The Value Matrix

1
The Value Matrix

• Veronica Martinez
• Umit Bititci

2
Agenda

• Project Aims
• Current Frameworks
• Fundamental Gaps
• Value Matrix
• Project Method
• Future Work

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Project Aims

• Deliver a guide for how companies could generate
  value.
• Provide an audit assessment method for score
  value.

4
Multiple Use of the Value definition
Value
5
Defining Value
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Current Frameworks
VOSS
DTI
Business Classifications
INHAM

• Product Leaders
• Operational Excellence
• Customer Intimacy

• Defenders
• Prospectors
• Analysers
• Reactors

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Fundamental Gap
Current frameworks are very broad, very general,
there is still a need to create more complete and
integrated business classification in accordance
with actual market needs to lead the
organisational value.
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The Value Matrix
BRAND MANAGERS
INNOVATORS
PRICE MINIMISERS
SIMPLIFIERS
TECHNOLOGICAL INTEGRATORS
SOCIALISORS
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What does the Customer get?
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What companies need to do?
INNOVATORS
BRAND MANAGERS

• Companies should provide new product design, new
  inventions, breakthrough.
• Products with short lifecycle (continuous
  innovations and obsolescence).
• Frequent introduction of new products.

• Link feelings with images (artists, players,
  etc.)
• Build Products image with with a Social Status.
• Create emotional impact in customers.
• Exploit the Brand image, fashion, etc

PRICE MINIMISERS
SIMPLIFIERS

• Deliver Standard products at competitive price
  and good quality.
• Try to make efficient and effective their
  operation process.
• ? Quality ? Waste

• Offer easy accessibility and availability to
  their products.
• Orders placing and fulfilment process are
  streamlined to make life as simple and
  uncomplicated for customers .

TECHNOLOGICAL INTEGRATORS
SOCIALISORS

• Develop good understanding of customers
  businesses (products / processes) so the company
  can deliver efficient and effective tailored /
  customised products and services.

• Provide a friendly, intimate customer service
• Transmit sympathetic, helpful grace to their
  customers.
• Interpersonal service.

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Illustration of the Value Matrix
THE VALUE MATRIX
HARD
SOFT
Innovators
Brand Managers
Product Leadership
-
- INTEL - MICROSOFT - SONY - 3 M
- HARLEY DAVIDSON - NIKE -
HIGHLAND SP.
Simplifiers
Price Minimisers
Operational Excellence
- AMAZON.COM - EASY JET - FEDERAL EXPRESS
- TOYOTA - CASIO - HONDA
Socialisors
Technological Integrators
Customer Intimacy

- IBM - ICI -
ROADWAY LOGISTICS
- SCS - HOME DEPOT (?)
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Project Method
Methodology
Theory Background
Audit Assessment Method
Value Matrix
Value Cube
Validation Study
Validation
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FUTURE WORK

• Understand the relationship between different
  parts of the Cube and their unit of analysis.

• Recognise the characteristics of each value
  proposition in terms of customers and
  organisations.

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Value Cube
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Questions