Value and Customer are two of the critical components of the model of Affordability.  Value is the purpose, intent and reason for what you do.  Customer is the entity or individual or group of individuals who purchase what you provide.  Where they interconnect and overlap, we find both the organization perspective of what is being provided and the external perspective of what the purchasing body what to buy.

Value

• Value is defined as; “What you provide that the customer requires, wants and needs, and is willing to pay for.”
• Value is the importance of the organization, what has worth for the customer, what is useful, what is needed, what is wanted, and what is required of a product or a service from the customers’ perspective.

Customer

• Customer is defined by those who purchase, those capable of purchasing, those recipients of the organization’s work, and those targeted for purchasing the product or service being offered.
• The Customer, or Individuals within the Targeted Market, is the aggregate of buyers or purchasers or recipients of the product or service being offered.

The area of intersection of Value and Customer defines Requirements, Wants, Needs, Expectations and Performance Criteria.  This zone provides knowledge and information about the voice of the customer, the market, the competition, the uniqueness of the offering and the basic template elements of what it takes to be successful in the business.

Affordability is about providing what the customer want, when the customer wants it, at a reasonable price.

Thanks,

Paul