Design to value (DTV) is looking at what consumer’s value the most, and designing a product of high value at a low cost.
Value of Product
When talking about the value of a product, it is not just about lowering the cost. The value of a given product is interpreted differently from person to person. Some would value the level of performance and functionality highest, and others how unique or the emotional appeal it has compared to the cost. This can be put in a simple way; how much are consumers willing to pay for specific features.
Value = Features/Cost
Design to Value Approach
DTV use facts and data from consumer research to drive decisions during development, and need participation from consumer, design, operation and purchasing. That way overall cost can be analysed, and the effect of engineering decisions can be determined.
Some of the elements that is included in the DTV approach is listed below.
- Consumer Research: What does the consumer want, what are they willing to pay extra for, and what features are they not interested in.
- Competitor Product Teardown: Taking the competitors product apart to see what features they have, and if they used manufacturing processes and design at a reduced cost.
- Cost Reduction: Reduce cost by redesign, change of material and processes, as well as negotiating with suppliers.
One item to keep in mind when doing the consumer research, is the amount the consumers have available to spend. It does not help only to focus on how much they are willing to pay to pay for some particular features, if the amount they have available is less.
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