Scribd Logo
Upload

Welcome to Scribd!

  • 101 views

    Three Kinds of Fit

    Uploaded by

    Susan Bvochora
    The document discusses three kinds of fit that should be achieved before beginning execution on tasks: problem-solution fit, product-market fit, and business model fit. Problem-solution fit means customers care about problems addressed by a value proposition. Product-market fit means a value proposition creates value for customers by solving their problems. Business model fit means a value proposition is embedded in a profitable and scalable business model. Achieving these three fits requires testing ideas with customers through an iterative process to minimize failure risks.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Three Kinds of Fit

    Uploaded by

    Susan Bvochora
    101 views3 pages
    The document discusses three kinds of fit that should be achieved before beginning execution on tasks: problem-solution fit, product-market fit, and business model fit. Problem-solution fit means customers care about problems addressed by a value proposition. Product-market fit means a value proposition creates value for customers by solving their problems. Business model fit means a value proposition is embedded in a profitable and scalable business model. Achieving these three fits requires testing ideas with customers through an iterative process to minimize failure risks.

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document discusses three kinds of fit that should be achieved before beginning execution on tasks: problem-solution fit, product-market fit, and business model fit. Problem-solution fit means customers care about problems addressed by a value proposition. Product-market fit means a value proposition creates value for customers by solving their problems. Business model fit means a value proposition is embedded in a profitable and scalable business model. Achieving these three fits requires testing ideas with customers through an iterative process to minimize failure risks.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    101 views3 pages

    Three Kinds of Fit

    Uploaded by

    Susan Bvochora
    The document discusses three kinds of fit that should be achieved before beginning execution on tasks: problem-solution fit, product-market fit, and business model fit. Problem-solution fit means customers care about problems addressed by a value proposition. Product-market fit means a value proposition creates value for customers by solving their problems. Business model fit means a value proposition is embedded in a profitable and scalable business model. Achieving these three fits requires testing ideas with customers through an iterative process to minimize failure risks.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 3

    Three Kinds of Fit

    You should always be striving to achieve three kinds of fit before you begin any tasks related
    to execution: Problem-Solution Fit, Product-Market Fit, and Business Model Fit. Achieving
    these three kinds of fit will help you minimize the risk of failure. 

    Three Kinds of Fit, from Value Proposition Design (Pages 48-49)

     1. Problem-Solution Fit - this occurs when you have evidence that customers care about
    certain jobs, pains, and gains. At this stage you've proved the existence of a problem and have
    designed a value proposition that addresses your customers' jobs, pains and
    gains. Unfortunately you still do not have clear evidence that your customer really care
    enough about your value proposition enough to buy it.

    2. Product-Market Fit occurs when you have evidence that your value proposition is
    actually creating value for customers by alleviating their pains and creating the gains they
    desire. Your product or service is beginning to gain traction in the market and you've gone
    through the long and iterative process of running tests that have validated and invalidated the
    various assumptions underlying your value proposition. 

    3. Business Model Fit occurs when you have evidence that your value proposition is
    embedded in a profitable and scalable business model. You have done the laborious back and
    forth between designing a value proposition that creates value for your customers and a
    business model that creates value for your organization. You have found the right business
    model that delivers optimal profitability.

    Achieving Fit
    Your value proposition will only exist "on paper" at the stage of problem-solution fit. As you
    approach product-market fit your value proposition will begin to truly resonate with and
    create value for customers. When you've achieved business model fit your business model
    will begin creating value for your company. 

    Achieving these three types of fit requires you to go back and forth between your original idea
    and the outside world, getting out of the building all along the way to directly test
    and experiment with customers. Though the process of building value propositions and business
    models is iterative and messy, this process is absolutely crucial to the success of your  new
    business. 
     In Value Proposition Design, we created and compiled a comprehensive set of tools and
    techniques to help you navigate through the messy, iterative business design process
    effectively and cheaply. In order to minimize the high risk of failure today's fittest companies
    voraciously strive to apply these methods and tools in real practice before they begin executing
    on their ideas. 

    Does your organization search for these three kinds


    of fit in its business design process?

    You might also like