Business Design & Innovation
Valerie: Van Customer Value to Business Value
Based on customer insights, develop successful new or improved products and services that add value for the customer and generate business success for the company.
Problem definition and challenge
The efficient development of successful new or improved products is crucial for the competitive position of technology-driven companies in the manufacturing industry.
The process that helps companies to detect customer insights (value detection) and translate them into new or improved products or services (value creation) that sufficient customers are willing to pay for (value valorization) is particularly essential for the success of these companies.
Since companies indicate that this process can be changed (sense of excitement) and must be changed (sense of necessity), the project is based on 2 axes: on the one hand the opportunity to determine your own prices (price orientation/setting) and on the other the possibility to get the price that you want for your product (price realization/getting).
Course of the project
The partners guide the different cases in one-on-one trajectories. The learnings are shared in user groups that are organized twice a year.
In the first phase (value detection) of the project, we determine the customer value using different tools developed by Flanders Inshape/AMS. In this phase we will create persona, map stakeholders and build a hypothesis around the value of a specific product/service/brand.
In the second phase (value creation) we verify this hypothesis using different techniques in the ecosystem. Starting from these data (as is-situation) we define a change project (to be-situation). We determine priorities and choose focus elements. Which items will be eliminated, which do we want to grow, where is the new potential? Our view is as broad as possible here, so we’re looking at product and service as well as business model. In this phase, the focus is on the techniques to generate qualitative data and distill insights from them.
In the third phase (value capture) we look into how can apply the correct pricing to the new situation (to be).
How can we capture the value for the consumer in the correct price? How can we create a sustainable business with this new product/service/business model? We further examine the techniques to determine pricing (Willingness to Pay – Value/Perceived Value – TCO) and the development of a strong sales narrative.
Target group
Companies that directly benefit from the project results and that the project primarily focuses on are technology-driven SMEs in the manufacturing business and service sector. Innovative companies that, on the one hand, are looking to better align the development of new products or services with the needs of their customers (bring more value) and, on the other, want to generate a better return on this new products/services (higher ROI).
Results:
Our goal is dual: develop a concrete case in each of the participating companies and teach participants how to work with the tools and methods so they can apply them in future projects. This is how we aim at sustainable impact!
The partners’ ambition is to develop a methodology towards the end of the project, that:
- can be implemented without or with a minimum of guidance;
- ensure that companies need to invest 10% less time in the development and improvement of products and services;
- ensure that companies are 30% faster at developing products and services;
- ensure that companies get a 3% increase in turnover from new or improved products.
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DOWNLOAD THE E-BOOK WITH THE MOST IMPORTANT INSIGHTS FROM THIS RESEARCH PROJECT(DUTCH VERSION ONLY)
This project was made possible thanks to the financial support of Agentschap Innoveren en Ondernemen.
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