Value Management tools help make the strategic choices necessary to develop and execute value-based strategy. They ensure a consistent approach to decision-making and are a key mechanism for scaling Value Management across the company.
There are two types of Value Management tools. The strategy tools focus on functional strategy decisions such as how to determine which new features have the most profit potential (Product Development), how to segment a market based on value (Marketing), how to design discount programs that protect value and maximize long-term profits (Pricing) or how to sell value to customers (Sales). The Value Estimation tools provide the means to quantify customer value for use in the strategy tools.
Each tool consists of frameworks, process steps, templates and examples showing how to use customer value data to make more effective decisions. The tools can be implemented in a variety of ways ranging from paper templates, excel models or integrated software applications.