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Introduction to Value Propositions

Watch Dominic McMahon provide an introduction to value proposition.
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Before we get into what we have identified  as the key value propositions for V2G it   is worthwhile taking some time to understand  what value propositions are and why they are useful. What is a value proposition? A  value proposition is a promise of value   that can be delivered to customer upon purchasing  a product or signing up to use a service.
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So what do we mean by value? Value can  be considered as the difference between   a customer’s perception of the cost incurred  versus the anticipated benefits to be realized   the customer’s perceived cost may not  necessarily be simply the upfront financial one   but also their willingness to allow  access to their asset and to their data. Similarly anticipated benefits needn’t  necessarily be purely economic they could also be   environmental social or psychological  in nature and while there may be direct   financial benefits to be reaped over time  from investment in a technology it could be   that additional non-financial factors are  those which persuade the customer to invest.
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So why develop value propositions? Development  of value propositions can be a helpful tool   in identifying use cases and customer segments  which in turn will help inform marketing   and advertising plans - you may recall that use  cases were introduced in week one of the course   described then as a specific application of the  technology with a type of customer or site in mind.   Each value proposition for a product or service  may serve multiple use cases with each of these   attracting various customer segments hence by  taking the time to come up with value propositions   one can better understand  their potential customer base.
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For vehicle to grid Cenex has identified  five potential value propositions that   could attract customers to the technology  I will briefly introduce these to you now.  
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They are: Financial reward using V2G to  engage in revenue generation services;
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Energy resilience using V2G to  unlock a backup power supply;  
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Personal net zero using V2G to support the  diminishing of an individual’s carbon footprint;
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Benefit to society using V2G to play a part in  the collective carbonization picture; and lastly   Enhanced battery management using V2G to prolong the life of an EV battery.  
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Although these are identified as five distinct  value propositions in some cases more than one   value proposition may appeal to a customer  and as such they may complement one another   however equally in other cases  they may prove to be contradictory. We’ll explore each of the value  propositions in more depth   in the coming steps of the course. I  do hope you enjoy learning about them.
  • A value proposition is a promise of value that can be delivered to a customer upon purchasing a product or signing up to use a service.
  • Cenex has identified five key value propositions that could attract customers to V2G technology.
  • Although these are identified as five distinct value propositions, in some cases more than one value proposition may appeal to a user.
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