Deliver value to all stakeholders Add value at each step along the value steam in accordance with the value proposition EXecute the value stream using lean principles Gather information and data to continue to improve enterprise processes Execute on the promise 6-D. Nightingale-@2002 Massachusetts Institute of Technology
6 - D. Nightingale - © 2002 Massachusetts Institute of Technology Deliver Value to All Stakeholders Add value at each step along the value steam in accordance with the value proposition Execute the value stream using lean principles Gather information and data to continue to improve enterprise processes Execute on the promise
Value Creation is Dynamic and Iterative Real world is not static Changes in stakeholder values Changes in who are the stakeholders 7-D. Nightingale-@2002 Massachusetts Institute of Technology
7 - D. Nightingale - © 2002 Massachusetts Institute of Technology Value Creation is Dynamic and Iterative Real world is not static Changes in stakeholder values Changes in who are the stakeholders
A Value Creation framework Value phases Value Value Value Enterprises Identification Proposition Delivery Most lean principles Program and practices have been focused here Corporate Opportunities Government National International 8-D. Nightingale-@2002 Massachusetts Institute of Technology
8 - D. Nightingale - © 2002 Massachusetts Institute of Technology A Value Creation Framework Value Identification Value Proposition Value Delivery Value Phases Program Corporate Government National International Enterprises Most lean principles and practices have been focused here Opportunities
Enterprise Stakeholders Customers/ End Users Employees Shareholders Multi- Partners Program Enterprise Corporate Leadership Business Unit Suppliers Societ 9-D. Nightingale-@2002 Massachusetts Institute of Technology
9 - D. Nightingale - © 2002 Massachusetts Institute of Technology Corporate Leadership Employees MultiProgram Enterprise Business Unit Customers/ End Users Shareholders Society Unions Partners Suppliers Enterprise Stakeholders
Customer view Value as we define it is delivered in a timely fashion, even in anticipation of our needs Our satisfaction appears to be the focus of all our suppliers activities We are invited to get involved early in the design process Our supplier understands our need for low life-cycle cost and superb quality OUTCOMES >More customers >Greater market share 10-D. Nightingale@ 2002 Massachusetts Institute of Technology
10 - D. Nightingale - © 2002 Massachusetts Institute of Technology Customer View Value as we define it is delivered in a timely fashion, even in anticipation of our needs Our satisfaction appears to be the focus of all our supplier’s activities We are invited to get involved early in the design process Our supplier understands our need for low life-cycle cost and superb quality OUTCOMES: ¾More customers ¾Greater market share