FMIC Japan: Introduction of “Value Analysis Map”
This time, we would like to introduce the method of providing value analysis that is important when considering future strategies. The provided value analysis is to objectively examine the purpose and development items of the future strategy from the perspective of customers and society.
What is Value Analysis Map?
Value Analysis is to discuss & visualize what the value of Future Business Unit (FBU) is, from a customer’s view point. For this analysis, it is important to think/discuss from 2 directions. Those are customer expectation level and expected collaboration level.
The expected collaboration level has 4 levels, defined by how strong the relationship is between manufacturer and customer. For this segmentation, we have taken the reference to The Future of Competition: Co-Creating Unique Value with Customers by C.K. Prahalad and Venkat Ramaswamy.
- The 1st level is an equal relationship, regular business partnership in general.
- The 2nd one is sharing information relationship, they share sales info, delivery info, and so on.
- The 3rd level is sharing the knowledge relationship. They share the explicit and implicit knowledge regarding the product, solution, service, and technology. Therefore, their relationship is regarded as very deep.
- The 4th level is finding/creating a new business chance. They share future strategies with one another and find new opportunities together. We have set this level as the highest at corporate collaboration.
Another direction is the customer expectation level. We have set product level, service level, solution level, and creation level. The solution level is to solve problem/challenge by collaboration. The creation level is to create new knowledge together.
When thinking of what kind of value we can provide through FBU, using this analysis map, you’ll begin to see value providing modules.
- The 1st module is today’s value. Delivery, function, cost, and ordering system, are in this category. Usually, the purchase dept and production dept are expecting those values.
- The 2nd module is value for the near future. Often RD dept and evaluation dept request those values such as need designing support, improve product together or share design data/evaluation data, etc.
- The 3rd module is value for a distant future. Usually, RD dept requests this value. Want to shorten the total business process, develop new markets together, do collaborative development, etc.
Design Tool: Market Function Need Map
Source: Future Strategic Scenario by JMA Management Center
We would like to introduce about Market Function Need Map for the value analysis. Market Function Need Map is to visualize the future development hypothesis. Here, the function is of the product/service within the FBU, and it also means the solution system which achieves the certain purpose.
For example, when thinking about the solar power generation system, if you break it down to 4 functions, battery charging function, generating function, transmitting function, and control function, you can get clearer product images to fulfill those functions. Thinking only about the purposes vaguely doesn’t help you get a clear image.
As for the Market, list those markets for FBU, divide by usage. By discussing on market size, growth, future client, product ideas, and key needs, the future developing team begins to see the future market, products, and competitors.
Managing Director I FMIC/IMIG Japan
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