It is not uncommon in the Bay Area to have people skip right over some of the most commonly thought of questions for entrepreneurs. Things like “what’s your great idea?” or “give me your elevator pitch” fall by the wayside in favor of a different question: what is your value proposition?
To be fair, if you’re developing a truly innovative great idea – you’re going to come up against all those questions eventually, but the value proposition is something that lies at the heart of it all and is something that separates an idea from a business.
For those of you who don’t want to do the googling, I’ll tell you that Wikipedia defines a value proposition as “a promise of value to be delivered and acknowledged and a belief from the customer that value will be appealed and experienced […] Creating a value proposition is a part of business strategy. Kaplan and Norton say ‘Strategy is based on a differentiated customer value proposition. Satisfying customers is the source of sustainable value creation.’”
There are numerous ways to get at answers that help shape not just a value proposition, but an entire business plan. However, the Enterprise Development Group is a team of expert thinkers, facilitators and trainers who have been consulting since 1986 have developed a template for organizations to refine their ideas and turn them into articulate business plans that has been utilized by numerous businesses large and small. The template is called CO-STAR.
CO-STAR is a series of questions that must be answered in order to articulate an innovation’s value proposition. When applied, this template helps companies answer questions like: Will the idea be relevant to a customer? Will there be a market for it? How is it taking advantage of an emerging trend or a new technology? Is it better than other available alternatives? What kind of returns can be expected? Once articulated, it is easier to develop market-worthy ventures.
This is why IdeaScale created the CO-STAR module within the innovation management tool, so that this kind of business plan thinking can be applied to every great idea. If you want to learn more about CO-STAR and how it can help propel your brand forward, join IdeaScale in hosting EDG and BBC in a webinar about converting great ideas into great business plans. This complimentary webinar will take place on October 21st at 9 a.m. PST and be followed by a live Q&A. Register today.