Value Engine Definition

Value is Constantly Migrating

Even though business designs tend to stay fixed, value migrates from outmoded business designs to new ones which better serve clients most important priorities.

An example:

In the technology sector from 1984 to 1994, IBM and DEC lost $55 billion in market value.

In the same time period, Microsoft, Intel, EDS and Novell gained $80 billion.

Why? Value migrated.

Questions to Consider

“The value decade is upon us” – Jack Welch, General Electric

• What are the consequences of your target market not doing business with you?
• Is your sales team clear as to what these consequences are? Can they articulate them?
• What really separates you from the competition?
• Does the sales team have a strategy for linking those consequences to themselves both personally and on an institutional basis?
• Is your company a product differentiator, low-cost leader or niche player?
• Have you chosen a specific market discipline?
• What is your specific positioning? Is it working?
• What brand do you own in your prospect’s mind? What word do you own?
• What stories do people know or tell about your company? Who are you a hero to?

Your Value Engine – What Is It?

Fact: Everyone of your competitors has similar core competencies.

What is that “extra” value-driven component you do that’s beyond your core competencies?

Forced To Sell On Price?

In today’s marketplace, those companies who’s sales team cannot articulate their Value Engine to prospects are being forced to sell on price.

As more purchasing moves towards automated RFPs and Websites, commoditization of former value-add players is placing enormous pressure on margins.

Two Concrete Rules

1. If your sales team can’t defend your Value Engine, you must have the low price or lose.
2. If your Value Engine is clear and defendable, you’ll win even if your price is higher.

Identifying your Value Engine

STRUCTURE will work with your Sales and Marketing Executive Team to determine:

• What external forces are driving your prospect’s decision making process
• Where in your industry you’ll be allowed to make a profit
• What are the core competencies of you and your competition
• Which future competitors do you have to worry about most
• Help identify why prospects aren’t making “free” moves to use the competition
• Identify who in your target market are the ideal prospects for your Value Engine
• Design a circle-of-influence targeting plan to gain receptivity to your offerings
• Analyze how your sales team is sharing your Value Engine with prospects
• Review, edit and create marketing communications to clearly articulate your Value Engine

Our process for Value Engine Definition usually involves 8-16 hours of consulting time in-house with your Executive Team, with the remaining time being done by STRUCTURE off-site.