16 November, 2013

1-1-11 value creation: Break it down !

Usually value forms are not separable. They are usually combined together. If you analyze any business you will notice that it has its main one or two value forms and then many of other value forms. And that there are several options in the same value form

Let us take the hair cut business for an example:

-         Let's say that they are making reservations: option
-         And there are many options that you can choose between, like hair conditioning, ironing, etc. : many options
-         They offer their own shampoos and other stuff to buy: product - many
-         They have other brands: resale – many
-         If you are in a hurry, you can get the haircut then pay for it: service
-         You get to use the hair dryer, and some accessories for extra money: shared resource
Get what I mean? That is called "Modularity":
Taking the value you are providing and breaking it down to many, small forms
So, what are the benefits of doing that?

1-    Lots of options gives your business great flexibility and that will expand your targeted market segments
2-    In the testing phase you will know which options and value forms will get the attention of people, to make them the main offerings, and to make some of the others side-offerings, and to get rid of bad offerings :)