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E-raamat: Maximizing Value Propositions to Increase Project Success Rates

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Value proposition, an old concept, is taking on new significance in todays innovation-driven environment. Business focus has shifted from developing many creative ideas to developing only those that will successfully flow through the product cycle and fulfill a customer need.

The old approach resulted in less than a 10 percent success rate for concepts that started through the product cycle; this can no longer be tolerated. This new book on value propositions outlines a systematic approach to making an early evaluation of potential projects and programs so you can determine if they can add real value to your organization or its customerspotentially saving you millions of dollars and months of valuable time.

Focusing on the necessary data collection efforts, Maximizing Value Propositions to Increase Project Success Rates will help you identify easy opportunities for improvement and will guide you through the process of creating value propositions for the ideas that will drive the organizations future profits. It outlines a four-stage approach to creating value propositions and explains how to create effective value proposition documents.

The book illustrates the role of the opportunity center in capturing new ideas, describes how to present value propositions to management, and includes an example of a new product value proposition. Detailing a method for continuous review of the improvement process, it will help you foster an entrepreneurial mind-set within your employees and encourage them to actively search and document value-adding ideas.

Through the effective use of value propositions it is completely possible for your organization to increase the number of new products/services it offers to your customers by over 100 percent. It is not unusual for this to result in more than a 40 percent increase in profits per year. Adopting the approach outlined in the text for using value propositions can save your organizations millions of dollars and much time. What could be better than reducing costs while increasing sales?

Arvustused

The best time to stop a project that will not add value to the organization is before it starts. An effectively prepared value proposition will help you make these difficult decisions.Dr. Ron Skeddle, former CEO of LOF, Inc., a Fortune 500 glass, plastics, and hydraulics company

Preface xiii
Acknowledgments xvii
About the Authors xix
Chapter 1 Importance of Value Propositions
1(12)
Introduction
1(11)
Definitions
6(6)
Summary
12(1)
Chapter 2 The Opportunity Center: A New Approach to Capture Ideas and Concepts
13(10)
Introduction
13(1)
How Does the Suggestion Program Work?
14(3)
Japanese Suggestion Activities
15(1)
Why Is the Japanese Suggestion System So Much More Effective than the American System?
16(1)
Role of the Opportunity Center
17(5)
Typical Objectives of the Opportunity Center
19(1)
Knowledge Management as Part of the Opportunity Center
20(1)
Reinforcing the Opportunity Environment
21(1)
Summary
22(1)
Chapter 3 The Value Proposition
23(16)
Introduction
23(2)
Four-Stage Approach
25(5)
Three Levels of Improvement
30(2)
Three Performance Issues
32(3)
Summary
35(4)
Chapter 4 Stage I---Identify New or Revised Product or Improvement Proposals
39(48)
Introduction
39(1)
Stage I Activity 1---Conduct a Benchmarking Process Study
40(27)
Input A Processes/Products/Services Targeted for Benchmarking
40(7)
Plan for Benchmarking and Secondary Research
47(3)
Consult Internal Sources
50(2)
Conduct Secondary Research
52(1)
Benchmarking Resources
52(1)
Survey Secondary Resources
53(1)
Use Available Benchmarking Resources
54(1)
Evaluate the Quality of Information Obtained and Modify the Search
55(1)
Identify Benchmarking Partners
56(1)
Benchmarking Arrangement
56(1)
Refine Benchmarking Data Collection Plan
57(1)
Pretest the Data Collection Plan
58(1)
Refine the Benchmarking Data Collection Plan
58(1)
Obtain Sign-Off on the Benchmarking Data Collection Plan
58(1)
Collect Benchmarking Data
58(4)
Identify Performance Issue Best Practices
62(3)
Conduct a Formal Review of Benchmarks and Leading Practices
65(2)
Stage I Activity 2---Perform the Gap Analysis
67(1)
Stage I Activity 3---Is There Sufficient Gap to Take Action?
68(10)
Focus on Performance Gaps and Their Causes and Benchmarking Reports
71(1)
Prepare a Research Paper Related to a New or Modified Product
72(1)
Communicate the Organization's Actual Position and Performance to the Executive Team
72(1)
Business Process Redesign
73(1)
Conduct Formal Review of Performance Gap Analysis---Is This Viable?
73(5)
Stage I Activity 4---No Action Is Required if There Are No, or Very Minimal, Gaps
78(1)
Stage I Comment
79(1)
Input B Research Projects Previously Identified
79(1)
Stage I Activity 5---Prepare Research Paper Related to New/Modified Product
79(3)
Stage I Activity 6---Conduct Market Analysis Study
82(1)
Stage I Activity 7---Is This a Viable Product?
82(1)
Stage I Activity 8---If It Is Not a Viable Product, Terminate the Study
82(2)
Input C Random Ideas/Concepts Generated Inside or Outside the Organization
83(1)
Stage I Activity 9---Document Idea or Concept Change Proposals
84(1)
Summary
85(2)
Chapter 5 Stage II---Opportunity Analysis
87(18)
Introduction
87(2)
Stage II Activity 10---Collect New or Revised Product/Service or Improvement Proposals
89(1)
Stage II Activity 11---Does the Proposal Meet the Ground Rules to Prepare a Value Proposition?
90(1)
Stage II Activity 12---If the Answer Is No, Then Take Appropriate Action
90(1)
Stage II Activity 13---Assign a VPP Team and Familiarize It with the Proposed Project Management Documents
91(2)
Stage II Activity 14---Collect Required Data
93(10)
What Are the Benefits of Implementing the Opportunity?
94(1)
What Are the Possible Adverse Effects If the Change Occurs?
95(1)
How Will the Change Affect the Overall Business and Is the Business Prepared to Accept Those Changes?
95(1)
Evaluate the Opportunity
96(1)
Gather the Opportunity Analysis Information
96(7)
Summary
103(2)
Chapter 6 Stage III---Prepare the Value Proposition
105(26)
Stage III Activity 15---Prepare the Value Proposition Document
105(25)
Executive Overview
108(1)
List of the Key People Associated with the Value Proposition
108(1)
Financial Calculations
109(1)
Details Related to Other Value-Added Results
109(2)
List of Risks and Exposures
111(1)
List of Assumptions
112(1)
Other Solutions That Were Considered
112(1)
Implementation Plan
113(1)
Three-Year Impact If Proposed Change Is Not Approved
113(2)
Net Value Added
115(1)
Detailed Recommendations
115(1)
References
115(1)
Review of the Value Proposition Document
116(1)
Proposed Process Modification Value Proposition Example
116(7)
Example of New Product Value Proposition
123(7)
Summary
130(1)
Chapter 7 Stage IV---Value Proposition Presentation
131(10)
Introduction
131(1)
Stage IV Activity 16---Present Value Proposition to Management
132(4)
Assemble Value Proposition
132(1)
Review Value Proposition
133(1)
Obtain Management Direction Related to the Value Proposition
134(2)
Publish the Value Proposition
136(1)
Stage IV Activity 17---Management Review Outcome
136(1)
Stage IV Activity 18---Hold for Business Case to Be Prepared
137(1)
Stage IV Activity 19---Rejected/Activity Dropped
137(1)
Stage IV Activity 20---Implement Using Current Resources
138(2)
Assess Stage Results
138(1)
Reconcile with Organization's Knowledge Base
139(1)
Summary
140(1)
Chapter 8 When the Team That Created the Idea or Concept Develops the Value Proposition
141(28)
Introduction
141(3)
Identify Opportunities to Close Performance Gaps
144(6)
People
145(1)
Technology
145(1)
Process
146(4)
Develop Value Proposition Key Questions (Information)
150(5)
Assemble Value Proposition Information and Data
155(3)
Value Proposition
156(2)
Identify Short-Term Improvement Opportunities
158(10)
Estimate Short-Term Improvement Costs
162(1)
Identify Short-Term Improvements
163(1)
Prioritize Short-Term Improvement Projects
163(1)
Discuss Short-Term Improvement Advantages
164(1)
Help Visualize Value of Implementing a Particular Proposal
164(1)
Create a Short-Term Improvement Implementation Plan
164(1)
Cascading Sponsorship
165(1)
Definitions
165(2)
Develop the Cascading Sponsorship Process
167(1)
Conduct Formal Review of Value Proposition Development
167(1)
Summary
168(1)
Glossary 169(18)
Index 187
H. James Harrington, Brett Trusko
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