Summary Chart
The summary chart is a visual representation of your model's economic value estimation. Quickly the components are, first the competitor price or reference value (blue bar), the positive (green) and negative (red) value drivers, and the sum of which is net differentiation value – the light green area.
Note that this graph does not include your offering's price.
This lighter green area is called Differentiation value. It’s the net value that your offering provides. Namely, the sum of all the dark green bars (which we call positive value drivers) minus the sum of the red bars (which are the negative value drivers), again if you have them.
It’s fair to say that the higher the differentiation value, the stronger your competitive positioning is with that customer.
The orange bar, called Total Economic Value, equals the reference value, or your competitor’s offering price, plus the differentiation value. So in this example, it is $478,000 plus $349,500 equals $827,500.
Total Economic Value means represents the theoretical maximum price that a customer would be willing to pay for your offering, assuming they accepted all these value drivers. Practically speaking this is very, very unlikely. But the customer should be willing to pay more than the reference value of $478,000.
Clicking on the green value driver bars opens up the formula dialogues for those value drivers. If your competitor’s offering only has one price component, clicking on the blue reference value will open a formula dialogue for the competitor's price component.