The evolution of Value Driven Design (VDD), is a toolbox of modelling concepts and applications used to create products that are valuable to customers. The researchers identified several key research clusters and case studies that showcase the evolution of VDD, including:
- New modelling constructs such as value mapping, multi-criteria decision analysis, and value modelling.
- New methods such as data-driven design, design for sustainability, and design for circular economy.
- New tools such as machine learning algorithms, simulation models, and digital twins.
The researchers conclude that these emerging concepts and applications are helping VDD to take a “leap forward” in creating products that are more valuable, sustainable, and customer-centric.
Value modelling is a method that helps designers and engineers to understand and quantify the value that a product or service provides to its users. Here’s how it works:
- First, the designers identify the product’s features and functions.
- Then, they assign a monetary value to each feature or function based on how much customers are willing to pay for it.
- This results in a “value map,” which shows the relative importance of each feature or function and provides a quantitative metric for evaluating design decisions.
- The idea is that by using this model, designers can make more informed decisions that create products that customers are willing to pay for.
Remember Features and Functions differ in:
- Features are the characteristics or attributes of a product that customers can see, touch, or experience. For example, the color of a car, the size of a smartphone, or the sound quality of a speaker are all features.
- Functions, on the other hand, are the specific tasks or actions that a product can perform. For example, the ability of a car to drive, the ability of a smartphone to make calls or browse the internet, or the ability of a speaker to play music are all functions.
So, features describe what the product is, while functions describe what the product does.
It’s important to consider that there are several different value dimensions that designers and researchers have identified over the years, including:
- Functional value: This is the ability of a product to fulfill a specific need or solve a problem.
- Emotional value: This is the way a product makes people feel, including their feelings of joy, excitement, or a sense of connection.
- Social value: This is the value that a product creates through its impact on relationships and connections with others.
- Experiential value: This is the value that comes from the experience of using a product or service, such as the pleasure or enjoyment it brings.
However, the same value has different meanings for each dimension.
Each dimension of value can be experienced differently by different people. For example, a product that has high functional value for one person might not have the same value for someone else. A feature like a high-quality camera might be important for someone who takes a lot of photos, but not for someone who doesn’t care about photography. Similarly, a product that brings joy and excitement to one person might not have the same effect on someone else. That’s why it’s important for designers to consider all of these dimensions when creating products that are valuable to different customers.
The alignment of value meaning under an organizational initiative and teamwork can be a tricky beast, but it’s essential for organizational initiatives to be successful. Some strategies for aligning value meaning in a teamwork setting include:
- Defining clear, measurable goals and objectives for the initiative so that everyone is working towards the same outcome.
- Establishing a shared language and understanding of what value means in the context of the initiative.
- Encouraging open communication and feedback between team members so that everyone’s perspectives and priorities are heard.
- Exemplification, implications discussions, view limits and scope boundaries, timeframe validation, and collaboration space.
The utility is the central criterion for a customer’s value yet!
In a nutshell, utility refers to the usefulness or practicality of a product or service, and it’s often considered the most important factor in determining customer value. If a product or service provides real, tangible benefits to a customer and improves their life in some way, they’re more likely to perceive it as valuable. On the flip side, if a product or service is difficult to use or doesn’t solve a specific problem for the customer, they’re less likely to see it as valuable. It’s all about providing real value and meeting customer needs!
And the values’ boundaries between the customer needs and organizational capacity should be considered as a trade-off.
Value creation is definitely a balancing act between the needs of the customer and the capabilities of the organization. Here are some ways that the boundaries between customer needs and organizational capacity might play out:
- Organizations may need to make tough decisions about which features or functions to prioritize in order to stay within budget or time constraints.
- Organizations may need to balance the desire to provide a premium product or service with the reality of having limited resources.
- Organizations may need to weigh the risks of pursuing new or innovative features against the costs and potential negative impacts on existing processes or systems.
- Organizations may need to consider how to effectively communicate the value of their products or services to customers, even if they are not able to meet all of their needs.
Value management should absolutely be at the heart of decision-making for organizations. Here are a few reasons why:
- It helps ensure that resources are being allocated in the most effective and efficient way possible.
- It allows organizations to prioritize initiatives and projects that have the greatest potential impact on their bottom line.
- It helps organizations to align their actions and investments with their overall strategic goals and objectives.
- It enables organizations to be agile and responsive to changing market conditions or customer needs, rather than being locked into a fixed set of priorities or processes.
Moreover, organizations have operations, projects, teams, and customer needs to address under a set of values to drive it.
We have a lot to juggle here! But by using a value-based approach, organizations can prioritize the needs that matter most and ensure that they’re directing their resources in a way that’s aligned with their overall goals. For example:
- Operational decisions can be made based on how they contribute to the overall customer experience or operational efficiency.
- Project decisions can be prioritized based on their potential impact on customer satisfaction or revenue growth.
- Teams can be organized around the value they deliver to the organization, rather than their functional expertise alone.
- Customer needs can be addressed in a way that’s aligned with the overall value proposition of the organization.
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