The definition of value in business

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Created: February 24, 2020 / Updated: February 25, 2020 / Status: finished / 1 min read (~189 words)

How is value defined in a business context?

For a solution to be valuable it must solve an actual problem.

If a need exist for the solution, then the solution must do one or many of the following:

  • Reduce costs/time: reduce human resources needed to produce the same results
  • Increase quality: Increase accuracy/repeatability of a process
  • Solve a problem that could not be solved previously
  • Have a significant impact on costs for improving an already solved problem
  • Offer the ability to scale the process without having to scale the necessary human support linearly with the growth of the process
  • Help with identifying the most important pieces of the business in order to follow the 80/20 principle