Quick Definition
Originally developed by Propel Software as a new approach to product strategy, a product value management (PVM) solution is designed to connect commercial and product teams in one shared application space. A product value management (PVM) platform optimizes the inherent value of a product by sharing insights across front office and back office teams, driving process efficiencies with contextualized collaboration, and engaging customers with compelling products and experiences.
What is product value management?
Product Value Management (PVM) is a comprehensive approach to optimizing the value of product portfolios throughout the entire product lifecycle. It involves strategic value management, efficient product development, and effective profitability enhancement. PVM aims to align product value propositions with customer needs, enhance customer satisfaction, and drive revenue growth.
At its core, PVM encompasses a set of methodologies, management systems, and metrics that enable companies to maximize the value delivered by their products. It recognizes that value is not solely determined by the product itself, but also by the entire ecosystem surrounding it, including the supply chain, customer relationships, and market conditions.
PVM begins with an in-depth understanding of customer value and the identification of key value drivers. This knowledge guides the entire product development process, ensuring that the right product is created to meet customer expectations and differentiate from competitors. PVM also emphasizes the importance of incorporating sustainability and user experience considerations into product design, aiming for long-term value creation and customer satisfaction.
Automation and digital transformation play a crucial role in PVM, streamlining workflows and enabling real-time data insights. By leveraging technology and software-as-a-service (SaaS) solutions, companies can efficiently manage their product portfolios, collaborate across commercial and product teams, and engage with customers at every stage of the product lifecycle. This enables agile decision-making, rapid product innovation, and optimization of go-to-market strategies.
Furthermore, PVM emphasizes the need for strong customer engagement and effective messaging. Marketing teams play a significant role in communicating the value proposition of products and ensuring that the right message reaches the target audience. PVM empowers marketing teams with the necessary insights and tools to align their messaging with market trends, customer preferences, and competitive differentiators.
To measure and benchmark success, PVM relies on a range of metrics, including revenue growth, market share, and customer satisfaction. These metrics provide valuable feedback on the effectiveness of product strategies and help decision-makers make data-driven decisions to continuously improve and optimize their product portfolios.
Case studies and real-world examples demonstrate the impact of PVM. By adopting a PVM approach, companies have successfully transformed their businesses, achieving higher profitability, increased market share, and improved customer relationships. PVM serves as a guiding framework, offering companies a structured methodology to navigate the complex landscape of product value management.
In summary, product value management (PVM) is a holistic approach that encompasses strategic decision-making, effective product development, and value-driven marketing. By embracing PVM principles, companies can enhance their competitiveness, drive revenue growth, and create sustainable value for both their customers and their business.
As the category creator for PVM, Propel Software has developed a PVM platform that can be configured as a full concept to customer solution (single product thread and connected processes throughout the company), a category solution (PLM, QMS, PIM or Supplier Community) or point solution to address a specific process, need or use case (new product introduction, product go to market, training, etc.).
