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The Value Matrix Veronica Martinez Umit Bititci © Veronica Martinez The Value Matrix Agenda  Project Aims  Current Frameworks  Fundamental Gaps 

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Presentation on theme: "The Value Matrix Veronica Martinez Umit Bititci © Veronica Martinez The Value Matrix Agenda  Project Aims  Current Frameworks  Fundamental Gaps "— Presentation transcript:

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2 The Value Matrix Veronica Martinez Umit Bititci

3 © Veronica Martinez The Value Matrix Agenda  Project Aims  Current Frameworks  Fundamental Gaps  Value Matrix  Project Method  Future Work

4 © Veronica Martinez The Value Matrix Project Aims ë Deliver a guide for how companies could generate value. ë Provide an audit assessment method for score value.

5 © Veronica Martinez The Value Matrix Multiple Use of the Value definition Value Accounting Economics Finances Business Engineering Management Manufacturing Etc.. Decision making Information Systems Technology Intellectual Property Human Resources Design Etc.

6 © Veronica Martinez The Value Matrix Defining Value

7 © Veronica Martinez The Value Matrix Current Frameworks Business Classifications  Defenders  Prospectors  Analysers  Reactors  Product Leaders  Operational Excellence  Customer Intimacy VOSS DTI INHAM RICHARDSON TREACY & WIERSEMA MILES & SNOW

8 © Veronica Martinez The Value Matrix Fundamental Gap Current frameworks are very broad, very general, there is still a need to create more complete and integrated business classification in accordance with actual market needs to lead the organisational value.

9 © Veronica Martinez The Value Matrix HARDSOFT INNOVATORS BRAND MANAGERS PRICE MINIMISERSSIMPLIFIERS Product Leaders Operational Excellence Customer Intimacy TECHNOLOGICAL INTEGRATORS SOCIALISORS

10 © Veronica Martinez The Value Matrix What does the Customer get? HARDSOFT INNOVATORS Customers buy new products never seen before. i.e. new products design. Customers pay for the most advance technology applied in new devices, newest product’s generation. BRAND MANAGERS Customers pay a premium price for getting status by the product. Customers need to feed some feelings such as superiority, ego etc. PRICE MINIMISERS Customers buy ordinary products at low prices. Customers buy security in the product performance. Customers buy easy to do business with Customers buy convenience. They buy availability easy to deliver so the cost of buy is relatively minimum. Typically some of them are new e-buyers. SIMPLIFIERS Product Leaders Operational Excellence Customer Intimacy TECHNOLOGICAL INTEGRATORS Customers buy tailored products/ services. They pay for technical knowledge, which is able to configure their specific needs. Customers pay for total care. SOCIALISORS Customers buy flexible service. Customers buy interpersonal relationship when the product or processes technologically reasonable standard.

11 © Veronica Martinez The Value Matrix What companies need to do? INNOVATORS Companies should provide new product design, new inventions, breakthrough. Products with short lifecycle (continuous innovations and obsolescence). Frequent introduction of new products. BRAND MANAGERS Link feelings with images (artists, players, etc.) Build Product’s image with with a Social Status. Create emotional impact in customers. Exploit the Brand image, fashion, etc PRICE MINIMISERS Deliver Standard products at competitive price and good quality. Try to make efficient and effective their operation process.  Quality  Waste Offer easy accessibility and availability to their products. Orders placing and fulfilment process are streamlined to make life as simple and uncomplicated for customers. SIMPLIFIERS Product Leaders Operational Excellence Customer Intimacy TECHNOLOGICAL INTEGRATORS Develop good understanding of customers’ businesses (products / processes) so the company can deliver efficient and effective tailored / customised products and services. SOCIALISORS Provide a friendly, intimate customer service Transmit sympathetic, helpful grace to their customers. Interpersonal service. HARDSOFT

12 © Veronica Martinez The Value Matrix Illustration of the Value Matrix Customer Intimacy Operational Excellence HARDSOFT Innovators - INTEL - MICROSOFT - SONY - 3 M Brand Managers - - HARLEY DAVIDSON - NIKE - HIGHLAND SP. Price Minimisers - TOYOTA - CASIO - HONDA Simplifiers Technological Integrators - IBM - ICI - ROADWAY LOGISTICS Socialisors - SCS - HOME DEPOT (?) THE VALUE MATRIX Product Leadership - AMAZON.COM - EASY JET - FEDERAL EXPRESS

13 © Veronica Martinez The Value Matrix Project Method Methodology Theory Background Value Matrix Validation StudyValidation Value Cube Audit Assessment Method

14 © Veronica Martinez The Value Matrix FUTURE WORK  Understand the relationship between different parts of the Cube and their unit of analysis.  Recognise the characteristics of each value proposition in terms of customers and organisations.  What We think we will end up with is a Value Cube + Audit Assessment Method. Hard Soft P.L O.E. C.I. Culture Mission Strategy, etc.

15 © Veronica Martinez The Value Matrix Value Cube Corporate Culture Corporate Objectives Mission Vision Strategy Business International Strategy Organisation & Systems Technology General Policy Human Resources Product Development Marketing Implications Production Implications Etc…. Marketing Strategy Market Sales Mission Customer Orientation Marketing Operations Customer Intimacy Operational Excellence Product Leader HARDSOFT I. B.M. P.M. S. T.I. S. Manufacturing Strategy Infrastructure Engineering Mission Services Technical Resources Qualifiers Order winners Flexibility Process choice Quality

16 © Veronica Martinez The Value Matrix Questions


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