Aligning Perspectives and Methods for Value-Driven Design

Abstract

Recent years have seen a push to use explicit consideration of “value” in order to drive design. This paper conveys the need to explicitly align perspectives on “value” with the method used to quantify “value.” Various concepts of value are introduced in the context of its evolution within economics in order to propose a holistic definition of value. Operationalization of value is discussed, including possible assumption violations in the aerospace domain. A series of prominent Value-Centric Design Methodologies for valuation are introduced, including Net Present Value, Multi-Attribute Utility Theory, and Cost-Benefit Analysis. These methods are compared in terms of the assumptions they make with regard to operationalizing value. It is shown that no method is fully complete in capturing the definition of value, but selecting the most appropriate one involves matching the particular system application being valued with acceptable assumptions for valuation. Two case studies, a telecommunications mission and a deep-space observation mission, are used to illustrate application of the three prior mentioned valuation methods. The results of the studies show that depending on method used for valuation, very different conclusions and insights will be derived, therefore an explicit consideration of the appropriate definition of value is necessary in order to align a chosen method with desired valuation insights.