The software and SaaS development industry are full of technologies and best practices that become quickly adopted, Even transforming from a best practice to a common practice quickly. One of these practices that we believe has great potential of becoming a best practice is the Value Realization process.
In this blog, we are sharing what value realization is, and why it matters. Also why it should quickly become a common practice in SaaS development.
What is Value Realization?
The concept of value realization simply means the measured value delivered to a certain company from a specific solution. The whole focus of the practice is to track the actual and tangible impact of a SaaS solution on the business. Also, knowing how it really benefits it with more visibility than ever.
The tracked value can include the value delivered to end customers. Also, internal business operations and to the business’s shareholders as well.
Why does the value realization concept matter?
The best way to refine a solution, and boost the benefits it delivers, is by knowing at first the value behind it, and how it actually benefits its customers.
Once you know the deep value of a SaaS product. You can begin to make more informed decisions on what features should be developed or not, and which ones would be prioritized.
It can also be used as a warning indicator of which customers you are risking losing. Who is clearly being provided no value by the product, and which ones should you upsell or cross-sell?
What are examples of Value Realization?
Depending on the industry and the nature of the SaaS solution, it can be translated through a specific metric.
This metric doesn’t have to be in dollars, as the relationship of the company with its customers matters as well. So an investment in boosting this relationship and enhancing satisfaction can still be of great value without bringing money in.
As another example, companies operating in industries with strict compliance regulations can have great value in resolving issues related to compliance and streaming processes related to it. Value realization surpassed translating this benefit to a more measurable value.
Why should value realization become a common practice?
No matter how a business change would be driven. It is critical to measure the value behind the delivered product. To understand your next steps, priorities, and what past investments have been worthy.
With the available value realization framework that businesses can readily follow. Then the digital tools can streamline its related activities. There shouldn’t be a reason businesses aren’t -at least- considering taking advantage of this concept.
