Business Estimate sales revenue costs Link performance to customer value Link customer value to sales/revenue Competitors Performance Forming and assembly technology Equipment, tooling costs BOM/Parts-size. mass. material Outputs Sales Revenue Net income, prof RD One Approach to Link Market Demand, Value, and Performance S-Model(Ref: H E. Cook, 1997) Customer-Perceived value Product Specifications Drive Drives market Demand Customer-Perceived value Increased Increased Improved Product spec Baseline value (e. g 0-60 Time, Turning Circle)17 4/14/04 Fenyes Business • Estimate sales, revenue, costs – Link performance to customer value – Link customer value to sales/revenue • Inputs – Competitors – Performance – Forming and assembly technology – Equipment, tooling costs – BOM/Parts - size, mass, material • Outputs – Sales – Revenue – Cost – Net income, profit 4/14/04 Fenyes One Approach to Link Market Demand, Value, and Performance: S-Model (Ref: H. E. Cook, 1997) Customer-Perceived Value Drives Market Demand Price Sales Volume Baseline Value Competitive Advantage Increased Value Product Specifications Drive Customer-Perceived Value Product Value Product Spec Improved Function Increased Value (e.g. 0-60 Time, Turning Circle)