|
Step 1 in Value Creation is to generate ideas for potential
higher value strategies. These arise in many ways – two of
which can be employed systematically. The first systematic
path to higher value strategy development is to identify
opportunities for value uplift arising from the understanding
gained in Value Measurement. The second is to systematically
develop enhanced customer value propositions at a segment level –
and continue to do so on an ongoing basis.
Step 2 involves developing the new or enhanced segment-level
value propositions. Often it is necessary to conduct market
research. Techniques like conjoint analysis and discrete
choice modeling can be particularly powerful during this step.
Step 3 is where the alternative and potentially higher value
strategies are developed. If priced appropriately, an
enhanced customer value proposition should create an opportunity
for additional revenue. If delivered efficiently, that
increase in revenue will translate into an increase in economic
profit, the present value of which is the change in value of the
segment.
Step 4 involves valuing the alternative strategies that have
been developed and selecting that which will be pursued. This
step is also supported with software.
Step 5 involves building the commitment of the entire management
team to the proposed path forward. Often the value
proposition and strategy development efforts are delegated to a
small group. It is essential that the work of this group is
embraced by the entire management team and that there is full
commitment to the path forward.
|
