Lean thinking has led to the growth of a business model directed towards coping with the strategic question: How can we develop a “value package” for the customer at a high quality-level, price, service and experience that will make the competition irrelevant?
The process of development of a business model always begins with intimate and in-depth knowledge of the customer’s needs. Comparison between the anticipated needs of the customer and the organization’s current value proposition will provide information about gaps and opportunities for change. Products and services designed by the business people (no matter how talented they are) without focus on the needs of the customer and without an in-depth understanding of their needs can quickly turn into a waste of capital resources and talent. In order to transition from a wasteful Push market to a Pull market, businesses must present a value package that presents a precise response to the needs of the customer.Within the framework of the ILE instruction for the design and construction of a value package, the change-leading business-marketing team proceeds through a multi-stage process that includes learning the needs of the customers in the field; selection and filtration of the type of customers in order to decide on which customers to focus; organized mapping of the needs of the customers on Canvas boards; mapping and understanding of the future value proposition; and identification of the gaps between the business vision and the current value package. After the team reaches insights regarding the value package, designs a series of possible alternatives and receives the support of the organizational management, the work of designing the new value proposition begins. The team will examine a number of alternatives (propositions) for the new value proposition through a series of parallel experiments in order to identify the best alternative and to improve it so that it becomes a well-defined business model. The ILE team has facilitated strategic value-proposition development processes in leading Israeli companies in the fields of banking, insurance, finance, food, communications, health and information technology.