Value Props: Create a Product People Will Actually Buy

Executive Summary:

  • The value proposition is to provide digital devices and training to marginalized children in Kazakhstan who lack basic digital literacy skills and equipment, which is an urgent and underserved problem.
  • Addressing this issue is critical to avoid continued inequality, social unrest, and inability for Kazakhstan to develop economically.
  • The solution should be disruptive, discontinuous, and defensible to create a strong and sustainable value proposition.

Meeting Notes:

Defining the Value Proposition

  • For who: Marginalized children in Kazakhstan who lack basic digital literacy skills and equipment
    • If this problem is not solved, it will lead to continued inequality, social unrest, and inability for Kazakhstan to develop economically (unworkable problem)
    • Michael Skok: "Not every problem that comes through the I-Lab is a problem that's technology like the iPhones not getting to work. It can be a social problem. This is a really big challenge for a nation that's trying to develop itself. They can't get the education and the resources they need. It causes huge unrest, great unhappiness, and that population is not going to get out of their third world status unless they get the education they need."
  • Problem: Lack of access to education and resources needed to develop economically (unavoidable problem)
  • Opportunity: Provide digital devices and training to close the socio-economic divide (urgent and underserved problem)

Evaluating the Value Proposition

  • Unworkable: If the digital literacy issue is not addressed, marginalized youth cannot gain skills for economic opportunity, leading to inequality and social unrest
  • Unavoidable: Education and access to technology are essential for economic development
  • Urgent: There is a pressing need to improve graduation rates and digital skills among marginalized Kazakh youth to avoid them being left behind
  • Underserved: Marginalized populations lack affordable access to the digital tools and training they need
  • Key Frameworks:
    • Nigel's Hierarchy of Needs: Some needs are latent/aspirational (nice-to-have) while others are blatant/critical (must-have)
    • Digital literacy training is addressing a blatant/critical need for economic mobility
    • "Before" vs "After": Clearly articulate the negative consequences if the problem is not solved (before) vs. the transformative benefits if it is solved (after)
    • Before: Marginalized youth unable to gain skills for employment, perpetuating inequality
    • After: Higher productivity, economic opportunity, and improved quality of life
    • Gain-Pain Ratio: The potential gains must significantly outweigh the pains/costs of adoption
    • Gains: Access to education, digital skills for employment, economic mobility
    • Pains: Cost of devices and training, learning curve for new technology

Building the Value Proposition

  • Disruptive: Providing digital access disrupts the traditional model of education in Kazakhstan
  • Discontinuous: Moves education and skills training from analogue to digital platforms
  • Defensible:
    • Long-term contracts with groups like farmers/suppliers could create barriers to entry
    • Data on usage patterns and impact could provide a defensible competitive advantage

Validating the Value Proposition

  • Before: Marginalized Kazakh youth lack digital skills and access, limiting educational and economic opportunities
  • After: Providing digital devices and training would boost digital literacy, education outcomes, and economic prospects
  • Gain-Pain Ratio: The potential gains in education and economic mobility likely outweigh the adoption costs for users and funders