What customers value.
The reason someone chooses the business and keeps choosing it.
Thinking / Concepts / Value Architecture
Value Architecture shows how the business creates value on purpose.
Value Architecture is the structure that connects what a business promises, what it does, how it makes money and what must be true for that value to keep being created.
It turns value from a word into a system leaders can understand, govern and improve.
Question
What is Value Architecture?
It is the map of how value moves through the business: from customer need, to capability, to delivery, to income, to reinvestment.
When leaders can see that architecture, they can make better decisions about growth, pricing, operating model, technology and capability.
What it connects.
What the business must be able to do.
The domains, work and supporting activities required to deliver the promise.
How value becomes income.
The revenue, profit, cash and confidence the business needs to remain healthy.
If the business cannot explain how it creates value, it will struggle to improve how value is created.
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