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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 Concept

Value Based Design represents an important paradigm change for most companies, more accustomed to technology or product based innovation, because it puts the customer (as opposed to the technology or product) as the driving force for product/ service design.

The approach stems out of progress 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

Value Manager FrameworkThe Value Manager Framework comprises 3 complementary modules

1. Value Seeker systematizes the analysis & measure of Value Drivers for key Products & services
  • Client Intelligence & intimacy
  • Solutions & Bundles
  • Market Research & EVC modeling
  • ...
2. 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
  • ...
3. 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 intelligenceValue Manager Approach
  • 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 & organizational Impacts
  • Competitive advantage? - defendable? - "Control Points?"
Develop consensus & prepare implementation
  • Fine tune programs, targeting, communication,...
  • Business Design" : process clients, partnerships, …
Roll out only the "best programs" & capture "Control Points"
  • Rapid & controlled deployment, "best practices" generalization
  • Capture of "Control Points" : Making advantage "defendable"
Implement measuring, learning and improvement systems
  • Objective & systematic evaluation - "Learn & Improve"
  • Continous adaptation & improvement