Value is the impact a product or service has on the customer. It can be tangible or intangible. To create real value, it should help the customer achieve a better result than without the impact.
Tangible value is usually, although not always, financial. It is something that can be measured in dollars — increase in revenue or profit, or decrease in costs.
Sometimes it is a direct financial gain such as a 10% increase in monthly sales. Other times it is indirect, such as a gain in productivity, that allows the business to produce 15% more without adding headcount.
If tangible value is not financial, then it probably affects time, usually duration or effort. Duration is the delivery period for a product or service. For example, if the lead-time is reduced by two days, then the duration to deliver to the customer is shorter.
Effort is the amount of resources necessary to complete a specific task. If the creation of a document is automated so it can be produced in one-hour instead of four, the effort has been reduced, meaning the resources can be utilized in other ways.
Intangible value includes things that are more subjective like employee morale, reputation, and loyalty. Intangible things are emotional, meaning they can have greater value to the customer than tangible things. As a result, intangible value can actually be more persuasive.
Question: What is the tangible or intangible value you created during your last project? You can leave a comment using the form below.