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Winning Value Propositions

and Sustainable Business


Performance

Submitted By :-

Manish Goel (2/2013)


Shobhit Pathak (3/2013)
Shubham Sharma (42/2013)
Karan Karamchandani (45/2013)
Garvit Dhingra(50/2013)

Flow Of Presentation
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Challenges faced by the organization


Common Way outs
Misconception in Value creation performance
Win Situation
Customer Value Proposition
Winning Value Proposition
Developing and Sustaining Enterprise Value Creation
Form Follows Value
Example To Understand Form Follows Value

Global Economics.
Customer Are Well Connected
( Can Raise Concern).

Competitors Presence.
Employee have grudge on Management.

Challenges Faced By The Organizations

Common
Continual change required
to survive.
Complex - Situations
An appropriate time for project
analysis needs to be implemented .

Therefore, success lies in Fast Change and Bringing Up


A New Idea before the competitors.

Misconceptions in Value Creation Performance


i.

Margins , Cost-cutting , Restructuring are wrongly


perceived by the organization, as solutions to drive
success although they are not long term solutions.

ii. Inefficient SCM can increase the cost by 10-35 %

iii. Most businesses focus only on the top-line results and


thereby miss to capture customers key drivers.
iv. Rather than focusing on broader customer base, most
companies tend to concentrate on few big customers
who give them 80-90 percent of their business.

How can value creation performances can

become a

WIN SITUATION

1. Whether the world needs a better mousetrap.


2. How the mousetrap provides more value than the
existing or new competitive models
3. and, Then to be able to create a business organization that
builds and delivers this better value
4. Which can also be built and delivered at a cost that enables
a business to make a return greater than what the
investment costs were. That is, it returns its cost of capital.

Therefore , Critical Aspect is to provide Superior


Customer Value in you product.

VALUE PROPOSITION
A value proposition is a promise of value to be delivered and a
belief from the customer that value will be experienced. A value
proposition can apply to an entire organization,parts,products and
services.
Creating a value proposition is a part of business strategy.
"Strategy is based on a differentiated customer value proposition.
Satisfying customers is the source of sustainable value creation."
Developing a value proposition is based on a review and analysis
of the benefits, costs and value that an organization can deliver to
its customers, prospective customers, and other constituentgroups
within and outside the organization.

Checklist: Your Customer Value


Proposition
Identification and Profiling
Set the timeframe
The timeframe is the period of time in which your value proposition will be
delivered.
Identify your key target user
The key target user is the predominant segment of individuals who will use
your product.
Profile your key target user
Describe in detail the who, what, where, why and how of your key target users.
Determine the next best alternative
Select for the next best alternative the option that will best improve the
situation for the key target user.
Profile the next best alternative
Detail the next best alternatives characteristics, requirements, price, costs, and
use events.

Cont.
Value Experiences
Detail benefit value experiences
Benefit experiences deliver positive value when compared with the
next best alternative. Be sure to quantify these value experiences.
Detail parity value experiences.
Parity experiences deliver equal value when compared with the next
best alternative. Remember to quantify these value experiences.
Detail trade-off value experiences
Trade-off experiences deliver negative value when compared with the
next best alternative. These experiences should also be quantified.
Document prices
Capture the complete price the key target user will pay for your
product and services as well as for the product and services for the
next best alternative. Reflect additional costs in the appropriate value
experiences sections.

Winning Value Proposition


1. Accelerating the sales cycle by reducing the complexity of
the buying decision.
2. Increase deal size by introducing greater value to the
customer.
3. Customer credibility by building confidence in the
partnership.
4. Lead sharing builds the pipeline and revenue opportunity for
both sales organizations.
5. Faster deployment of pre-integrated systems means faster
revenue recognition.
6. Access to key executives when one sales team has a better
customer relationship or calls on different decision makers.
7. Information sharing about the account by combining what
each team knows or discovers on their customer calls.

REAL
VALUE

SUPERIOR
VALUE

PROFITABE
VALUE

Developing and Sustaining Enterprise Value Creation

Is our Value Real?


IS THE MARKET REAL?
Who is the customer?
What are the customer segments?
What are customers doing today?
Why are they doing this?
What is or could be more meaningful?
IS THE VALUE PROPOSITION REAL?
What are the critical value factors?
What are customers Value options?
How will customers benefit?
What will customers give up?
Can it be done?
Can we quantify our Value?
WOULD CUSTOMERS BELIEVE IT?
Why will customer be better off?
Is the timing right for customers?
Does it Really Matter to Them?

Is our Value Superior?


IS THE VALUE SUPERIOR TO ALTERNATIVE?
How and Why superior to other options?
Is ours most meaningful and relevant?
For which customer segments?
For which segments is it inferior?
Is our Value-based price right?
CAN WE DELIVER?
Can it be developed and produced?
Is Sales, Service and Supply Chain ready?
Can our processes be aligned?
Is our Channel to customers suitable?
Are Customer Relationships in place?
Can we prove our Value to customers?
WOULD THE MARKET BELIEVE IT?
Why will it improve our Supply Chain?
Is the timing right for our market(s)?
Does it really make a difference?

Is our Value Profitable ?


CAN WE MAKE MONEY?
What will it cost us?
Can we afford it?
What/where will we stop spending?
When can we expect to be profitable?
Can we make economic profit?
DOES IT FIT WITH OUR COMPANY GOALS?
How it compares to other investments?
Does it fit in our portfolio?
What will we stop investing in?
Does it meet our strategic direction?
Does it support companys mission?
Does it sustain our Value Creation?
WOULD THE COMPANY BELIEVE IT?
Will our organization be behind it?
Will our leadership support it?
Is it right for our future success?

Form Follows Value


In 1896, American architect Louis Sullivan
asserted that form follows function in
successful design.
The organizational form, including
management, processes, people, resources,
measurement and compensation structures,
needs to reflect the value most critical to
customers.

Example To Understand
Form Follows Value
Nike is a excellent example of a company that has
instinctively practiced From Follows Value.

They have 3 critical value creating resources


Design/R&D- for new products
Marketing to create and drive the demand
Distribution to make certain they are getting the latest
most innovative products to customers quickly.

Nike has seldom manufactured anything , the shoes are


manufactured through alliances with other companies.
Although manufacturing is absolutely critical and brings
great value to the customer and without manufacturing there
would be no Nike shoes to sell.
Nike realized that there were other options to gaining this
function and thereby both save cost and maintain its focus
on the critical customer value areas.
Nike has instinctively formed its organization on the
customer values that have the MOST impact on customers
Design/R&D, Marketing and Distribution.

Thank

You