What's the value of water? It depends on how thirsty you are.
Something that is worthless to one person or organization can be of immense value to someone else. Value is in the eye of the beholder.
Value can be the importance, monetary worth or usefulness of something.
Business value is what the business values, often framed as economic benefits to the company, but could also be safety, security and sustainability.
User value is what the users value. The ones directly using the technology products to achieve and address their own desires, needs or problems.
Why is this distinction important? Products that people don't use or know how to use will not create any business value.
A team delivering a product can rarely control or influence the business value directly. But you can change the behavior of the ones using your product and make them take certain actions that can lead to and be measured as a predictor of business value.
That's the gap you need to close. That's the story you need to tell. Find the signals of business value.
Something that is worthless to one person or organization can be of immense value to someone else. Value is in the eye of the beholder.
Value can be the importance, monetary worth or usefulness of something.
The value of your work
I produce stuff at work. Is my work valuable by just existing? No.
It's what it does for the ones consuming my work that has the value.
My work creates value by solving problems worth solving. Fulfilling someone's needs and desires while helping my organization achieve their strategic goals and priorities.
I produce stuff at work. Is my work valuable by just existing? No.
It's what it does for the ones consuming my work that has the value.
My work creates value by solving problems worth solving. Fulfilling someone's needs and desires while helping my organization achieve their strategic goals and priorities.
Communicate value through numbers
What's the value of natural gas? $3.5/MMBtu, ish. That's every possible characteristic of natural gas combined into a single dimension. However, it tells me nothing about its potential, history and other qualities.
We describe and communicate value like a map, an abstraction, to simplify complexity and decisions.
Maps are useful, but with a specific purpose in mind. They cannot be everything to everyone. If we don't understand what the map does and doesn't tell us, it can be useless or even dangerous.
Concrete numbers can be useful, but you better have a story for the receivers of the value you intend to provide. You need to understand what they value, what they are interested in, and be able to translate your work and offering into their language.
Don't assume that what we value is what everyone values or should value.
What's the value of natural gas? $3.5/MMBtu, ish. That's every possible characteristic of natural gas combined into a single dimension. However, it tells me nothing about its potential, history and other qualities.
We describe and communicate value like a map, an abstraction, to simplify complexity and decisions.
Maps are useful, but with a specific purpose in mind. They cannot be everything to everyone. If we don't understand what the map does and doesn't tell us, it can be useless or even dangerous.
Concrete numbers can be useful, but you better have a story for the receivers of the value you intend to provide. You need to understand what they value, what they are interested in, and be able to translate your work and offering into their language.
Don't assume that what we value is what everyone values or should value.
Business value and user value
Business value is what the business values, often framed as economic benefits to the company, but could also be safety, security and sustainability.
User value is what the users value. The ones directly using the technology products to achieve and address their own desires, needs or problems.
Why is this distinction important? Products that people don't use or know how to use will not create any business value.
A team delivering a product can rarely control or influence the business value directly. But you can change the behavior of the ones using your product and make them take certain actions that can lead to and be measured as a predictor of business value.
That's the gap you need to close. That's the story you need to tell. Find the signals of business value.
Business cases
A business case tries to describe the potential value, cost, and risk at some point down the road. When there is a lot of uncertainty, this is difficult. We must make assumptions.
According to Prof. Bent Flyvbjerg's data from 16 000 projects from 20-plus field in 136 countries, only 0.5 % delivered on promised cost, time and benefits.
Avoid the illusion of certainty, "If we do X, then Y value will be result".
Don't set and forget. Treat it as a hypothesis that needs to be tested. What's the absolute smallest action that you can take to test out the riskiest assumption you have about your business case?
"We believe that ... To verify that, we will ... And measure ... We are right if ..."
A business case tries to describe the potential value, cost, and risk at some point down the road. When there is a lot of uncertainty, this is difficult. We must make assumptions.
According to Prof. Bent Flyvbjerg's data from 16 000 projects from 20-plus field in 136 countries, only 0.5 % delivered on promised cost, time and benefits.
Avoid the illusion of certainty, "If we do X, then Y value will be result".
Don't set and forget. Treat it as a hypothesis that needs to be tested. What's the absolute smallest action that you can take to test out the riskiest assumption you have about your business case?
"We believe that ... To verify that, we will ... And measure ... We are right if ..."
What's value to you, and how do you evaluate it?
