Value Proposition Design: How to Create Products and Services Customers Want

by Alexander Osterwalder, Yves Pigneur, Gregory Bernarda

If you liked "Business Model Generation," you'll love "Value Proposition Design." The sequel builds on the same visual format and practical tools that made the first one so useful. It shows you how to use the Value Proposition Canvas, a practical business tool to design, test, create, and manage products and services customers want. It compliments and perfectly integrates with the Business Model Canvasfrom "Business Model Generation" so you can succeed with great value propositions embedded in scalable and profitable business models.

Practical exercises, process illustrations, and workshop suggestions help you immediately apply the tools in the book to your daily work. The book includes an online access to Strategyzer.com to complete and assess exercises interactively, learn from peers, and download pdfs, checklists, and more.

You'll love "Value Proposition Design" if you've been overwhelmed by the task of true customer value creation, frustrated by unproductive product meetings and misaligned teams, involved in bold shiny projects that blew up, or simply disappointed by the failure of a good idea."Value Proposition Design" will help you successfully understand the patterns of value creation, leverage the experience and skills of your team, avoid wasting time with ideas that won't work, and guide you through the design and test of products and services that customers want.

Genres: Business, Design, Entrepreneurship, Nonfiction, Startup, Management, Buisness

320 pages, Paperback

First published September 16, 2013

About the author

Dr. Alexander (Alex) Osterwalder is one of the world’s most influential strategy and innovation experts, a leading author, entrepreneur, and in-demand speaker whose work has changed the way established companies do business and how new ventures get started.

Ranked No. 4 of the top 50 management thinkers worldwide, Osterwalder is known for simplifying the strategy development process and turning complex concepts into digestible visual models. Together with Yves Pigneur, he invented the Business Model Canvas, Value Proposition Canvas, and Business Portfolio Map – practical tools that are trusted by millions of business practitioners from leading global companies including Microsoft, Coca-Cola, Nestlé, MasterCard, Sony, Fujitsu, 3M, Intel, Roche, Colgate-Palmolive, and many more.

Strategyzer, the company Osterwalder co-founded in 2010, is an innovation powerhouse, providing online courses, applications, and technology-enabled services to help organizations effectively and systematically manage strategy, growth, and transformation.

Osterwalder’s books include the international bestseller Business Model Generation, Value Proposition Design: How to Create Products and Services Customers Want and Testing Business Ideas, and his forthcoming book for senior leaders, The Invincible Company, to publish in spring 2020.

He holds the Strategy Award from Thinkers50 and the European Union’s inaugural Innovation Luminary Award. In 2019, Osterwalder chaired the prestigious Drucker Forum, the premier annual business management conference. A frequent and popular keynote speaker, Osterwalder travels the world discussing his ideas and strategies at Fortune 500 companies, premiere innovation conferences, and leading universities.

He holds a doctorate from HEC Lausanne, Switzerland, and is a founding member of The Constellation, a global not-for-profit organization connecting local responses to global issues around the world.

Reviews

[د.أمجد الجنباز]

يتحدث الكتاب عن كيفية دراسة منتجك وتعديله بحيث تقدم أفضل قيمة للعملاء
وذلك باستخدام نموذج تصميم القيمة المقدمة
هذا النموذج يدرس بشكل مفصل العملاء الذين تود خدمتهم من حيث معرفة الآلام التي يعانون منها
والمنافع التي يبحثون عنها
والوظائف التي يمارسونها بشكل دوري

ثم البحث عن منتج أو خدمة تخفف من آلامهم وتزيد من منافعهم

وهو مناسب جدا خاصة لمن لديه فكرة مشروع جديدة ويريد تطبيقها، وذلك بعد استخدامه لنموذج العمل.

والكتاب يحوي طرقا سهلة لاختبار الفكرة للتعديل عليها

[Jose Papo]

This book is a must read companion to "Business Model Generation" by Osterwalder. You REALLY need to read this book, because it goes deeper on the most important part of your solution: the Value Proposition. Value Proposition is a combination of customer segments and the value you provide to them. It's the way you provide value to the customer and the business model is how you generate value for your company.

What I liked most is that Osterwalder not only used the important aspects of jobs to be done, pains and gains from Disruptive Innovation literature but integrated it with experiments and Lean Startup in a very simple and clear way.

So do yourself a favour and buy this book if you create or improve products and/or services at your job or as an entrepreneur.

[Ahmad hosseini]

The value is what customers are looking for and ready to pay money for it. So designing a right value for right customers is very important for any business. This book helps you:
• Understand the patterns and value creation
• Leverage the experience and skills of your team
• Avoid wasting time with ideas won’t work.
The tools presented in this book can be applied to both startups and established organizations. Value Proposition Canvas is one of this tools that can be used to design and test a value.
Format of book is practical, visual, and enjoyable!

[Люда Дмитрук]

Якщо б ви могли прочитати лише дві бізнес-книги, то нехай ними стали б "Розробляємо ціннісні пропозиції" та її попередниця "Створюємо бізнес-модель". Для молодих стартапів, великих компаній чи неприбуткових організацій - ця книга настільки проста, універсальна й концентрована, що стане корисною абсолютно для всіх!

[Semi-Academic Eric]

Something seems to be missing from this book that Business Model Generation had. I can't quite put my finger on it yet. Is it that the graphics are more flat and seemingly artificial? Yet, now they are in color.

Has this process gotten overly simplified and systematized? Does it leave as much room for creativity and experiential insight?

I think I need to read more to answer these questions. However, my initial feeling is that I am not sure that I want to... Aren't there other resources that already deal with value proposition design very well?

Please let me know if you think I'm mistaken at this, but it seems like a lot of extra fluff has been added in to make this into a book.

[Amir Rafiey]

اول این که کتاب رو اگر دارید به کسی قرض ندید چون یه جور کتاب مرجع هست که باید بهش مراجعه کنید
دوم این که خیلی از کتاب خوشم اومد
به نظرم اگر کسب و کار خاصی دارید حتما و حتما این کتاب رو بخونید و از ابزارهاش برای کارتون استفاده کنید
ابزارهایی که معرفی میکنه مزیتی که دارند این که سرعت بالایی دارند برای استفاده
به طور کلی از ابزارهاش میشه برای جهت دادن سریع به کسب و کارتون استفاده کنید

[محمدحسین بنـکدارتهرانی]

پوچ و توخالی

[Gabriel Rondelli]

The book follows the trend of business consultants that thrive on making risk seem irrelevant.
By following the Jobs-to-be-done approach, pains and gains you can shape the business model canvas from the customer's perspective, without taking a full classical "needs" approach.
Why the 3* then?

Well, for one, this book is clearly targeted at organisations, I mean the big ones. Alex sells high, he doesn't really care about some of the little folks that are just starting their own business, although to be fair, the book does have quite a few valuable pointers for entrepreneurs as well.

Second, the book is not linear, you have to go through it in order to understand the process, so you'll likely jump from stage to stage, trying to piece things together by following the recommendations.
Flow is what is lacking, structure-wise it's ok, although sometimes structure seems to lose to bloated graphics. As a reader, and mostly 'the how-to create products' reader, I'm mostly interested on the 'how-to', less than the graphics.

Third, just by following the prescriptions in the book, defining multiple jtbd, pains and gains for multiple contexts, with different solutions that will ultimately lead to different business models, it will take a lot of time. So this is to be done in the ideation phase, before settling on an implementation, but although it has a part of rapid prototyping, if you don't have users at hand or user-data from where to gather insights, this part is not "rapid" at all.

Overall, I recommend the book for a good system to follow when defining your persona and business models, it has good advice and a framework to follow, but don't follow the book by the letter if you want to go fast and find things along the way.
Also, not a book to be read from cover to cover, but something to come back to from time to time, for guidance and reflection.

[Adam Zabell]

tl;dr - infographic-like reference to get you from idea to profit

Once you buy into the idea of a Customer Profile instead of the psychodemographic profile, everything else falls into place. I've never been a fan of 'The Demographic of Our Best Customer' so this works for me. Kudos for referencing and borrowing the keywords of other authors; reinventing the wheel helps nobody.

And while I was impressed with how they used the publication of the book itself as a case study for how to use the book, the real magic comes from the fact they have reinvented the "business help book" so that you *have* to buy the paper copy (with their offer to upsell you some online material). Graphic and tactile functionality are integral to the book, something no kindle or eReader can match. THAT is solid sales, marketing, and consumer understanding.

[Ebony]

There are gems in Value Proposition Design. The principles of canvas, design, test, and evolve are clear. There are step by step instructions for completing the canvas, collecting customer insights, testing, and launching. Buy it to keep as a reference book for iterating within a current business and creating new ones. Sign up for the Strategyzer account for the free downloads. To be a workbook style text, I did find it wordier on the sentence level than I would have anticipated, but nonetheless, it’s a well-designed the lean start up segment on how to design a business with customers at the core.

[Mehis]

Great handbook and addition to Business Model generation. Together two most influential business books of the decade (or even two). Must read for all designers and business builders. Strongly recommended to everyone else who are interested in professional development.

[Magno de Santana]

Livro extremamente recomendado. Conteúdo excelente e ainda tem uma parte online para exercitar o que é ensinado no livro. Saia do prédio e valide suas hipóteses...:)

[Miroslav Pavelek]

Value proposition Design is about two simple<\i> diagrams - what the customers needs, what are his needs and pains and how the business is solving it.
While it sounds easy, there more than 200 beautifully designed pages how to fill it and test it.

[maarten mellegers]

Soort college over hoe om te gaan met data en een nieuw product.
Hoe betrek je nieuwe mensen?
Waar let je op.
Ik vond het nogal vervelend lezen.
Het was een soort stripboek een uitgeschreven powerpoint.
Ook stond op de achterkant een omgekeerde titel met bad proposition.
Ik had er meer van verwacht.
Dus ik heb het meer doorgebladerd dan gelezen.
Zojuist weer ingeleverd bij de OBA.
Het werd aangeraden door een cursus die ik gevolgd heb maar ik weet niet maar waarom

[Andriana Novosad]

Дуже прикладна і чітка інформація, легко сприймати, ідеально для людей-візуалів. Перший раз читала для загального розвитку - круто, другий раз шукала відповіді на питання щодо реалізації конкретної ідеї - зайшла ще крутіше.

[Camilo Manriquez]

La obra "Diseñando la Propuesta de Valor" es el complemento necesario del libro "Generación de Modelos de Negocio", ambos de Alexander Osterwalder. Enseña a crear valor para tu negocio en base a lo que los clientes esperan de tu empresa. Crear alineación, medir, controlar, mejorar y reinventarse son los elementos claves del texto. Entretenido y dinámico de principio a fin. 100% recomendable.

[Olha Prots]

Як і "Створюємо бізнес-модель, це надзвичайно цінна книжка, особливо для тих, у кого на думці є створити щось своє, або ж дотичних до менеджменту чи консалтингу.
По-перше, вона цікава, кольорова, інформація подана візуально.
По-друге, це практичний посібник. В якому присутні хороші приклади та завдання, що допомагають краще зрозуміти певні техніки.
По-третє, без водички, все коротко, наголос на основному, вдалі приклади і доречна нова інформація на кожній сторінці.
З нетерпінням чекаю на інші книги серії

[Petar Ivanov]

A great read focused on the Value Proposition Design which is embraced in the early days of the business creation. I liked the framework and the materials provided in the book. It helps you answer the biggest question of business - What value will you bring to your customers?

[Ivan Atanasov]

Must read for anyone that is trying to create a new product or service. It is very useful for new ventures and also for new division in existing company.

[Tibor Konig]

Az új generációs (= tartalomszervezési és információ-megjelenítési szempontból a hagyományos kiadványokat meghaladó) üzleti könyvek egyik legjobb példája. Eddig inkább kézikönyvként használtam, most vettem a fáradságot, és elejétől végéig elolvastam. Kötelező!

[Kunal]

Decent Read. Graphics are engaging.

[Ali Arabzadeh]

شاید چون من درست قبل از این کتاب، اثر فوق‌العاده‌ تاثیرگذار استراولدر یعنی «خلق مدل کسب‌وکار» را خوانده بودم، همه چیزش را با آن مقایسه می‌کردم و خب در نتیجه به‌نظرم در مجموع یک تلاش کم‌فروغ می‌آمد.
واقعیت این است که تأثیر بوم مدل کسب‌وکار و مفاهیمی که استراولدر در آن کتاب طرح کرده است آن‌قدر بر جریان کارآفرینی به‌ویژه کارآفرینی مبتنی بر تکنولوژی بارز و تعیین‌کننده بوده که انتظار رو کردن کارتی به همان اندازه آس از همان نفر انتظار معقولی نیست.
اگرچه این‌جا هم استراولدر و تیم‌ش سعی می‌کنند با تصویری‌سازی، قصه‌گویی و پیش‌نهاد روش‌های جمع‌وجور و سریع مسیر طراحی و آزمون «ارزش‌های پیش‌نهادی» را به عنوان بنیادی‌ترین جزء مدل کسب‌وکار برای کارآفرینان هم‌وار کنند و همان‌طور که بارها در کتاب اشاره می‌کنند به یک زبان مشترک برای گفتگو در این مورد دست پیدا کنند، دست‌کم برای من که پیش از این هم با بخشی از این مفاهیم و روش‌ها آشنا بودم و از آن‌ها استفاده می‌کردم، ترکیب کتاب ناهمسان و وصله‌پینه‌ای و در بسیاری موارد فانتزی به‌نظر می‌رسید.
اگر کسی فقط یک بار درگیر طراحی ساختمان یک کسب‌وکار شده باشد می‌داند بوم مدل‌ کسب‌وکار و مفاهیم پایه‌ای آن چه نقش نجات‌بخشی در تمرکز بخشیدن به گفتگوها بازی می‌کند و چقدر همه‌چیز را حول جایی که لازم و مهم است متمرکز می‌کند.
این‌جا اما آن اتفاق نمی‌افتد و دنبال کردن روش‌ها و پیش‌نهادهای کتاب خودش مستلزم صرف انرژی مازادی‌ست که به تجربه برایم ثابت شده اغلب به‌سرعت طرف‌های گفتگو را به اتخاذ یک راه جایگزین من‌درآوردی سوق می‌دهد و این یعنی شکست ایده‌ی اصلی کتاب.
با این‌همه کتاب پر است از نکات کاربردی درباره‌ی بایدها و نبایدهای طراحی یک ارزش پیش‌نهادی و چگونگی سنجش آن. به اضافه پیام اصلی آن یعنی توجه به مهم‌ترین دردها و مسائل مشتری و یافتن آن با کمک خود مشتری به جای ایده‌پردازی پشت درهای بسته‌ی هیئت مدیره و تیم تحقیق و توسعه به اندازه‌ای حیاتی است که خواندن این کتاب را به هم‌بنیان‌گذاران و هم‌کاران‌تان توصیه کنید.

[Raafat]

يا ريت يتدرّس هالكتاب قبل ما نعلم الناس كيف يبدؤوا مشروعون الشخصي لأنو حتى اليوم عم نشوف ألف حدا عم يعمل دورة تأسيس مشاريع صغيرة وهالمشاريع الصغيرة للأسف عم تتأسس وتنهار لأنو مالا أي فائدة غير انو صحابا شايفينا مفيدة.
منشوف كتير مشاريع برّاقة بلشت وجابت صدى وبعد فترة سنة سنتين ماتت, طيب ليش ؟ الكتاب بيعلّم انه غلط الواحد يوقع بغرام فكرته الأولى, لازم يشوف العالم عنجد شو محتاجة وشو يقدملها مو بس خطر ببالو الواحد فكرة يلا تعا نعمل مشروع ونخطط, الموضوع علم قائم بحد ذاته وبده دراسة كبيرة لحتى الواحد يدرس فائدة الشي يلي رح يقدمه قبل ما يفكر أصلاً بباقي تفاصيل المشروع. نقطة تانية مهمة بالكتاب يلي هية أد ما كانت الفكرة رائعة والشغل ممتاز والناس حابة فكرتك بس إذا المشروع ما بيجيب عائد مادي فما رح يستمر حتى لو كان مشروع خيري أو تطوعي أو توعوي.
كتاب مميز ورائع, وعن نفسي اكتشفت كتير أخطاء كنت واقع فيها وإن شاء الله صار وقت نصلّح ونتلافى

[Fred Rose]

This book will become more of a classic than Business Model Generation. Summarizes all the key points from lean startup, design thinking and many other topics. Excellent, use it in my classes and work.

[Anas Faris]

A very clear and applicable theory not only for business, but for organizations and events as well.
A sort of interactive book, with online companion tools.
A great lesson on how to test your hypothesis on the value proposition.

[Mario Lucero]

I strongly recommend to read Business Model Generation before buying this book to have an idea of the Business Model Canvas.

This book is very practical because of that you should enjoy reading this book.

[Johan Oskarsson]

Just awesome

[Mohammed EL ASSAL]

A deep dive of the business model canva design.
On theory, the framework is the way to go for business excellence.
this is a reference book not a one time read it.

[Kenny Lam]

Easy to read. Uses less jargon and is easy to understand.

This book will help you to create a product to customers want and love.

[Alex ♈]

Die schrecklichsten Illustrationen ich habe je gesehen habe...