What is value risk?Value risk turns on the overarching question “will people buy my software, and will users use it?” Assessing the value risk of your software requires asking questions such as:
- Will my software address an important need for users?
- Has this perceived need been validated with target users?
- Has a competitor analysis been conducted?
How do I reduce the value risk of my software?When devising a solution strategy to mitigate value risk you have to understand who your target market is, what their needs are and how your custom software is going to satisfy these needs. The first step is to ascertain if these needs are perceived needs or real needs. If the latter, the needs must be important enough for your target market to want to find a solution to satisfy these needs.
Importance and satisfactionWhen we consider importance and satisfaction it’s essential to keep in mind that any need of your target market should be both important (and something your app can satisfy) and be unmet at the moment. This means that even with fierce competition, if the need is important enough, your target market is going to look for ways to satisfy that need. To navigate this phase, you have to ask the following questions:
- Who is my target market?
- What is the need that my software/app is going to satisfy for them?
- Is this need important?
- How do they satisfy the need at the moment?