THE ANATOMY OF VALUE CREATION
Values are generalized, relatively enduring and consistent priorities of how an actor wants to live.
Value creation; is the process of co-producing offerings (i.e. products, services) in a mutually beneficial seller or buyer relationship. This relationship may include other actors such as subcontractors and the buyer’s customers. In this relationship, the parties behave in a symbolic manner leading to activities that generate positive values for them. The actors brought together to interact in this process of co-producing value, form a value constellation.
Many case illustrations have shown that different people have different priorities. Like some, like oranges others coffee. Some want to relax and not take on more duties than necessary, whereas others are driven by entrepreneurial spirit. Certain individuals are highly occupied with how they can further improve the world around them.
The values and aspirations of individuals are the building blocks for value creations. Without values we cannot make choices in situations of ambiguity. And without aspirations we would not direct our energy towards more than the ultimate minimum.
In business we define the value-creation priorities of an actor in respect to the utilization of both internal and external resources. It defines how the actor relates with stakeholders, such as actual and potential customers, employee, unions, suppliers, competitors, and other interest groups. It takes account of situations where the actors’ activities may;
a) Affect the business environment and its own business in ways that could create conflicting interests, or impose risks on the actor; or
b) Develop new, previously unpredicted ways of creating value. The business model is in itself subject to continued review as a response to actual and possible changes in perceived business conditions.
Drawing conclusions according to ones aspirations, a well detailed plan can be made for the activities, or processes and how to further develop the business.
ZETTERBERG has identified six cardinal values; the pursuit of wealth, order, truth, the sacred, virtue, and beauty.MAX WEBER, had identified lebensordnungen (life-orders), wertspharen (values-spheres) they were the economic, political, intellectual, religious, familial and erotic life-orders and spheres of life-activity.
ZETTERBERG left out what he calls the microsocialogical familial and erotic value spheres and added the ethical realm.
The six cardinal values here adopted would then be: pursuit of wealth, search for knowledge, civic virtue, beauty, survival and belonging.
Russian psychologist lev Vygotsky laid a foundation in psychology of culture and conscientiousness, that activity is the smallest unit of analysis which preserves both the link between mind and society and the coherence of different actions and movements.
The concept draws attention to relationships between motives and the contexts of actions. The settings for different activities are not determined by objectives, physical features but are provided by those who engage in them. Activities are triggered by some stimuli, but once undertaken the activity in itself starts to change the environment which also may result in unpredicted implications.
Please note that Human activity is principally a continuous process of discovery.
One has to suddenly find out that in his relatively restricted environment he already has a quite complicated task in choosing what offerings to focus on and what processes to develop.
Written by
Waako Garvin
C.E.O & Managing partner
Light up writers & Associates
waakog@gmail.com
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