An important root cause behind the failure of innovations to becoming a norm is lack of a systematic and repeatable process for assessing innovation based not only on readiness to pay, but perceived performance improvements against competition, and then consequently instituting both selling processes, tools to make sure the company realizes those performance improvements as increased cash flow.
A Six Sigma approach to value measurement can be used to make sure only those innovations that will deliver improved benefits will advance successfully through each gate. This Six Sigma approach has been taken from a standard Quality Functional Deployment (QFD), enhanced with a pricing component.
The Six Sigma approaches used during this process are head-to-head comparisons, value maps, product attribute weightings and implied worth. The Value Map shows the benefit against price choice that customers face as they assess the products against competitors. Head-To-Head Comparisons talk about the value of the offer delivers against specific competition. Product Attribute Weightings recognize the primary benefits customers value the most. Implied Worth gives the details of what customers are agree to pay for the offer.
These Six Sigma tools, processes and approaches have been successfully applied to structure their innovations efforts and accomplish stronger financial outcomes.