The final question needed in order to come to grips with business purpose and business mission is: “What is value to the customer?” It may be the most important question. Yet it is the one least often asked. One reason is that managers are quite sure that they know the answer. Value is what they, in their business, define as quality. But this is almost always the wrong definition. The customer never buys a product. By definition the customer buys the satisfaction of a want. He buys value.
Peter Drucker, Management: Tasks, Responsibilities, Practices, 1993
Value Management: The management discipline of providing value to customers while ensuring that providing value results in profit. Value management is a holistic approach that results in alignment between product management, marketing, pricing, sales and other business functions. The goal is sustainable and profitable revenue growth.
Value management has three critical dimensions that are interdependent and need to be managed as a dynamic system: value creation, value measurement, and vaue capture.