Discovering the value for your new offering: A look at the Offering Viability Tool
In developing a new product or service, there is always a need to get an understanding of the value to be gotten for the business. This value derivation might not necessarily be precise but will be based on established economic facts.
In developing a new product or service, there is always a need to get an understanding of the value to be gotten for the business. This value derivation might not necessarily be precise but will be based on established economic facts. During one of our internal processes, we developed a tool to help us plot out estimates of the returns expected for a product we were building for one of our clients. The tool is called the Offering Viability tool.
The Offering Viability Tool helps teams map out and have critical discussions on the potential market size, revenue and cost of launching a new product to market. The tool takes into consideration facts like the market size, targeted customer base, competitive landscape and cost structure in building a revenue analysis that could be used by your team to test for things like viability and customer buy-in.
As it is with developing solutions using the design process, the tool gives room for teams to constantly iterate. We designed the tool so teams can compare up to three offerings to best decide on which offering gives your organisation the most value for your organisation. See this as a pivotal tool in building your business case for your new offering just before you launch. It is also a good way to share the value of a potential product with stakeholder and sponsor within your organization.
This tool is great for product teams, strategy and innovation teams wanting to launch a new product/service to use this tool in measuring the offering’s viability.
Here is a breakdown of how you could use this tool.
Step1: Download the Offering Viability Tool here.
Step 2: Write out the offering(s) you want to measure to see if its capable of bringing in revenue for your business. You can use this tool for a maximum of three offerings (3) and a minimum of one (1).
Step 3: Fill each block with the necessary information needed.
Step 4: Make decisions on the next steps based on the results.
At the end of the session, you’d have come up with clear insights to guide on next steps moving forward to product/service launch.