Create and enhance your value proposition
“Every fool confuses value and price.”
Did you know…
Why optimizing product areas is not easy?
High transversality of processes and involvement of multiple areas.
Lack of standardization and great diversity in the activities developed.
The eagerness to achieve a perfect development and not to assume that the product will have to be improved.
Shorter and shorter innovation cycles that also shorten the product life cycle.
The desire for a really broad portfolio and the difficulties of keeping it all going.
The standardization vs. customization battle and its impact on development time and costs.
PRODUCT LIFE END TO END SERVICE OFFERING
INNOVATION MODELS
Our products and even our business models have an expiration date. It is the responsibility of the innovation areas to sow the seeds that will become the future of our companies. To do this, of course, it is necessary to establish the necessary resources and procedures.
Potential lines of improvement:
- Integration of R&D areas with the different stakeholders.
- Design and deployment of R&D processes at the organizational level.
- Technical support for innovation.
MARKET ANALYSIS AND COMMERCIAL VIABILITY
Listening and analyzing is often the best way to make the right decisions. If we fall in love with our first ideas, we run the risk of taking the wrong course. By focusing on market trends and consumer behavior, we can develop plans with a higher success rate.
Potential lines of improvement:
- Market research.
- Voice of costumer studies.
- Development of viable business plans.
PRODUCT DEVELOPMENT AND LAUNCH
Once we have a clear idea of the product we are going to launch, the challenge of industrialization arrives. We must build robust and efficient processes that allow us to contain costs and respond to market expectations in a timely manner.
Potential lines of improvement:
- Definition and implementation of end-to-end processes.
- Reduction of time to market.
- Definition of internal requirements.
- Management of supply chain needs.
- Development of product and process quality control systems.
PRODUCT OPTIMIZATION
In the life of any product there comes a period of stagnation. This happens when we let ourselves get carried away by conservative dynamics. Why do we touch something that works? Because we want it to work better and for longer. VAVE exercises help us to increase the value contribution of our product and can be combined with cost reduction exercises. A good way to extend the life cycle of our best products.
Potential lines of improvement:
- VAVE (Value Analysis Value Engineering) exercises.
- Product customization.
- Production cost reduction.
PORTFOLIO MANAGEMENT OF PRODUCTS
And finally, for our value contribution, we need to think about our product mix. Which ones are being leveraged? Which ones are being cannibalized? Which ones are coming to an end? If we understand our portfolio as a set of assets, we can increase our profitability and gain long-term stability.
Potential lines of improvement:
- Portfolio strategy.
- Prolongation of life cycles.
- Product mix.
- Expanded product.
- Transformation from product to service.
- Customer Centric Operations.
All products have a life cycle, but we can enhance and maximize it.
Do you know VAVE?
Value Analysis Value Engineering
Detailed analysis of the elements that make up the product and its perceived value.
A technical analysis with the client's vision
The VAVE methodology allows us to combine the technical and financial vision of a product with the customer experience dimension to enhance those attributes or functions that are most valued.
Once the VAVE analysis of our product has been carried out, we will know which elements to enhance, which elements to include and which elements to eliminate.
VAVE for:
Reduce costs.
Improve quality.
Make relevant substitutions.
Maximize product value.
Eliminate unnecessary processes.
Learn for new designs.
Improve company image.
