What is business value and how to measure it

In today's business landscape, the concept of value has become central to organizational strategy, moving beyond the Agile Manifesto's focus on working software to emphasize value and outcomes. Value, though difficult to quantify directly, can be assessed through proxies such as current value and unrealized value. Current value reflects the product's immediate benefits, gauged through customer and employee satisfaction metrics, while unrealized value represents the potential future gains from meeting untapped market needs. Companies can evaluate these dimensions using tools like Net Promoter Score for customer satisfaction and Employee Net Promoter Score for employee engagement. They can also analyze revenue per employee as an efficiency indicator. Unrealized value is assessed by examining the market share gap and customer satisfaction gap, indicating areas for growth and improvement. Organizations can utilize a 2×2 chart to prioritize initiatives, distinguishing between products based on their current and unrealized value, and informing strategic decisions. Tools like LogRocket assist in identifying areas of friction in user experience and aligning teams to address necessary changes, thereby enhancing product value and achieving business goals.