VALUE PROPOSITION: UTILITY VALUE OF THE PRODUCT (THE PRODUCT IS A SERVICE)
Today Customers,
with a very limited spending,
NEED “USEFUL PREFORMANCES” AND
NO MORE “EMOTIONAL VALUES”.
The “useful preformances°” are different from the “hi-tech” performances promised today by advertising.
The New Demand° requires utility products°, which represent a disruptive leap compared to the generation of current products (which are produced by the scarce utility-value° whose appeal lies on an emotional component).
That is, the new generations of products must be real assistants who develop a service for the Customer (the product is a service°).
This is not Product as a service as it is understood today, ie with products combined with a service provided by the manufacturer, but a service – developed by the “smart” part of the product – which consists of
● a service component incorporated in the product (essentially an App integrated into the product).
● a Peer to Peer component developed thanks to the integration of the product into social networks related to the product.
The customization of the product definitely improves the value-utility of the product.
VALUE PROPOSITION
This is the Value that, with the Product, is offered to the Customer.
The value linked to the product has tangible and intangible aspects.
Tangible Value: in the tangible aspects there is the “Value of use”, which represents the “practical” benefit that the Product brings to the Customer (it is the ability to satisfy its need – which in the new dimension is also “Job-to-be-done ”of the product).
Job-to-be-done: the concept of work that every person in life has to do to improve his life. In this case, the product is “hired” by the Customer for that job.
The product in this case must therefore be able to perform a real service. That is, it must offer a “service component” that is both in its hardware parts, and in the software parts (Smarness, IoT, etc …).
In the dimension of the Disrutpive innovation greatly improves the actual value of use of the product (the tangible value).
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Value intangible: with Disruptive innovation the intangible Values of the Product constantly change, which cease – for the most part – to be linked to the current lifestyles (induced by the Marketing of super-consumerism).
The intangible values linked to the emotional dimension are abandoned (of the Ego) developed by the current form of Marketing. Among other things, it replaces the gratification of material wealth (and the search for the appearance, of the Status symbol), to move to traditional Values/Vitues on gratifications coming from the quality of human relationships (gratification based on more empathic relationships with the people, with the community and with nature).
As mentioned, in tune with this Mega-Trend, it is a new type of Business, the Business Purpose, which is based precisely on a high capacity to tune in empathically with the real needs of the People. Then follow the new Trends like Social impact, Sharing “economy”, Solidarity, Caring, etc …
The concept of “style of life” is overcome, which in itself is a concept based on appearance. And new ways of living (at a substantial level) are created largely on the New Practices.
The new form of innovation is a value-oriented innovation.
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It is necessary to understand that the new Value offered is substantially different from the Value currently offered, because:
● the new Value is generated by the same Customer: in the new Market Customers are offered a tools with which him himself generates value (new utility forms of Value). In the new mode, Customers therefore “invent” ways of using the product.
An example of this is the case of Airbnb, which was created to rent an “air mattress” to those who have to go to a specific location and cannot afford a hotel; but the Product – also thanks to low-cost flights – has been transformed by the creativity of customers, for example, into an opportunity to visit places that are not yet affected (informal tourism).
This evolution of the business took place both thanks to those who offer the rooms that have learned to present their offer better – from a tourism point of view – and from the end users of the service.
● the new Value is generated by an interaction of the product with an ecosystem of Market offers and non-consumption practices (as in the case of the connection between Airbnb and low cost flights).
