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Creating Value

The definition of value creation is giving something valuable to receive something else that’s more valuable to you. This definition is broad and captures both costs and benefits. Further, it applies to owners, customers, and employees, as I’ll describe later. Creating value means maximizing benefits within an acceptable price point. Benefits and cost are the two key components of customer value. Benefits can include aspects like quality, popularity, accessibility, convenience and longevity. Value creation is the process of turning resources, these can be physical like materials or non-physical like time into something of perceived value. Value creation is the bedrock of business. It’s what sets you apart from your competition, secures long-term customers, and brings distinct meaning to your brand and your solution.