Value definition is the process of determining what level of value must be locked into the value offering to customers. Value is determined for products and services in terms of services, quality, cost and cycle time. The value definition process often follows a product development lifecycle:
- Identifying value opportunities through research and development in order to provide more value to customers, for example where an insurance company augments its range of services to include new investment options like offshore investments.
- Determining the feasibility of new ideas.
- Qualifying the value of the product in terms of profitability and sustainability per market segment over the life time of the product.
- Product development turns the product idea into reality:
- Product design defines the features needed that will add value to strategic segments.
- Construction is the process of actually building the product or the infrastructure for delivering a service.
- The product must be tested before it can be delivered to the market to ensure it satisfy all the value requirements of each market segment.
- Value delivery manages the project definition throughout the lifecycle of the project:
- Launching the project into a target market requires an initial review of the acceptance of the market of the new product and making the required adjustments to products where value expectations are not met.
- Establishing the product over time requires a continual review of the value of the product over time.
- Ultimately when the product or service is no longer profitable or no longer addresses a customer need, the product must be phased-out.