4. *
*Original Question “Everyone is talking of Value.
We don’t see how its different from Cost or
Price. What are we missing?”
*The Correct Question - “We have discussed
Quality Benefits and Value in brief. We have
discussed How Value is NOT AN INTRINSIC
property of goods and services. Now lets place
Value in the context of the Customer using the
concepts of Real Value and The Value Net. And
see some examples. Shall we?”
6. *
* Business’s Deliver Quality(s)
* Benefit = f(Quality(s))
* Customer Value Net’s Capture Benefit and Make Value Manifest
* Value = f(Benefit, Capture)
* Segments = Clusters(Value Manifestations)
* Doing this on Coarse Strategic Models can be very limiting
* Delivery of Quality is not very Flexible
* But yet Data Science helps us with matching Segments & Value (above)
* And to a certain extent Broad Benefit and Quality Spectrum
* It’s a multi step process, and inefficient. Business Success lies in doing this
well.
* Business Survival & Growth depends on continuing to do this well within a
dynamically changing environment where all of these variables change
rapidly.
7. *
* Value Net – is something that captures Benefit and makes Value Manifest
* Real Value is – what gets Manifest in the Customers Value Net
* We will use the following to describe a Value Net
* Purpose
* Success
* Relationships
* Ecosystem
* Context
* But honestly finalizing 5 or 10 dimensions of the Value Net would require an elaborate
amount of research. We are just using these 5 dimensions of the Value Net in the
absence of that research. Feel free to use other dimensions as you seem fit as long as
those dimensions relate to Value Nets
* Lets summarize
* A Business PROJECTS A QUALITY SPECTRUM
* Each of those Qualities might map to ONE OR MORE Benefits
* Benefits will get captured across the Customers Value Net and Make Value Manifest
* Note: All of that was inline with Economics, lets move to the qualitative illustration
9. *
*The Size -> Quantum of Real Value
*The Map -> Benefits being Captured in the
Value Net and Making Value Manifest
*One Value Net per Customer Segment
*One Value Net per Business Customer
10. *
*Quality – Small Car
*Quality – Price under 2 lacs
*Benefit – Customer Segment can move from 2
Wheelers to Cars
*Real Value – Grossly Negative – Nano
Detrimental to Social Status. Nobody wants to
be seen in a Nano
11. *
* IT Projects a Quality Spectrum
* Measuring Quality(s) of IT would be taking a Factor Based
View of the World
* Benefits should be realized by the Business.
* Business should drive IT
* Real Value would make itself Manifest in the Business [IT’s
Customer] Value Net {2 degrees of Separation} or the End
Customer Value Net {4 degrees of Separation}
* Ref: The Solution To The IT Conundrum
* The CIO Organization focuses on IT Quality(s) and Operations
* The CTO Organization focuses on Applying Benefits into the
Business and End Customer Value Net
12. *
*On similar lines
*R&D Projects a Quality Spectrum of Innovation,
Future Growth …
*R&D Needs a Consulting Arm to go out into the
rest of the Organization and Deliver Benefits
and Make Value Manifest…
*Again 2 and 4 degrees of Separation, very
difficult to visualize QBV Mappings and
Attribute Value back to IT or R&D.