Design for Value

from the Perspective of Competitive Advantage

by
Edwin B. Dean

Shillito and De Marle (1992) propose that value is a behavioral force which "is seen as a form of energy which is convertible to other forms of energy." Barnard and Wallace (1994) suggest that markets are best modeled as a set of individuals each of which makes an individual choice whether or not to purchase a product based upon internal measures. These internal measures "force" the choice, which is the behavior of an individual that is most important when we design for competitive advantage. Cook (1992) proposes a universal metric for value.

Consistent with the concept that a behavioral force drives individual choice, value is defined in design for competitive advantage as the measure of customer choice. To ensure that people will choose our product, we must design for value. The two primary dimensions of value are cost and quality. Thus, to design for value we must

Design for Cost (cheaper)
Design for Quality (better)

Two other important value related design attributes are Design for Timeliness (to market at the correct time) which is really an artifact of the dynamic nature of quality and Design for Cycle Time (faster) which affects both design for cost and design for timeliness.

As a parting note, reading de Bono (1992) is must for anyone attempting to design for value. This is perhaps the most quotable book I have ever read. There are a large number of tremendous insights. One such insight is that "There is no such thing as a value unless people are involved. A value is something that provides benefit or opens up the possibility of benefit for someone. ... They have to be attached to people." Do not be surprised in the future if you see major changes in the content of the entire design for competitive advantage complex which are required to accommodate concepts derived from this book.

References

Barnard, W. and T. F. Wallace (1994). The Innovation Edge: Creating Breakthroughs Using the Voice of the Customer, Oliver Wight Publications Inc, Essex Junction VT.
Cook, H. E. (1992). "New Avenues to Total Quality Management," Manufacturing Review, Vol. 5, No. 4, December, pp. 284-292.
de Bono, E. (1992a). Sur/petition: Creating Value Monopolies When Everyone Else is Merely Competing, Harper Business, New York NY.
Shillito, M. L., and D. J. De Marle (1992). Value: Its Measurement, Design, and Management, John Wiley & Sons, Inc., New York NY.

Bibliographies

Design for Value Bibliography