What does Value mean to your customers and how can you quantify it?<br />ISSSC Six Sigma User Group Meeting<br />June 10, ...
What is VALUE?<br />VALUE: 1) a fair return or equivalent in goods, services, or money for something exchanged. 2) the mon...
What is VALUE?<br />Value is governed by two forces<br />Desire: Essential to Unwanted<br />Distinction: Unique to Generic...
Who is my Customer?<br />External Customer<br />Internal Customer<br />Intermediate Customer<br />Ultimate Customer<br />
Exercise<br />Break into groups and discuss the following questions.<br />What does VALUE mean to your Customers?<br />How...
What is VALUE to my Customers?<br />“It solves my problem at a reasonable price”<br />Solve relevant problems<br />“It’s e...
How do we get to specifics?<br />Spend time with the customer.<br />Just listening is not enough.<br />We must observe wha...
“People don’t want to buy a quarter-inch drill. They want a quarter-inch hole!”<br />-Theodore Levitt <br />
Identifying Opportunities<br />
Scoring Opportunities, i.e. Problems<br />Identify Jobs, Outcomes & Constraints<br />Problems that have been identified fr...
Identifying Opportunities<br />Source: What Customer’s Want by Tony Ulwick<br />
Scoring Opportunities, i.e. Solutions<br />Products & Service Opportunities<br />Score based on Fit, Feasibility & Attract...
Discover VALUE, the process<br />
A Map of VALUE<br />From “A New Definition of Value and a Revolution in Price Theory”<br />www.endleofon.com<br />
Recommended Reading<br />What Customers Want, Using Outcome-Driven Innovation to Create Breakthrough Products and Services...
About KTS Marketing Solutions<br />	Managing Partner, Tim DeRosett has 20 years experience in marketing, business developm...
Thank You<br />Tim DeRosett<br />Managing Partner<br />KTS Marketing Solutions, LLC<br />8216 Princeton-Glendale Road, #16...
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KTS value discussion at Six Sigma UG meeting

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KTS value discussion at Six Sigma UG meeting

  1. 1. What does Value mean to your customers and how can you quantify it?<br />ISSSC Six Sigma User Group Meeting<br />June 10, 2010<br />© Copyright 2010 by KTS Marketing Solutions, LLC. All rights reserved. <br />June 8, 2010<br />
  2. 2. What is VALUE?<br />VALUE: 1) a fair return or equivalent in goods, services, or money for something exchanged. 2) the monetary worth of something: market price. 3) relative worth, utility, or importance <a good value at the price> <the value of base stealing in baseball> <had nothing of value to say>.<br />Merriam-Webster<br />“Value means that someone is willing to pay more for something or is willing to make a change if he can’t get it with the current relationship” <br />The Profit Zone byAdrian Slywotzky<br />“Value is what people perceive it to be, and nothing more”<br />The E-Myth Revisited byMichael E. Gerber<br />
  3. 3. What is VALUE?<br />Value is governed by two forces<br />Desire: Essential to Unwanted<br />Distinction: Unique to Generic<br />Value is delivered in the form of products, services or information to solve customer’s problems<br />We must look at value from the customer’s perspective<br />
  4. 4. Who is my Customer?<br />External Customer<br />Internal Customer<br />Intermediate Customer<br />Ultimate Customer<br />
  5. 5. Exercise<br />Break into groups and discuss the following questions.<br />What does VALUE mean to your Customers?<br />How can we quantify the VALUE?<br />
  6. 6. What is VALUE to my Customers?<br />“It solves my problem at a reasonable price”<br />Solve relevant problems<br />“It’s easy!”<br />Make it easier for them to do business with me<br />
  7. 7. How do we get to specifics?<br />Spend time with the customer.<br />Just listening is not enough.<br />We must observe what they are doing and how they are doing it.<br />In mfg, this means spending time with operators – the people doing the actual work.<br />No Longer Enough…<br />
  8. 8. “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole!”<br />-Theodore Levitt <br />
  9. 9. Identifying Opportunities<br />
  10. 10. Scoring Opportunities, i.e. Problems<br />Identify Jobs, Outcomes & Constraints<br />Problems that have been identified from customer inputs<br />Score problems (opportunities) based on Importance & Satisfaction<br />Outcome-Driven Innovation Process<br />Source: What Customer’s Want by Tony Ulwick<br />
  11. 11. Identifying Opportunities<br />Source: What Customer’s Want by Tony Ulwick<br />
  12. 12. Scoring Opportunities, i.e. Solutions<br />Products & Service Opportunities<br />Score based on Fit, Feasibility & Attractiveness<br />FIT is scored based on alignment with the organization & the capabilities and capacity<br />Feasibility is scored based on the ability to identify and manage technical and commercial risk<br />Attractiveness scored based on overall financial expectations of the opportunity<br />
  13. 13. Discover VALUE, the process<br />
  14. 14. A Map of VALUE<br />From “A New Definition of Value and a Revolution in Price Theory”<br />www.endleofon.com<br />
  15. 15. Recommended Reading<br />What Customers Want, Using Outcome-Driven Innovation to Create Breakthrough Products and Services <br />Anthony W. Ulwick<br />Fast Innovation, Achieving superior differentiation, speed to market, and increased profitability<br />Michael L. George<br />Sales and Marketing The Six Sigma Way<br />Michael J. Webb<br />Delivering Profitable Value, A revolutionary framework to accelerate growth, generate wealth, and rediscover the heart of business<br />Michael J. Lanning<br />The E-Myth Revisited, Why Most Small Businesses Don't Work and What to Do About It<br />Michael E. Gerber<br />Blue Ocean Strategy, How to Create Uncontested Market Space and Make the Competition Irrelevant<br />W. Chan Kim & Renée Maubourgne<br />
  16. 16. About KTS Marketing Solutions<br /> Managing Partner, Tim DeRosett has 20 years experience in marketing, business development, and sales within industrial automation and high-technology companies.<br /> With experience in LEAN and Six Sigma methodologies, we bring process improvement to marketing, sales and service. <br /> We help high-tech business-to-business companies realize growth and increase share-holder value.<br />
  17. 17. Thank You<br />Tim DeRosett<br />Managing Partner<br />KTS Marketing Solutions, LLC<br />8216 Princeton-Glendale Road, #160<br />West Chester, OH 45069<br />513.407.4908, office<br />tderosett@ktsmarketing.com<br />www.ktsmarketing.com<br />Connect with us on LinkedIn<br />www.LinkedIn.com/TimDeRosett<br />Also join the Discover, Develop Deliver Value LinkedIn Group.<br />Robotics Industries Association Member<br />www.roboticsonline.com<br />

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