Core Concepts
Value Drivers
Value Drivers are the fundamental building blocks of value measurement in DIVACS. They represent specific business capabilities, processes, or initiatives that create measurable value for your organization or your customers.
Key characteristics:
Each value driver has a unique name, description, and explanation
Contains benchmarks for comparison and measurement
Assigned weights to indicate relative importance
Can be categorized (Soft Cost, Hard Cost, Future Savings/Revenue)
May include formulas for automated calculations
Can be created manually or generated by the system
Examples: Cost reduction initiatives, process automation, customer satisfaction improvements, revenue generation activities.
Benchmarks
Benchmarks serve as reference points for measuring the performance and impact of value drivers. They provide a baseline against which actual achievements can be compared.
Components include:
Benchmark Value: The target or reference value
Unit: The measurement unit (e.g., percentage, dollars, hours)
Context: Situational information about the benchmark
Source: Where the benchmark data originated
Description: Detailed explanation of what the benchmark represents
Value Driver Weights
Weights represent the relative importance or priority of each value driver within your overall value framework. They help prioritize focus areas and calculate weighted value scores.
Key points:
Weights are typically expressed as percentages
Total weights across all active value drivers should equal 100%
Can be manually assigned or system-calculated
Include explanations for weight assignments
Support collaborative weight adjustment processes
Achieved Values (Actual Values)
Achieved Values represent the real-world results and outcomes delivered through your value drivers. These are the actual measurements of value created over time.
Features:
Date-stamped entries for historical tracking
User-provided remarks and context
Support for multiple value updates over time
Latest achieved values influence value score calculations
Can be manually entered or integrated from external systems
Proposed Values
Proposed Values are suggested or projected improvements to value driver performance. They represent planned or anticipated future achievements.
Characteristics:
Include proposed dates and target values
Status tracking (Pending, Approved, Rejected)
User attribution for accountability
Support collaborative review and approval processes
Advanced Concepts
Value Journey
The Value Journey represents the progression of value creation over time. It tracks how value drivers perform across different time periods, showing trends and patterns.
Components:
Value Scores: Calculated scores based on achieved values vs. benchmarks
Time Intervals: Regular periods (monthly, quarterly) for measurement
Projected vs. Actual: Distinction between planned and realized value
Historical Tracking: Complete timeline of value progression
Total Customer/Vendor Value
Total Customer Value and Total Vendor Value represent the aggregate value being delivered to or received from your business relationships.
Calculation includes:
Sum of all active value driver contributions
Weighted calculations based on value driver priorities
Time-based aggregation showing value trends
Separate tracking for customer vs. vendor relationships
Top Movers
Top Movers identify the customers or vendors showing the most significant positive or negative changes in value scores over recent periods.
Features:
Percentage-based change indicators
Visual indicators for positive/negative movement
Clickable navigation to detailed value analysis
Helps identify high-priority relationship management opportunities
Value Scores
Value Scores are calculated metrics that quantify the performance of value drivers against their established benchmarks.
Calculation methodology:
Compares actual achieved values to benchmark values
Considers weight assignments in overall scoring
Provides normalized scores for comparison across different value drivers
Updates automatically as new achieved values are recorded
For additional support or questions about these terminologies, please contact our support team or refer to the detailed user guides within the DIVACS platform.