Value models are the key to value based pricing and value based sales. What are the characteristics of a good value model? Ibbaka is exploring this with a group of experts. Here we go to the source and elaborate on Tom Nagel’s approach to value modeling and what makes for a good value model.

Value models are the way to connect the different business processes that deliver the customer experience. What is a value model? How are they used? In this pot we connect the dots.

On June 5th, Ibbaka presented at PeakSpan’s Master Class series. We explored practical steps for building a robust value model, a key tool for value-based pricing. This model, crucial for sales, customer success, and product management, helps estimate economic value. In this blog post, we elaborate on questions from the session.

A value model is a system of equations built from value drivers that estimates how much value a solution will provide to a customer or set of customers (market segment).

While on medical leave, I had a chance to take a step back and think about emerging issues and best practices in pricing. I put down some of these thoughts in a series of posts on LinkedIn: Pricing Generic AI, Pricing Microservices, Organizing Value Drivers, Integrating Pricing Models, The 4Cs of Pricing. I also shared some thoughts on design from my stay in hospital.