Here is a very unique scenario. You are in the middle of building your value model for a new product or service and you realize you have a dozen potential drivers of positive differentiation you can choose from. This is great problem to have but it can create some issue with how to select the most appropriate value drivers for your value model.
It is typically recommended to use a maximum of three to five drivers for a specific value model. So how to pick three or five from a list of twelve val
How much ROI do you capture from your product innovations? Turns out that most companies have a poor track record of capturing their fair share of the differential economic value they provide to customers.
In this month’s webinar, “Maximizing ROI In Product Development”, Dr. Stephan Liozu shared best practices for integrating ROI into new product development (NPD) processes like Stage Gate. According to Dr. Liozu, it is absolutely essential to estimate the amount of economic value your new produ
New product development has been identified by industry leaders as the most important opportunity for capturing value and maximizing profit. The overall objective is to arrive at an appropriate launch price that truly reflects the fair share of the differential value created for the customer. Otherwise, the launch will fail to meet its financial targets. To accomplish this difficult task, product development must adopt an approach that incorporates a value-based strategy, taps into the enterpris
New product development has been identified by industry leaders as the most important opportunity for embedding value-based strategy to maximize customer value and profit. However, leading companies continue to face key challenges, including the commoditization of products, intense price competition, rising input costs, and relentless pressure from powerful procurement groups.
To deal with these challenges, product development must adopt an approach that: a) incorporates a value-based pricing m
We’re all familiar with the cannibalization that occurs when a seller launches a new product, which takes share from other products in the portfolio. This phenomenon is often viewed in a negative light as product managers see volume eroding for current products, replaced by newer products that may or may not earn greater margins. So how do we make sure that this replacement is both profitable and defensible against competitors?
Value-based selling can be an extremely powerful tool when it come
Chemical executives today face tremendous pressure in protecting margin in the midst of economic uncertainty. Over the past year, our customers have successfully dealt with five specific business challenges using a value-based approach. Click the links below to learn more about their success stories and best practices.
5. Fighting Product Commoditization
Product innovation is essential for fighting forces of commoditization within the product lifecycle. Experience shows that the best window o
Businesses in the chemical industry face several unique obstacles to profitability and revenue growth. Perhaps the most prevalent challenge that chemical companies face is the ongoing fight against product commoditization - constantly searching for ways to innovate and differentiate themselves from their competition. Other common concerns include the growing influence of procurement in the buying process, responding to aggressive competitors, fluctuating raw material costs, and successfully comm
Two Questions from a Specialty Chemicals Company
Q. Some of our customers require a price quote before they will have any discussions with us where we can introduce a conversation on differential value. How can we benefit from a value conversation when this is the case?
Tom: The buyer's demand for a price quote before beginning discussion with a seller is similar to the demand that a company participate in a "blind auction" where only the prices of competitive offers, but not other offer detai
2011 Promises to be like 2010 only more so!More competition, more innovation, more price pressure.
2010 reinforced the importance of being able to compete on differentiated value. Most of our customers found that their markets got more competitive, with new competitotrs entering, new solutions emerging and continued price pressure. While some companies responded by ad-hoc discounting and price cutting, the more compelling response was to create, communicate and then capture differentiated value.