Value based vs Price based services

Before comparing the traditional design process based on price, to a collaborative design process based on value, let’s begin with the end in mind. The end is a well-designed product or service that customers consider a great value.  Attributes such as the following make up value:

  • Functionality, which is all about the fitness for use or ability to satisfy customer requirements. Since customers might want very different things, it is important to carefully define what customer segments you want to satisfy.

  • Validity, which can be thought of as the ratio of desired functions to unimportant functions for a given customer segment, relative to the price. Some functions are more targeted to some customer segments than others, so the risk here is trying to be all things to all people and then having to charge so much that no one sees value.

  • Efficiency, which is about the ability to be efficient in the design, manufacture, and distribution of the product so the price can be low enough to provide value and profit and time to market can be short enough to enable capturing market share.

  • Quality, meaning the product is reliable enough, maintainable enough, available when wanted, and so on. This is also a value judgment relative to price and alternatives.

  • Serviceability, which is the ability to maintain the product to keep it useful over its expected life, such as upgrades to firmware/software, availability of spare parts, or self-diagnostic/self-service capabilities.

  • Returnability/recyclability, which is how well warranties and return policies/processes are designed and how sustainable the product or is at the end of its life or when it's goal is attained.

Benefits of Your Company Design Collaboration integration

Integrating experts and customers into the design process provides many potential benefits, including those that follow:

  • Fewer cost overruns. Collaboration with the Experts Customers Feedback brings greater clarity about your design processes and delivery, reducing the likelihood that designs will be impractical to prospects. Collaboration with customers can help prioritize which design elements to include or exclude.

  • New and improved approaches to design. The experts brings special expertise in processes, materials, and technologies that can give the designers new ideas and avoid problems caused by reliance on expensive or hard-to-deliver strategies. Experts Customers Feedback can indicate if a new process would be perceived as value-added.

  • Improved your customer satisfaction. Collaborating with the Experts Customers Feedback in the testing of prototypes, models, and preproduction samples reduces the number of service failures. Involvement of customers aligns top notch service with actual customer needs or pain.

  • Improved efficiency (faster to market). The Experts Customers Feedback experience in delivery and logistics can lead to services that are more easily accepted and retained. Customer involvement can keep the focus on actual requirements.

  • Higher service/ product quality for the price. Sharing quality requirements with the team before final selection of processes results in higher quality and more affordable pricing. Customers can indicate the price/quality level they are willing to pay for.

By including perspectives such as those of marketing, production processes, and supply chain management of your service, designers can develop services/ products that are better matched to customer needs, cheaper to build, deliver, easier to retain, and easier on the environment.

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