The Customer-Value Canvas v.0

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Jan 10, 2012

The Customer-Value Canvas v.0.8

Alexander Osterwalder

I’ve been thinking about “plug-ins” that complement the Business Model Canvas for a while. One concept that I’ve been looking atmore closely over the last few weeks is the invaluable “jobs-to-be-done” approach. I tried to turn it into a visual approach like the

Business Model Canvas (BMC). The result is a prototype conceptual tool, the Customer Value Canvas v.0.8., that I present in this

blogpost.

Originally, I set out to design an ultra applicable, simple, and visual Canvas for the (customer) jobs-to-be-done concept. My motivation was to

create a dedicated and complementary Canvas that helps organizations sketch out and analyze the fit between their value propositions and the

customers they target in a more granular way than the Business Model Canvas mapping does.

The result of my endeavor is a prototype conceptual tool, the Customer Value Canvas v.0.8. It’s the outcome of several iterations of prototypeconcepts, test runs with workshop participants, try-outs students, applications with my own team, and several conversations with my #bmgen co-

author Yves Pigneur (who is also a concept geek like myself). While the initial idea was to design a JOBS Canvas, the result turned out to become

a mash-up of several approaches from various different thinkers.

Relationship between BM Canvas and Customer-Value Canvas v.0.8

To explain the Customer-Value Canvas bit by bit and show how it relates to and complements the Business Model Canvas I used a series of

annotated screenshots of our upcoming Business Model Web App (sign-up for the release date).

The first screenshot simply illustrates how I started to map out a business model, notably by adding sticky notes to the Customer Segment and

Value Proposition part of the Business Model Canvas.



In the second screenshot the annotations highlight how a Value Proposition targets a specific Customer Segment (or several segments) aiming tocreate value by addressing a customer’s needs.

However, the Canvas does not make the details of the Value Proposition (VP), nor its fit with a Customer Segment’s (CS) needs, explicit, becauseit focuses on the big picture. The annotations in the second screenshot describe which characteristics behind the VP and CS could be interesting to

study in order to understand and analyze their relationship and fit in more detail. This would allow us to map what value precisely is created and

with regard to which customer needs. That’s where the Customer-Value Canvas comes in. It describes:

(A) For each Customer Segment: which jobs a customer is trying to get done, and all the related customer pains and customer gains

(B) For each Value Proposition: the bundle of products & services targeted at the customer and how they are expected to create gains or

relieve pains

In the third screenshot the annotations introduce the first – customer-focused – part of the Customer-Value Canvas and they describe how thishelps adding more detail to a specific Customer Segment in the Business Model Canvas.

(1) Select a specific Customer Segment in the Canvas(2) That Segment will become the one you outline in more detail on the right hand side of the Customer-Value Canvas(3) Specify the specific job(s) that Customer Segment is trying to get done. For a digital music player, for example, the job(s) would be

buying, downloading, transferring, and listing to music on the go(4) Now outline all the things that represent a gain to the customer for the outlined job. For the previous example that might be convenience,having all one’s music available at any time, the ability to buy new music, automatically playing music according to your mood, etc.

(5) Finally, outline all the things that represent a pain to the customer for the outlined job. For the digital music player this might be the weightof a device, its learning curve, its battery life, etc.



In the fourth screenshot the annotations introduce the second – value focused – part of the Customer-Value Canvas and they describe how it helps

adding more detail to the Value Proposition that targets the Customer Segment outlined above.

(6) Select the Value Proposition aimed at the Customer Segment outlined on the right-hand side of the Customer-Value Canvas(7) That’s the Value Proposition you outline in more detail on the left hand side of the Customer-Value Canvas

(8) Specify the specific bundle of products and services targeted at the selected Customer Segment. For the digital music player, forexample, the bundle of products and services might consist of a device, a software, and an online store… does that ring a bell? I’m talkingabout the iPod, of course

(9) Now outline how exactly that bundle of products and services should create gains. For the iPod that would be by offering “thousandsongs in a pocket” (remember that sentence Steve jobs repeated over and over when he launched the iPod?), by offering access to an onlinestore with content from all major recording companies, etc.

(10) Finally, outline how exactly the bundle of products and services should relieve the customer’s pain regarding the outlined job. For theiPad that would be the reduction of the learning curve through seamless integration of hardware and software, the elimination of constantly

having to copy songs back-and-forth due to tiny storage capacity (before the iPod digital music players could hold one album ofapproximately 24 songs)

The next image connects the two pieces described above. The resulting Customer-Value Canvas now allows you to map out and analyze how the

Value Proposition you designed fits the Customer Segment’s job and the customer’s pains and gains. While the right hand side of the Customer-Value Canvas (customer-side) is something you observe in the market (= studying the customer), the left-hand side (value-side) is something youdesign (= make choices).

This is where the Customer-Value Canvas connects with Steve Blank’s Customer Development Process (outlined in his invaluable book The FourSteps). Steve invites people to “get out of the building” and talk to customers. Now you have another tool besides the Business Model Canvas tomap the outcomes of those customer conversations.



Example

As mentioned above, I tried out several iterations of the concept with my executive workshop participants and university students. I also tested thefinal Customer-Value Canvas 0.8 presented in this blogpost in my own business. Together with Alan Smith, #bmgen designer and co-founder of

my software business, we mapped out the Customer Segments and Value Propositions for our upcoming Web App.

In the images below I illustrate how the Customer-Value Canvas helped us visualize and structure our conversation about the Value Proposition ofour Web App for consultancy clients (who apply the #bmgen concept to help their own clients innovate their business models).

The next image outlines the jobs we are trying to help our consultancy clients get done. There are two main types of jobs we are interested inhelping our consultancy clients with. On the one hand they advise clients on business models by running workshops and delivering results andcommunications. On the other hand they have to continuously acquire clients, retain clients and demonstrate credibility in their consulting domain. I

used color-coding to distinguish the different type of jobs.



The following image outlines some of the consultancy client’s most important pains related to the described job. This includes the risk of givingclients bad advice, the difficulty to manage client follow-up and communication, the time-consuming production of PowerPoint slides, and the riskof defecting clients .

The next image outlines some of the consultancy’s gains related to the job. This includes (specialist) support that helps them advise clients on BMs,easy monitoring of client progress, an easy way to acquire clients, switching costs that prevent customers from leaving, and growing and recurring

revenues.



The next images shows which products and services are targeted at the customer. In the case of our example this is simply a cloud-based business

Model Web App and dedicated teamspaces for clients or teams.

The following image shows how the Value Proposition is expected to relieve pain. This includes simplified production of business model documentsand documentation, decreased risk of having various versions of the same business model document circulating, and a collaborative platform thatmakes working together easier.



The last image shows how the Value Proposition is expected to create gains. This includes the support for business model consulting, tools that justwork, customization, smooth and continuous client communication and follow-up, and lastly, the fact that it creates switching costs for aconsultancy’s clients.

How it all started

The JOBS concept is an approach that I read first about from Tony Ulwick of Strategyn (cf. Understand Customer Needs) and then from

renowned Harvard Professor Clayton Christensen’s consulting firm Innosight (cf. Generating Breakthrough Solutions Using Jobs to Be Done).

I now frequently use the JOBS concept in my workshops because it helps business model innovators look at Value Propositions from a totally newperspective. Check out how Clayton Christensen explains and illustrates the JOBS concept in the video below:

The idea for a visual JOBS Canvas came up when I met with Mark Johnson last fall. Mark is co-founder of Innosight and author of the excellentbusiness model book Seizing the Whitespace. In our conversation we chatted about the fact that the JOBS concept is tested and proven, but thatthere is no visual template for it like for the Business Model Canvas. That is a pity, since I have come to learn how powerful visual templates can beto foster strategic conversations and innovation. Hence, I set out to design a JOBS Canvas.

The JOBS Canvas would be like a plug-in that complements the Business Model Canvas. I started using the term “plug-in” for methods that eitherallow going into more detail for a specific building block of the BMC or allow mapping another strategic aspect that is not directly covered by theBM Canvas.

While iterating through several conceptual designs I quickly realized the value of mashing-up the JOBS concept with other approaches. I threwother concepts into the mix, notably the Customer Empathy Map (outlined in #bmgen, but coined by XPLANE, which is now part of Dachis



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Group), the problem-solution fit (a lean start-up concept), a working paper from 1996 by NYU on Reinventing Value Propositions (pdf), andSteve Blank’s Customer Development Process (outlined in his invaluable book The Four Steps).

If you found this blogpost interesting, don’t hesitate to test the Customer-Value Canvas v.0.8 and provide me with some feedback. I’ve already

seen how it works for several people and groups, but I’d be curious how it works for you!

I deliberately left the Customer-Value Canvas v.0.8. in a raw form so you realize it’s still a prototype concept

41 Responses to “The Customer-Value Canvas v.0.8”

1. LILIANA FERREIRO says:

January 10, 2012 at 8:11 pm

Great Post! I will add it to my use of the BMG Canvas in my work with entrepreneurs in Argentina.Do you plan to come out with something more detailed relating the Financial Projections? Congrats, Liliana

2. Alexander Osterwalder says:January 11, 2012 at 1:15 am

No plans for that, but we are likely to provide more examples in relationship with our iPad App and upcoming Web App.

3. Philip Galligan says:

January 11, 2012 at 4:32 am

Hi AlexA great extension for the BM canvas. A drill down into detail like this is the perfect next step for the canvas. It will probably be possible tocreate additional detail canvasses for all 9 blocks.

Again it is visually compelling and self explanatory on one page. I will bring it into use at my first opportunity.Best regardsPhilip

4. Mark Dietrich says:January 11, 2012 at 8:11 am

Alex,

An excellent complement to the BMC approach — thanks for putting this together. In my own work, I usually start with the “jobs to be

done” question — and once those answers are in place, you can roll things up to possible business models to package the delivery of valueto the customer. The way you have “compartmentalized” the different parts of the value proposition makes it easy to align with the BMC.

Thanks again!

Mark



5. Jorge Palavecino says:January 11, 2012 at 8:57 am

Alex,Congrats from Uruguay, Just Great!.As say Philip, it´s a very natural next step for BMC.Is aligned to the same kind of “vision” and helps in the way to “build with feet in earth”.

Next time i ll be using the tool and tell you about my experince, but from now i m sure that will be a good incorporation.Regards,Jorge.

PD: Reading Liliana´s post i realize that BMC, is working good in the “Rio de la Plata” too. That´s a good thing!.

6. Patrick Stähler says:January 11, 2012 at 10:57 am

Hoi Alex,

great that you worked on this part. Your original value proposition was the least strong part of your canvas. You mixed the offer and thevalue proposition in your original work. That is a common mistake particularly entrepreneurs do. That is the reason why I decided toseparate the two on the canvas.

The offer is just one part to fullfil the value proposition. Actually, all other components like the revenue model, the channels, your corporatevalues, etc. have to fulfill the value proposition as well. The value proposition is what excites your customer, the rest is all about fulfilling thevalue proposition. Here some ideas I had some time ago http://blog.business-model-innovation.com/2010/04/business-modelling-value-

propositon-vs-value-perception/

Keep on rocking

All best

Patrick

7. Alexander Osterwalder says:January 11, 2012 at 1:47 pm

@Jorge looking forward to reading about your experience with the CVC.


@Patrick great ideas, as always!

9. Jan Schmiedgen says:January 11, 2012 at 5:33 pm

Hey Alex,Just before reading this, I uploaded a paper (http://scr.bi/uservalue) that deals exactly with this often somewhat simplified topic in the contextof BMI. So I’m glad to see your growing attention to this rather neglected “building block”. For us designers the quest for value is themost important one. It often is emergent in kind and appears during complex interactions (of a lot of stakeholders), especially when weconsider value creation via the change or production of meaning (new practices, new diffusion or domestication of technology, etc.). I really

like the idea of mapping the value proposition to particular customer segments. However, their systemic relations to other entities (e.g. keypartners, regulators, co-creators, etc.) of, let’s say a business ecosystem, can’t be visualised (i.e. grasped) like this. But they are the oneswho negotiate what actually the emergent value is! So sometimes you don’t know the value in the beginning. I think exactly at “this point” ofa BMI process, the oftentimes criticized design thinking/service design approaches and tools (e.g. context maps, value webs, value flows orjourney maps to name but a few) may help to uncover the value (propositions) for all stakeholders (e.g. employees, partners, financial

markets, etc.). I for instance very much like Elke den Ouden’s “value flow mapping” or similar visualizations:http://www.valuableinnovation.com/Valueflowmodelzoom.html (based on http://www.elkedenouden.nl/innovationdesign). It is simple, easy,logic and helps thinking the underlying basic assumptions about the systemic relations that have to be taken into account when crafting“holistic” and usually reciprocal value propositions.

Impatiently looking forward to see how this develops and thanks again for the great work so far!Best regards,Jan



10. Karl Burrow says:January 11, 2012 at 6:36 pm

Hi Alex,

Great addition to the BMC and much needed!! I have explored with this concept many times over with the original canvas by using a VP

explorer, word templates, Steve Blanks Method and a host of others for VP Mapping….painful at times. One useful tip used in myworkshops was to draw up just the 2 blocks VP and CS and go through a “focused”detailed mapping exercise along with the EmpathyMap” from the book and link them for a much clearer understanding of the process on “Jobs to be Done”.

The CVC really expands this simplifies the process. Also easy to see how it affects the BOS 4 actions framework.

Best

Karl

11. Business model as jobs to be done « Zaft Zaft says:January 12, 2012 at 2:30 am

[...] January 12th, 2012 ·Rik·Blog, Collected·No Comment Wow. Alex Osterwalder, creator of a what these days seems almost ubiquitousframework for business modeling, has tried his hand at a new variation of the business model canvas, the customer value canvas. [...]

12. Karl Burrow says:January 12, 2012 at 3:41 am

Hi Alex,

Great addition to the BMC and much needed!! I have explored with this concept many times over with the original canvas by using a VP

explorer, word templates, Steve Blanks Method and a host of others for VP Mapping to let the audience grasp this…..a bit painful at times.One useful tip used in my workshops was to draw up just the 2 blocks VP and CS and go through a “focused”detailed mapping exercisealong with the Empathy Map” from the book and link them for a much clearer understanding of the process on Mark Johnsons “Jobs to beDone” tagline and concept.

The CVC really expands this and simplifies the process. Also easy to see how it affects the BOS 4 actions framework.

Best

Karl

13. Cyrille KWABONG says:


Great Job Alex !I have tried it and it really brings me more closer to the real needs of customers. Well done.

What do you think of adding two small pieces :

In the CS We add :- Present Assets (after the pain piece)Fitting in the PV with :- Required Assets

I think it is necessary to take in consideration what customer already have as assets , on top of which we can decide to build moreaccessible VP.Taking back your example :

The VP may be adjusted if for instance the customer doesn’t have internet access (which is the first requirements for the customer)

14. Alexander Osterwalder says:January 12, 2012 at 10:10 am

That’s something I would add through color coding when using the Canvas. I like keeping Canvases as simple as possible

15. Wim Rampen says:January 12, 2012 at 2:15 pm



Hello Alex,

Excellent exercise. I did something similar a couple of months ago in my search to model Value Co-Creation.

I’m using ‘desired outcomes’ as the result of a ‘Job-to-be-done’ and the Customer’s journey as the descriptor of ‘performing the job’..

You can see it here: http://wimrampen.com/2011/06/26/value-co-creation-canvas/

Let me know what you think.

Wim Rampen@wimrampen

16. Jason Fonceca says:January 12, 2012 at 5:44 pm

Alex, I find your visualizations of business process are simple, clear, and transformative

Thank you for doing what you do

17. Jack Robertson says:January 13, 2012 at 5:13 am

Alex,

Another fine and on-target post. I appreciate the gains, pains, jobs-to-get done structure.

For B2B markets, what do you think of simply quantifying customer value using something akin to a customer value model like the demoshown at http://oakstonepartners.com/online-tools/customer-value-model.html. We’ve been using customer value models for a couple of

years in product development and sales, and they have transformed how we think about innovation.

18. Adam Johnson says:January 13, 2012 at 7:52 am

Alex,

Great add to the toolbox and it is something, as others have mentioned, that I have been tackling in other ways, but to have it appearseamless and integrated with the BMC is better.

Only thing I’m trying to wrap my head around is the gains block.

My method is to not only understand the job to be done or need, but the desired outcome. This in turn leads to an outcomes driven valueproposition. It appears the gain block is what I call desired outcomes and the only add I would have is an indicator of the direction. Whichsomewhat contradicts the label, “Gains”. Sometimes the desired outcomes is a decrease. (i.e. minimize flu related deaths). I guess byachieving the desired outcome that is a gain…so hmm perhaps it works, but its important that an indicator of direction is added to the gains.

Hope this make sense…

19. Mike Lachapelle says:January 13, 2012 at 9:19 am

Hey Alex

I’ve been doing some thinking about the issue of too much focus on products and services, that sometimes detracts from the importance ofserving the client segment. I would like to propose for consideration a modification to new canvas.

Box 8 (currently Products and Services) could be modified to be Needs. The logic behind this builds on the “Job-to-be-done” logic of theClient Segment. The Client has a job they have to do with which you can help. They have a need in order to get the job done that you cansolve for them. That need becomes the value proposition in the BM.

Allow me to illustrate with an example. Unfortunately I don’t seem to be able to post graphics so I will have to type it out.

Scenario: Start-up is looking at the potential for brining commuter transit rail service to the rural and suburban areas of a large city thatcurrently has no such service.

Client segment: Rural and Suburban residents



Job-To-Be-Done: Have to get to a job, or an appointment in the city (could eventually be broken into two sub-segments, occasional andfrequent travellers)

Pain: Stress of traffic and driving (worst at rush hour); finding parking in the city; costs of driving and parking, environmental impact of cars

Gain: Stress reduction; comfort; savings; environment

Needs-to-be-served: Alternative to driving; reasonable costs; connection to city public transit; good schedule

Pain relief: no driving in or to city; integration with city transit; day rates and frequent users rates

Gain creators: comfortable, modern rail transit; on-board amenities (coffee, internet), connection points to city public transit service

This approach doesn’t specify the actual product or service, but rather the value created by serving the need of the customer

20. 5 Cornerstones of a Powerfully Successful Business Development Pitch says:January 13, 2012 at 7:38 pm

[...] will meet the unfilled need. As a helpϝful aside, you might want to checkϝout “The Customer-Value Canϝvas” from Alexanϝder Osterϝ-walder. The post presents his visual frameϝwork for sketchϝing out and [...]

21. Innovation Excellence | Business Model Canvas Set to Explode says:January 16, 2012 at 7:14 am

[...] In the first few days of January of this year Alex provided his next step where he has been thinking even more about “plug-ins” thatcomplement the Business Model Canvas for a while. One concept he had been looking at more closely over the last few weeks is theinvaluable “jobs-to-be-done” approach. In his work-in-progress he is wanting to turn this concept into a visual approach like the BusinessModel Canvas (BMC). The result is a prototype conceptual tool, the Customer Value Canvas v.0.8., that he present in this blog post [...]

22. SAMUEL A VILLEGAS says:January 17, 2012 at 1:14 am

Great and helpfull post and replies.On the same track, I have been working “real cases” from last 9 months on detailed “business value flow pivots Canvas at same conceptuallayer”, for and from others blocks in addition to costumer segments one (B2c and B2b). In Addition, i included Social ResponsanbilityBloks 10 & 11 (Tangible incomes and outcomes, and In-tangible Social Benefits). Soon I will be sharing snap shots using Alex IPAD tool,and additional excel s from my own to help in developing value flows from blocks-canvas (concepual a Tactical BMC layers…). Cheers

23. Alexander Osterwalder says:


Samuel, I’m looking forward to that!

24. Ulrik H. Gade says:January 18, 2012 at 12:42 am

A very useful and commendably simple addition.

What it might lack is a broader overview of the match or otherwise between the current or planned offering and what customers really want.For that, I like Indi Young’s “mental models”, see e.g. http://www.boxesandarrows.com/view/what-is-your-mental.

This originates from the user experience field where we’ve long practiced, or at least preached, the type of observational research mentionedin the video clip. Nice to see awareness of this type of research gaining ground in the business community too.

25. Customer value canvas, ligar tu propuesta de valor a los segmentos de cliente says:January 18, 2012 at 11:16 am

[...] Osterwalder publicó en su blog hace unos días lo último en lo que está trabajando: un lienzo de valor de cliente (Customer valuecanvas). Dejemos que él explique el motivo: Llevo pensando durante un tiempo en “plug-ins” que [...]

26. Tarzan Sharif says:January 18, 2012 at 5:25 pm

Business model Alchemy indeed Alex – question: do you think by adding plugins or more in-depth compartmentalization of your 9 blockscould take away from the purpose of business modeling? I feel that once the blocks become too indepth everything turns from modeling intobusiness writing i.e. A new executive summary format. Which in itself would prove useful & innovative for liberating an entrepreneur from the



laborious task of writing the business into actually creating the business on the canvas as an artist would create a painting. Such things may ormay not be worth considering but with the 9 i believe you have resolved the modeling task – MAYBE layers ontop of your CANVASwould prove to be more beneficial – especially for a UI /UX approach for your web app & mobile app. Ideas from one artist to another. Isee a master piece none the less, i look on with supreme gratitude for your advancements! We all owe you our respects. cheers

27. Peter T says:January 19, 2012 at 4:53 am

This “plugin” is trying to fix an old shortcoming of the canvas. We were not able to give an answer to the most fundamental question of anybusiness model: what’s the customers’ reason to buy. The question is not even asked in the canvas, and can only be answered with the

canvas through trickery.In my understanding, the arrows in screen-shot three and four are only going in the right direction if we use the canvas to decompile (oranalyse) a business model. If we are designing imho they would point in the other direction: from the “plugin” (i.e. the reasoning about thecustomers’ reasons to buy) to the canvas.


@Peter – it’s not trying to fix anything, since the Canvas was not broken. Focusing on the “customer’s reason to buy” implies a “product-customer” focus. The Canvas is about how all the 9 building blocks fit together to create value.


@Tarzan As long as people don’t fail to keep the big picture in mind (business model perspective) it’s ok to focus on more detailed issues(value proposition – customer segment fit). Both are high level perspectives that don’t go into as much detail as a business plan… BothCanvases are instruments to structure your thinking at a high level.

30. Tarzan Sharif says:January 19, 2012 at 10:37 pm

Agreed! Its going to be interesting to see how far down the rabbit hole your framework can help the world through creating thephilosopher’s Stone of golden business model innovation/ value creation. I can’t wait to create & connect value with your Web app! witheither the route of plugins or layers – you’re going to have quite a useful tool for everyone to use. feels like you should host a launch eventhaha

31. Wie adressiere ich besser die Bedürfnisse meiner Kunden? says:January 21, 2012 at 10:30 am

[...] seines Frameworks “The Business Model Ontology“. Sein aktueller Blog-Beitrag “the customer value canvas” zeigt wie eine analytischeVorgehenswese durch Visualisierung zur besseren Identifikation [...]

32. Renato Nobre says:January 27, 2012 at 4:33 am

Alex, your work and partnership (tested experiment right with Steve Blank is awesome http://migre.me/7Hd3N . The new subcanvas todetail the VP, Problem/Solution/Mkt Fit is such a great add. Me and Guta are already using for the class we will give next week at ESPM (isent you an email about it yesterday). The people that aim to fill the right side of the 0.8 Canvas could leverage Tools and maps of ServiceDesign Thinking, like those brought on like customer journey. http://thisisservicedesignthinking.com/ book (Canvas is there obvious!)

Thanks for mentioning Brazil again on your video at Stanford!

I will run some more experiments (channel testing) on my startup of the mobile digital certification solution i told you, hope to have morehypotheses tested soon

Cheers

Renato

33. Alexander Osterwalder says:

January 29, 2012 at 12:14 am

great! looking forward to hearing about the outcome of the experiments



34. Hamilton Costa says:January 30, 2012 at 5:34 pm

Great job Alexander! It’s a great add on with simplicity to the canvas. And needed. I frequently had to make additional efforts to link VP toCS when explaining the canvas to customers or students. This way is clear and easier.

35. Johan Enestam says:January 30, 2012 at 10:59 pm

No wonder this is one of the best blog i ever read about bmc..well done.

36. Tomasz Zdybel says:February 1, 2012 at 2:49 am

The Customer Value concept reminds me the so called strategic concept we use when working on marketing campaigns for our clients. Itconsists of the following:1. The market category – this, among other things, defines our competition2. The segment – description of the customers3. The customers’ insight – what do the customers REALLY want and think (and fear); sometimes they don’t say it loud and that’s why it isthe most difficult part – in the Customer Value Concept it is closest to the “jobs to be done” part4. The product – what it is and what does it do5. The product’s attributes – cheap vs. expensive, small vs. big and so on – we can derive gain creators and pain relievers here, too

6. The Benefit – does the product answer the insight?7. Reason To Believe (RTB) – proving we can deliver the benefitThe strategic concept is mainly used to position (differentiate) brands or specific products on the market and in customers’ minds.

The difference from the Customer Value Concept is that it focuses on one insight and getting a single benefit message across to the customer

– it is about simplifying the marketing communications. The CV concept is more of an idea generating tool.

Seems like they complement each other – you can use the CV concept for generating ideas for brand/product differentiation, the strategicconcept makes you choose what is the main focus and what your brand/product/service stands for.

37. Tomasz Zdybel says:

February 1, 2012 at 3:34 am

Hi again,I would like to develop my thoughts about the CV concept – some words about the example described in the blog post. Calling the BM

Web App a value proposition seems to be a flaw – The App is a product and as such is a vehicle for the value proposition, not the the valueitself.Alex, please consider changing the CV canvas in the following way:1. Change the Value Proposition into Product2. Change Products and Services into Product’s Attributes and Elements3. Change the Fit into the Value Proposition(s)I did it with the Web App example myself and it did more sense to me.Mind you, you will generate multiple value proposition ideas this way as you will answer each and every gain or pain.On the other hand, it will make the canvas user focus on the core values and create a logical path for each of them.Let’s take the ‘clients retention’ job. The pain is the ‘defecting clients’. The pain reliever is ‘the higher switching cost’. Thus, the Value

Proposition created here is the ‘high client retention rate’. Ta-da! And here’s the question: which product’s attribute or its element makes theswitch costly? In other words: how do we deliver or create the pain reliever? Why should anyone believe it works? We need a proof thatwe can deliver that specific pain reliever (and value proposition) and it ideally it should be derived from the product: its attributes orelements.

What do you think?

38. Doug Gilbert says:February 1, 2012 at 5:38 am

Alex,

Because business schools maintain a traditional focus on marketing as a separate subject (dating back to the 1950s), I have been looking forways to adapt the BMG Canvass to that subject. This is a nice addition to the BMG Canvass.

In the academic setting, the fit to strategy classes is 100% clear but marketing was a bit more of a stretch. This tool helps. What I also do in



the marketing classes is to have students populate the rest of the eight blocks with marketing centric ideas. For example, costs are marketingcosts and key resources are key marketing resources.

What this shows is that sometimes there is a need to develop a BMG Canvass in a functional mode. It could also be valuable in companies(such as Swiss companies)that have more traditional structures.

39. Julian says:February 3, 2012 at 8:28 am

Hi Alexander,

just one question to the upcoming web app:How does it relate to the older web-based tool at http://bmdesigner.com/? Is it kind of a successor or completly different?

40. Alexander Osterwalder says:February 3, 2012 at 11:41 am

Boris Fritscher, who is on our development team, developed bmdesigner in his academic research as a prototype.

41. Yannick says:February 3, 2012 at 11:02 pm

Nice add-on Alex. The discussion with client on VP and Customer segment is certainly the one that have the longest lead time. The visualstrength of this new concept will bring additional clarity to my customer.

I see here a fabulous opportunity to introduce a specific set of hypothesis (introduced by G. Blank) to kick off the experimentation phase. Iwill test this with my next client.

Yannick

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