Designing and Defining Value: How Clarity Drives Business Valuation by Dr. Ganesh Kumar
In today’s hypercompetitive world, success doesn’t just depend on having a good idea or a superior product. It depends on how clearly you define, design, and deliver value. This was the central theme of the Spark Lab 2.0 session on Designing and Defining Value Proposition, led by Dr. L. Ganesh Kumar, CEO of iFocus Syntec India Pvt. Ltd.
What Does “Value” Really Mean?
Value is at the heart of every ecosystem. It is shaped by the balance between need and affordability, as well as by culture, behavior, and lifestyle. A product can be highly needed but unaffordable—or affordable but irrelevant.
Take the example of Swiggy and Zomato. During COVID, their value skyrocketed when going out wasn’t possible. What began as a situational need turned into a post-COVID lifestyle habit.
According to Dr. Ganesh Kumar, six elements make up value:
- Usefulness
- Availability
- Time required to create and deliver
- Situation and location
- Cost and worth
- Behavioral and psychological aspects
In simple terms, Value = Result ÷ Cost. The higher the result and the lower the cost, the greater the value.
On a personal level, value can be measured by asking: Am I chasing others, or are others chasing me for my knowledge and skills? If others are chasing you, you are creating value.
The Three Pillars of Value Creation
Businesses must approach value creation in three stages:
1. Defining the Value
This is the most intellectually demanding stage. It requires answering questions like:
- Who is the buyer?
- Why do they need this?
- Is it affordable?
- Is it “must-have” or “nice-to-have”?
- Which segment does it target?
2. Designing the Value
Design depends on the organization’s capabilities and ecosystem. Companies must be able to scale fast when demand rises. For example, during COVID, ventilator manufacturers that could scale quickly succeeded.
3. Delivering the Value
Delivery is where customer experience and credibility are built. This is why customers prefer trusted brands—like Bosch washing machines—over generic ones, even at a higher cost.
Crafting a Clear Value Proposition
A value proposition is not jargon. It is a crisp statement that tells customers:
- How your product solves their problem.
- The exact benefits it provides.
- Why they should choose you over competitors.
Startups often struggle here, focusing too much on technology (“We use AI and blockchain”) rather than real usefulness (“It’s reliable, affordable, and comes with a warranty”).
Tools for Defining Value
Two frameworks stand out:
- Value Proposition Canvas: Map customer jobs, pains, and gains against your products, pain relievers, and gain creators. Importantly, make separate profiles for different roles (CFO vs. CTO vs. CHRO). The goal is to achieve perfect fitment between customer needs and your offering.
- “So What?” Framework: Keep asking So what? about every feature until you reach an emotional benefit. Example: We have 20 years of experience. So what? → It safeguards your data so you can rest easy.
From Value to Revenue
A great value proposition must translate into sales and revenue.
Perceived value often trumps economic value—that’s why customers pay more for a known brand. But the true test of value creation is simple: Is your revenue growing?
As Dr. Kumar emphasizes:
“If you’re creating one of the best value products or services, but there is no buyer and no revenue, then that value has no meaning.”
Strong revenue growth also fuels business valuation, reassuring investors of potential high returns.
The Unique Value Proposition (UVP)
Your UVP is the one sentence that makes customers say: Yes, this is why I should choose you.
To build a UVP:
- Study the competition with SWOT analysis.
- Highlight what makes you different.
- Tell a compelling story.
Above all, keep it simple, clear, and concise. A UVP must grab attention instantly and evolve through testing and refinement.
Linking Value to Brand Identity
A company’s value proposition directly shapes its brand. Building a valuable brand requires three practices:
- Practice Values – Build credibility and trust.
- Create Value – Offer products/services that solve real problems.
- Be Valuable – Ensure demand is strong and growing.
Defining value is not about buzzwords—it’s about clarity. A well-crafted value proposition drives revenue, strengthens brand identity, and ensures long-term business valuation.