How To Drive Value Creation In Business
The technological advancements of the digital age have revolutionized opportunities for value creation in business, not least the ability for companies to interact directly with consumers using their product. Some of the most successful new companies have used the global network of people to which the internet provides access to create new services that drive value and grow their business. This ready made market means companies have low startup costs while also being able to leverage their market quickly to create huge profits.
Mission driven consulting is a fundamental aspect of ensuring that companies’ products and services provide effective solutions to customers’ problems and that they retain existing clients. Value creation is defined by a company’s brand and driven by its employees, new ideas and innovative processes. Creating value for customers will depend on the sources of value creation in a company and nurturing them to ensure ongoing growth.
The digital revolution means that consumers now demand fewer physical products but are rather interested more in creative goods. Historically, creating value has meant employing mass production and increasing efficiency, but in the future value creation will revolve around creative goods and solutions that may not be tied to a physical product. This could mean, for example, providing greater customization for individual clients, pushing regular product and service improvements, providing unique solutions to customer problems and finding innovative ways to sell and deliver products in digital forms.
Driving value creation will increasingly involve the speed and convenience with which products and services are delivered to the consumer. This is seen in the rise of ride-sharing and meal delivery companies that cater to the consumer’s demand for speed and ease of delivery; companies that can complete their part of the sales bargain more quickly are seen as better. The quality of products and services will remain important but companies need to understand their customers better (through data analysis) to beat competitors whose products and prices are essentially similar if not the same. Effective targeting of customers through the use of big data will become increasingly important in driving value creation by meeting their individual needs in a highly personalized way. Quality, however, must remain paramount in any value creation equation; this means that companies need to support and emphasize constant research and innovation to ensure that they are seen as the guarantor of quality for their particular product or service so that the perception of its value is foremost.