Why is Value Creation Important?
As I made my initial steps in the blog world, I began by refering to Michael Porter's model of value creation in the enterprise. As this was a humble begining, I added a few elements, some more general, others more specific. As I was walking back home after serving the meal to some of Montreal's homeless people, I was wondering why is it that people create businesses or charitable organisations?
Obviously, there are as many reasons for starting a business as there are entrepreneurs, but to make our life easier, let's say that it's to make a living, or get rich. In the case of a charitable organisations, most of the time it is to help your fellow man or woman of child. Or to save the environment.
But this did not satisfy me much. So I tried to get 30,000 miles in space to gain a broared perspective. Bear with me for a moment.
Since nature, when left unatended, has a "natural" tendency to return to chaos, value creation is the result of the human struggle to fight chaos and create order. Don't you love this kind of deep thinking?!
For example, take a trail into the woods. Leave it unatended for 20 years. Don't even hike it. Chances are that the trail will have disappeared, unless it has been adopted by deers. You may say that this not a good example as walking the trail is only a means to get somewhere. OK. But why do you want to get to this "somewhere"? Go visit a neighbour? OK. Why? Trade your onions for a chicken? Created value. Just say hello? Created value. Not always commercial, but still value!
All human interactions are based on the search for and exchange of value. When value is created for both parties, the relationship might last longer. If the relationship is win-loose, the relationship might not last very long. Makes sense, no?
Now let's take Dell's (or any other corporasion's) customer service. If the customer service ends-up creating a win-loose value exchange, in the end, everybody looses, even Dell's shareholders, in the end.
Coming back to the "human fight against chaos". An individual seeking to create value for another (or for the entire planet for that matter), whether through the creation of a business, making a donation to a charitable organisation or getting involved with GreenPeace to help stop deforestation in Northern Québec, this individual is creating value as a consequence of his or her fight against chaos. Allthough the fight against chaos is not the primary motivating factor, of course.
Am I making any sense here? Any thoughts?
As I made my initial steps in the blog world, I began by refering to Michael Porter's model of value creation in the enterprise. As this was a humble begining, I added a few elements, some more general, others more specific. As I was walking back home after serving the meal to some of Montreal's homeless people, I was wondering why is it that people create businesses or charitable organisations?
Obviously, there are as many reasons for starting a business as there are entrepreneurs, but to make our life easier, let's say that it's to make a living, or get rich. In the case of a charitable organisations, most of the time it is to help your fellow man or woman of child. Or to save the environment.
But this did not satisfy me much. So I tried to get 30,000 miles in space to gain a broared perspective. Bear with me for a moment.
Since nature, when left unatended, has a "natural" tendency to return to chaos, value creation is the result of the human struggle to fight chaos and create order. Don't you love this kind of deep thinking?!
For example, take a trail into the woods. Leave it unatended for 20 years. Don't even hike it. Chances are that the trail will have disappeared, unless it has been adopted by deers. You may say that this not a good example as walking the trail is only a means to get somewhere. OK. But why do you want to get to this "somewhere"? Go visit a neighbour? OK. Why? Trade your onions for a chicken? Created value. Just say hello? Created value. Not always commercial, but still value!
All human interactions are based on the search for and exchange of value. When value is created for both parties, the relationship might last longer. If the relationship is win-loose, the relationship might not last very long. Makes sense, no?
Now let's take Dell's (or any other corporasion's) customer service. If the customer service ends-up creating a win-loose value exchange, in the end, everybody looses, even Dell's shareholders, in the end.
Coming back to the "human fight against chaos". An individual seeking to create value for another (or for the entire planet for that matter), whether through the creation of a business, making a donation to a charitable organisation or getting involved with GreenPeace to help stop deforestation in Northern Québec, this individual is creating value as a consequence of his or her fight against chaos. Allthough the fight against chaos is not the primary motivating factor, of course.
Am I making any sense here? Any thoughts?
posted by GRK at 5:00 p.m.
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