Value Management

The management practice to provide customers with value, while ensuring that this provision of
value results in profits. Value management is a holistic concept that brings together product
management, marketing, pricing, sales and other business functions in order to align them. The
objective is to grow revenues sustainably and at a profit.

The value management and related fields have become a popular topic in the business media,
amongst major companies and with consultants. The advocates argue that if companies are to
optimise their business, then value creation and capture should be part of the equation. By value
is meant

Defining Value
The concept of value can be confusing, and it's often used in a variety of ways. This term shall be
defined as follows when value management is concerned: This value is dependent on the
alternative, and it cannot be regarded in isolation. The values are composite and disposable;
therefore, they may be analysed as a set of value drivers. More than one aspect of value in
business2B: The most important aspects are economic, but other factors such as emotion,
environmental and social values can be taken into account. Economic value can be quantified in
the form of a currency, other factors are included. Their individual methods of quantification,
e.g. with regard to quality adjusted life years in healthcare or carbon dioxide Footprint in the
field of green solutions.