6. POA Techniques

6.26 Value Modelling

Guide to Product Ownership Analysis

IIBA.org KnowledgeHub Guide to Product Ownership Analysis 6. POA Techniques 6.26 Value Modelling

Purpose

Value modelling focuses solution development on value delivery by tracing decisions to the value perspective of the stakeholder.

See section 7.22 of Agile Extension V2 for details.

In the context of product ownership analysis, value modelling is used to define the product as a combination of customer and stakeholder value. It helps the team trace product decisions (e.g., inclusion or exclusion of features) to customer value, derived or deferred.

POA Domain	Value Modelling:
Applying Foundational Concepts	Many poorly defined and misaligned products are described as merely a set of features or solution components. The value that can be derived from them is ignored. Different value models (for example, value proposition canvas, value model, mean value charts, customer value flowcharts) align the product to stakeholder goals. Value models mitigate the risk of poorly defined products for team members and the organization.
Cultivate Customer Intimacy	Different types of value models show gaps in the expected and perceived value from the product from different stakeholder perspectives. Value models are created with a stakeholder in mind hence the value model collates the spectrum of value derived by the stakeholder. This helps in the discovery process and creates an emotional connection.
Engage the Whole Team	Value modelling requires practitioners to take perspectives from the team members and derive customer values being delivered. Include the stakeholder in the discussion when creating the value model as it is specific to a stakeholder or customer segment.
Make an Impact	Value models provide a visual construct to easily understand the nature of value being delivered, which better illustrates impact than a list of features.
Deliver Often	The value model must be updated when customers' needs evolve due to: Changing expectations, New ways to achieve outcomes, Novel ideas, or Additional features
Learn Fast	Value models use all available subjective and quantitative analysis to evaluate the decisions that lead to customer value. A set of value-based metrics can be used to track perception of customer value and learn what needs to change.
Obsess About Value	The entire focus of the value model is to shift the understanding of the product from a solution-based outlook to a value-focused outlook. This enables products to be envisioned and delivered in a top-down approach where each PBI, story, and features trace it back to the envisioned value of the product.