"Price is what you pay. Value is what you get."

Warren Buffet


A unique value proposition is the foundation of any successful product or service.


Today, the value proposition for a business is constantly buffeted by external forces and constantly changing customer expectations.


In order to survive for the long term, a business needs to constantly evaluate its value proposition to ensure that it stays relevant to customer needs and expectations.

Change as an opportunity

From viewing change as something that impacts the current business model, which therefore needed adjustment to continue on a similar trajectory, successful digital businesses are looking at change as an avenue for new and profitable business lines.

As Andrew S. Andy Grove said so well, ‘Only the paranoid survive’. Traditional execution and planning models accept change only when it becomes inevitable; but an intelligent enterprise needs to capitalize on change before it becomes a must. This provides a position of strength and a level of preparedness that is ahead of rivals.


The most preferred option from the Ansoff Matrix is to seek new customers by providing new value, resulting in the highest growth and revenues.

By embracing this soon enough, before change becomes inevitable, a business can quickly establish a leadership position. This is the route that companies like Microsoft have taken with their adoption of the cloud business model.

Instead of persisting with their existing (and highly profitable) on-premises licensing business, and ceding leadership of the cloud to rivals, they chose to go all in with the cloud, while also protecting their existing cash cows. This has helped them to pole-vault into the cloud leader position with more than $20 billion in annual revenue run rate at present.

Adapting a value proposition

The most fundamental requirement in adapting value proposition is strong leadership and vision.

Unless change is driven from the top down, it will fail to make an impact. The only way to make the entire company rally around the changed value proposition is by aligning the organizational structure around this end goal, and by allocating sufficient resources to hasten the adoption of change. Above all, a long-term outlook that is based on a close watch of customer preferences is critical to successfully adapting a value proposition.

Profiting from change: how technology can help


Technology plays a crucial role here – by using advanced analytics and social media solutions, changing customer needs can become apparent even before customers vocalize them.

With a tightly integrated digital communication and collaboration platform, agile and efficient internal and external collaboration and processes will drive customer centricity while aiding change and increasing flexibility.

More Building Blocks

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Building blocks of an intelligent enterprise : Competition

Today, the most difficult part of handling competition is understanding what competition looks like. In the past, competitors tended to be organizations similar in business model...

Building blocks of an intelligent enterprise : Data

Even the smallest of businesses today has IT systems that capture structured data. However, the primary use of business data has been in measuring, reporting, forecasting and planning...

Building blocks of an intelligent enterprise : Innovation

Innovation is the key to continued business growth, but it is also the most elusive element in a business. Traditionally, innovation has been an expensive, long drawn process...

Building blocks of an intelligent enterprise : Value

A unique value proposition is the foundation of any successful product or service. We are moving from an era where a value proposition was constant over time...


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