Well so we can officially
say welcome to I Cor This is

what we mean by Welcome to I Corps.

And I hope that you will follow
the process as we go through so

what am I to talk about today we're going
to drill into this ever important value

proposition more and
I understand why it's important.

And you have heard from
all of us yesterday

that the only thing that
matters is product market fit.

It's really it so
I heard some of you today get up here and

try to sell me on like partners and

other things like that just really
matter if you don't know the who and

you don't know the why
that's what's important.

And this is like a really intimate thing
OK We talked about these interviews

of Reich really getting to know them
asking being the two year old can you be

the two year old and ask why why why until
somebody wants to punch you in the face

because there's an intimate interaction
between these two things and you've really

got to dissect it that's your job and
you've got to pull out insight.

These conversations that you guys
are having How many people had

a conversation yesterday with somebody and
you were all there and

you came away with different takeaways
anybody come away with different takeaways

yesterday raise your hands
yes yes there's different

bias based on what your background is
in what you heard that customer say.

It's intimate you've got to really
get to know these people and

your teams all got to be on the same page
because this is where we want you we want

you in this epic win this
is what's important but

you can't get that until you understand
the intimacy of your customer so

that you can define value propositions
that actually meet their needs

so value propositions that's what
we're going to talk about today

we're going to talk about you
actually making in a search.

Of judgment and
opinion that is going to provide value for

that customer OK so we're start
with a very serious question and

I really mean this is a serious question
Do companies really make products

that nobody wants what do you guys think
do you make products that nobody wants Yes

yes see in this one.

Seriously you can't bend over and get
a drink of water someone to buy a little

widget OK how about this one.

I'm feeling really snuggly you know
when I see this when I see this

I think man that will stink in there.

That's what I think.

Anybody and let me tell you
my dog may he rest in peace

did not like being walked in the rain
I wasn't going to put an umbrella over

my dog because he didn't
want to walk in the rain.

This one's for Keith McGregor I
think he actually wants this

how many people want this.

They should make me a salesman.

What about this one who's
going to eat in some way.

I'm not eating and swinging.

Are you really concerned that everybody's
got the same piece of pizza sayas I tell

you my daughter is she would really
love this this is bigger than mine.

What about this one.

At a party to it all I see with this
is this is going to get knocked over

I see some serious party fall
with this getting knocked over.

Cannot get a serious question for you
I'm not going to put Poco on anybody but

how many of you put the cart before the
horse raise your hands if you put the cart

before the horse I should
see a few more hands.

I got the idea team I almost
put up your pouring device but

I saved you from putting
it out there is a slider.

When I called you out anyway.

But.

Did you did you develop the product before
you actually knew who had a problem OK.

This is why this part of the canvas is so
important these two

blocks are intimately related
OK you have to understand

the customer before you can provide
any value proposition to them and

before you can start defining those and
I know that a lot of you are in this spot

you came in here before with a little
bit of this bias let's all be honest OK.

And as Keith talked about yesterday
they're coming through the fields

you kind of thought if you built it
they would come right here they come

they're coming through the fields you
didn't have to do anything all you have to

show up is day one and do it right people
are like filling out order for forms and

you all know that's not
really how this works.

It's want to question
a product market fit.

It's to be a fairy balls to announce and
you don't know either of them and

that's what we want to impress upon you in
this opening weekend even if you came from

a science program even if you
came in here with some knowledge

you don't know anything and I'm not
saying that because I am some expert

I actually don't know anything either OK
let me just be really clear about that.

But until you get the evidence you
don't know anything so well let's begin

to value propositions Let's talk about
the types of value propositions and

let's talk about the best
value propositions and

why this is important so
types of value propositions.

You can add value propositions
which most if you came in here with

these are technology improvements
OK you have got something

that nobody else can do who's got
sense of touch for a sense of touch.

Doing sense of touch a new
way of doing technology

anybody created something where it's
used to be really high cost and

now it's you know the technology's gotten
so cheap it's going to be great for me but

I got one of those OK there's
technology and science.

Then there's also market insight there's
things that the marketing people know

there's trends there's people that
have now have new buying habits

there's demographics there's better
branding there's market insight

those are both valid
value proposition types.

However.

The best value propositions are when
you're really overlapping the two and

you're not just on one side or the other.

OK.

So to go through this I want
to give you some examples and

I want you to know that these examples
also have to do with the fact that

really there was probably some inflection
point in the market that created these but

I'm using them as examples.

What do you get when everybody carries

a computer in their pocket and you've
got this new demographic I'm picking on

call in that is calling up there he is
a millennial sorry calling you out.

You've got millennial who they know in
the marketplace don't own cars as much as

previous generations what do you get
when you put those two things together.

You get over.

What is let's call it out
what is value proposition.

Anybody.

Low cost transportation
we've got what else.

So again at the palm of your hand.

No cash or credit card required to pay
OK we can talk through these value

Yes go ahead.

You don't have to deal with
it when you're not using it.

And they're not scary people right you get
to pick what type of car you drive and

you don't have to just pick who's up
in the line we can now go through

these because we know who.

There is but you understand that uber took
technology insight and market insight.

Let's try this one this is a softball
What do you get with the advent of

technology and people that don't want to
carry a satchel of books to the beach.

You get to somebody say i Pad seriously.

Get a Kindle i Pad is the problem
reflected glare on the beach.

OK So call it out what is the value
proposition of the Kindle.

Say again library in your hand
you've got library in your hand.

OK.

So that's what we're here to pull you guys
out of a lot of you came in with some

technology insight you guys are all very
bright people but you've got to have some

market insight in the marriage of the two
to really have something compelling.

Let's talk about what
a value proposition is not.

My room I can tell you got hammered on not
selling I had people selling me on their

customer interviews OK I don't sell.

The value proposition is not an elevator
pitch it's not a marketing tagline

it is not a mission statement OK.

Don't be this guy.

Right save that when you're
rich Yes he has save that for

when you're really a company and
you can execute on something and

you can have a sales force then you can
go sell everything don't do that now.

It's also not a future.

What do I mean by a future Anybody
want to tell me what a future is

you can tell me what a future as
you just said one about the Kindle.

And declare it's a feature

what else is a feature to tell
me a future of your product.

Fat faster faster could be it could
be a future it could also be a value

proposition that's Louis anything else.

Size What about.

Blinky lights it's got a different color.

Value propositions can be business related
they can have to do with what the business

is up to you could be lower risk for
the business OK it could be convenience or

quality these sorts of things they can be
business types of value propositions but

remember that they can also be emotional.

What do people care about do they care
about their health do they care about

their status.

Does the man who buys a fur coat does
he really care about staying warm.

I don't think so.

Cares about looking good.

OK there are motional value propositions.

So briefly going to go through these
again we talked about these yesterday but

I'm going to go through these in a little
bit more detail so we can talk about how

to really drill down on them there's three
components to the value proposition.

There's the products and services there's
the gains that you're creating and

there's the problems
that you're solving or

the pains that you're relieving
however you want to look at that.

Products and Services basically a list I
told you yesterday you actually get to

list out what your products and
services are day OK but

think about you guys one on one customer
interviews did you hear something out

there that made you realize that you're
not just going to need the thing you're

creating there's also other
pipes of things products and

services can be intangible they can be
financial financial products guarantees.

There's other types of products
that you may have to continue

consider Think of it as
the virtual shop window

what are all the things in your
shop window that you're selling.

What's really important is that you've
got to rank them OK we talked about this

yesterday but you've got to rank your
products and services because you've got

to know what you're going to build on
day one and you can't build them all and

I know that's tempting we've got
some you know in the ideation space

right you might want to build a whole
bunch of products to help with.

People who've got arthritic complaints
might seem tempting I can just give you

a whole bunch of things you might just
spend a whole bunch of time in prototyping

and never actually have a company
off the ground rank them.

Solve people's problems
provide pain relievers.

One of those look like you could
produce savings for somebody.

Really you want to get down to eliminating
a risk to somebody have something that so

makes this so risky for them that they
don't want to do it can you eliminate that

there's a bunch of different
types of pain relievers and

you've got to think about them who in here
are things that they are a pain reliever

but they provide a pain reliever
value proposition and about

why.

OK so they think they're keeping people
from looking for taking hours and

hours of time looking through stuff
that is boring anybody else yeah.

Avoid injury possibility
of spilling discomfort.

How do you figure out I used
the word how do you figure out.

These types of value propositions.

You ask these types of questions.

How does this product how does this
produce savings how does this make you

feel better drill drill
drill do not go in and

leave your conversation until you're
the child that's asked a zillion

questions in the person's like get
out of my office ask the questions

drill down how does this do this.

Again rank them.

Understand what is of most
importance to those people.

Not just a laundry list I told somebody
don't put your laundry out to dry

I don't want to see a canvas that's
got a laundry list of different

things that are out to dry OK I want to
know the ones that are the most important.

OK Who in here thinks they're creating a
game for somebody anybody creating again.

Why are you creating game.

Allows them to live independently
anybody else creating game.

Yes.

Relationship closeness by interacting.

OK.

Let's talk about game creators for
a second people have

kind of a baseline of what they expect.

Then they have things they desire.

That's probably a more about a more
compelling value print proposition

something they truly desire what about
things they didn't think they could do

let's go back to.

Did I really think that I could just
pick up my phone press a button and

somebody would show up at my
house Man that's amazing.

In fact before I knew that I was going to
get my hotel reimbursed that's how I was

going to get here it's like it's going to
be eleven o'clock at night and I'm inside

the radius of what the hotel is going to
pay for man I'm going to pick up my phone

and press who were in say drive me home so
I don't have to be sleep deprived.

Awesome.

Can you provide something that somebody is
not expecting providing that type of game

that would be awesome so again how do you
get these questions you ask these how do

you get down to understanding that type of
game creator us these types of questions.

How does it make their life easier
don't just take it for granted and

I want to pause for a second and
I want you to think about this.

Because today I heard a lot of
people taking things at face value.

Somebody told me this will of course
they want it but you didn't ask how

is it going to produce that savings
how is it going to do this for you.

Because you have to get down to
those underlying motivations.

And again you've got to rank them and
notice I'm going to say this this time and

I think I said this before notice
the word relevance I didn't ask for

importance because if I say importance
your going to decide what's important

I want you to know what's relevant
because it's relevant to someone.

Big Idea big idea is that
it's relevant to someone.

OK So
let's talk about this relevance piece for

a second because this is really important
because I feel like today I heard a lot of

people in this category you're starting to
hear and have interviews with people and

you're trying to dissect what
this relevance piece is.

So how do you do that you hear
somebody do this when you talk to them

massive jump for joy anybody have somebody
crawl out of their seats jump up and

down when they talked
to yesterday anybody.

You know.

From the maker space he jumped up and

down.

He was excited.

OK So you heard somebody was excited about
what you've got which is good I do want to

see people's eyes dilate so this is the
reason that we say interviews have to be

a person OK if I'm looking at you and
you're sort of doing this I mean Paul's on

his computer he would not be very
excited in our conversation right now.

You're right it's a great
great that is not excited

that's not somebody using gauge So these
are these are great value propositions you

hear this you know I've got
something I've got something.

Converse really this is also awesome OK
you've got somebody who turns around and

walks out shuts you out of
their office dude we have seen.

Solved that are due to I don't care my
problems are so much bigger than that

who are the people where is the team that
had the database that had data issues

right they have we heard today
that someone's problem is data

they've got way too much data they don't
really care about all these other pieces

they're going to solve their data problem
OK Have time for that hate it that's great

great insight you can understand cross
that out that's not a value proposition

what happens when you
hear this four smile.

And I feel like a lot of
you guys heard that today

is that really a value proposition.

No it's not going back to the relevant
slide at the bottom of the relevant

slide was nice to have this guy.

Not a value proposition.

So this goes back to you have to
intimately understand your customer

you have to understand the jobs they do
the jobs they don't just do from nine to

five but the things that make them tick Do
you understand them do you understand what

pains them what really makes them lose
sleep at night and do you understand

the things they desire even so much
that you can't anticipate their dreams

that is when you can know that you're
actually addressing something essential.

That's when you know that there's
something extreme out there and

you're solving that.

And the big point here is that
you started with the customer but

your value propositions are not going
to address every single job problem

desire that they have you not it's not
possible you've got to prioritize you

have to know what's relevant to them what
things are most pressing in their life and

let's articulate those and it's OK if my
value propositions don't boil the ocean

you'll hear us talk about boiling
the ocean please don't boil the ocean.

The best value propositions are when.

You really understand this person
you understand how they tech.

And you actually understand how they
are being satisfied in their life and

to talk about this is anybody's
seen Maslow's hierarchy so

anybody know what this says so
hands one to a couple some of you OK So

basically this is a theory from nine
hundred forty three where Abraham Maslow

interviewed people like
Eleanor Roosevelt he interviewed

the one percenters because he said if
you want to know the way that people

tick you should interview the people that
are really high up on the totem pole

OK don't don't interview people
that don't know what they're doing.

He basically wanted to get down
to the basic desires of people OK

this is what this articulate people show
in a pyramid but basically what it showing

is that people's basic needs
are in this physiological band.

You've got to breathe you've got to eat.

You get sex and
all sorts of things up here water.

These are our basics.

If these aren't being satisfied
how do we move up the pyramid.

How can we feel safe if we
don't even have food and water.

And moving up to self actualization.

If your basic needs aren't being met
you're certainly not owning OK There's not

a whole lot of room in your life so can
you map this person that you're talking

to and understand their base needs and
what's going on in their life so

that you know whether or not you can
create a value proposition for them.

I want to translate this to the business
world think about the companies.

OK we do tell you customers are people but

customers are embedded in a company so if
you're talking to that person think about

are the base needs of
that company being met.

Let's take the example of blockbuster in
two thousand and ten when blockbuster

was just to proud to go bankrupt if you
thought you were going to go in there and

provide them something that
was in the corporates.

It is and chip category at
the very top you think they'd have

any desire to talk to you.

Yes No Right now basic needs
of the corporation not

being mad this goes to what we're talking
about if their basic needs are data

collection they've got too much data to
handle Why would they buy some ancillary

product you cannot provide value to them
you need to understand them OK so let's go

through some value propositions raise
a hands are these value propositions.

Yes no red card green card or these
value propositions red card green card.

OK We've got a bunch of red cards.

All right true.

Features.

Not value propositions.

This is about your technology and

I know it's all cool you guys
got some cool technology.

These are not value
propositions what about these.

Red card green card.

What are these.

We've got to mix look at that.

We've got a mix of red card green cards.

Still not value propositions.

Still not value propositions.

Half the cost of the current situ solution
why are they not value propositions

anybody want to answer.

Yes.

They're still futures.

They don't give you a solution or
problem what else.

They're not specific.

Quicker download time is not a value
proposition if somebody doesn't value it

come around of applause for
that one thank you.

Thank you so.

Let's play a little game.

What's the value proposition
here call it out.

Choice.

What else.

Differentiation.

How about it matches my purse.

Customization stylish.

Not pricing.

What about these.

What is the value proposition here.

Anybody shouted out.

Good for the environment OK to
somebody care about it being good for

the environment.

Now.

Is it is it cheaper.

This guy is all about the money
everything's just cheaper it doesn't

matter of cheap if cheaper doesn't matter
to the to the customer right sometimes

people will buy something sometimes you
can charge more charge a premium due to

how awesome would that be you provide
something of such value that you can

charge so
much more than your competitors why.

Because somebody values it do
not get stuck in the rat hole of

thinking everything is cheaper.

It's not necessarily a value proposition
unless it's a value proposition

to that person if the all you're hearing
we had a great team in another cohort

that kept thinking their value
propositions were great except her and

they finally did go talk to somebody and
Tom told you this yesterday and

all they heard Tom told you
all they heard was what.

Price cost cost cost cost cost cost they
thought they had all these great value

propositions and that specific industry
really did only care about cost but

that is not a ubiquitous thing OK.

So let's so let's dispel that.

All right I'm going to end this because
everybody is hungry all right so

how do you get the fit.

Right now you're just
doing things on paper OK

you're writing down your interview
notes I should say it's on the web.

Hopefully it's up on the wall.

Eventually you're going to have
to go out to the marketplace and

test something that's not right now and

then you have to test your whole model we
want you to provide the evidence that you

intimately understand your customer get
down to their base will devote desires get

down to the basics OK if the hot guy over

there is buying a truck why is he buying
a truck is it to impress somebody or

is it to haul dirt maybe it's both Maybe
it's to get more women I don't know and

that's a really sexist thing for
me to say however I.

Understand them because you can't provide
evidence to them until you understand them

that's just fundamental which is why
we hammer you on these interviews which

is higher why we hammer you
on following the process.

And then eventually you
will take it to the bank.

And get the whole model
the engine we talked about.

And you'll have the epic win that's
what we're all hoping for so

with that I think I'm going to finish.