'Value' management

Value constitutes two aspects- 'Least Dollar for a Value' and 'Maximum Value out of a Dollar'. An organization has to not only see that it invests prudently, but also on how it should get the maximum out of 'what it has'. The Value Management has host of different dimensions including Synergies, product-value maximization, customer-value maximization, infrastructure-value maximization etc...


Chapters In 'Value' management : -

Synergies and Shared Capabilities

During planning process, an organization has to identify and explore the opportunities for synergies across SBUs and establishing shared capabilities. This will provide cost and effectiveness advantage. The synergies will include customer synergies, vendor synergies, infrastructure synergies, distribution channel synergies, IT synergies, procurement synergies etc...

Maximizing on what you have

When we talk about maximizing the value, a great emphasis should be placed on getting the maximum value out of 'what you have'. In today's world where 'legacy' is a curse and 'next-gen' is blessing, there is a general temptation of acquiring new instead of using the old and maintaining it till you get a good net value. The typical consumerism mind-set of latest mobile, latest car is fine as long as it is at an individual level. However, if the same mind-set creeps at an enterprise level, it will be a drain on resources. This chapter talk on how you can get the maximum value out of your existing assets, customers and other constituencies.

End-to-End Investment-Maximization

This chapter talks about making prudent & hard-nosed investments, ensuring that investments are tracked and monitored and once investment is made, extract value out of it. This chapter provides methods on investment prioritization, investment decisioning, investment application, investment benefit extraction and investment benefit value.

Customer Value-Maximization

Customer can be a great asset for the organization. A customer can provide value in many ways, which includes immediate value, long-term value and life-time value. Customer can have intrinsic and unquantified value for being the ambassador and referrer of your business. A customer value can also be measured from the perspective of topline & bottom line contribution, along with its predictability.

Infrastructure Value-Maximization

An organizations infrastructure includes most of the operating assets, and the facilities. The infrastructure maximization includes building variability in the capacity, infrastructure consolidation, exceeding the formal capacity and to extend the longevity of infrastructure. Apart from the capacity variability, one can also work on making the features & facilities of infrastructure variable.

Sales and Marketing value-maximization

This aspect is covered in fair degree of detail in the 'sales management' section in 'Functional Management Domain'. It talks about the sales profitability, sales density, sales processes and host of other dimensions linked to sales & marketing

Product Value-Maximization

This chapter talks about how to get the maximum value mainly out of existing products or existing processes linked to product management. The product value-maximization includes extending product-life and tenure, product adaptability, flexibility and extendibility.