A User’s Guide to Value Modeling

by | Nov 14, 2012 | Quantify Customer Value

HomeBlogQuantify Customer ValueA User’s Guide to Value Modeling

Value modeling is a science that cannot be improvised. Critical business decisions from product development, through marketing to pricing and sales are based on value models. Consequently, many people need to apply the proper techniques, steps and value assessment methods to support these important decisions. There is no other way around this! The key question thus becomes where to find the most relevant and actionable information with which to build a value model and to perform Economic Value Estimation (EVE®).

The information available about value modeling is highly fragmented. The LeveragePoint website is the best place to find the most relevant literature and case studies on the subject. There are books touching on the process of dollarization, monetization and other methodologies. They are, however, incomplete, too theoretical and in some cases even obsolete. This is why Steven Forth and I decided to make a contribution to the field of value management by creating a comprehensive eBook listing all relevant and modern information about value modeling. This 116-page eBook is a theoretical but also practical user’s guide providing anyone who is interested with a step-by-step approach, practical examples, dos and don’ts of value modeling, a glossary and a list of resources. In this book, we provide fifteen examples of value models across several industries and business contexts. Each model shows the value drivers and variables used to build the value model. This type of real world example is not available anywhere else.

Click here to access the eBook.

And here is a snapshot of the rich content.

Table of Contents

  • Essentials
    • Why Model Value?
    • Value Modeling as part of the Value-Based Methodology
    • Approaches to Value Modeling & Quantification
    • Value Models in Detail
    • Uses of Value Models
    • Step-by-Step Guide to Building a Value Model
    • Finding a Pricing Metric
    • Differentiation Value and Price
    • How to Find and Validate Data
  • Example Value Models
    • Introduction to Example Value Models
    • 15 Sample Value Models
  • What’s Next
    • How to make your Value Models successful – The 8 C’s
    • Challenges in Value Assessment and Modeling
    • Bridging the Gap Between Marketing and Sales
    • Communities and Consultants
    • Key Readings
  • References
  • Glossary

We are thankful for the support of LeveragePoint in making this project possible as well to all professionals who contributed examples of value models.

Stephan Liozu (www.stephanliozu.com) is the Founder of Value Innoruption Advisors and specializes in disruptive approaches in innovation and value management.  He is also a PhD candidate in Management at Case Western Reserve University and can be reached at sliozu@case.edu.

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