MES Value Seller/Value Proposition Checkup
Manufacturing Execution Systems are well beyond the early adopter phase of a new product category. It is now well accepted that an MES solution can improve quality, reduce cost, and shorten cycle time. As the market matures, MES providers face new challenges to demonstrate value:
- The value of MES’s broad capabilities must be narrowed and articulated with respect to a specific customer’s problem or opportunity.
- The purchase of MES solutions are competing for budget against plant infrastructure improvements, process controls and instrumentation, and manufacturing automation. The lack of a quantified customer-specific value proposition for an MES solution puts its proponents at a disadvantage against other initiatives with documented justifications.
- The market is getting crowded. Process Automation suppliers are moving upward into the MES space and ERP providers are moving downwards. It is increasingly important to differentiate an MES offering – financially.
To begin the new year, conduct a MES Value Selling Checkup by seeing how your organization's practices compare to those of best-in-class. <more>.
MES Value Pricing Checkup
As the MES space gets more crowed, providers are differentiating themselves by specializing in market segments such as automotive and consumer packaged goods, and/or moving closer to “out-of-box” solutions, etc. Even though many have successfully differentiated themselves, few providers are obtaining a price commeasurate with the value the customer receives. Competitor-based pricing, i.e. setting the price in close proximity to the competition still dominates. Lack of understanding of the value received by the customer and the value provided relative to the competition leads to money being left on the table in some instances and the closing off of some market niches in others. The ability to protect price is limited without a quantified understanding of what is important and valued by the customer. To begin the new year, conduct a MES Value Pricing Checkup by seeing how your organization's practices compare to those of best-in-class. <more>
CISTEK Q&A
Question: What does "KPI" mean and how does it apply to value proposition development?
Answer: A KPI (Key Performance Indicator) is a quantifiable metric reflecting the performance of an organization relative to its goals and objectives. In assisting clients with developing value propositions, The Cistek Group looks at both absolute and relative measures of business performance. For example an absolute measure may be "December 2006 Average Report Turnaround Time: 3 days". A relative measure is with respect to a goal, e.g. "December 2006 Average Report Turnaround Time: 87% of goal". It is important for a healthcare IT supplier to understand both. Otherwise a value proposition might be based on improving KPI's that are already meeting or exceeding goals while the real problem areas might be missed.
KPI's are central to Cistek's value proposition development methodology's benefit identification phase. KPI hierarchies are created and the correct level of KPI's are chosen based upon the appropriate customer perspective. Benefits related to the KPI's are described and quantified. If the customer is taking the time to measure something, then it must be important to them. So, KPI's are key to value proposition development.