Create negative value driver
Value Driver Name
Click on New Value Driver to enter a name. Enter a short, high-level description of the negative economic impact for your customer associated with using your offering vs. the competitive offering. Then click outside the text box to continue.
Variables
Click the Add Variable link to add new variables to this value driver. Variables previously used in this model, as well as those from any libraries to which you have access, may be selected from the type-ahead list. Or, finish typing the name of the variable directly. Then click the Add button to continue.
The value format of each new variable will be automatically set as a currency or percent if a specific keyword or symbol is used in the variable name. Otherwise, the variable type will be set to a count. The variable will be set to a currency if one of the following is used in the name of the new variable: $ | £ | € | ¥ | ฿ | cost | price | value | revenue | profit | margin. The type will be set to a percent if one of the following is used: % | percent | portion. (If both a currency and percent keyword or symbol are used, the type will be set to percent.)
You may then manually change the variable type to a currency, percent or count using the Toggle Type option in the drop-down menu at the right of the row.
Click on an existing variable name to edit it. Note: If this variable is used elsewhere within the model, the variable name will be updated in all places.
If the variable name is used in other places within this model, but requires different data in each place, use the Make Unique option from the drop-down menu. Notice the variable name will be appended with a number, much like a copy of a document on your computer. You may then edit the name of the variable as described above without affecting the other version.
Quantify
Each variable may be quantified directly using the text box in its row. Or use the Find Data option in the drop-down menu. It is a best practice to add the source and any relevant notes associated with this data using the Edit Metadata option in the drop-down menu.
By default, all data is unlocked. Use the Lock for UVPs option in the drop-down menu to prevent this variable data from being changed in Unique Value Propositions (UVPs).
Formula
Define the formula with a mathematical expression using the symbols associated with each variable.
The available mathematical operators include: parentheses, add, subtract, multiply, divide, and exponents.
You may also use constants, including decimals.
For example: ( (a+b) * 0.75 ) - (c/a) + d^3
If the formula is complex or you wish to repeat specific calculations, you may break out any variable into a subformula using the Convert to Subformula option in the drop-down menu. Then add variables, quantify, and define the subformula just like the main formula.
Click the function icon at the left (or the subformula value) to expand or collapse the subformula. And if you decide the subformula is unnecessary, return to the variable options drop-down menu to Eliminate Subformula just as it was added. Note this transforms the subformula into a simple value everywhere it occurs in this value model.
Note: If you added a variable which you have not used in the formula definition, it will still be saved as part of the value driver within this model. It can then be re-used in other formulas, or added into this one at a later time. Or use the Remove option in the drop-down menu to remove unneeded variables.
Unit of Measure
By default, each value driver is calculated on the basis of the same unit of measure which is used to display the value model chart. To calculate this value driver using a different unit, you may select any of the alternative units available in the drop-down menu. To add further unit options, use the Units & Currency option in the More menu.
Use Custom Value
Check the box Use Custom Value to override the value driver formula. Then enter the estimated economic impact of this value driver directly.
Notes
As a best practice, enter additional information here to explain the calculation of this value driver. For many users, it is helpful to write out an explanation of the economic impact here before adding variables and building the formula.