Trend of increasing value

Trend of increasing value is a trend of engineering system evolution according to which as an engineering system evolves its value always increases.

Overview

The trend of increasing value, also referred to as the trend of increasing ideality, is the primary mechanism behind the trend of S-curve evolution. All other trends serve as its supporting mechanisms.

According to this trend, for a system to remain competitive and attractive in the market, its value must continuously increase. This can be achieved through two types of mechanisms:

by applying any of the trends positioned below it in the trends’ hierarchy, or
by using the internal mechanisms of the trend itself, which can be expressed as models representing value growth as the ratio of total functionality to total cost of the system.

Internal mechanisms of the trend of increasing value

Increasing a system’s value for the market is always considered in the context of a specific MPV.

According to the definition, a system’s value is directly proportional to the sum of its functionalities and inversely proportional to the sum of its costs. Regardless of where the system is on the S-curve, its functionality must outweigh its costs in order to remain viable.

This advantage can be maintained in various ways. Identifying the current stage of the S-curve for the given MPV is extremely helpful in determining the right strategy. The diagram below outlines recommended strategies for each stage of development:

The recommended strategies for each stage of system development are as follows:

	strategy	explanation
Stage 1	ΣF↑ / ΣC↓ focus on simultaneously improving functionality and reducing costs	Stage 1 offers many opportunities for major changes and improvements, as the system is still in its early phase and is highly adaptable to modifications.
Stage 2	ΣF↑↑ / ΣC↑ ΣF↑ / ΣCconst ensure that functionality grows faster than costs	As the product evolves into Stage 2, its MPV increases rapidly, which typically drives up costs. Since costs are rising, functionality must grow at an even faster rate. If the growth in functionality slows down, costs should remain stable or increase only slightly.
Stage 3	ΣFconst / ΣC↓ shift focus to cost reduction	In the maturity stage, there are fewer opportunities for dramatic functional improvements. The priority should be on optimization and cutting costs wherever possible.
Stage 4	ΣF↓ / ΣC↓↓ intentionally reduce functionality (by designing lower-functionality products) to allow for significant cost reductions	At this point, the system is approaching obsolescence and is being pushed out of the market. Opportunities to improve functionality or lower costs are limited. However, it is still possible to increase value. A good example of this strategy is the development of disposable products (such as cameras, phones, paper towels, etc.), where functionality is lowered deliberately to reduce costs and boost market appeal.