We at E Squared have always been admirers and avid readers of both the Harvard Business Review and McKinsey & Company. Their advice rings true with our own opinions and seems timeless in its value. This week’s topic borrows from articles posted by HBR and McKinsey respectively, and both offer advice on delivering business value.
Both articles emphasise the importance of putting the client/customer first. They both argue that the creation of value models is key to ensuring that the customer stays happy and that the product delivers value. They also give useful advice on how to create value models and are therefore posted below.
Value models allow a company to put themselves in the role of the customer via market research. Primarily, it enables a company to identify customer needs and to identify competitor strengths and weaknesses.
Once a value model has been formulated it is time to put that understanding to use. Value models can be used in the creation of supplementary services, new programs, and systems that can guide the development of new offerings. It can also have the indirect bonus of client/customer acquisition as their needs are shown to be a high priority. Customer relationships can then be maintained and improved using the model itself.
Alongside value models, a business must deliver value to a client internally through the recognition and improvement of value chains. The value chain describes how the business delivers value to its customers process by process. If a business can understand where it delivers value then it can understand where its competitive advantage lies. Process mapping is key to creating and understanding a clear value chain. Operational optimisation systems allow a business to map processes with ease. Combined with market research and the creation of value models, operational optimisation systems can add value to a business immediately.
If you would like any more information about how operational optimisation systems can help your business improve its value then please visit our website below. Alternatively we are now hosting a series of breakfast meetings that will discuss similar topics throughout the UK. A sign up page will be provided below.
Michael Porter: Value Chains: http://www.amazon.co.uk/Competitive-Advantage-Creating-Sustaining-Performance/dp/0743260872
Our Website: http://isoma.systems/
Breakfast Meeting sign up: http://unbouncepages.com/breakfast-meeting-landing-page/
How do you define value? can you measure it? What are your products and services actually worth to customers? Remarkably few suppliers in business markets are able to answer those questions. And yet the ability to pinpoint the value of a product or service for one’s customer has never been more important.