Innovation is about putting new ideas into use. A value proposition links your innovative idea with enduring customer needs and your ability to deliver.
Building a powerful three sentence value proposition
Having researched, taught, developed, and used value propositions for decades we have developed a simple method to array your information about an innovative idea into a powerful form that can be easily shared with others. The following worksheet divides your value proposition into three sentences.
Sentence 1: Market, needs product and benefits
o The first phrase in the first sentence identifies the target of the idea. There is no value without an intended customer in mind.
o The second phrase shows what the customer needs.
o The third phrase identifies your idea.
o The fourth phrase describes the benefit of your idea as it fills the needs of your intended customer. This is sometimes difficult and can be addressed by asking “why” your customer needs your idea.
Sentence 2: Competitive ability and advantage
o The first phrase of the second sentence describes the advantage of your idea.
o The second phrase explains what is different from the competition.
- Sentence 3: Request
o The third sentence makes clear what you want your intended audience to do.
Value proposition worksheet for innovative healthcare idea
|For (target customer)||For people with borderline cholesterol level,|
|Who (statement of the need or opportunity)||who need to know their actual level risk for coronary heart disease (CHD),|
|The (product or service name)||the LipoProfile diagnostic test,|
|That (statement of benefit)||allows patients and physicians to discover their unseen risk of CHD.|
|Unlike (primary competitive offering)||Unlike conventional cholesterol tests that only measures total, high-density and low density cholesterol,|
|Our offering (statement of primary differentiation)||our offering measures the number and concentration of cholesterol particles to more accurately predict CHD risk.|
|Therefore, we request||Therefore we request you ask doctors to order the LipoProfile when you have a borderline level of cholesterol|
These three sentences do not provide proof for an idea. They just array information you already have or call attention to information you need to gather to make a clear statement about the value of your idea.
The value proposition is used as your elevator pitch, as the core starting point of a business model and as the start of the executive summary of a business case.