The value of contemporary business is multilateral, the value-based management needs to be driven by concepts like multidimensional collaborative value or collective advantage and multi-layer ROIs.
To avoid fast obsolescence and gain long term advantage, business management needs to explore different paths for designing new business models, understand business value chain/stream, and take the alternative value creation approach to accelerate performance and unleash business potential.
Design a business model and articulate its value proposition: The goal of business model development is to create value. The essence of a business model is some source of value that represents a competitive advantage. The organizational value propositions should be customer focused and define the ideal business model, distribution, products & services, the brand by segments they want to go after. To perceive the value of the business model and make an objective assessment of an investment, you need to have a very clear idea of the new product/service - its life cycle, the overall "value proposition," where it fits into the overall "product portfolio," the wider competitive landscape and your price/business model. Top management needs to clarify: Do we have common values and a dynamic enterprise business model that takes into account initial customer investments, life cycle of our customers, products, services, economical cycles, market shifts to ensure flexibility and positive results throughout? Can we drive the Enterprise and Business Strategy forward smoothly?
Having a clear understanding of how customer value creation enhances the business model and by extension of profitability. In a literal sense "what value does this investment provide the business," and how to improve ROI. Making the effort at the leadership and portfolio level to qualify and quantify value in terms of both strategic value and tactical value; direct revenue and indirect (mission/vision/values) terms is the first step to crafting high-level strategic intents. It’s also important to build a “behavioral value chain” between the inputs - intermediate steps - outcomes. Or unpack the employee inputs - product quality - customer satisfaction chain to determine what constitutes each of the parts and the strength, and direction of the various links in the chain.
Understand value chain: Through the lens of business capability and its ecosystem perspective, it’s important to understand multidimensional organizational value, the value chain of business, and value chain of the business ecosystem where it competes deeply. The value of the firm goes beyond economic value or shareholder value, to include other forms of value such as employee value, customer value, supplier value, channel partner value, alliance partner value, managerial value, brand value, and societal value, etc. Business managers need to check how balanced and effective the value chain is, and gain customer insight via an in-depth understanding of the business value chain and oversight of key business processes.
The value chain processes produce goods and services and deliver them to the customers. Therefore the value chain process is the flow of activities, which include what managers, employees and applications do. To preserve "business value," you need to have a very clear idea of the life cycle of "product/service" and the overall "value proposition," in which it fits into the overall "product portfolio," the wider competitive landscape and your price/business model. The whole value chain needs to be aligned, engaged, contributing by sharing the value so customers and stakeholders - from suppliers, to factories, employees, shareholders, get their fair share.
Clarify value stream view: With a clear business value stream view, all parties can agree on the common value proposition. Stakeholder maps to Value Stream, triggering stakeholder to stream and participating stakeholders to stages and Process maps to Value Stream Stage. Value streams break into stages. Each stage decomposes into routing maps or can map to a process, process underpins capabilities to deliver products/services and enable value stream stages.
A given capability can enable 0-to-many value stream stage. The value stream to capability mapping identifies the capabilities to be considered as you design your processes and stakeholder mapping identifies the roles required within that stage as input to process role definition. Finally, capability to information mapping provides input to information required by a given set of processes for achieving strategic goals of the business.
Creating new revenue streams and generating business value is a strategic aspect of business’s survival and thriving. Value is tricky though because it's subjective in the eye of the beholder. The value of contemporary business is multilateral, the value-based management needs to be driven by concepts like multidimensional collaborative value or collective advantage and multi-layer ROIs. Business management needs to properly understand all elements or forms of value that are translated to the organization, and how all the pieces and parts of the organization are ultimately impacted, for good or bad, by each new business initiative, in order to run a value added business with high level of maturity.
Design a business model and articulate its value proposition: The goal of business model development is to create value. The essence of a business model is some source of value that represents a competitive advantage. The organizational value propositions should be customer focused and define the ideal business model, distribution, products & services, the brand by segments they want to go after. To perceive the value of the business model and make an objective assessment of an investment, you need to have a very clear idea of the new product/service - its life cycle, the overall "value proposition," where it fits into the overall "product portfolio," the wider competitive landscape and your price/business model. Top management needs to clarify: Do we have common values and a dynamic enterprise business model that takes into account initial customer investments, life cycle of our customers, products, services, economical cycles, market shifts to ensure flexibility and positive results throughout? Can we drive the Enterprise and Business Strategy forward smoothly?
Having a clear understanding of how customer value creation enhances the business model and by extension of profitability. In a literal sense "what value does this investment provide the business," and how to improve ROI. Making the effort at the leadership and portfolio level to qualify and quantify value in terms of both strategic value and tactical value; direct revenue and indirect (mission/vision/values) terms is the first step to crafting high-level strategic intents. It’s also important to build a “behavioral value chain” between the inputs - intermediate steps - outcomes. Or unpack the employee inputs - product quality - customer satisfaction chain to determine what constitutes each of the parts and the strength, and direction of the various links in the chain.
Understand value chain: Through the lens of business capability and its ecosystem perspective, it’s important to understand multidimensional organizational value, the value chain of business, and value chain of the business ecosystem where it competes deeply. The value of the firm goes beyond economic value or shareholder value, to include other forms of value such as employee value, customer value, supplier value, channel partner value, alliance partner value, managerial value, brand value, and societal value, etc. Business managers need to check how balanced and effective the value chain is, and gain customer insight via an in-depth understanding of the business value chain and oversight of key business processes.
The value chain processes produce goods and services and deliver them to the customers. Therefore the value chain process is the flow of activities, which include what managers, employees and applications do. To preserve "business value," you need to have a very clear idea of the life cycle of "product/service" and the overall "value proposition," in which it fits into the overall "product portfolio," the wider competitive landscape and your price/business model. The whole value chain needs to be aligned, engaged, contributing by sharing the value so customers and stakeholders - from suppliers, to factories, employees, shareholders, get their fair share.
Clarify value stream view: With a clear business value stream view, all parties can agree on the common value proposition. Stakeholder maps to Value Stream, triggering stakeholder to stream and participating stakeholders to stages and Process maps to Value Stream Stage. Value streams break into stages. Each stage decomposes into routing maps or can map to a process, process underpins capabilities to deliver products/services and enable value stream stages.
A given capability can enable 0-to-many value stream stage. The value stream to capability mapping identifies the capabilities to be considered as you design your processes and stakeholder mapping identifies the roles required within that stage as input to process role definition. Finally, capability to information mapping provides input to information required by a given set of processes for achieving strategic goals of the business.
Creating new revenue streams and generating business value is a strategic aspect of business’s survival and thriving. Value is tricky though because it's subjective in the eye of the beholder. The value of contemporary business is multilateral, the value-based management needs to be driven by concepts like multidimensional collaborative value or collective advantage and multi-layer ROIs. Business management needs to properly understand all elements or forms of value that are translated to the organization, and how all the pieces and parts of the organization are ultimately impacted, for good or bad, by each new business initiative, in order to run a value added business with high level of maturity.
0 comments:
Post a Comment