Value Delivery Relations Visualised
What is the best way to visually explain context of your service or product?
The desire to schematically represent the subject of one’s work can be attributed to the benefits of simplification, visual clarity, standardisation and abstraction in order to facilitate decision-making and collaboration. Product development and service value delivery certainly face the need.
There is a variety of approaches for this task and among most commonly used we can name:
- Business Model Canvas providing a view to strategise and create an actionable business plan through shared perspectives and understanding of the business among team members and stakeholders.
- Value Proposition Canvas focusing on customer profile and the company’s value proposition to ensure that a product or a service is positioned around what the customer values and needs.
- ITIL Service Value Chain operating as a model that outlines the key activities required to respond to demand and facilitate value realisation through the creation and management of products and services.
But all of them are still lacking navigation through the intricate landscape of company-to-customer interactions. Every time I need such interactions been analysed I use Value Delivery Relations Diagram. This diagram offers a nuanced perspective through which one can articulate and comprehend the contextual web of relations surrounding products or services, getting insights for strategic decision-making and fostering meaningful engagement of all involved parties.
The focal point of the graph are Users consuming the product either it is a digital or a physical good, or a service in virtual or real world. They are consuming it because it resolves their current specific need. In worst scenario — users just believe that it resolves their current specific need.
The solution can be designed, developed and delivered almost independently and directly to users. But with a much higher chance companies have to cooperate with third-party providers, client-side teams and partner agents, forming and orchestrating a chain of products finally compiled in a target solution for client and end-users.
All that is complicated even more with the fact that there are company’s own competitors and competitors of their client. Researching the market and studying Competitors provide businesses with a wealth of information that is essential for strategic decision-making, innovation, and long-term success in a dynamic and competitive business environment.
Such business environment would be incomplete without Partners that company relies on. Knowing key aspects and state of partnership, businesses can build and maintain strong, resilient venues that contribute to mutual success and growth.
Here are some practical hints to approach the Value Delivery Relations Diagram:
- Start by profiling commercial and engagement model with the Client, clearly outlining services and products your company currently offers to them. Separate what’s already provided from what your company hasn’t introduced yet regardless of existing capabilities. For potential services that haven’t been developed, make sure to register them as spikes in the Research and Development (R&D) backlog for future exploration and innovation.
- Next, thoroughly explore the client’s service offerings and products portfolio. This should provide a better understanding of the client’s business model and unveil potential challenges on their end. Armed with this knowledge, Company can refine own service proposition and concentrate on development of relevant capabilities.
- Keep in mind the extensive range of internal services and products that demand ongoing development and maintenance on client side. A more profound understanding of the internal structure and processes that support client business operations means more value that your company’s service or product can bring to stakeholders.
- Never neglect to carefully analyse customer feedback, regardless of the format in which your company received it. CSAT, NPS and CES extend the overall view on the engagement and format a solid baseline to improve quality of delivery.
- Now, enumerate both internal and external end-user profiles in the format of Jobs, Pains, and Gains that they derive from specific products and services. While this is a primary task for product teams, it’s equally crucial for servicing businesses as their customers and stakeholders (and even partners) have own challenges to overcome. Understanding their needs and aspirations is vital for delivering value along the chain and optimising the overall service delivery process.
- Make a habit to check (benchmark) alternative solutions, technologies and competitors ready to offer those alternatives. It is valid both for company’s and client’s competitors. Tech radars of the world are among the most obvious starting points. Not to mention that this is the essence of any consulting business to be seen and trusted as an expert.
- And finally, define roles and responsibilities with company partners within the value delivery chain. Prioritise joint services coverage and mutual contribution, diverse communication channels and tailored delivery strategy to effectively evaluate and optimise collaborative efforts.
While proposed steps are totally referential, overall approach works equally well on scales of multi-year engagements, rapid product development and short-term projects.
Give it a try and upgrade your toolbox on the path to delivery excellence. With detailed “how to” guides like Effective Client Profiling: Practical Tips for Maximum Value Delivery you can extend it to perfection.
