The practice of systematically quantifying and communicating business value to support B2B purchasing decisions.
Value engineering originated in manufacturing during World War II when General Electric developed methods to find acceptable substitutes for scarce materials. Today, in B2B sales and software, value engineering has evolved to mean something different: the systematic practice of quantifying and communicating the business value of a solution.
Modern enterprise buyers face increasing pressure to justify every purchase with hard numbers. According to Gartner, 77% of B2B buyers rate their latest purchase as "very complex or difficult." Value engineering addresses this by:
While related, these are distinct practices:
| Value Engineering | ROI Calculation |
|---|---|
| Holistic process of discovering and quantifying value | Specific financial metric |
| Includes qualitative benefits | Purely quantitative |
| Ongoing throughout sales cycle | Point-in-time calculation |
| Customer-collaborative | Often vendor-driven |
A clear statement that explains how a product or service solves customer problems, delivers benefits, and why customers should choose it over competitors.
A documented justification for undertaking a project or initiative, typically including financial analysis, risk assessment, and expected outcomes.
The process of achieving and measuring the actual benefits and outcomes promised during the sales process after implementation.
The duration between when a customer purchases a solution and when they start experiencing its benefits. Shorter TTV increases customer satisfaction and reduces churn risk.
A structured financial framework that calculates expected returns by mapping solution capabilities to business outcomes and quantifying their impact.
See how ValueNova helps you apply these concepts to build compelling business cases.