A value proposition is a bundle of attractive attributes that an organization offers to entice people to become its customers. Every value proposition consists of a core product and/or service, that is distributed and paid for in a way that customers find appealing.
Digital technologies can be employed to innovate, or even transform, value propositions by changing the nature of the product/service (the product model), the way they are distributed (the distribution model) and the manner by which they are paid (the revenue model).
The Digital Product Model Dial is one of the three dials (see below right) that can be turned to create an innovative value proposition. The Digital Revenue Model Dial was discussed in Meyer’s Management Models #4 and the Digital Distribution Model Dial is explored as #20. The Digital Product Model Dial suggests that there is no fixed set of product models from which to choose, but that products and/or services can be reinvented along four different dimensions, separately or at the same time. Each dimension has been formulated as a question, with several common examples mentioned as options to consider.
The four dimensions along which digital product model innovation can be sought are: