The PM formula

(User_Value - User_effort) * (Company_Value - Company_cost) = Product Value Proposition.

I consider this 'formula' as a pretty accurate representation of our work.

People use products if and when they generate value - provide the means to any end, the answers to any questions, opportunities for profit or joy, the scratch to that particular itch, yes anything and everything. They will use a product if and when the value proposition sufficiently exceeds the efforts they need to invest to gain access to, get familiar with and regularly operate said product.

In our research, we map the market terrain of our product to quantify the value of of our offering, and assess the investment we ask of our users for them to use our product - their time, energy, patience, cognitive effort and last but not least, their hard-earned money. A negative output within that parenthesis will mean a negative outcome for our product initiative.

A Company in our capitalist world exists in order to earn money, and must always grow; in the world of business, same as nature, the options are growth & reproduction, evolution, decay & decline - always in flux, always in motion. While our immediate actions may be focused on growth (user acquistion, solution development, marketing initiatives, the list is endless), evidently we all look up to the bottom line.

Once that gain can be projected and quantified, we scout and explore the road leading to it, detect possible roadblocks and risks, dive into the many details lying ahead to properly plan and assess our work, i.e. the company's cost.

Simplistic, yes, of course... I may elaborate that formula in the future, but will admit I'm hoping it holds true for me.

Edit - after some reflection I've realized the two elements should be multiplied rather than summed. A negative outcome for either user or company will result in a negative PVP.

Unfortunately this is not truly math, so a negative outcome for both will be a far cry from achiving positive PVP...