Business outcomes are quite often mixed up with customer outcomes. Yes a customer outcome can be to improve a business outcome. A TCO reduction can also be a customer outcome but it not necessarily a business outcome. A business outcome should really be examined through the lens of how your products are designed to help serve others. How will your products help fulfill an unmet need of your target consumer, and does it take that consumer to a happy place. It stands to reason that there should be a way in which you can measure the end consumer value of the business outcomes you offer from the goods and services you sell.

Measuring the value of your products & services through the lens of utility value for end consumers.

As we navigate through the complexities of the business world, the concept of utility becomes increasingly important. In economic terms, utility refers to the value that a product or service provides to its users or consumers. The notion of utility is crucial in understanding the satisfaction and preferences of consumers, which in turn can have a significant impact on business outcomes.

One of the key aspects of utility is that it is subjective and varies from person to person. For example, a product that one person finds highly useful and valuable may be completely irrelevant to another person. This is why it is crucial for businesses to understand the different types of utility that their products or services can provide and to tailor their marketing and advertising strategies accordingly.

There are two main types of utility that are relevant in business: form utility and place utility. Form utility refers to the value that a product or service provides through its physical characteristics or features. For example, a smartphone with a high-resolution camera or a car with a fuel-efficient engine provides form utility to its users. Place utility, on the other hand, refers to the value that a product or service provides by being located in a particular place or location. For example, a grocery store that is conveniently located near a residential area provides place utility to its customers.

Understanding these different types of utility can help businesses to identify their competitive advantages and to differentiate themselves from their competitors.

By focusing on the types of utility that are most important to their target audience, businesses can tailor their products and services to meet their customers' needs and preferences. This can help to increase customer satisfaction, loyalty, and ultimately, profitability.

Moreover, by understanding the concept of utility, businesses can also make informed decisions about pricing their products and services. The value that a product or service provides to its users is a key determinant of its price. By understanding the different types of utility that their products or services provide, businesses can set prices that accurately reflect the value that their customers receive.

The concept of utility is essential in economic terms, and it has a significant impact on business outcomes. By understanding the different types of utility that their products or services provide and tailoring their strategies accordingly, businesses can improve customer satisfaction, loyalty, and ultimately, profitability.

What does this all mean?

Business outcomes are not in our control. The end consumer decides if our goods and services are useful or not. This in turn will determine the business outcomes performance and in turn profitability. It is clear that getting some sort of predictability of consumer reaction is going to be important, as you seek to build your next generation goods and services. For this a business based data model is essential. Frst you should understand how mature your organization is when using data for business decisions. Only when you know how you need to use data when making decisions for business outcomes, can you understand what capabilities you will need from technology. I have no hesitation to say, we at AWS are helping companies understand their data maturity level, to enable maximum innovation for your business outcomes.

Don't hesitate to comment.

Mickey

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