5-D Value Upgrades Value Management

5-D Value Upgrades Value Management

Companies use 5-D Value to be more successful in managing value and thereby creating competitive advantages.
Global leading companies practice 5-D Value each in their own special way (Learn about leading practices), e.g.
Amazon  Google       Tesla
Apple      IKEA          Toyota
BMW      Microsoft  Volkswagen

Pioneering companies apply 5-D Value to makeover business and work in a new future-oriented way, generating value for communities and the environment (Read about business success which also transforms society).

All managers can use 5-D Value in their own individual way to bring out the best in their company’s value proposition (read below about the managerial benefits of 5-D Value).

5-D Value Addresses Social Challenges

5-D Value gives insights into the different ways that companies can address the biggest social challenges of our times: climate change, inequality and diversity.

Each dimension of value in 5-D Value refers to specific kinds of benefits that companies offer, as shown at the top of each blue box in the graphic. Accordingly, in a manner specific to each dimension, companies can potentially help the environment, reduce inequality and improve diversity, as shown in the graphic.

The four dimensions of value shown in the graph are widely spread in the economy, showing what is possible from the bulk of companies.

5-D Value Addresses Social Challenges
One Dimension, Deep-Connect, is Transformational

One Dimension, Deep-Connect, is Transformational

The fifth dimension of value is just emerging in a small number of companies. These companies give meaning to people by offering value in multiple personal, technological, social and natural settings. The offers fuse value elements from the other dimensions.

These companies are transforming society, and their positive impacts are built into the benefits they offer and the way they do business. The positive impacts shown in the graphic are not potential but embedded in the essence of the companies.

Five Managerial Benefits of 5-D Value

There are five benefits for managers applying 5-D Value to their internal and external value management. Learn more details about gaining each benefit below. The summary at the end presents 5-D Value as a kind of cookbook with which every manager can develop the company’s own recipe for success. Learn about consulting services to raise managerial success in applying 5-D Value.

Five Managerial Benefits of 5-D Value
1. Comprehensive Value Management with Five Types of Counterparties

1. Comprehensive Value Management with Five Types of Counterparties

5-D Value manages relations with five key groups of counterparties:

1. Customers in markets for goods and services;
2. Personnel in the labor market;
3. Suppliers in the market for supplies;
4. Distributors in the market for distribution channels; and
5. Investors in the capital market.

Managers design the benefits in their value offers to motivate and steer the counterparties to input the value required by companies. The value inputs  constitute the material and immaterial means for the companies to generate value.

Videos show you that Apple, Ikea, Microsoft and Google are particularly good at managing a comprehensive value exchange with counterparties.

2. Compete Successfully in Five Dimensions of Value

The phrase “value for the customer” is often used as an empty phrase without specific meaning. In 5-D Value managers design powerfully differentiated benefits for counterparties, distinguishable into five underlying dimensions. The five dimensions are defined in the graphic.

Read about descriptions of the four conventional dimensions of value in a B2B context as given for the example of Microsoft.

Value propositions from companies have different combinations of these dimensions.

Learn how companies competing successfully dominate the market in the dimension in which they offer primary value.

2. Compete Successfully in Five Dimensions of Value
3. Five Managerial Do-Well's in "Deep-Connect" to Makeover Business and Transform Society

3. Five Managerial Do-Well's in "Deep-Connect" to Makeover Business and Transform Society

A handful of companies, such as BMW, IKEA, Patagonia, Tesla, and the White Arena Group at the Laax ski resort in Switzerland, offer value in the new and emerging fifth dimension of value named “Deep-Connect”. These companies are pioneers in the future business paradigm in which meaning is generated for counterparties. The meaning for the counterparties comes from value for their communities and for the natural environment.

These companies generate value in Deep-Connect by practicing the five “managerial do-well’s” – things that companies need to do well – as in the graphic.

Read more about companies practicing Deep-Connect value.

4. Optimal Alignment of Managerial Do-Well's in Five Dimensions of Value

To generate compelling value in a given dimension companies practice a set of aligned managerial do-well’s, as shown in the graphic. Managers generate their own special value propositions by prioritizing and combining the managerial practices in their own particular ways.

The five managerial do-well’s cover a very broad range of activities. There are  28 separate parameters of managerial practices within the five managerial do-well’s. Managers align these 28 parameters across the entire value chain, illustrating the complexity of management today.

Books present the practices in the 28 parameters at leading companies.

4. Optimal Alignment of Managerial Do-Well's in Five Dimensions of Value
5. Manage for Success with Five Internal and Five External Success Factors

5. Manage for Success with Five Internal and Five External Success Factors

The parameters and individual practices in the managerial do-well’s are well known in business and until now have been examined as success factors in their own terms. 5-D Value shows that the decisive success factor is to align numerous parameters to one another in generating value in a particular dimension.

Each managerial do-well is an internal success factor which determines the performance of the company on one of five external success factors, as shown in the graphic.

Amazon is extraordinary in aligning practices to generate compelling  value in three dimensions, whereas almost all companies have compelling value in only one dimension.

The Value of 5-D Value

The Value of 5-D Value

5-D Value can be likened to a cookbook. The entries in the matrix are the ingredients, their combinations within a dimension of value are the recipes and the management, or indeed the entire personnel, are the cooks. The publications in 5-D Value – books and videos – apply the framework to reveal the recipes followed by very successful companies. Like any good cook, each very successful company has its own nuances and style in following the recipes. The readers of the books and the viewers of the videos will be animated to become better cooks in their own companies. From the publications they will learn the recipes and when implementing them in their own companies, they will discover how to follow the recipes in their own special way.