Value Based Design
Continuous Innovation is increasingly central to companies’ success
- 70% of profits of the fortune 500 companies come from Products / companies that did not exist 10 years ago
- 76% Of new product introductions have failed after 2 years
And, whilst technology will continue to be a key enabler, Value based Design increasingly emerges as the most effective source of successful new products & services
Value Based Design represents an important paradigm change for most companies, more accustomed to technology or product based innovation, because it puts the cus-tomer (as opposed to the technolo-gy or product) as the driving force for product/ service design.
The approach stems out of pro-gress made in the analysis & measurement of Value Drivers for customers. Companies reaching level 4 in the Pyramid of Pricing Excellence, were in a position to identify which product or service features created most value for customers and to gradually integrate that knowledge into Product & Service Design. Based on projects conducted with these pioneers, PriValEdge develop The ‘Value Manager’ Framework to effectively manage the Value Based Design as a key source of innovation for its clients
The Value Manager Framework comprises 3 complementary modules
- Value Seeker systematizes the analysis & measure of Value Drivers for key Products & services
- Client Intelligence & intimacy
- Solutions & Bundles
- Market Research & EVC modeling
- Value Developer the valorizes the ability to measure Customers’ value drivers & use it as the source for development of new products & services
- Development focused on attributes that create value
- "Test beds" to check value perception + refine & target offer
- Taylor made samples for direct feedback & potential evaluation
- Value Capture then ensures that the company captures a fair but justified part of the value created through
- Value Based Pricing
- Elasticity / Optimization measurement & modeling
- Selling Value
Companies that have adopted the Value Manager Framework can then Manage Value Based Design as a key & systematic process
Buildup of client Value intelligence
- Research, analyses, samples, ...
- Valorize internal expertise,…
Ideas generation & evaluation processes
- Think-tanks / "suggestions" / "Competitive Radar", …
- Screening & priorities thru client intel. + expertise,…
Define & implement (quickly) appropriate tests
- Qualitative, quantitative & "real life" testing,...
Evaluate financial, organizational & strategic impacts
- Costs & profitability + feasibility & or-ganizational Impacts
- Competitive advantage? - defendable? - "Control Points?"
Develop consensus & prepare implementa-tion
- Fine tune programs, targeting, commu-nication,...
- Business Design" : process clients, part-nerships, …
Roll out only the "best programs" & capture "Control Points"
- Rapid & controlled deployment, "best practices" generalization
- Capture of "Control Points" : Making advantage "defendable"