2. VALUE ADDITION
• to economically add value to a product and form
characteristics more preferred in the market place
• Added value allows firms to market their products more
successfully, emphasising strength of brand as
opposed to a commodity.
• They can charge higher prices, achieve a USP (Unique
Selling Proposition) and obtain competitive advantage.
• Higher added value products are less price-elastic and
harder to copy
• By improving existing processes, procedures, products
or services.
3. MY VIEW OF ADDING VALUE
Value addition could be done in following ways
a. Innovation: Focuses on improving existing processes,
procedures, products or services
b. Combination: Can two or more processes be
combined into one
c. Elimination: Does the process have any unwanted
stage that is unnecessary OR Are there nonstandard
processes that can be eliminated
4. EVALUATING YOUR CURRENT SERVICE
PORTFOLIO
• Key questions to consider as part of this evaluation include:
Which service offerings contribute the most to our current profit
margins?
Which service offerings contribute the most to our current growth?
Which service offerings will provide high levels of growth in 12
months? In 36 months?
Based on our current skill sets and capabilities, can we capitalize
on potential high-growth opportunities?
Which of our current service offerings are expected to have poor
growth or low profits over the next 12 months? Over 36 months?
5. Identifying new service opportunities
• Some of the issues that the organization should evaluate by using
SWOT analysis are:
6. VALUE ADDITION CAN BE NEEDED IN THESE
AREAS..
• Product: advantages and benefits that your customers can enjoy from buying your
Product. e.g. styling, quality etc.
• People: People refer to the staff and salespeople who work for your
business, including yourself. Which helps when you provide excellent customer
service, you create a positive experience for your customers
• Plant: Adding & Locating new Press, expanding, contracting, or Refocusing on
existing facilities
• Parts: Make or Buy Decisions, Vendor Selection Decisions
• Processes: Technology Evaluation, Process Improvement, Reengineering
• Promotion: to make your customers aware of your products and services, including
advertising, sales tactics, promotions and direct marketing
• Planning & Control System: SCM, ERP, Warehousing, Distribution
7. PROBLEMS MAY BE…
• Demand Forecast for magazine
• Information Gathering on Time
• Vendor Development for magazine Development
• Inventory Handling
• Overall Lead Time
• Distribution
• Scrap Management
• Etc.
8. Evaluating new service offerings
Evaluation area Criteria
•What level of revenue will this service bring over the next year? The
next three years?
•What percentage of total revenue will this service provide over the
next year? The next three years?
Benefit
•When will this service make a profit?
•Does this service line provide synergy with current or planned
offerings and provide greater overall revenue opportunities to the
organization?
•What are the startup costs associated with training, marketing, and
recruiting for the proposed service line?
Investment (cost)
•What are the ongoing costs of maintaining the proposed service line?
•Can the risks associated with offering this service be managed by
using current processes?
Risk
•Does this service support or diffuse the brand strategy and mission of
the organization?
9. • Create your own website
Ask people to feedback about your magazine
People can express idea of their own on your website which when
selected could be printed in the magazine
People can access any and every project information through your
website
Customer can design as well as make changes to the information
which is to be printed in the magazine
Introducing audio visual center where customers can here as well
as watch the upcoming project Information and how the project
would look ones it is been completed.
