The Economic Value Proposition Matrix® (EVPM) model was initially used to conduct an Independent Verification and Validation (IV&V) as a consulting engagement for a Super Independent oil and gas company assessing the CAPEX for a digital oilfield implementation for an old brownfield—circa 2004. Its development basis is taken from our industry sponsored 2004 study, Roadmap to Enterprise Optimization: A Guide to the Impact of Information Driven Field Operations on the Petroleum Corporation. EVPM well proven and has been in continuous commercial use and upgrade since then.

1. Copyright © 2019 by The Rapid Response Institute LLC. All rights reserved.
The Rapid Response Institute
Economic Value Proposition Matrix®
Translating Technology into the Language of Business
August 2019

2. The Sales Problem
• Getting Your Message Through
• Management is always busy
• New/disruptive technology is “by
definition” not well understood
• A good “demo” may have
helped this rep!
• The inventor of the machine gun
needs the inventor of bullets
and,
• The right “qualified” customer

3. Traditional Methods of Explaining Value
• Feature -- Benefit
• Product focuses
• “This coffee cup is made of ceramic
and holds heat better than plastic”
• Does NOT truly Differentiate
• Value Proposition
• “My solution will increase your net
income by 75%”
• However, Often
• Overstated
• Not Demonstrable
• Not Defendable

4. Actual Benefit Statements
• These are taken from a recent
presentation
• Mid size software firm
• Established company
• Business Process Management
space
1. Has He or She Garnered Your Trust?
2. Would You Buy from this Sales Representative?
3. What is the Credibility of the Firm Represented?
• “Decreased human errors by 100%”
• “Reduced losses from 8% per month to less than 1%
per month through sales order process automation”
• “Gained ability to monitor inventory process in real
time”
• “Improved control over XXX delivery process and
reduced manual work by more than 70%”
• “50% increase in the daily processing of orders”
• “Enhanced credit control system for partners through
increased information visibility”

5. Purpose of the EVPM Model
Translate Technology into the Language of Business
Buying Influences
• Economic
• Technical
• User
• Coach
Source: Miller Heiman

6. Brief History
• Developed Over Two Decades
• Extensive CAPEX Assessment with
Super Major circa 2000
• Early DOFF Valuation
• Vetted by over 50 Major Clients
• Oil & Gas Operator
• Major IT Firms
• Major Industrial Products Firms
• Addresses the Real Concerns of
Clients
• Measurable Value
• Directly Addresses Intangibles

7. EVPM Process
• Problem Identification and
Assessment
• With Client
• “Straw man” Proposal
• Components of Value
Determined and Measured
• Tangible
• Intangible
• Financial Model
• “What If” Risk Mitigation

8. Components of Value
Category Definition Example
Cost Takeout Completely eliminating a specific activity or
process
 Redeploying a resource from a non value-
added activity to a value-added activity
Cost Avoidance Identifying and correcting an error that was
not budgeted for correction but would have
caused an expense had it not been corrected
 Correcting an engineering design flaw
before the flaw goes into production.
Productivity & Efficiency Gains Increase in productivity that improves existing
resource utilization.
 Removal of a bottleneck that is causing
capacity restraint
 Correcting a process to allow more
productive time by shifting from wait time
to production time
One-time Cash Flow Impact Decreasing and or eliminating one-time cash
flow impact
 Elimination of redundant information/data
stores
 Monetize Capital
Intangible Benefits that improve operations of the
business and /or are necessary to control,
protect and enhance company assets, but are
not quantifiable due to the nature of the area
being improved
 Improvement of communications between
different operational units/supply chain
 Reduced small equipment shrinkage

9. Resources
• Demonstration
• Website
• Free Version

10. Contact
Scott Shemwell
https://therrinstitute.com/contact/
https://therrinstitute.com/