The Value Proposition

 The Value Proposition

In many of the Business Process Projects I have been involved in, the project owners have been at the Division or Department level. This often presents a problem when developing business processes as there is no clear understanding of how they impact the Resource and Profit Models and ultimately the organisations ability to fulfill its Value Proposition. It is important that the Value Proposition is supported by the complete Business Model to ensure profit objectives and resource deliverables are able to provide the proposed Value to the Customers and Business Partners.

Besides the relationship between the different levels in the Business Model, there is another factor that impacts the Business Dynamics which is based on communication, speed of change and adaptability.

The diagram below captures the three main business drivers along with the continuous improvement of business processes required to sustain the Value Proposition. Business Models should be reviewed frequently and performance measured continuously to ensure all contributors to the Value Proposition are meeting the goals and objectives required to provide a sustainable Profit Model that will provide stability and growth within the organisation.

Having a well-defined business model ensures good internal and external communications providing customers, investors, stakeholders and employees with a high degree of confidence in the organisations ability to meet its goals and objectives. It also provides a sense of ownership and harmonises the internal and external resources within an organisation.

Target customer

·         Job to be done to solve an important problem or fulfill an important need for the target customer

·         Offering, that satisfies the problem or fulfills the need. This is defined not only by what is sold but also by how it’s sold.