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Product Value Management


Some companies have begun paying much more attention to what their customers want in their product development process. Roland Berger Strategy Consultants has drawn on its cross-sector experience in optimizing products, product costs (i.e. cost of goods sold, COGS) and value chains to develop a new concept called "Product Value Management" (PVM). This concept is also the subject of an academic study carried out at the Brandenburg University of Technology in Cottbus.

Perhaps most important of all, Product Value Management is not an optimization tool with a limited shelf life. It won't be replaced when the next new methodology comes along. Instead, it is a philosophy that needs to be rooted deep in the consciousness of the company. The core of the concept is the idea that every detail of the product can be improved – primary or secondary function, core or complementary product – by switching between a customer perspective and a cost-oriented company perspective. Applied consistently, PVM brings together two things that truly belong together: happy customers and profitable products. Improved sales and revenue are the next logical result.


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