Why Great Technical Solutions Burn Cash and Fail, And What You Can Do About This.
The hard reality is that technical and engineering excellence does not mean commercial success. This success is based on a totally different set of non-engineering factors. These are called human factors.
We have seen many businesses, innovators and entrepreneurs packaging their solutions with feature after feature, and while they are running into engineering complexities, the buyers and users are moving further away from the solution. This vicious cycle burns more cash.
So, how does one deliver human factors into a product?
The answer is good design—and good design is delivered through rapid and connected stages, one of which is creating a Value Proposition. Here’s how value propositions ensure meaningful innovation in product design:
• Value propositions firstly seek to understand and empathize with key targets and their needs and issues.
• Value Proposition works in the real world understanding that not everyone can be satisfied and so targets groups that are likely to find the solution attractive, sticky and emotionally appealing.
• Value Proposition focuses on product innovation and design to include features that offer significant satisfaction to the targets and ones that can build an emotional link.
• It targets features that offer an advantage over the competitor and incumbent solutions. This also pinpoints and focuses the delivery of engineering effort, making development more cost-efficient.
• It unravels the target market providing clarity about the future targets and how to appeal to these groups.
• Value Propositions work with time to market not time to engineering. This leads to early commercial success.
• The Value Proposition helps create a fit for purpose business model providing key criteria needed to generate profits. It also provides critical input for ongoing product management.
• It creates a platform for meaningful and convincing communication with the customer to ensure positive customer experiences.
Allianz Care says this about Value Propositions “A value proposition is a promise of what someone who uses your product or service can expect to receive. How your product solves a problem in a way that others can’t or don’t and why customers should consider your business over your competitors. “
The design thinking journey for Value Proposition creation starts with a challenge, moving onto customer insights, ideation (proposition) and prototyping, testing and finally, the design of the business model. The outcome is that the business makes a targeted investment, carries out focussed and fruitful engineering, reduces the time to market, and delivers a commercially viable product with happy customers.
D Laer is one of the Middle East’s leading product and services design consultancy firms. We offer innovative problem solving and product and service performance improvement in Abu Dhabi. Contact us to learn more.