Value Proposition Canvas
Learning about the Value Proposition Canvas as a tool for refining the Mission Model Canvas in Hacking for Defense
The following is a case study that is used in the H4D course and an example in the NEW textbook Hacking for Defense, a graduate-level course taught at more than 70 colleges and universities worldwide and on three continents. More than 2,000 students have successfully completed the course.
The Value Proposition Canvas (VPC) is a secondary tool for refining the two most foundational boxes of the MMC: Beneficiaries and Value Propositions. It will help to visualize, design, and test who the Beneficiaries are and how to create value for them. Imagine the VPC as connecting (or attempting to connect) the Beneficiaries and Value Propositions boxes of the Mission Model Canvas to the two elements in the Value Proposition Canvas (see the image below). A VPC will be completed for each Beneficiary.
The circle on the right of the VPC is used to develop a deep understanding of groups of stakeholders called Beneficiaries. The square on the left side of the VPC is used to learn the specific value that Beneficiaries need from a solution to solve their problem.
The circle, called the Beneficiary Profile, outlines Jobs, Pains, and Gains experienced by a specific group of stakeholders, such as F-35 pilots. Using the Beneficiary Profile helps develop deep insights into various groups of stakeholders involved in the problem statement. Jobs describe the tasks a Beneficiary must accomplish. These can be functional, like achieving radio transmissions; social, like building rapport with other organizations; or emotional, like feeling satisfied with their work. Pains are negative outcomes, like delays or misallocated resources, that the Beneficiary is trying to avoid. Gains are positive outcomes, including quantitative performance indicators like x% savings, y% increase in output, or qualitative indicators like earning a good evaluation from superiors (Osterwalder).
The square, called the Value Map, outlines Solutions, Gain Creators, and Pain Relievers that the specific group of stakeholders required to perform the jobs. Using the Value Map helps track the various aspects for different groups who need and want a solution. Pain relievers describe how the solution alleviates the pains important to a Beneficiary, or how it enables them to perform some required task. Gain creators, on the other hand, increase or improve on outcomes that the Beneficiary expects or would be surprised by.
There must be alignment between the circle and the square. Pain relievers and gain creators listed in the Value Map must align with the pains and gains listed in the Beneficiary Profile. In other words, each team’s solution achieves “fit” when the team can clearly state how their solution, or idea for a solution, alleviates specific Beneficiary pains and/or creates specific Beneficiary gains.
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