The definition of value in business

Question

How is value defined in a business context?

Answer

For a solution to be valuable it must solve an actual problem.

If a need exist for the solution, then the solution must do one or many of the following:

• Reduce costs/time: reduce human resources needed to produce the same results
• Increase quality: Increase accuracy/repeatability of a process
• Solve a problem that could not be solved previously
• Have a significant impact on costs for improving an already solved problem
• Offer the ability to scale the process without having to scale the necessary human support linearly with the growth of the process
• Help with identifying the most important pieces of the business in order to follow the 80/20 principle