Thursday, November 23, 2006

Value Management not possible??? - bring on the impossible


From my supervisor..... (email 22/11)

"That research question is getting sharper but I'm not sure if value management is really a good description. It is pushing it up hill for business to think it can manage the value constructions of individuals in markets (it is probably not a good idea even if it were possible). "

"Your RQ (research question) is about 'understanding' it. It is really about understanding and factoring in modes consumer evaluation in the innovation process."

There is definitely some possiblity that VALUE MANAGEMENT is completely impractical ie TOO EXPENSIVE.

Indeed there is some academic writing on this fact...

A very interesting book, called The Support Economy, by Harvard Management Professor (Retired), Shosanna Zuboff, and her husband, former Volvo Europe CEO, James Maxmin.
Subtitled - why corporations are failing individuals and the next episode of capitalism




They argue that there is an inherent disconnect between corporations, who are driven by a profit maximising motive to produce, lowest cost identical products, while customers want highly tailored, (value maximising??) unique products and services.


This inherent disconnect they argue is impossible to overcome, and they predict the answer is a new type of delivery structure, they call a federation - a network of professionals providing highly tailored and personal services, paid by a kind of donation system, where the service recipient decides what the service will cost - almost like a gratuity, but quite like the donate button on websites like sourceforge.net where you can get free software, then donate if you want.

You can see the website for the book at http://www.thesupporteconomy.com/

Food for thought...

Richard

Question for readers - Is value management possible? practical? Please comment, and I shall be asking the case study companies this particularly.


ps It is a brilliant spring day in Melbourne, bright, sunny, 26*C. Perfect.

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