Before we begin to
discuss this subject, it is important to agree on a working definition of
value. Obviously, various definitions of
value exist. In fact, value is such a
subjective aspect that more often than not, it is in the eye of the beholder.
So what then, is the definition of value?
Merriam-Webster dictionary (Definition of
Value, 2014) gives the following definition of value.
1val·ue
noun \ˈval-(ˌ)yü\
: the amount of money that something is worth : the price or cost of
something
: something that can be bought for a low or fair price
: usefulness or importance
For the purposes of our discussion, let us agree that value is the worth of “something”. When quantified, it
can be measured in dollars. When it is
not able to be quantified, value can be measured in terms of the goodwill it
generates. Obviously, we cannot measure
goodwill in absolute terms. But we can
certainly measure it in relative terms based on a benchmark of sorts.
Then the next ambguity that we need to
resolve is the “something.” In the
context of this discussion, it is an activity or service that is provided to
the receiver.
I define "Valufication" as the measurement of value for any activity or service. The value can be either:
· Quantifiable: The amount of dollars that
can be exchanged in return for an activity or service.
· Intangible: The amount of goodwill that is generated as a
result of an activity. From a
consumerization perspective, it is expected that all goodwill will result in
something tangible for the value creator.
For instance, better customer relationship will result in increased
business in the future.
Stay tuned for more on this subject....
