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Defining and Measuring Value

Summary   

This best practice explores multiple models for defining and measuring value, including value chain analysis, value stream mapping, value scoring, and Total Value of Ownership (TVO). 
 

Value Chain Analysis

In order to define value, it is helpful to gain a basic understanding of the chain of activities that leads to value delivery in any organization. A good place to start is with value chain analysis, which was popularized by Michael Porter in his book, Competitive Advantage: Creating and Sustaining Superior Performance.

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