition, consider problems that are unworkable, unavoidable, urgent, and underserved to ensure you're addressing real needs.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

Unworkable problems are those that, if not solved, can lead to significant consequences, such as job loss or customer dissatisfaction.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

Urgency is relative; what may be urgent for one group may not be for another, so understanding your audience's priorities is crucial.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

Shifts in the market can create urgency; for example, the rise of mobile technology has dramatically changed how businesses operate and engage with customers.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

Identifying latent needs—those that aren't top of mind but become critical—can help you create compelling solutions that resonate with users, and understanding your use case is crucial to determine if your product is a 'nice to have' or a 'must have' for users.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

If you can identify the difference between a 'nice to have' and a 'must have', aim to position your product in the 'must have' category.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

The iPad's success in critical fields like medicine and aviation shows how identifying essential applications can drive adoption.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

To validate your product's value proposition, ask users how critical your solution is to their needs and what alternatives they would consider.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

Steve Jobs had a vision for the iPad that led to a platform allowing developers to create applications, which ultimately drove its success.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

Creating a platform that is easy for users to adopt is essential for your product's success; it should solve their problems effectively.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

Open source platforms allow users to modify and extend functionalities, which can lead to widespread adoption and innovation.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

The failure of Pebble smartwatches highlights the importance of urgency in product necessity compared to competitors like the Apple Watch.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

When building a product, be aware of dependencies that affect its success; your product is unlikely to be a complete solution on its own.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

Understanding the external factors that influence your product's success is crucial; neglecting them can lead to offering solutions that don't meet user needs.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

To stand out, your startup must clearly articulate how it cuts through the noise of competitors claiming to be faster, better, or cheaper.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

Instead of competing on being faster, better, or cheaper, focus on what makes your product disruptive, discontinuous, and defensible.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

To effectively communicate your value proposition, define the before and after scenarios for your users, emphasizing the critical improvements your product offers.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

Your product should not only be a nice-to-have but a necessity, addressing urgent and critical needs of your target audience.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

The gain-pain ratio is essential; ensure that the benefits of your product significantly outweigh the challenges users face in adopting it.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

When discussing your product with potential users, ask them to identify reasons they might not buy it, which can reveal critical pain points.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

Understanding the inertia and risks customers face when considering your product is vital for developing a compelling value proposition.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

A compelling value proposition must address a critical problem that users face, ensuring that the gain from your product outweighs the pain of adopting it.

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Michael Skok

04/01/23

@ Harvard Innovation Labs

To achieve market fit, your solution must uniquely address a significant problem that users face, making it indispensable to them.

Value Props: Create a Product People Will Actually Buy

Takeaways