Assessing Value

The following points apply equally to internal as well as external customers of your services:

  • The focus should be on the service, and the value that it provides, not the system or tools, nor the cost.
  • Costs should be considered as part of calculating ROI, but really have no bearing on value. (Sometimes cost exceeds value resulting in a negative ROI which is not good, and a warning that you should not proceed, and some services are extremely cheap, but provide little or no value).
  • Cost should include fixed + variable as well as one time + ongoing.
  • You should also consider how quickly the benefits will be realized.
  • Defining the market means looking at who is and is not your type of customer, as well as where your potential value sits in terms of commodity vs. strategic, or low value vs. high.
  • Value is not always strictly monetary, and may be tangible as well as intangible. (Increasing revenues while also keeping you out of jail for example).

About Wayne McKinnon

Wayne McKinnon works with organizations to change their course of evolutions from extinct to distinct
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