The Value Threading methodology provides a framework for strategic modeling and value mapping. Simplifying the model with a few assumptions will help keep this straightforward.
The fundamental assumption is that the critical customer-specific use cases mentioned in my last article are fully supported.
The foundational value-based use cases are:
1 – Personalized bundles
- Your products & partner products
- Data-driven customer-based predictive bundles
2 – Interoperability of the bundle
- Customer engaged refinement (customers can amend services)
- Real-time service by service amendments (upsell, down-sell, cancellation, add volume)
Admittedly, these are big ones. However, the current static bundles are showing limited value. Most current bundles sold today are either confusing or there are just too many. So, Is the value proposition worth the effort? Because current solutions don’t support these use cases, new investment is probably required.
If we assume the future will be a host of services (Super Apps, Apple, etc.), your product may move into the resell position as a service added to the market. Or will you build your ecosystem? I am the first to concede that for many working through many super apps (reseller channels) may be the best strategy. More on that later.
Here’s a breakdown of the components of Value Threading:
Strategic Thread: This thread aligns the digital transformation and growth efforts with the company’s overarching strategic goals. It involves identifying market opportunities, addressing digital disruptions, and positioning the company for future growth.
Innovation Thread: The Innovation Thread emphasizes implementing digital technologies and practices to differentiate the company in the market. It involves fostering a culture of innovation, exploring new technologies, and leveraging digital solutions to create competitive advantages.
Operational Thread: This thread revolves around improving the organization’s operational efficiency. It includes streamlining processes, reducing costs, and enhancing agility to adapt to changing market dynamics.
Monetization Thread: The Monetization Thread focuses on developing sustainable revenue streams from digital offerings. It involves identifying how to charge for digital products or services, aligning value with pricing strategies, and capturing recurring revenue streams.
Hypothetical Value Model for Super Bundling
($) Indicates identifiable, measurable revenue metric
| Strategic Thread – strategy & metrics | |
| Lead you ecosystem Improved customer experience ($) Increase revenue ($) New customers from unmet demand Fend of competition Reduce time to launch new services. | Ecosystem influence and leadership NPS & CX scores ($) Add subscribers ($) Increase revenue per subscriber ($) Reduce churn ($) Increase revenue based retention ($) Increase advertising revenue ($) Fulfill existing unmet demand for new regions ($) Identify and add unsatisfied customer ECLM MetricsEngagement scoresData-driven marketing Time to realize value & first to market |
| Innovation Thread – strategy & metrics | |
| Launch new digital services Data-driven packages | Prime market with innovative products Lead your industry, use data & AI to suggest personalized packages |
| Operational Thread – strategy & metrics | |
| ($) Reduce IT costs | ($) Reduce the cost of adding new services through use of prebuilt services. ($) Eliminate the need to create complex subscription based transaction models. ($) Reduce business transaction costs – one charge/bundle = fewer total transactions. Move IT tasks to “innovation” teams Reduce commercial term complexity (which often take months) |
| Monetization Thread – strategy & metrics | |
| ($) Reduce total billing transactions Implement “transformation pricing” Reduce cost of billing & revenue management | ($) Bundling & amendments reduce total transactions per consumer. Provide pricing & bundles for unmet demand (net new subscribers) Move to “consumption” billing to simplify pricing iterations. |
Please look for the soon-to-be-released ROI modeling tool!
