What Will Value Creation Look Like In The Future?

A friend read my post on Facebook which says "As there are an enormous (and ever-increasing) set of possible ways to create value, how do we decide which type to pursue? Is each way of creating value as useful to us as another?”.

He reviewed it carefully and shared his thoughts which are captured thus ‘On a broader perspective, I believe values that should be pursued should be values that promote customer loyalty to a company's brand whilst expanding her customer base. Though values created for customers may differ from one company to another, there is a general basis for creating impactful and profitable customer value. They include (but not limited to) excellence, quality and empathy.

I would say yes, because value creation is intricate in nature as it is the result of a comprehensive network of strategies backed up with sound implementation. Some ways of creating values may seem to be "less" important to a company than others but it is upon these less important ways that greater competitive advantage is built’. I appreciate these very much. Quite interesting and insightful.

Value creation is about being to your client / customer what they want you to be.  If your customer / client value consistent quality and timely delivery, then the skills, systems, and processes that produce and deliver quality products and services delivered on time are highly valuable to your organization. If your customer / client value innovation and high performance, then the skills, systems, and processes that create new products and services with superior functionality are what you should focus your efforts on. It’s about consistently aligning your actions and capabilities with the customer value proposition. This is the core strategy execution.

When I lead a discussion on value creation, I make sure we spend quality time to uncover the value drivers in the industry / markets and upon that, help participants appreciate the different options that they can take to deliver value to their customers / clients consistently. 

At the end of the day, understanding where, how and why value is created within your company and your markets / industry is the best, most objective way to identify which of your activities and assets are distinctive enough to propel your business profitability and profitable growth.

What would value creation look like in the future? We don’t really know but if we pay attention to the evolving needs and aspirations of our customers / clients, we will be able to position properly to lead through value creation. We have to get obsessed with value and make creativity real.

The value of products and services today is based more and more on creativity – the innovative ways that they take advantage of new materials, technologies, and processes. Value creation in the past was a function of economies of industrial scale: mass production and the high efficiency of repeatable tasks. There’s no longer any barrier to potential entrants or substitutes — in a digital world, competition can come from anywhere.

“Value creation in the future will be based on economies of creativity: mass customization and the high value of bringing a new product or service improvement to market; the ability to find a solution to a vexing customer problem; or, the way a new product or service is sold and delivered” – Torben Ricky