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value proposition

A clear statement of the unique benefits and outcomes a product or service will deliver, expressed by the organization to its customers.

Key Points

  • Identifies the target customer and the problem or need being addressed.
  • Emphasizes outcomes and benefits over features or technical details.
  • Differentiates the product or service from alternatives and competitors.
  • Guides agile decisions such as product vision, backlog prioritization, MVP scope, and success metrics.

Example

A Scrum team building a mobile banking app defines its value proposition as: "Check balances and transfer money securely in under 10 seconds, anytime, anywhere." This steers the backlog toward biometric login, instant balance view, and streamlined transfers before less critical features.

PMP Example Question

During release planning, the product owner wants the team to focus on the benefits that matter most to target users and how the product stands apart. Which artifact should be refined?

  1. Product roadmap
  2. Value proposition
  3. Definition of Done
  4. Release burndown chart

Correct Answer: B — value proposition

Explanation: The value proposition articulates the unique benefits for the target customer and the differentiation, which then drives prioritization and MVP scope.

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Take Control of Project Performance!

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