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VOB

 

Voice of Business (VOB) - is a tool that captures the stated and unstated needs of the shareholders/business owners. Business scorecard is a very commonly used tool to capture VOB. E.g. profits, viability of business, cost reduction, dividend pay-outs, return on equity etc.

Voice of Customer (VOC) - is a research tool that captures the stated and unstated needs/requirements of the customer. Interviews, focussed group discussions, surveys, observation, warranty data, complaints are some of the ways in which VOC can be captured.

 

 

An application oriented question on the topic along with responses can be seen below. The best answer was provided by Venugopal R on 6th November 2017. 

 

 

Featured Replies

Question 3: While the Voice of Business is supposed to be in line with the Voice of Customer, there are some valid reasons that make them go against each other. What are some of the most common reasons that create a conflict between VOC and VOB?

 

What is VOC?

Voice of the customer is nothing but stated and unstated needs or requirements of the customer to provide the world class quality. It is a very critical component to gather information around VOC in all DMAIC phases. This process is all about constantly delivering the world class best product and being innovative, proactive in all the times to delight the customer. The need is gathered in terms of feedbacks, surveys, discussions, focus groups, observations, customer requirements, warranty/guarantee, complaints log. Hence in conclusion, it is customer requirements and expressed in targets.

 

What is VOB?

VOM is nothing but voice of business. VOB is based out of financial derivatives and its relevant data. This financial data will provide us insights on the product strategy, market demand supply gaps, research on product and its development, process requirements and its complexity. By understanding the potentials of the business, the management will decide upon selection of processes/ products that the goals and directions are met in order to satisfy the VOC. VOB is voice of the leadership team, organization’s mission or goals developed in order to satisfy the customer.  Proper management is to highlight the burning customers to the team to identify the problems, fix it and act proactively to prevent such errors which is in order to keep VOB / VOP in line with VOC to delight them.

 

Common reasons which creates the conflict between VOC & VOB:

VOC

VOB

Gathers feedback on the product / services provided to the customer

Gathers financial derivatives, which involves market research

Information is collected once the product is delivered to the cusstomer and the customer uses it to provide feedback.

Information is gathered before the product is developed and ongoing research is conducted to innovate new techniques

Customer's need and requirements are gathered and incorporated in to project selection to add value to the value levers identified.

Value levers (strategic, process, customer driven & Financial levers ) are identified in the process of development of the product in aligned to the goals of the organisation.

Customer's needs

People who runs the organization's needs

Deep insight in to the product that he is willing to pay for

Deep insight into revenue, economic growth, market leadership, etc

 

Does VOC & VOB compete? The company is doing to business to make profit, sustain & lead market, develop and accomplish goals and mission of the organization. Customers can’t be a scape goat at any cost. Oraganization should aim to accomplish the goals developed to satisfy the customer, make profit and invest for future advancements to delight the customer.

image.png.d025a70271aecef8b0f467611c98c53b.png

 

Do the VOC override VOB? No. Customer would always prefer the product at the cheapest price. Its true. But When a company can’t deliver the product which the customer wants, the product fails. Either the VOB should get convinced or VOC get convinced. Both the ways to satisfy each other , the concept of VOB & VOC should go hand in hand, with all the processes mapped continuously to add value to the process, business and customer.

 

Conclusion:

VOC & VOB should go hand in hand for  the organisation’s success. Understanding the business potential will helps us deliver the best to the customer and lead the market to sustain the economical growth and its revenue slab of the organization.

 

thanks

Kavitha

Voice of the Customer & Voice of Business

 

Voice of the Customer:

                                         It is the Process of capturing the requirement of the Customer in order to fulfill their Needs & meet their expectations.The voice of Customer can be collected in many forms such as Direct discussions, Surveys, Customer Specs., observations, Warranty Datas, etc. VOC allows us the following things,

- Collect the Feedback of the ongoing Process

- Customize our Services or Products to better meet the Wants & needs of our Customers

- Improve Our Profit & Market share

- Uncovers the Customers Needs & Desires so we can prioritize these items

- Collect Real time data, take action & report back to customers that we hear them & understand their needs

So By VOC we can Retain the Existing Customers, Minimize Negative Feedback & Get a Full Picture of the Customer

 

Voice of the Business:

                                       The Voice of the Business or the needs, wants, expectations & preferences, both Spoken & Unspoken, of the People who constitute the business itself

VOB Data can obtained from Financial & Market Data analysis, Competition Analysis, Employees Survey, etc. The Data acquired can be used for Assuring business health & the same. VOB are the internal processors needed to support the processors that drive VALUE for the Customers

 

Common reasons that create a conflict between VOC & VOB:

 

There are many reaasons that the VOC & VOB makes a conflict . For incase if we are not meeting the Customer requirement as per VOB, then it automatically affects our image @ Customer end & also it affects the VOC during the Survey. We have the Needs & wants of Two parties to adhere to. The Company is doing business to sustain, to make Profit, to accomplish a Greater goal, etc. But this can't be done at the Cost of Customers. Because of the Two angles, the VOC & VOB should always be considered together. It is upto the company to take challenge & match the synergy between them

Hi all, most of us got the correct definition of VOC and VOB. To an extent that even the verbatim was very close in several responses. Although VOC and VOB both have a common objective of achieving operational excellence in various business processes, occasionally VOC and VOB may seem to be contradicting each other.

 

The best three answers I feel were from Venugopal R., Arunesh Ramalingam and Harsha Subbanna. Deepti Arora’s explanation on why and when to use VOC and VOB was also excellent while Mohan PB explained the B2B business scenario very aptly.

 

All in all Venugopal R.’s answer was more precise and well presented.  Last but not least, food for thought, I personally don’t believe that Product Price as VOB is in conflict with value for money as VOC.

 

Cheers to the spirit of business excellence

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