Key Questions
Organizations need to continually re-evaluate these questions for Unrealized Value:- Can any additional value be created for our organization in this market or other markets?
- Is it worth the effort and risk to pursue these untapped opportunities?
- Should further investments be made to capture additional Unrealized Value?
Balancing Current and Unrealized Value
These questions can’t be completely answered in isolation from the UV of other products; the decision to invest in one product means not investing in others. Considering both CV and UV provides organizations with a way to balance present and possible future benefits. Example scenarios:- A product may have a low CV because it is an early version being used to test the market, but very high UV, indicating that there is great market potential. Investing in the product to try to boost CV is probably warranted, given the potential returns, even though the product is not currently producing high CV.
- Conversely, a product with a very high CV, large market share, no near competitors, and very satisfied customers may not warrant much new investment; this is the classic “cash cow” product that is very profitable but nearing the end of its product investment cycle.