2.1 Refining your value proposition
Case Study 2: Modelling a new initiative in Kenya
Jophus works within a small NGO in Kenya that supports rural communities to be economically self-sufficient. He notices that when someone has an item to sell – for example, a chicken, some eggs or a length of cloth – they have to ask people on an individual basis either in person or by text whether they might be interested in making a purchase. Jophus has the idea to develop a system to help people in these communities to upload text and pictures from their mobile phones about items that they want to sell. The items will appear on a website that is designed to be viewed on a mobile phone with limited features.
Jophus decides to use the Business Model Canvas as a tool for engaging his colleagues with his new idea and to gather their input on how it could be delivered.
He begins by drafting out a value proposition:
‘A website for informal sales notices within rural communities.’
Jophus then arranges a meeting in which he presents his idea to colleagues. He pins sheets of paper around the room, each one headed with an element of the Business Model Canvas. He gives everybody notepaper and asks them to think of all the important questions and/or suggestions that would help to build his idea. After a slow start, people soon begin writing and sticking their notes to the sheets of paper around the room.
After about 20 minutes everybody has finished. Jophus walks around the room and stops at each sheet to read the comments aloud. Many of them become points of discussion for the group. One of the first big developments comes from Ida, who asks whether the same sales system could be used to post notices about items that are wanted by people. Everyone agrees that this is an excellent idea! There is a lot of discussion about practicalities and whether any platforms that would provide the same service already exist. The team agrees that some do exist, but the definitive difference for the new system is that it will be designed exclusively for this specific beneficiary group – the rural communities within their region – and will therefore use the local language of the region and have very simple functionality to ensure that it is accessible.
By the end of the meeting Jophus has significantly refined his value proposition and generated lots of content with which to build his Business Model Canvas. He feels confident about the next steps in taking his idea forward.
Activity 3
In Case Study 2, Jophus started with a very simple value proposition: a website for informal sales notices within rural communities. How do you think this might have changed after the meeting with his colleagues? In the text box below, try writing your own version of the updated value proposition.
Discussion
A good revision of the value proposition would focus on what makes this offering unique and how it provides value to both the beneficiaries and the donors. It would probably look something like this:
‘A culturally-appropriate and accessible system to enable efficient trade within rural communities. Beneficiaries can exchange goods within a group wider than their immediate neighbours. Donors will be supporting sustainable economic development.’
2 Business Model Canvas elements