20 November, 2013

1-1-22 value creation: Incremental augmentation

Remember when we say that iteration cycles go forever, it is a consistent and continuous process of improvement. You can now stop reading this post, we are done here :)

-         So, your CIAs "Critically Important Assumptions" are valid, your MEVO "Minimum Economically Valuable Offer" is selling. Any iteration cycle you make after this is the heart of this process "Incremental augmentation":
Take something that is already selling and make it better by continue adding things to it
-         All companies do that all the time, think about software versions or car versions
Why doing that?

1-    You add things that people want, according to what you learn about them and their desires
2-    Allows you to minimize the risk of making  unwanted or outdated products
3-    The more you adjust it according to your customers' needs, the more loyal your customers will be, and the more customers you will get  
Notice that:
-         People just love upgrades
-         Make small changes so you can roll-back easily when things go in the wrong way 
-         You will sometimes need to make a basal, major, structural change in your business, like launching a new product, add another service, or expand your market segment. This "incremental augmentation" thing doesn't work here.


Any update that will change the market of the business (the targeted customers) needs a new value creation study and needs to be reapproved and revalidated 

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