Moving into analysis is how we take the research we did on what value we're creating, and start to really get to the root of the value proposition, which is what are the activities you need to do to look at your research results and get closer to understanding what your value actually is. The first part of the conversation is the process one. In process science we call deriving value from process maps being the value chain analysis. And the reason that is is a customer from their perspective will buy a unique value proposition from you. But internally, you're making those value incrementally orange steps. For the most part for most businesses, what I mean by that is let's think about boat building for a second.

We're not even boat building, let's talk about something that might be more applicable like graphic design, and graphic design. If you're a freelancer or you're a small business owner, you're not delivering the final graphical product and all the value at one time. As you're having conversations with clients, consulting them, giving them different design prototypes that they can pick from actually building some some drafts that could be closer to a final product that they can then maybe work into some of their own prototypes internally in the client side. Those are all activities that incrementally add value as your process proceeds from the beginning of the service to the end of the service. So the whole point of this conversation is to, for you to know, when you're looking at the different steps and activities in your business, you're not just creating one value proposition, you might market it, or you might sell it that way.

And that's why you have to articulate it in aggregate. But generally, the value chain, there's a small amount of your total value package, even in one pricing that's being created at each subsequent stage of a particular service or product production. So when we do the analysis, you're going to look at each step in your process and decide, is this something the customer would be willing to pay for? So for instance, if you have to spend an hour per client bookkeeping. Does the client pay for your own bookkeeping to make sure your business stays running? No, they don't.

And that's why from the customer's perspective, this is not a part of the value chain. And you don't want to be selling that like, Hey, guys, we have really great bookkeeping here. So we'll make you know it easier to do business with us. Nobody cares about that. So it's not something that's part of your value proposition. And like that particular step, if you're looking at a product or service from your internal perspective, the business perspective, from end to end, try to find out which value from the customer's perspective is built at each step.

When you chain those all together, you can verify which activities are value adding and not and also what is the sum of activities that adds to your total value proposition. And that's the process analysis part of it. The customer feedback part is again, once you collect all that customer feedback, this is more on the marketing side of the house and not as much of the process side of the house. So I'm going to touch this more lightly. I've definitely encourage you to look at more marketing specific resources if you're interested in understand how master level marketers are taking customer feedback, survey results, trials with clients and actually deriving what they consider the subjective value components from that versus sort of the more hard process level activities and process analysis. But essentially, you're trying to find out what gets them the most excited why they're saying that you're using your product over a similar product, why your service is superior than any other service that they came across how they came across your you know, product, what was the easy what was the interface look like between you and the client.

So this is stuff that was coming straight out of their mouths is kind of a high level of hint, or a high level or very strong indicator of your value is hidden somewhere in there from their understanding. So from looking at the process activities and looking at their feedback, trying to marry together the process value chain with the actual core value proposition that the clients are telling you. Now you're getting closer to getting a value proposition or value statement. That's going to hold So what if you're just starting out. And again, we have a lot of these throughout our trainings, because some of you guys are aspiring business professionals. It's the same thing as in the last section where if you're simulating the research to do business planning, or you're trying to build a business model so that you can maybe you're looking for capital, or you're looking to an investor pitch, you want to think through the same thing, if you made up your process, or it's an aspirational process, you talked to some customers about something you're thinking about building, analyze it the same way, which is what are the value adding components of your process?

How do they marry with the things that excite the customers? And how do you seam those together and remove as much waste from the total system as possible. And if you're going to describe those elements in one statement, then you're getting closer to building the value proposition. But it's the very same thing. It's just falling through the simulation. So the exercise of this section is carrying on with what we've been doing.

Take the process map that you built, take sort of the customer feedback that you're looking at, whether it's reviews or whatever Have you and then start to think about what is the value chain of your process? What is it that the customers are most excited about and write that stuff down. A lot of this is you reveal insight through doing the exercises through actually documenting it. So take your time and do this. And then when you're done with that, we'll be moving on to the next section which is validating everything you've done.